Author: Arexl

What is a trigger rate? This inquiry may seem unfamiliar to many homeowners, but in light of the Bank of Canada’s ongoing interest rate hikes, it's become an increasingly relevant concern. Homeowners with fixed-rate mortgages can breathe easy as their payments remain constant, irrespective of interest fluctuations. However, for individuals with variable-rate mortgages, it's crucial to understand trigger rates, as you may be nearing or already at your trigger rate. Understanding Trigger Rate A trigger rate occurs when your standard mortgage payments are insufficient to cover the interest portion. In essence, this leads to the accumulation of negative equity, which is detrimental to both borrowers and lenders alike. This situation arises within a climbing interest rate context, impacting...

If you're looking into how to brace yourself for a potential recession, rest assured that you're not alone. Many individuals have observed declines in stock prices, diminishing real estate valuations, and rising interest rates, prompting questions about what the future holds. Although a severe recession may not be on the horizon, it's clear that an economic slowdown is likely. Here are strategies to effectively prepare for a recession. Understanding a recession A recession is defined as a period when a nation experiences two consecutive quarters of declining gross domestic product (GDP). While it's a natural aspect of the economic cycle, no one looks forward to it. Interestingly, government interventions, like managing interest rates, can influence the length and severity of recessions,...

In Canada, current interest rates are among the lowest seen in over a decade, which makes the notion of seeking high-interest savings accounts seem unusual. This complexity is further heightened by the plethora of banks offering disparate accounts with varying features. Without knowledge of what to prioritize or why such accounts hold value, you risk settling for the first account that’s presented to you. It’s important to recognize that the leading high-interest savings accounts in Canada won't lead to sudden riches. Indeed, the interest rates might not outpace inflation; however, the fundamental benefit is the safety of your deposited funds along with earning some interest. These accounts are ideal for short-term savings goals, such as a down payment on a home or as a reserve for emerge...

Real estate has long been a favored avenue for investment. Yet, with home prices soaring across Canada, many citizens find it increasingly difficult to afford even a single residence, rendering the notion of acquiring a second investment property a distant aspiration for the masses. Statistics from Statista indicate that the average home price in Canada reached $703,875.00 in 2022. While a slight decline in prices is anticipated through early 2023, pre-pandemic pricing levels are unlikely to be restored. This situation places the majority of homes beyond the reach of many Canadians, thereby restricting their ability to engage in real estate investment through conventional means. Fortunately, investing in real estate through Lotly presents a positive alternative, making investment opportu...