Mortgage Applications: How Leanders Review and Calculate Your Income

October 17, 2023

Secure Your Child's Future: Back to School Homeownership Tips for Parents


As the summer days wind down and the back-to-school season approaches, Fort McMurray parents have a golden opportunity to not only plan for their children's education but also set the stage for their future financial security. The decision between renting and homeownership is a pivotal one, especially for those with aspirations of giving their kids a head start in the real world. In this blog, we'll explore the advantages of buying a rental property now and how it can pave the way for a brighter future for your child, offering them cheap rent during their university years and even helping them achieve homeownership down the line.

Building Equity for the Next Generation

Canadian real estate has shown its resilience over time, making property investment a smart move for long-term wealth accumulation. By purchasing a rental property now, you can not only generate rental income but also build equity over time. This equity growth can have a profound impact on your child's future financial stability.


Imagine gifting your child a significant down payment on their own home when the time comes. The equity you've built in your rental property can serve as a valuable asset to help them take their first steps towards homeownership. With rising property prices, this could potentially give them a considerable advantage in a competitive housing market. This forward-thinking approach not only demonstrates your commitment to their future but also provides them with a strong foundation to begin their own journey towards homeownership.

Affordable Rent During University Years

Sending a child off to university comes with a host of financial considerations, not the least of which is accommodation. Rental costs for students can be exorbitant, especially in cities with prestigious institutions. By owning a rental property near a university campus, you can offer your child a cost-effective housing solution during their academic years.


Renting to your own child can be mutually beneficial. You provide them with a comfortable living space while significantly reducing their financial burden, allowing them to focus on their studies and personal growth without the constant worry of escalating rent prices. Moreover, the rental income can help offset the costs associated with property ownership, creating a win-win situation for both you and your child.

Tax Benefits and Long-Term Investment

Investing in real estate isn't just about immediate financial gains; it's a strategic move that can yield substantial benefits in the long run. In Canada, rental property owners can take advantage of various tax deductions, such as mortgage interest, property taxes, and maintenance costs. These deductions can significantly reduce your taxable income, enhancing your overall financial position.


Furthermore, owning a rental property aligns with the principles of diversification—a cornerstone of sound financial planning. Real estate investments tend to be less volatile than other investment options, providing a stable income stream even during economic downturns. As a parent, you can leverage this stability to ensure a secure financial future for your child.

Teaching Financial Responsibility

Owning a rental property isn't just about financial gains; it's also an opportunity to impart valuable life lessons to your child. By involving them in property management discussions, financial planning, and decision-making processes, you're giving them a crash course in real-world responsibilities. This experience can be instrumental in shaping their financial literacy, equipping them with essential skills they'll need as they navigate their own paths towards adulthood.

Conclusion

As Fort McMurray parents gear up for another back-to-school season, it's crucial to think beyond textbooks and school supplies. Investing in a rental property now can set the stage for a brighter future for your child. From building equity that can eventually be gifted as a down payment on their own home to offering affordable rent during their university years, the advantages are abundant. By making a strategic move today, you're not only securing your child's financial well-being but also empowering them with valuable life lessons that will last a lifetime. So, as you prepare to send your child off to school, consider this investment as a profound expression of your love and commitment to their future success.

You Missed the Best Time to Buy—Now What?

By Barb PInsent • March 7, 2025
Let’s be real—2020 was a great time to buy a home. Prices were lower, and mortgage rates were sitting at 2.84% . But if you didn’t buy then, you’re not alone. Many people hesitated, waiting for the “perfect” time to enter the market. Now, home prices are higher, rates have fluctuated, and some buyers are still waiting. But here’s the truth: there is no perfect time to buy—only the right time for you. Barbara Corcoran @barbaracorcoran puts it:

Lower Rate with Higher Penalty OR Higher Rate with Lower Penalty?

By Barb PInsent • February 19, 2025
When choosing a mortgage, many borrowers focus on getting the lowest interest rate. But what happens if life throws a curveball and you need to break your mortgage early? The penalty for breaking a mortgage can be significant—sometimes wiping out any savings you gained from a lower rate. That’s why it’s important to weigh your options carefully.

Are Mortgage Rates Going to Drop in 2025? How U.S. Tariffs Could Impact You

By Barb PInsent • February 7, 2025
Is the Economy Going to Crash? What Canadian Homebuyers Need to Know

Capital Gains Tax Rules: Are They Changing?

By Barb PInsent • January 21, 2025
With all the uncertainty surrounding Canada’s proposed capital gains tax changes, many property owners are asking, "Do I have to pay capital gains if I sell my house?" or "Should I sell my investment property before the tax rules change?" In June 2024 , the federal government proposed increasing the capital gains inclusion rate —the portion of capital gains that is taxable. This change could significantly impact investors and property owners selling secondary residences, rental properties, or cottages. But here’s the challenge: the rules haven’t been finalized yet. As Jamie Golombek explains in a recent Financial Post article , “Uncertainty remains as to what the final capital gains tax rules will look like, or even if they will be implemented at all.” Despite this uncertainty, the Canada Revenue Agency (CRA) has announced it will proceed with collecting taxes based on the proposed higher inclusion rate until a final decision is made. This means that even if you sell now, you could still face a larger tax bill. If the rules are later changed or rejected, the CRA may adjust tax filings—but in the meantime, selling could cost you more than you expect. The good news? Selling isn’t your only option. If you need access to cash or want to better manage your finances, refinancing or exploring alternative lending solutions could provide the flexibility you need—without triggering a large tax bill.

Your Resolution May Fail by February… Here’s Why

By Barb PInsent • January 7, 2025
The start of a new year inspires us to set ambitious goals, from getting fit to saving more money. But did you know that most people abandon their resolutions just 36 days into the year? That’s right—by early February, many of us have already fallen back into old habits.

Bank of Canada Cuts Rates by 50 Basis Points: What It Means for Your Mortgage

By Barb PInsent • December 19, 2024
The Bank of Canada recently made headlines by cutting its benchmark interest rate by 50 basis points, a move aimed at providing relief to borrowers and stimulating economic growth. This rate cut—the second in recent months—is a game-changer for homeowners and prospective buyers alike. As your trusted mortgage broker, we’re here to break down what this means for you and how it could impact your financial decisions.

Understanding 30-Year Amortizations: What Mortgage Brokers and Clients Need to Know

By Barb PInsent • December 5, 2024
When it comes to financing a home, amortization is a key term mortgage brokers often discuss with their clients. While shorter amortization periods are common in Canada, the concept of a 30-year amortization has gained traction among some buyers and brokers. This blog dives into what it is, its benefits, its drawbacks, and when it might make sense for you or your clients.

US Election 2024: Why It Matters for Canadian Mortgages Rates

By Barb PInsent • November 19, 2024
The U.S. election season often impacts the Canadian economy, especially interest rates. Here’s what you need to know about recent developments and predictions for Canadian mortgage rates.

Buying a Home in Canada: A Guide for Newcomers

By Barb PInsent • October 21, 2024
Moving to a new country is a big step, and finding a place to call your own can make settling in even more rewarding. For newcomers to Canada, the journey of purchasing a home can feel both exciting and overwhelming. This guide is here to help you navigate the process of buying a home in Canada, providing a clear roadmap and essential tips to make your homeownership dreams a reality.

How To Keep Track Of All The New Mortgage Rules

By Barb PInsent • October 3, 2024
Over the past few months, the Canadian government has introduced significant changes to mortgage rules, aiming to make homeownership more accessible. These changes, set to take effect on December 15, 2024, address pain points in the existing system and offer potential solutions for homebuyers, especially first-timers and those seeking new builds.
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