16 Oct

We’re paying off mortgages faster than thought…

General

Posted by: Drummond Team

A new report suggests that Canadian homeowners are paying down their mortgages faster than they’re being given credit for.
 
CIBC Deputy Chief Economist Benjamin Tal says homeowners are taking advantage of record-low interest rates to accelerate their mortgage payments, and shorten their amortization periods.
 
The CIBC World Markets study says that homeowners are paying an additional $11 billion a year in principal that isn’t being officially recognized by the Bank of Canada.
 
It suggests that an estimated 30-40% of households with mortgages are accelerating their payments. As well, 40-50% of borrowers are estimated to have amortization periods of less than 20 years, rather than the standard 25 years.
 
Click here for full details from MoneySense.

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16 Oct

Getting a divorce? Here are four things to consider before selling your real estate…

General

Posted by: Drummond Team

About 70,000 Canadian marriages end up in divorce every year. It’s an emotional decision that’s almost impossible to decouple from the financial implications that follow.
 
Financial planners often say divorce is one of the worst decisions you can make, at least from a personal finance point of view. We know that, in general, married couples are wealthier than their single counterparts. Running separate households is always going to cost more than running a single one.
 
But even if splitting is the only option, it doesn’t necessarily mean that you can’t handle the real estate break-up wisely.
 
Timing can be everything: Waiting a few months could result in thousands of dollars in savings. Fees can be reduced if you can control when you have to sell. And, ultimately, if you’re selling on your own terms – rather than in a rush – you’re more likely to yield a better price.
 
Click here for four things to consider before you sell courtesy of the Financial Post.

Ultimately, if you're selling on your own terms — rather than in a rush — you are more likely to yield a better price.