All Questions
71
questions
4
votes
2
answers
245
views
Break even point of mortgage prepayment penalty vs anniversary payment
I want to calculate the optimal way to apply a $100,000 inheritance to my mortgage and am having difficulty figuring this out. I am in Canada and if I apply all of the money on the mortgage ($170,000 ...
- 141
1
vote
1
answer
3k
views
How do I determine if my Canadian mortgage is a non-recourse or recourse loan?
Purchasing property in the US I always knew that if the worst would happen and I defaulted on my mortgage, the bank would take the keys and assume ownership of the property and then sell it to ...
- 419
1
vote
1
answer
102
views
When is open mortgage better than closed mortgage?
The interest rates on open mortgages (where I can pay more than the minimal payment towards the principal) are higher than closed mortgages (where prepaying has penalty).
How can I tell which one is ...
- 528
2
votes
0
answers
73
views
I forgot to file my T4 tax form. Will this affect my mortgage?
I'm in Quebec, Canada. Tomorrow I am submitting an application for mortgage through a mortgage agent.
Because I started working at a new job in December 2014, I was asked for my T4 forms and notices ...
- 121
9
votes
5
answers
2k
views
Pros/cons of borrowing money using a mortgage loan and investing it in a low-fee index fund?
I'm wondering if this investment strategy would work:
I get a mortgage loan for $300K at a 3% rate (realistic for current 5-year fixed mortgage rates here in Canada).
I invest the proceeds in a low-...
- 91
0
votes
1
answer
95
views
How much CMHC fee do I need to pay if I cannot put 20% down on a new home
I am trying to calculate how much CMHC fee I will need to pay if I can only put in 10% downpayment on a new home as opposed to 20%.
So as per this calculator:
It shows:8640.
My question is: is the ...
- 16k
2
votes
1
answer
390
views
What is the pitfall of using the Smith maneuver
What are the pitfalls of the Smith maneuver?
It seems too good to be true and almost makes a case against fully paying down your mortgage :)
What is the catch?
- 16k
3
votes
2
answers
344
views
Mathematics behind deciding to do a lump sum mortgage payment vs. RRSP contribution?
If I have 10,000 extra dollars, how could I decide between doing either:
A lump sum mortgage prepayment (2.1% variable closed interest rate, 250k remaining balance), or,
An RRSP contribution (...
- 16k
1
vote
1
answer
262
views
What are the easier to qualify home loans in Canada? [closed]
I have only 6 unpaid things on my credit report. The small things add up to only $17XX.00 but the oldest thing, an unpaid credit card from 5 or 6 years ago, has nearly doubled to $11,000 due to ...
- 11
0
votes
1
answer
172
views
Mortgage: Low house price with high income (Canada/US)
I am planning on purchasing my first home, but its going to be for my mother. She lives in a small town with very affordable housing.
The place will be around $68k with 20% down payment ($13,600) ...
- 111
15
votes
2
answers
14k
views
Should a married couple co-sign a mortgage or not?
If one partner can qualify for the mortgage that the couple needs based on his/her income and credit history alone, is there value in co-signing the mortgage apart from the 'in it together' mentality? ...
- 2,283
2
votes
3
answers
3k
views
Formula for variable rate Canadian mortgage
What is the formula for calculating payments on a variable rate mortgage in Canada?
(This source says variable rate mortgages are compounded differently than fixed rate mortgages)
Concrete example: ...
- 131
2
votes
1
answer
72
views
Determining CMHC insurance premium
Is the calculation based on purchase price with HST or without HST?
For example, the property is being purchased from the builder and the stated purchase price includes HST. If the posted price is $...
- 21
8
votes
2
answers
3k
views
Should I remodel or buy a bigger house?
My husband and I have two children under 2 years old and have outgrown our current 1400 square foot home. My husband and I both work from home, and we have a day nanny who comes and helps with the ...
- 81
2
votes
1
answer
308
views
What would happen if I were to lose all equity in my condo when it's time to renew the mortgage?
I've been reading Condo Bible and it has the following passage:
A solid down payment of at least 25 percent will act as a buffer for you at mortgage-renewal time should interest rates slowdown. If ...
- 193