Tag Archives: First Time Buyer

How Age is Impacting the Housing Market

It used to be that buying a home was a solid investment in your retirement. Simply purchase a fixer-upper, restore it to it’s former glory, incorporate some modern amenities, and presto-changeo: 20 years from now you’ve got yourself a nice, big next egg. However, things have changed, leaving many mature homeowners facing a frustrating reality.

According to the Bank of Montreal, about a third of Baby Boomers plan to sell their home to fund their retirement. Unfortunately, the questions remains as to whether or not there will be enough buyers capable of purchasing these properties as more and more seniors begin to downsize. An oversupply of houses could ultimately result in a price plunge, leaving many retirees high and dry. Continue reading →

Canadians More Cautious About Household Debt?

The Bank of Canada has been repeating warnings about dangerous household debt levels for months, however data released on Tuesday shows that people might finally be starting to get the message. The central bank noted that consumer spending has been “moderate” as of late, suggesting that Canada’s craving for credit could be beginning to subside.

The Bank of Canada’s third-quarter monetary report also touched on a new plan for interest rates, pushing back the timing of an increase, while at the same time warning that a boost could occur in order to dissuade individuals from taking on additional debt.

Tuesday’s release was the first time that Ottawa’s policy makers linked household debt to interest rates. According to the report, “imbalances in the household sector” has become a factor that could force an increase in the Bank of Canada’s current setting of one percent.  Continue reading →

What if the Government Didn’t Back Mortgages?

Saving for a down payment on a home takes dedication, perseverance, and sacrifice. For many, it also takes a long, long time. According to a recent report from Rate Supermarket, come 2020 the average cost of a home in Canada will be $553,000. To accumulate a measly 5 percent down payment for such a home, recent graduates should expect to spend at least 12 years saving up. If you’re hoping to pack away 10 percent, prepare to squirrel away your savings for roughly 21 years.  Continue reading →

Avoid Homebuyer’s Regret With These Tips

While buying a home is the biggest investment the average Canadian will ever make, many first-time home buyers still don’t take the time to perform sufficient financial due diligence before signing their offer to purchase. A recent survey commissioned by TD Canada Trust has found that the two biggest regrets include not saving for a larger down payment and not doing enough research into the actual costs of maintaining a home.  Continue reading →

Make the Right Investment in Your Home

Has owning your home become the new retirement savings plan? According to recent statistics, more and more Canadians are investing in their home rather than their RRSP. While half of Canadians haven’t contributed to their registered retirement savings plan, close to 70 percent of households currently own their own home.

It’s an interesting shift, and one that could prove extremely beneficial to budget-savvy individuals. Jason Heath, a certified-financial planner with Objective Financial Partners Inc. explained the rationale in a recent Financial Post interview, stating that “your money grows tax free” in your property, whereas RRSP savings feature fully-taxable withdrawals. Continue reading →