Using Your RRSP and TFSA to Save Towards a Home Purchase

While the RRSP has long been the preferred way to save towards buying a home, the introduction of the TFSA in 2009 changed that. The TFSA offers another great way to save towards the purchase of a home. While the RRSP is exclusively for first-time homebuyers, the TFSA is for homebuyers property virgins and non-property …

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Household Debt to Disposable Income Ratio at New High… but that’s not the real story!

Household debt is once again making news headlines for all the wrong reasons. The household debt to disposable income ratio reached a record high of 163.3 percent in the fourth quarter of 2014, according to Statistics Canada. That means for every dollar of income earned, the average Canadian household has $1.63 of debt. What the …

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Should You Pay Down Your Mortgage Early? Setting Financial Priorities

The RRSP deadline has come and gone for another year. Did you join the frenzy of last minute savers by contributing to your RRSP this year? For the typical Canadian family Canadian, it can be difficult to set financial priorities. You only have two paycheques (only one if your partner stays home and raises the …

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Why the Bank’s Posted Mortgage Rate Matters (even when practically no one pays it)

Homeowners are a lot more savvy about mortgage rates these days. When it comes to signing up for a mortgage, very few homeowners accept the posted rate. The big banks are notorious for having the highest posted rates. While you can find a five-year fixed rate mortgage for under three percent at secondary lenders or …

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Should You Use Home Equity to Catch Up on an RRSP Shortfall?

A common dilemma faced by homeowners is, should I contribute to my RRSP or pay down my mortgage? If you speak with your parents or grandparents who grew up during the Great Depression, they’ll clearly favour paying down your mortgage. While that strategy may have worked when they were growing up, it doesn’t necessarily make …

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RRSP Contribution vs Pay Down Your Mortgage… Do the Math!

With the RRSP contribution deadline fast approaching, the age-old question comes up: should you contribute to your RRSP or pay down your mortgage? We all know what the big banks want you to do: contribute to your RRSP. I’m sure it has nothing to do with Barry the banker receiving commission from the bank’s high-fee …

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