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Are you a mortgage penalty Red Wretch?

Pay Out Penalties Explained, if you were paying out on Nov 17, 2014. Making the right lender choice for a possible need/want to sell of your home before the mortgage comes due could have a big difference in payouts. This example shows Prior Discount compared to Best Rate. There is over $4,000 penalty difference. If your mortgage contract remaining fixed rate term is less than five years, and allows for: 1. No "port", just pay the penalty; or, 2. Only a "port" rate of only the remaining balance to save a penalty (keep remaining term and remaining balance); or, 3.

Critical Illness and Disability Insurance gamble

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CTV News Calgary on February 14, 2011 had a heart-breaking segment about an indvidual thinking they had mortgage payment coverage in case of sickness.  She is left with only her job's long term disability pay.  Most people will not have enough money to keep their mortgage and property tax payments up-to-date on long term disability pay. 

How did that happen?   Critical Illness does not cover all sickness and only for very limited disabling causes.  So, why did she take Critical Illness, and not Disability....

Economic Forecasts could fry your mind

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Garth Turner and Dean Baker of the Wastington based Centre for Economic and Policy Research both have said that residential real estate values are ready to plunge by 25%.  The Bank of Canada Governor Mark Carney has cautioned that mortgage debt at the current low interest rates are not sustainable.

So, what can you do about that?   Well, economists can create some exciting headlines with selective data, so I am rather glad they are not our weather forecasters.  Sometimes data can be manipulated to present a shocker of a news story.

How?  Take the wea

Is the 35 year amortization a Bait and Switch scheme for many?

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There is a certain amount of marketing and buyer psychology taking affect with recent mortgage default insurance rule changes.   One of those rule changes is the 35 year amortization is gone.  The maximum amortization is now 30 years.

When something is being taken away, or if it is seen as a "last chance to buy"- for some there is a compulsive need to have a rarity.

Before you jump into a 35 year amortization because it is GOING SOON!.......consider how you intend on making those mortgage payments.

Is this really your last chance to buy? &nbs

Getting more in Debt to reduce debt?

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Effective March 18, 2011, Canadian default insured mortgages have three changes:  no more Home Equity Line of Credit default insured mortgages; maximum amortization is reduced from 35 years to 30 years...but the last has me puzzled.

Minister Flaherty, the Federal Minister of Finance, has said that Canadians are using their homes as Automated Teller Machines to withdraw money for useless consumer spending such as flat screen TV's and vacactions.  He is putting a stop to that.

Home Buying as a Partnership

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Thinking of Home Buying as a Partnership?

There are good reasons to consider home buying as a partnership:

  • Income for qualifying to buy in the neighbourhood, home size and amentiies, and land space around the home may not be sufficient;
  • Down payment assembly could be accelarated with a pooling of resources
  • A strong credit rating of one partner may increase the chance of mortgage approval

Generally, most partnerships involve family members, where a parent or more established si

Aged parent says, "I'm not moving!" but lives in a cash poor retirement?

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You are not alone if you feel crushed by the needs of your children and now your parent(s).

There are many determined seniors who just will not listen to the advice:  " Please, sell the home you have owned and lived in for years." 

"Take the money and live in a home that does not need the physical strength to get around that this home needs.  Stop worrying about an increase of property tax because the pension is not big enough and the bank account is not high enough to take extra expense hits."

Who would have thought these old fol

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Do you have a decision to make: either because you have an existing mortgage that is variable or you are planning on taking a new mortgage?

The Bank of Canada July 20, 2010 25 basis point ( that is equal to 0.25%) increase of over-night rate triggered a Prime Lending Rate increase of 0.25% on variable rate loan products, including mortgages.

The video explains a single scenario of a $400,000 mortgage starting off with a five year term and thirty five year amortization.   Your mortgage will most likely have a different balance.  The fixed rate of 4.19% is commo

Rent to Own

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So you are thinking about doing a rent to own?

If you are a purchaser that does not qualify now because of recent credit history, type of income, or lack of down payment- you maybe looking at rent to own ads.  They are all over the internet, papers, and posters.

If you are a property owner who wants to defer a transfer of asset and incur capital gains or investment income later, the rent to own is a method of retaining ownership and title to a property, having a tenant to continue to provide income from the real estate, but also have a willing buyer lined up for the fut

When your mortgage term is up- is your balance up, too?

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About 5% of the mortgages being done in Canada the summer of 2007 were "sub-prime" mortgages.

If you obtained a "sub-prime" mortgage before they stopped doing new business in Canada during the July to December 2007 period, you may have some hard decisions to make soon.  This is especially true if your mortgage started with a three year term.  If you have a five year term, you have more time to plan to pay your mortgage off in full.

Pay your mortgage in full?  Who can do that three years after taking out the mortgage?  This is 

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