016-The Garage talks mortgages

In this episode, the guys wade into muddy mortgage waters. HELOCs, rates, insurance, terms, renewals there’s too much to cover for one episode. We’ll sample a few new beers as usual too. If you found this podcast you’re probably familiar with the FI/RE movement that has grown in popularity recently. Here at the FI Garage, we’re all on the path to FI, however, we consider the RE part optional.

Beer #1 – Heineken [0:35]

Advice from the Money Mechanic: Don’t buy Heineken bottles [1:25]

Useful Tool – Don’t Jump into a Cash Rewards Program [2:30]

See Reading List

Mortgages [7:30]

  • How much down? [8:30]
    • CMHC Insurance is required on any mortgage with less than 20 percent down
  • Learn about mortgages and how much you will pay [10:30]
  • Mortgage Broker or Bank? [12:15]
  • Consider the Terms of the Mortgage, Not Only the Rate [16:00]
    • Cost of Breaking Mortgage Before the Term is Up [16:50]
    • Variable or Fixed Rate [17:10]
    • Prepayment [18:30]
    • Re-advanceable [20:50, 33:30]
  • What is a Home Equity Line of Credit (HELOC) [21:00]
    • Accountant’s HELOC Analogy [24:00, 34:10, 34:50]
    • Might have to change lenders and/or re-qualify [33:00]
  • CIBC is Looking for Mortgage Business [25:00]
  • Hiker and his Bernese Mountain Dog Rescued After Night on Buntzen Lake Trail [36:00]
  • Why do the members of the garage have HELOCs? [38:00]
    • To Free Up Capital for Further Investing
  • Smith Maneuver [39:00]
  • Mortgage protection insurance vs life & disability insurance [40:00]
  • Payment Frequency [45:30]
Beer #2 –Hoyne Pilsner [29:00]
Stupid Money Move [48:30]

Not shopping around for the best mortgage rate on renewal a form of Paying Extra for Convienance

Reading List

Best Cash Back Apps: How to Get Rebates and Rewards from Your Purchases via onlinemoneypage

The 20 Best Cash Back Apps to Save Money When Shopping via Savvy New Canadians

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