Client is 55, single, and behind on retirement savings. A case-study in pre-retirement mortgage planning.

I have a client - let's call him Ted - who recently reached out to me to do some mortgage planning.

In this blog, we are going to talk about how a client of mine was able to rearrange her finances such that she and her partner could mortgage qualify for a $400K target house in their neighborhood.

The current law in Canada requires that any residential mortgage where the borrower has less than 20% down payment be insured against borrower default. The main insurer to the banks is CMHC (Canadian Mortgage & Housing Corporation) followed by Genworth, and Canada Guaranty. The insurance premiums are all the same among the three and depend on a few variables. In any regard, they can be a significant amount of money, in the tens of thousands of dollars added to the loan balance. The question often asked is how to avoid CMHC fees / can I avoid CMHC fees? Conversely, I hear prospective buyers say they are waiting to purchase until they have saved 20% in order to avoid CMHC fees. This article looks at the costs and benefits of CMHC ‘mortgage default insurance’ and whether or not it is a big deal.

Death of a loved one brings about many changes not to mention strong emotions. Often the kids are thrust into uncharted territory when a potential property inheritance or residual debt is involved. Whether a cottage on the lake, farm land, or a house in the city, this article is about how to best view the budding situation, dissect the issues, and how mortgage financing can potentially help out. It can apply where there is one party to many.

In Canada, a 5-year mortgage contract term is very common. But is it still the best choice? While it used to be the easiest term to qualify for, especially for first time buyers, that all changed on Oct 17, 2016 when the Government changed the rules again. When applying for a mortgage, it is important to think about contact term and how to reduce the size of mortgage payout penalties if you have to break your term early.

I received a call from a prospective client the other day trying to figure out how to purchase and mortgage finance a property in Tulum, Mexico. He and his wife's goal was to purchase a property just south of Cancun for their ultimate retirement in 15 years. Meanwhile, they would rent it out and the question was, can the mortgage interest be tax deductible on a foreign investment property?