Personal Finance
Better Finances for a Better You
Topic: "Mortgages"
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information about your money.
Word of the week
Adjustable-Rate Mortgage (ARM)
An adjustable rate mortgage is known as an ARM. An ARM's interest rate fluctuates over time, in contrast to fixed rate mortgages, which have a constant interest rate for the duration of the loan.
Adjustable-Rate Mortgage (ARM): What It Is and Different Types →Infographic of the week
Canadian Housing Market Data from WOWO
Canada’s housing market buzzed with activity in October 2024 during a month with significant home sales and price changes across the country. In October 2024, the national benchmark home price, which measures the price of a “typical” home, was $707,700, a 0.8% monthly decrease and down 3.2% year-over-year. However, it has jumped 77% over the past decade.
Canadian Housing Market Report →Infographic of the week
Mapped: Fastest Growing (and Shrinking) Cities in the U.S. and Canada
Despite Canada having a population just 12% the size of the United States, the country was home to a majority of the fastest-growing cities between the two neighbouring countries.
Toronto is the Fastest-Growing City in Canada and the U.S. →Infographic of the week
Ranked: Canada’s Housing Markets, by Price Growth in 2023
Between 2010 and 2022, real Canadian housing prices jumped 90%, making Canada one of the most expensive and unaffordable housing markets in the world.
The Visualcapitalist maps the average price of housing across Canada’s provinces and territories in 2023 (excluding Nunavut), based on data from the Canada Real Estate Association (CREA) →Infographic of the week
Global Real Estate Bubble Index 2024
This graphic shows real home price growth in real estate bubble markets over the last decade
Where do Canadian cities rank? →New Canadian Mortgage Rules
In an effort to ease the housing shortage, the federal government is implementing new mortgage regulations, this time with an emphasis on encouraging the building of secondary suites.
How will Canada’s new mortgage rules affect your plans to buy a home? →Did you know?
Nine out of 10 homeowners who bought a home in the last three years say they were unprepared for the extra costs of maintaining and financing their property, according to a survey by Real Estate Witch.
Which costs were more expensive than people originally expected →Word of the week
Closing Costs
The expenses associated with "closing" a real estate purchase, including legal and administrative fees, are known as closing fees. These fees are not included in the purchase price of the home.
An overview of mortgage closing costs in Canada →Budgeting
Unexpected Costs That New Home Buyers in Canada Frequently Forget
- Property/Land Transfer Tax
- Property Tax
- Insurance
- Home Inspection
- GST/HST
- Legal Fees
Word of the week
Homeowners Insurance
Home insurance provides protection for your home and your belongings in case of theft, loss, or damage. It can also help cover additional living expenses if you're temporarily unable to live in your home, such as living in a hotel or renting a home.
What Is Homeowners Insurance and How Does It Work? →Word of the week
Home equity loan / home equity line of credit (HELOC)
Your home equity is the current value of your house minus the outstanding mortgage amount. Your equity grows as you pay down your mortgage or if your home's value increases. The equity in your house can be used as collateral for HELOCs and home equity loans, which can be considered as a second mortgage since they are backed by the equity in your house.
If you are considering a HELOC, understand these pitfalls first →Word of the week
Adjustable-Rate Mortgage (ARM)
A house loan with a variable interest rate is referred to as an adjustable-rate mortgage (ARM). The starting interest rate on an ARM is set for a specific amount of time. Subsequently, the interest rate charged on the remaining amount is frequently adjusted, perhaps once a year or even once a month.
Adjustable-Rate Mortgage (ARM): What It Is and Different Types →Infographic of the week
How Much You Need to Earn to Afford a House in Each Major Canadian City in 2024
According to the CREA, the national average home price reached $698,530 in March 2024, a 2 per cent increase year over year.
The Cost of Canadian Home Ownership in 2024 →Infographic of the week
The World’s Least Affordable Housing Markets in 2024
Many cities around the world have become very expensive to buy a home in, but which ones are the absolute most unattainable?
Impossibly unaffordable cities, where does your city rank →Word of the week
Fixed Mortgage
The interest rate on a fixed-rate mortgage does not change over a certain period, often two to five years. This offers security and predictability because your monthly mortgage payments will remain unchanged over this set term.
Find the best 5-year fixed mortgage rates in Canada →Word of the week
Prime Rate
The best interest rate that lenders charge customers is known as the prime rate, or prime lending rate. It's possible that your credit card's real interest rate is higher than the prime rate. Variable APRs frequently fluctuate in tandem with changes in the prime rate. It follows that your variable APR will probably increase if the prime rate does, and vice versa.
Here’s a breakdown of the most common personal finance terms →Serious Stuff
Nearly half of house hunters don’t think they can afford a home — these 4 tips can make it possible from Kelsey Neubauer
- Bulk up your savings
- Build your credit
- Apply for grant and loan programs
- Secure an assumable mortgage
Did you know?
CNN found that 33% of those surveyed do not know what "annual percentage rate" means. Further, 33% also believe that mortgage lenders are required to charge all borrowers the same fees.
Neontra can help you keep track of interest rates, loan amortization, and monthly mortgage payments →Did you know?
Housing is the largest average cost at $2,025 per month, making up 33% of typical spending, according to the most recent Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics (BLS).
Neontra auto-categorizes your all transactions by essential, non-essential, debt payments and saving contributions so you can see what percentage of your expenses are going to housing →Did you know?
The word "mortgage" comes from the old French phrase "mort gaige." Literally translated, mort gaige means death pledge. Once the mortgage is paid off, the loan dies.
10 Weird Facts About Home Mortgages →Saving
How To Avoid Being House Poor And Other Homebuyer Horror Stories
Half Banked Podcast: Hosts Cadeem and Bethan focus on what buying a home is like, particularly for first-timers →Word of the week
Co-Borrower
When two people apply for a loan or credit line together, they are known as co-borrowers. The money associated with the loan are equally accessible to the co-borrower. Payment obligations fall on both the principal borrower and the co-borrower. A common example of this is a married couple that applies for a mortgage or auto loan together.
What Is a Co-Borrower? Role in Loan Documents and Vs. Co-Signer →Infographic of the week
What You Need to Earn to Own a Home in 50 American Cities
Between skyrocketing prices, stagnating wages, and now rising interest rates, the deck seems to be increasingly stacked against home ownership. Using May 2023 data tabulated by Home Sweet Home, the Visual Capitalist maps out the annual salary needed to afford a 30-year mortgage (at 6.37%) to buy a home in America’s 50 most populous metropolitan areas.
The Least and Most Affordable American Cities to Own a Home →Word of the week
Collateral
Capital or asset pledged to a bank or other lender in the event that the borrower is unable to make all of the repayment instalments on a loan.
Collateral Definition, Types, & Examples →Infographic of the week
Which Cities Have Bubble Risk in Their Property Markets?
Despite higher mortgages and sharply correcting prices, some cities’ property markets are still in bubble-risk territory.
The UBS Global Real Estate Bubble Index →Word of the week
Amortization
The amortization period is the length of time it takes to pay off a mortgage in full. The amortization is an estimate based on the interest rate for your current term.
Learn more on how your amortization period affects your costs →Saving
Tempted to buy a home with siblings or friends? Here’s what you need to know
Podcast: Stress Test by columnist Rob Carrick on what you should know before buying a home with others →Saving
Rising interest rates brought pain for new homeowners - and opportunity for house hunters
Podcast: Stress Test by columnist Rob Carrick and editor Roma Luciw →Serious stuff
The Bank of Canada has increased its benchmark interest rate to 5 per cent, the highest in 22 years.
What happens when interest rates rise in Canada. What does that mean for you →Serious stuff
After years of soaring home prices, there was hope that rising interest rates would lead to lower prices in 2023 and give young Canadians an entry point into the market.
Podcast - Why more Canadians are giving up on home ownership →← Curating the web to find the most interesting and helpful information about your money.