Mortgage portability allows you to move an existing mortgage to a new home and keep the same interest rate without incurring prepayment penalties on the sale of your previous home. Not all mortgages allow for porting, but if yours does, this sounds like a great way to right avoid penalties, right? Not necessarily.
On the surface it seems like a fabulous idea: Carve out a portion of your home, rent it out and use the rental income to pay your mortgage. You get to live basically "rent free" while at the same time reaping the tax benefits of writing off some of the costs associated with accommodating a rental apartment in your home.
For the last ten years, John, Jill and the kids have been living in a rented townhouse. Their dream has always been to save enough for a good down payment towards a detached house close to transit. John thinks they're close to having 15 per cent down, but Jill still has some concerns and suggested that they sit down with a mortgage expert for some advice.
The concern about Canadian housing markets is largely driven by the higher rates of house price appreciation in Canada's large urban markets, such as Toronto, Vancouver, and Calgary. In the early eighties, the average housing prices in local housing markets were similar in magnitude to that of the overall Canadian average.
TD Canada Trust announced that they were increasing the interest rate on a five year closed mortgage from 3.09 per cent to 3.29 per cent. If your mortgage interest rate goes from 3 per cent to 4 per cent, how much did it go up? The obvious answer is 1 per cent, but if your mortgage interest rate goes from 3 per cent to 4 per cent, your interest increased by one third, or just over 33 per cent.
The tumultuous events in Bangladesh are not as far away as you might think, and their effects on your well-being go far beyond cheap chic clothing. What we have on a global scale is a massive amount of lending by the poor to the rich. Sounds crazy, doesn't it? To his credit, Fed Chairman Ben Bernanke was one of the first economists to identify this problem, way back in 2005. He called it a global savings glut. It has only gotten worse since then. It is responsible for your low mortgage rate, and also large deficits and high unemployment in the industrialized countries.