A lot of mortgages on homes bought in the uproar of the pandemic will be renewed in a trade war.
Let’s hope the mortgages-in-a-crisis theme ends soon, and that the next renewal wave happens in a period of financial calm and clarity. For now, we have the opposite.
Mortgage rates are being pulled in two directions by the trade war, complicating the all-important decision of whether to choose a fixed or variable-rate mortgage. A softening economy raises questions about what people who lose their job should do about their mortgage. And, then there’s the question of how are lenders seeing all these developments – are they tightening lending and cutting back on discounting?
If you have questions like these, we want to hear from you. Use this form to send your mortgage query and we’ll get experts to respond to some of the questions.
Making the best financial decision on your mortgage means getting the best rate, paying the least interest and ensuring you have acceptable terms in case you want to break the mortgage. Lots of room for prepayments is also a plus.
In a trade war, there’s an added dimension of risk control. If there’s a lot of uncertainty in your life, the question of variable versus fixed may boil down to which produces the least stress.
Let us help you work through your mortgage decisions. All questions are welcomed.
On a completely unrelated note, I am happy to report that we’re finally seeing progress in making free Wi-Fi widely available on flights. Air Canada just announced that Aeroplan members will have free Wi-Fi at speeds suitable for video and gaming available on Air Canada, Air Canada Rouge and Air Canada Express flights across North America, Mexico and the Caribbean.
Porter Airlines has for a while now offered free Wi-Fi on its fleet of Embraer 195-E2 jets. Members of the airline’s frequent flyer program get unlimited Wi-Fi, while other passengers get 30 minutes free after watching an ad.
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Rob’s personal finance reading list
Goodbye, DIY
A look at when it makes sense to get help with your investments, notably in the pre-retirement and retirement years. Mention is made here of the five-year mark before retirement being a good time to get help.
Avoiding Amazon?
An article in a retail industry publication warns that avoiding American products can affect jobs at the Canadian operations of U.S. companies. An example cited here is Amazon Canada, which employs more than 45,000 workers
Buyer’s regret: The housing edition
This list was written for a U.S. audience, but it resonates in any market. The point about maintenance costs is spot on.
This sounds fishy to me
Kinds of fish you should avoid at the grocery store, even if the price is right.
Podcast fans
Subscribe to Stress Test on Apple podcasts or Spotify.
Ask Rob
Reader comment: “A comment on the 15 per cent tipping topic you wrote about. With ever-increasing prices, I along with many of my friends feel the tipping culture is horrible. The expectation for tips even at fast food restaurants is nuts. Canada’s tipping culture is really an additional social tax.”
Do you have a question or comment for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Callout alert
The Globe is looking to speak with Canadians who were planning to wait past the age of 65 to take CPP, but have opted to take it earlier so that they don’t have to sell their investments due to market volatility. E-mail retirement reporter Meera Raman at mraman@globeandmail to share your personal story.
Tools and guides
A map of countries around the world, with rankings on income. Canada is in the high-income group.
In the social sphere
Social Media: Do you look at your investment accounts more often in up or down markets?
Watch: Helpful thoughts from a financial influencer on stock market declines.
Money-Free Zone: If I had to explain the virtues of psychedelic rock in one song, I might pick Vad Hande Med Dem? by The Brian Jonestown Massacre. What a ride.
More PF from The Globe
- What the Liberals’ election win means for your personal finances
- Alberta Securities Commission finds that ‘finfluencer’ broke securities laws
- Will Carney end the housing crisis? The promise and peril of the Liberals’ plan
- How a little planning can make a big difference when claiming child-care expenses