Topic: Good Mortgage Calculator

[wing]

No trying to pay off the one I have.

Damned if you do damned if you don't though.  Low interest rates on the mortgage means no point in paying down on it.  But low interest rates on investments means no point in investing either (except to perhaps get a tax savings on the RRSP).

[Ex-airbalancer]

I found a REALLY good calculator.

 I called my banker

No B.S. she punched in the numbers and gave me the result.  I was close on my calculations with my rough estimates anyways.  Interest rates are so low, I'm only paying 3.375% right now, as a result, a down payment right now is not financially a good move, I'd be better to drop it in a GIC or something.

I think it always good to pay down a mortgage , unless you need money for RRSP

[safristi]

..WOT's A MORTGAGE........................... ...Morty's air testing thingy...................

[ArticSteve]

$18,000 interest a year 

Almost enuff to buy a Cobalt.

Buying another property, Wing?

Buying another property, Wing?  

I dunno about Alberta, but in Ontario real estate has a long way to fall.  High rise city condos, recreational properties and rental type townhouses, IMO, will fall an additional 20% before reaching the bottom, hopefully no more, as speculators get squeezed on all fronts.  Those type properties have a high % of speculators defined as ppl who have reached their leverage maximum.

[ArticSteve]

First political party to announce that personal mortgages are tax deductible wins hands down regardless of deficit implications.

[tpl]

I found a REALLY good calculator.

 I called my banker

No B.S. she punched in the numbers and gave me the result.  I was close on my calculations with my rough estimates anyways.  Interest rates are so low, I'm only paying 3.375% right now, as a result, a down payment right now is not financially a good move, I'd be better to drop it in a GIC or something.

I think it always good to pay down a mortgage , unless you need money for RRSP

I agree.  Wing although the interest rate is low, you are still paying a whole pile of interest in the early years of a mortgage.  We paid ours very early by the tried and tested, Max out RRSP and put all the tax rebate into the mortgage.  We had a Bank employee staff ratte so we were paying less than the rest at that time as well.

[tpl]

First political party to announce that personal mortgages are tax deductible wins hands down regardless of deficit implications.

I think that is a good idea... BUT I would then charge capital gains tax (  and allow capital losses) on ALL profit (loss) on the house.   Then a residence would be treated the same as any other investment made for capital gains purposes.

Once this was in place for a few years it would work well enough I think. You'd need a valuation day as there was for capital gains tax ( 1971??) and you'd have to politically put up with the screams of those who did lose out.

[ArticSteve]

Personally I think it's a terrible idea as it has really contributed to house inflation in the USA as of late.  Very little incentive to pay down your mortgage in the USA.

I was just mentioning it because in Canada politicians have pretty well run out of bribes for votes.  I'm surprised the party with the most retarded tax policy to date has not thrown this up for grabs.

BUT I would then charge capital gains tax (  and allow capital losses) on ALL profit (loss) on the house.   Then a residence would be treated the same as any other investment made for capital gains purposes.

That is exactly the US system currently.  It can't possibly be changed now.  One can now understand why some in the US keeping harping on Capital Tax reductions.

[Ex-airbalancer]

First political party to announce that personal mortgages are tax deductible wins hands down regardless of deficit implications.

Where is Joe Clark

[ArticSteve]

Joe Clark was one of the most responsible leaders we have had.  He got defeated because he applied a 25 cent gas tax to a gallon of gas to help pay down the Trudeau mega debt.

Bob Rae helped engineer his defeat.  Then back came Trudeau and he raised gas 40 cents a gallon and then went metric at the same time to fool ppl and then blew the national debt sky high.  Then came Mulroney who doubled that. 

I would settle for a Joe Clark in a heart beat.

[dr_spock]

Joe who? 

[wing]

TPL -- although I like the idea of paying the mortgage down here are some numbers I got from my bank.

Starting now if in one year I would pay $9,400 in interest.  Putting a lump sum down on the mortgage (I asked about putting $20,000) would change that interest charge to $8,000 for the year.  It would also change my amortization from 16.7 years to 15.3 years.

You see that's not that great really.  Now your other theory about putting that in RRSPs and taking the tax deduction and putting it in the mortgage.  That is a GREAT idea except.... according to my calculations this year I will owe ~ $17,000 in taxes to the government.  So if I were to put the $20,000 in RRSPs I won't get anything back, I will have less tax to pay on the other hand, so I could do something like, put $15,000 in RRSP take that tax savings ~$5000 and put that on the mortgage.

Still using my $20,000 and paying the gov $12,000 instead of $17,000.  I'll have to do the math on that one.

[Ex-airbalancer]

Joe Clark was one of the most responsible leaders we have had.  He got defeated because he applied a 25 cent gas tax to a gallon of gas to help pay down the Trudeau mega debt.

Bob Rae helped engineer his defeat.  Then back came Trudeau and he raised gas 40 cents a gallon and then went metric at the same time to fool ppl and then blew the national debt sky high.  Then came Mulroney who doubled that. 

I would settle for a Joe Clark in a heart beat.

In January 1979 service stations started pricing and dispensing gasoline and diesel fuel in litres

Joe was PM June 4, 1979  -  March 2, 1980

[tpl]

TPL -- although I like the idea of paying the mortgage down here are some numbers I got from my bank.

Starting now if in one year I would pay $9,400 in interest.  Putting a lump sum down on the mortgage (I asked about putting $20,000) would change that interest charge to $8,000 for the year.  It would also change my amortization from 16.7 years to 15.3 years.

You see that's not that great really.  Now your other theory about putting that in RRSPs and taking the tax deduction and putting it in the mortgage.  That is a GREAT idea except.... according to my calculations this year I will owe ~ $17,000 in taxes to the government.  So if I were to put the $20,000 in RRSPs I won't get anything back, I will have less tax to pay on the other hand, so I could do something like, put $15,000 in RRSP take that tax savings ~$5000 and put that on the mortgage.

Still using my $20,000 and paying the gov $12,000 instead of $17,000.  I'll have to do the math on that one.

I see your problem.   I always ended the year NOT owing anything ( in those mortgage paying days some years back).     But " It would also change my amortization from 16.7 years to 15.3 years."  that is 15 or so payments on the mortgage, granted its in the future in future $$ and it is the last 15 months so its mainly capital    but it is still a year+ of payments. Do that a couple of times and you end up paid off in only 7-8 years.  Which does several things:  Toys.   Freedom 45.   A bigger and better house sooner.    In our case it was retiring with enough money to just about ignore this downturn... just about. 

The only real freedom is economic freedom   ( George Bernard Shaw I think)

[ArticSteve]

In January 1979 service stations started pricing and dispensing gasoline and diesel fuel in litres

NOPE.  It was in gallons, but it was 18 cents, not 25 cents.  Trudeau raised it by 40 cents soon after or 9 cents a litre.  

Harper recounted the Clark administration's decision to table a budget with an 18-cent-a-gallon gasoline tax, which caused the Progressive Conservative minority government to fall Dec. 13, 1979.
http://www.thestar.com/News/Canada/article/546108

In 1978 timetables were established for the conversion of the sale of motor fuels, individually measured retail foods, and home furnishings. On 3 June 1979 Canadians were faced with a federal election. While Canadians were starting to become accustomed to metric the Liberal party had become unpopular for a number of reasons and thus the Progressive Conservatives under Joe Clark formed the new minority government. Part of the Conservative's platform was to make metrication voluntary. In January 1980 the deadline for metrication of home furnishings passes without enforcement.

On 2 March 1980 Canadians again went to the polls and elected a Liberal majority government under Pierre Trudeau form. By January 1981 motor fuel and fabric sales were metricated.

http://wiki.answers.com/Q/What_year_did_canada_convert_to_metric


The metrication of gasoline and diesel fuel sales in 1981 prompted 37 Progressive Conservative Members of Parliament to open a "freedom to measure" gas station in Carleton Place, Ontario, selling gas in both imperial gallons and litres. The small city of Peterborough, Ontario, was a noted hotbed of opposition to metric, having been one of the government's three test centres for the metrication process. Bill Domm, a Member of Parliament representing the riding of Peterborough, was one of the country's most outspoken opponents of metrication. During this period, some government employees lost their jobs due to their opposition to the government's forced metrication

http://74.125.95.132/search?q=cache:Tfy_NLE2iz8J:en.wikipedia.org/wiki/Metrication_in_Canada+when+canada+went+metric+with+gasoline&hl=en&ct=clnk&cd=4&gl=ca

[Ex-airbalancer]

The first such event was the announcement of temperature in degrees Celsius in weather forecasts beginning 1 April 1975. From September 1975 rainfall and snowfall were quoted in millimetres and centimetres, respectively. The next significant change (September 1977) was the introduction of road signs showing distances in kilometres and speed limits in kilometres per hour. Concurrent with this change, cars with speedometers and odometers graduated in metric units were produced.

In January 1979 service stations started pricing and dispensing gasoline and diesel fuel in litres. In December 1980 (the cutoff date for using imperial length units) fabrics and home furnishings were required to be advertised and sold only by the metre and centimetre. Conversion of weighing scales in retail food stores created political controversies. After 3 pilot areas (Kamloops, Peterborough and Sherbrooke) completed scale conversion in the summer of 1979, national conversion was postponed by the government of the day, but was resumed in January 1982.

http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=a1ARTA0005262


I got married in '79 and I remember  buying gas in litres back then
but it is minor detail probably have had to much cheer to remember 100%

[ArticSteve]

I got married in '79 and I remember  buying gas in litres back then
but it is minor detail  probably have had to much cheer to remember 100%

You had too much cheer.

I'll stick with my link that offers a little more detail and a direct quote from Harper about gas in gallons. 

"You can be principled without being stupid," he said aboard the campaign plane Dec. 13, 2005.

With an almost childlike glee, Harper recounted the Clark administration's decision to table a budget with an 18-cent-a-gallon gasoline tax, which caused the Progressive Conservative minority government to fall Dec. 13, 1979.

"I mean, I read that (1979 Tory election) platform," he said, motioning as if he were leafing through the document, "and there wasn't a word in it about raising gas taxes 18 cents a gallon!"

http://www.thestar.com/News/Canada/article/546108

[Jim_il]

same question thanks for it.

[Ex-airbalancer]

I'll stick with my link that offers a little more detail and a direct quote from Harper about gas in gallons.


I win
You quoted Harper and he always put his own spin on everything,
Can not  trust him on telling the true

[ArticSteve]