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

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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

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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.

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