Possible Interest Rate Hike and Mortgage Payment
With the current super low interest rate and fairly big drop of the housing price, many people are considering buying a new home. But, at the same time, people are worried about the possible interest rate hike in the future. Both US and Canadian government, actually all countries around the world, have injected a large [...]
Smith Manoeuvre, It Does Not Make Your Mortgage Tax Deductible
Smith Manoeuvre seems to be a famous and hot trick to make your mortgage payment tax deductible, at least I believed so. However, It turns out not that simple. Let’s take a look at the following example:
In Month 1, I paid down the principal on my mortgage for $500. And immediately, I invested $500 from my HELOC. Asumming the [...]
Price of Home Ownership
We moved into our new house about two months ago and have just got the first bill for one complete month. Therefore, I thought it might be interesting to see what the extra cost will be if someone buy a house than living in a rental. Since houses vary in location (I mean different provinces [...]
