Video: RRSPs and paying down your mortgage.

Posted on February 14, 2012 by

Paying of the Mortgage and contributing to your RRSP. Video John Heinzl offers three reasons why you should pay down down your mortgage instead of making a RRSP contribution. John Heinzl of the Globe and Mail offers three reasons why you should pay down your mortgage instead of making a RRSP contribution. (Video below)

http://www.theglobeandmail.com/globe-investor/personal-finance/rrsp/video-forget-rrsps-and-pay-down-your-mortgage/article2334047/

We utilize strategies that enable you to make full RRSP contributions plus receive a refund fund from Revenue Canada and then use your refund down towards paying off other high interest debt or you can apply to paying down your mortgage. Many Canadian have ample room in their RRSP and are unable to take advantage of the contribution room available due to the inability to apply the funds at the time of year when required. Talk to us today to see if this strategy is suitable for you.

Posted in Business, Debt, Home Equity, Mortgage, Mortgage News, Real Estate, Retirement Planning, Video | Tagged , , , , , , ,

Optimism drops as Canadians struggle to save

Posted on February 9, 2012 by

Canadians have managed to pay down debt in the economic downturn, but the majority feel they aren’t getting ahead financially, according to a bank study that will be released on Thursday.

The RBC Consumer Outlook Index, which tracks quarterly economic trends through a survey of consumers across the country, suggests confidence about a recovery in the Canadian economy has dropped. Even as the economic situation in the United States begins to show encouraging signs of improvement, the mood in Canada remains decidedly pessimistic. Read more via Globe and Mail

Posted in Business, Debt, Globe and Mail | Tagged , , ,

Draw down savings then start CPP

Posted on February 8, 2012 by

Sonia plans to retire when she turns 60. Her mortgage will be paid off by then and she will have substantial savings in her RRSP. Should she start her Canada Pension Plan (CPP) pension at age 60 or wait?

Like many Canadians, there is a very good chance Sonia will start her CPP early. About 40 per cent of all CPP recipients get their first cheque at age 60, the earliest age possible under the plan.

This is a surprisingly high take-up rate considering they incur a 36 per cent penalty by starting their pension at 60 instead of 65.

Is early CPP the best strategy? Read More via Montreal Gazette

Posted in Retirement Planning | Tagged , ,

Banks rolling back mortgage discounts

Posted on February 7, 2012 by

The deep discounts seen in the Canadian mortgage market in recent weeks are beginning to evaporate, as Canadian banks pull back on the historic low rates they rolled out in January.

Royal Bank of Canada (RY-T53.470.140.26%) announced Monday that it is raising rates on a four-year fixed-rate mortgage with a 30-year amortization, to 3.39 per cent. That is an increase of 40 basis points from the 2.99 per cent RBC had been offering. (A basis point is 1/100th of a percentage point.) via Globe and Mail

Continue reading →

Posted in Banking, Globe and Mail, Mortgage, Mortgage News | Tagged , , ,

Canada’s second-largest mortgage insurer plans to take advantage of government constraints

Posted on February 6, 2012 by

Canada’s second-largest mortgage insurer plans to take advantage of government constraints on its Crown corporation rival, Canada Mortgage and Housing Corp.

Genworth MI Canada Inc. executives are making it clear that they see a business opportunity emerging as Ottawa hems and haws about whether to loosen CMHC’s shackles once again. Via Globe and Mail

Continue reading →

Posted in Insurance, Mortgage, Real Estate | Tagged , , ,

Line of credit interest rates rising for some

Posted on February 6, 2012 by

I still remember the uproar when the Big Five banks started raising rates on lines of credit after the 2008-2009 stock market crash.

While they suggested it was a temporary blip, the banks didn’t lower rates for most borrowers after the economy recovered.I’m starting to hear complaints again. To be specific, TD Canada Trust is raising rates on personal lines of credit not secured by collateral.

Continue reading →

Posted in Debt, Home Equity, Mortgage | Tagged , , , ,

Why you shouldn’t buy mortgage insurance

Posted on February 5, 2012 by

There are many excellent articles about the pros and cons of mortgage insurance vs. term life insurance. But every spring a new crop of first-time buyers begins their search for a perfect new home, so it seems like a subject worth revisiting.

The purpose of mortgage insurance (also known as mortgage life insurance or creditor insurance) is to pay off the mortgage when you die so your spouse and dependents are mortgage-free and have one less major expense to worry about. If both you and your spouse are working and want to protect each other, both of you need to be insured. Continue reading →

Posted in Insurance, Mortgage | Tagged , , , , , , , , , ,