It is so curious that US and Canadian mortgage market are so different. The 30-year fixed mortgage rate rarely exists in Canada. In Canada, the fixed mortgage rates expire after the term ends. The term can vary from 1 year to 10 years. The new mortgage rate will depend on interest rate environment when theContinue reading “The impact of mortgage trigger rate”
Category Archives: Borrowing
Do we need that recreational property?
Some might have a second property for recreational purpose. It might be a cottage in a lovely small town closer to the nature where you visit in the weekends during the summer. It might bring challenge if they are still paying mortgage for both their primary residence and that second property. Or they have paidContinue reading “Do we need that recreational property?”
Buy, borrow, and die
The above is how the rich avoid paying tax in US. Just heard that again on the new NPR Planet Money podcast – My favorite tax loopholes. 😊 Because the personal tax is based on income rather than wealth, so the key is to minimize income. Also, buying assets such as stocks, bonds, properties, etc.Continue reading “Buy, borrow, and die”
Fixed mortgage rate vs. variable rate
Which one should we pick? Almost every home buyer faces this head scratching question except those who pay cash in full. 😊 Just heard a podcast today by NPR Planet Money – One economist’s take on popular advice for saving, borrowing, and spending. In the end of the podcast, the Yale economist James Choi saidContinue reading “Fixed mortgage rate vs. variable rate“
Costly mistakes of Home Buyer Plan
Home Buyer Plan is a Canadian government sanctioned program allows first-time home buyers to withdraw up to $35K from their RRSP for down payment. The incentive is that no tax will be withheld at withdrawal. Home buyers have to pay it back within the next 15 years by contributing to their RRSP accounts. When theyContinue reading “Costly mistakes of Home Buyer Plan“
Secured credit card
I recalled when I just immigrated to Canada many years ago. I had no idea about the concept of credit history. There was no such thing in China back then. Credit cards were rarely used. There were only debit cards then. BMO was very active recruiting newcomer customers. I was talking to this nice ladyContinue reading “Secured credit card“
Couple finance – big age gap
If a couple has big age difference such as 10 year or more, they might want to watch out for the dual goals to balance paying off mortgage and saving for retirement. Here is a hypothetical case as an example. The husband is the bread winner and in his late 40s. The wife is 15Continue reading “Couple finance – big age gap”
Couple finance – who pays how much for what?
Money is one of the top three reasons for divorce. Everything is easier if both partners/spouses share similar values or believes in money. For example, both like to save money. If one likes to spend while the other like to save, it is going to cause conflict. In this situation, the couple can reach anContinue reading “Couple finance – who pays how much for what?”
Saving for emergency fund vs. paying off debt?
Starbucks just launched a new employee benefit program to encourage savings and manage student loan. My Starbucks Savings is intended to help employees save for the “unexpected,” according to a company press release. In partnership with Fidelity, employees can contribute a portion of after-tax pay on a recurring basis directly from their paycheck to anContinue reading “Saving for emergency fund vs. paying off debt?”
Is Buy Now Pay Later right for you?
Please see detailed explanation of Buy Now Pay Later on my beloved website Investopedia. There are two key points here. Direct quote from Investopedia: If people are good at managing their finances, they probably don’t need it. If they are not organized or disciplined with money, this can be very dangerous. It can lead intoContinue reading “Is Buy Now Pay Later right for you?“