Loonie said In the absence of clear information, I will throw in this experience. I have a store-related card that comes from Capital One. I only use it when shopping at this particular store. Occasionally, I return items to the store, creating a positive balance on the credit card, sometimes several hundred dollars.
No Debt Guy April 20,9: The only problem now is that people will be funneled into 5 year rates because it will be easier to qualify. If people are wanting 1 — 4 year terms or a variable mortgage they will have to qualify using a rate of 5.
Not everybody has the incredible tolerance for risk that you and apparently your clients have. If we were renewing now I would likely favour a variable.
Reply Link Balance Junkie April 20, Having said that, I am currently regretting our decision to renew for 5 years a couple of years ago when rates were higher. At the time though, the economy looked very poor and we wanted the stability of a fixed rate given that our income is extremely variable.
Now we have about 3 years left in our term, but only about 2 years left in amortization.
Reply Link Tyrone April 20, I met with a client a few weeks ago that had a lovely sarcasm 40 year mortgage at a 1. My first observation, wow, 40 year mortgage at age 50 and retiring in 10 years.
Third observation, when not if but when interest rates increase in the next year or two he will be forced to drastically change his lifestyle in order to keep up with his payments.
Cash flow is essential to deciding which product to choose. Get ready Canada, those people sitting with a 30 plus year mortgage and enjoying the joys of a low interest rate will have to adjust their lifestyle cash flow in order to keep up with the payments.
Jason April 20, This was a very thoughtful and well presented post, and extremely informative. I do think that there was a historic blip that occurred recently with the credit crunch, where variable rates climbed but the fixed rates were very low still.
So the spread was 0. Considering where the rates are going, this was a no brainer to go for the fixed. Reply Link Andrew April 20, Reply Link carwel April 20, I really should crunch the numbers and figure out exactly how much we have saved! When I was shopping around for mortgages, the Big Banks had variable mortgages with fixed payments, but everyone else was offering variable mortgages with variable payments.
Reply Link Jay April 20,1: Interest rates were low and have risen a lot more than the prime rate.
I decided to go with a long fixed rate mortgage despite being good at math and aware of the studies, and got a low enough rate that I fixed in for the entire life of the mortgage. Time will tell, but this article did not convince me.
I saved money by paying off the prinicipal, getting a good rate, getting a shortish mortgage with an accelerated weekly payoff. Reply Link morgan April 20,1: Reply Link tom April 20,1: You are correct that some mortgage brokers go for the 5 year fixed for higher commissions but the Financial Planner in me is always trying to save my clients money and give them prudent and unbiased advice.Just because you are recently discharged from Bankruptcy in Canada doesn't mean you can't have a credit card right away!
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Best Cash Back Credit Cards in Canada. Are you tired of using cash or debit for everything and earning no rewards?
With a cash back credit card, you can actually get back a percentage of every dollar you spend on your card. When you cash a cheque, the bank returns the cheque to the bank of the person who wrote the cheque.
Then the money is transferred from that bank to your bank. If there is enough money in that person’s account, the money will be transferred to your bank and put into your account. Bank drafts are touted as a secure means of payment.
But if they're lost, stolen, altered or damaged, it's often not the bank that has to replace them.