When To Pay Off Your Low-Interest Mortgage
Note: Winners of last week’s book contest will be announced at the end of this post A few weeks ago, we posted a reader case Can’t Work Because of Health Issues and Worried, in which our reader had recently become disabled, unable to work, and was worried that their financial situation was going to go into the crapper. As it turns out, no, she was going to be fine, and one of the main reasons is because she made the conscious choice to pay down her debt, first her credit card, and then her mortgage. She wrote me back after […]
The Mortgage Renewal Trap
The year was 2007. Steve Jobs unveiled a funny-looking little product named the iPhone and changed the world of smartphones forever. The final Harry Potter book, Deathly Hallows, was released to rave reviews. And whispers of something bad called a “sub-prime mortgage” was starting to grow into something that could no longer be ignored. Little did we know the freight train that was about to hit us. There were a lot of causes of the Great Financial Crisis, but the main one was banks handing out mortgages to people who had no business owning property. No income, no jobs, and […]
Can The Bank Take Your House Even If You Pay Your Mortgage?
It’s every home-owner’s worst nightmare. Already drowning in debt, and with a rampaging cost of living crisis causing many families to barely be able to make ends meet, they get a notice from their mortgage company that says something to the effect of: You have 30 days to pay back your entire mortgage balance in full, or we’re taking your house. Have a great day! Sound like a bad dream? Like something that would never happen here in Canada? Well, I got bad news for you: There are early signs of rough times ahead in the GTA real estate market, […]
Is it Canada’s Turn for a 2008-Style Housing Crash?
I received a message from a reader recently telling me “Check this out! The housing crash has officially started!” They linked me to a news article about the plight of condo investors in Toronto. I know, I know, cry me a river, right? Well, take a read… Ujjwal Jain never thought when he bought his pre-construction condo in April 2020 that it would cost him his life savings. As the date for him to take possession of the condo nears, the bank appraisal, which is done to ensure the current market value of a property is in line with the […]
How Much Will House Prices Fall?
Lately, my google newsfeed has been filled with scary headlines like Nearly 1 in 4 homeowners say they’d have to sell home if interest rates rise more, according to survey Canadian Real Estate Prices Expected To Drop 24%, Can Crash 40%: Oxford Economics B.C. home sales drop 35% as rising mortgage rates bite: ‘The housing correction has started But on the flip side, there are also articles saying the exact opposite, like: Home prices could rise 15% in 2022 despite efforts to cool market: Royal LePage Some experts say prices could fall as much as 40%, while others think it’s […]