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CategoryPersonal growth

Posted Case study

How can an extra $100 boost your mortgage?

Extra Payment Image, March 2018

When it comes to mortgages, $100 isn’t going to get you very far. But what if you paid an extra $100 a month towards your mortgage? It’s not a lot of money these days, but it can add up to some solid savings over time.

Let’s look at a $300,000 mortgage with a 2.89% rate and a 25-year amortization. At the end of five years, you’ve paid off an extra $6,444. The balance owing is $249,435. And the remaining amortization is 17 years and 9 months instead of 20 years.  This also represents an interest savings of $11,423 over the life of the mortgage. Not bad!

Now let’s look at paying an extra $200 per month. At the end of five years, you’ve paid off an extra $12,888. The balance owing is $242,991. And the remaining amortization is 15 years and 11 months. This represents an interest savings of $20,708 over the life of the mortgage! Continue reading “How can an extra $100 boost your mortgage?”

Posted Interest rates

Rent is up, vacancy is down… rental properties make sense

Real Estate Investment Image, Feb 2018

Rental properties are a secure long-term investment. Note the emphasis on “long-term”.

Check out any seven-year period over the past 50 years (anyone who has read this news site knows that I always recommend buying and holding for at least seven years). Property values have almost always risen.

Sure, the last five or 10 years have seen fantastic appreciation in almost every part of Canada. But, let’s leave capital appreciation out of the equation for now.

Why aren’t we talking about rental income? Or, how about the equity growth through your mortgage being paid down each year?

RENTAL INCOME IS UP, UP, UP!

Rents have definitely gone up with inflation (or even higher, in many cases, as we have seen in urban markets like Toronto and Vancouver). This is part of what makes rental properties attractive – rent rises with inflation and, in many cases, even higher. This is how you create your own pension or retirement income! Continue reading “Rent is up, vacancy is down… rental properties make sense”

Posted Consumer Debt

Marital splits… woman seem to be at higher risk when it comes to finances.

 

Stack of Coins and Bride and Groom Wedding Cake DecorationsThey say about half of all marriages end up in divorce.  In Canada, it’s around 48%.  In the U.S., it’s around 53% according to Stats Canada.  You’ve probably heard these stats before.

But what happens when a couple splits and all the financial matters were being handled by just one spouse?  In most cases (but not all), it’s the woman who is left with no knowledge of money matters.    Over the years, I’ve seen hundreds of marital splits and in an overwhelming majority of cases, the woman is left in the dark when it comes to finances (that trend is changing as today’s women are becoming more financially astute..  good for them.. let’s continue that trend).

There is HOPE and HELP.   Here are some things you can do to take charge of your finances before or after a marital split: Continue reading “Marital splits… woman seem to be at higher risk when it comes to finances.”

Posted Fun news

Not about Mortgages… Cut the crap!

cut the crapIt’s rare that I talk about something that isn’t directly related to mortgages, real estate or finances.  Today is one of those days.  I want to share this pretty cool podcast channel I stumbled upon.  Maybe you’ll find it as useful as I did.

Cut the Crap.

Yup, that’s the name of this podcast channel.   Ok, at first, I thought, what can this be about?  Maybe it’s a spinoff from the old Penn and Teller show?? But then, I saw the headline at the bottom “Never read a book again”.   I thought, okay, let’s check this out.   And I’m glad I did. Continue reading “Not about Mortgages… Cut the crap!”

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