Posts Tagged ‘Add new tag’
Variable VS Fixed Mortgages
One of the main considerations when getting a mortgage if whether to lock in your rate or choose a variable rate mortgage. I always educate my clients on the pros and cons of each mortgage type and then help them make a decision that will be best for their financial situation and risk profile. I have mentioned before that historically a client you chooses a variable rate will be better off in the long run. Sure, there are ups with the downs, but on average they are paying less interest than their counterparts who lock in for extended terms. I think the graph below illustrates this point nicelyTo see what I mean, pick a point on the green line (fixed rates) and then draw a line straight across the page (to the right). See how many times the orange line crosses above the line you drew. This will tell you how many times the variable rate would have been equal to or greater than the fixed rate mortgage you chose. Most of the time the variable rate is well below. It will be interesting to see ...
HST on Renovations Hits May 1st
[caption id="" align="alignleft" width="300" caption="Image via Wikipedia"][/caption] You can't avoid the taxman: Goods ordered early for post-July installation will still get 13% levy With all the billboards springing up around the city, it's hard to miss the 13% harmonized sales tax (HST) slated to become law July 1. For many, the tax is just a convenient combination of 8% provincial sales tax (PST) and 5% goods and services tax (GST). But for the home renovation industry, which contributes $20-billion and 195,000 jobs to Ontario's economy, the HST may have some hidden challenges. Figuring homeowners will rush to get projects in under the deadline and avoid the tax, the government has also added a May 1 deadline clause. Essentially, any project ordered by May 1, but not completed by July 1, is subject to the whole 13% tax. But if the work is completed before July 1 it will be taxed at the current 5% GST. The clause ...
