Lets stop Home Ownership in Canada

Home ownership is family's life - both financially and from a quality of life perspective. You invest in your neighbourhood and community, put down roots, let your equity grow tax free of capital gains. When its paid off or before, you can refinance and pay for weddings or university ( again ) of your cottage.

http://www.cbc.ca/news/canada/story/2012/09/21/home-ownership.html
Home ownership is often connected to the notion of living the "American dream." But it is as much a part of Canadian identity as it is in the U.S.

Indeed, statistics show that the percentage of home ownership in Canada is edging close to 70 per cent, which is actually higher than the ratio south of the border at the moment – 65.4 per cent, a 15-year low, according to the most recent data. Many economists believe the Canadian government has played an active role in spurring home ownership, particularly by forming the Canada Mortgage and Housing Corporation back in 1946. 

"I don't know that home ownership should be a right and that it should be backed by taxpayer dollars and kind of be the prime mandate of a Crown corporation," says Ben Rabidoux, creator of the Economic Analyst blog, which looks into housing and mortgage trends.

DO you agree that we should all live in government provided housing?  After all, why would you want to be debt free in your house, when you downsize to a retirement home?

How 2 Access your Equity If you Divorce

How You can Access more equity when divorcing!


Hi, I’m Nathalie Ng. I'm the Money Chick- A mortgage agent who is licensed 2 give unbiased advice on your mortgage. 


Can you help clients who are single, separated, single parents  & divorced?


Yes I do and it is a special niche as I deal with lenders who are in this market segment.





What can clients do when they are divorcing? I know of many women who are looking to buy their own property now.  Can they start all over again & buy another property?


Definitely... With the increasing # of divorces, many of them want 2live separately. However, due to the economic circumstances, some stay together in order to keep the house Others, rent after divorce. Both of which are not good as in the 1st case, they are unhappy living together and the 2nd, it is financially not advisable to rent.


In the traditional way,  when a couple is divorcing, their lawyer is splitting all their assets. There could be times when the couple decides to sell the house and live separately. So what happens then?


What happens is each party ends up with a smaller equity thus, resulting from not being able to buy another property. As you may also know, utilizing a mortgage to Refinance & free up equity can definitely be a great tool when paying out joint matrimonial liabilities, as well as providing a cash settlement. Recent changes in mortgage financing however have now capped accessing home equity to 85% of the property’s value. But I have good news! There are cases where I have been able to assist divorcing couples & their lawyers in negotiating separation agreements. Essentially, the clients are allowed to free up to 95% of the equity in a property specifically for marital splits. That is a huge difference from 85% which is the norm.


So let`s say, for a house valued at $400,000, how much equity they can get?


With traditional lenders, they can only have access to 85%, which = $340,000 in this case. This could be used to pay off one spouse, debts & settlement.  Now compare this vs accessing 95% of the value of the house.


For the same house of $400,000, now they can access $380,000 of equity. This is an extra $40,000. That $40,000 can itself contribute towards a bigger down payment towards a new house. All this is at very good mortgage rates. Divorcees and single parents should really think of owning again rather than renting.


That is the smarter way…Thank you Nathalie. How can we get hold of you?
Nathalie can be reached at 416-629-1818

David Pylyp on Google+