Paying off mortgage safer than investing the cash

Study after study suggests that Canadians are having a tough time paying off their mortgages, as debt levels continue to hit record levels year after year. Why?

Could it be that there are more opportunities to spend? Could it be that some people don't want to pay off their mortgages faster?

Or are some professionals advising alternate investment strategies, suggesting that paying off the mortgage is not the best financial strategy?

BIG MORTGAGES AFFECT RETIREMENT

Rebecca and Darcy are in their mid-50s and are starting to think about retirement planning; they would like to retire in the next five years.

One of their biggest hurdles is a $225,000 mortgage. Currently, their $2,200 monthly payment would have the mortgage paid off in 10 years.

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A garage attached to the home: It’s practical… but is it safe?

Your house has a built-in garage and your car is safely tucked away from the elements. But is your family just as safe on the other side of the wall? The garage air may be seeping into your home without you knowing it.

Gases and other toxins
First of all, it’s important to realize that every time you start your vehicle and every time you park it back in the garage, it releases carbon monoxide, benzene vapours and a host of other chemical substances. These contaminants remain suspended in the air in the garage long after the engine has stopped running and the garage door has closed. In addition, they often combine with other vapours—e.g., from the lawn mower, snow blower or chain saw, or any container of paint, oil or fuel stored in the garage. If there…

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3 things to consider before helping your kids buy a house

3 things to consider before helping your kids buy a house

As prices continue to escalate in many Canadian markets, it’s only natural for parents to want to help their kids buy a home. But there are three things parents should bear in mind before doing so, reports The Globe and Mail.

Ask any Realtor or mortgage broker about home first-time homeowners, and you’re bound to hear stories about parents providing financial assistance.

“The bottom line is that when a first-time home buyer buys a house, the parents more often than not are contributing something to the down payment,” says David Larock, a mortgage broker with Integrated Mortgage Planners.

Some parents are more than happy to help their kids buy that first home. However, there are three good…

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New CMHC rules make it easier for some homebuyers to include rental income in mortgage application

Change aimed at boosting affordability will likely affect suburbs most.

Changes to mortgage rules mean that some home buyers in Metro Vancouver's hot housing market may soon get a break when it comes to their loan application.

Currently, home buyers with a deposit of less than 20 per cent are required to have their mortgage loan application approved and insured by Canada Mortgage and Housing Corporation (CMHC).

Starting this fall, CMHC plans to change the rules for those buyers to allow them to include projected income from secondary suites when they apply for a loan.

"CMHC will consider up to 100 per cent of gross rental income from a two-unit owner-occupied property that is the subject of a loan application submitted for insurance," the new…

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