All Questions
71
questions
3
votes
2
answers
286
views
What Incentives are stopping banks from raising their prime rate?
In Canada, banks set their prime rate which affects the lending rates for many of their products including variable-rate loans. Many sources say that the Bank of Canada's (BoC) interest rate ...
user118726
18
votes
1
answer
4k
views
Why does the TD Bank principal portion of a mortgage payment go up and down in sawtooth? (why is interest payment on annuity in arrears non-monotonic)
I'm trying to understand the amortization schedules of TD mortgages, as produced by the TD Calculator.
The monthly payment amounts (on this fixed rate mortgage) are predictable and constant, but the ...
- 511
7
votes
3
answers
3k
views
2 mortgages, payoff one completely or pay some off bigger principal?
so I have two mortgages on two separate rental properties.
A. 100k remaining, 1 year left on term, 1.85% variable, 428 monthly.
B. 300k remaining, 4 year left on term, 2.54% fixed, 313. weekly.
I have ...
- 301
2
votes
0
answers
54
views
What are the correct terms for a fixed payment with variable rate mortgage vs variable payment with variable rate mortgage?
What are the correct terms for a fixed payment with variable rate mortgage and variable payment with variable rate mortgage? I've read on some articles that a variable rate mortgage and adjustable ...
- 59
2
votes
1
answer
310
views
In a fixed mortgage, is the term the same as the amortization period?
From what I understand, the term is the length of time the mortgage agreement and interest rate will be in effect and the amortization period is the length of time it’d take to fully pay off the loan. ...
- 47
0
votes
3
answers
250
views
What is a land loan, is it different than a mortgage, and how?
From what I understand, a mortgage is a loan secured by real estate. Thus under this definition you should also be able to buy land (secured by the land). Is this true? If it is how come there are ...
- 47
1
vote
2
answers
279
views
Can a closed but undischarged mortgage be reopened easily?
Getting a new mortgage can involve a lot of paperwork and take considerable time.
If one (for whatever reason) happens to have an existing mortgage that has been fully paid off but never officially ...
- 1,566
2
votes
2
answers
186
views
earnest money and security when buying a house in Vancouver
I am in Vancouver and planning to buy a townhouse. There is approximately a difference of 2 months from the day I make the deposit to the closing day (which I see as the funding day). I am starting my ...
- 175
3
votes
1
answer
141
views
How is mortgage in Canada calculated?
I'm taking a finance course at a Canadian university. The teacher said this time-of-money is how the banks calculate their loans and mortgages. Out of the blue, I want to try how close the formula in ...
- 133
5
votes
1
answer
725
views
What does it mean when 5 year fixed is lower than 5 year variable [duplicate]
For the past 10 years, we've had 2 5-year variable rate mortgages. We have more or less won the bet in the fixed vs. variable game.
In the past, the variable was always a lower rate than the fixed. ...
- 2,312
1
vote
1
answer
209
views
Loan to family member in Canada
I am residing in USA. I am considering loaning USD 50K to my brother in Canada to help him buy a home. Whats the best way to go about this? I read that if its within US its best to do this a loan ...
- 13
6
votes
1
answer
385
views
Does a cash back mortgage at a higher rate with the cash immediately applied to the principal make financial sense?
A mortgage advisor was trying to sell me on cash back mortgage. For most clients he said they use it to pay down debt at a higher interest rate or to buy the essentials for a first home. This is not ...
- 419
1
vote
1
answer
342
views
Buying a house with credit line and getting a mortgage later
We are considering buying a house for about $150-160 thousand.
We recently moved, and my wife has been on maternity leave benefits for a year now. So, proof of income is basically non-existent.
We ...
- 147
3
votes
3
answers
695
views
The balance between Renting and Buying
My girlfriend and I are spit-balling the idea of buying a house. We've heard pros and cons for mortgages; you're putting your money into an investment vs you're paying far more than you anticipate due ...
- 153
3
votes
1
answer
83
views
Ontario Capital Gains,are profits also part of taxable income?
Say I Sell my investment property house for 500k and bought it for 250k. Leaving me 250k profit.
I'd be taxed on 50% of that correct: 250/2 = 125k taxable. and 125k Profit.
Now my 125k is taxed ...
- 353