Even though most people need finance to acquire a home, some have the funds to make a cash deal. There is a possibility that the property is relatively cheap, is downsizing, has recently sold another house, or has lots of other liquid assets. While some may counsel to reduce debt, and in most forms of debt, I would reach an agreement, there are many reasons this guidance does not apply to a home loan or mortgage. Below is a review of the four advantages of carrying a mortgage while comprehending the major reason not to dip one’s monthly carrying charges/ fixed expenses.
1. Opportunity cost of money: Many have come across this expression but cannot fully understand it or don’t believe it applies to them. Question yourself; it might make more sense to preserve one’s funds, invest them distinctly, and take out a mortgage.
2. Cash flow: If you are giving 4.5% as your mortgage rate and meritoriously paying quite a bit less because of tax considerations, and you believe you can, over time, make more from your investments, doesn’t a mortgage make sense?
3. Tax deductible: Mortgage interest is tax-deductible, costing you substantially less than any other form of a loan.
4. Escrow: When you have a mortgage, most advancing institutions will also charge and keep an escrow account to pay the real estate taxes, insurance, etc. You won’t have to be concerned about keeping track of making a real estate tax payment and being paid a late penalty fee because the loaner will recompense this out of your account.
deals on the Quebec lending market. They offer free-of-charge mortgage calculations and pre-appraisal so that you can start your Montreal house hunting with a clear idea of the size of mortgage you will comfortably qualify for. Our custom-brokered mortgage packages are tailor-designed to work effectively within your personal lifestyle and financial situation. They work with a widespread network of more than 200 banks, credit unions, trust companies, private funds, investors, and other lending sources, which means we’re confident that we can find various options that will suit your needs.
Most importantly, we review the Quebec mortgage market several times daily to keep abreast of the latest changes. So we can always offer you up-to-date information and the latest deals. For more information, refer to the website –