Comments on: Canadian Home Equity Has Been Used To Secure 69% More Debt Than HELOCs Show https://betterdwelling.com/canadian-home-equity-has-been-used-to-secure-69-more-debt-than-helocs-show/ Canada’s Fastest Growing Real Estate News Source Tue, 21 Dec 2021 22:51:39 +0000 hourly 1 By: AtroubledCanadian https://betterdwelling.com/canadian-home-equity-has-been-used-to-secure-69-more-debt-than-helocs-show/#comment-78173 Tue, 21 Dec 2021 22:51:39 +0000 https://betterdwelling.com/?p=19188#comment-78173 In reply to Vincent Fornelli.

To add to his point, you want capital gains versus regular income. Paying capital gains taxes is preferable to income taxes, as the rates are drastically lower and you can offset income with losses.

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By: SH https://betterdwelling.com/canadian-home-equity-has-been-used-to-secure-69-more-debt-than-helocs-show/#comment-78168 Tue, 21 Dec 2021 20:54:26 +0000 https://betterdwelling.com/?p=19188#comment-78168 In reply to Lou Chao.

Nope. Not a joke. In BC people over 55 and allowed to legally evade property taxes. I believe it’s the only province where this kind of policy exists. It’s a grotesque injustice against the young, but the young are not the government’s priority. Taxes deferred are supposed to be paid back when the home is sold, but realistically do you think anyone goes after these people?

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By: SH https://betterdwelling.com/canadian-home-equity-has-been-used-to-secure-69-more-debt-than-helocs-show/#comment-78167 Tue, 21 Dec 2021 20:49:34 +0000 https://betterdwelling.com/?p=19188#comment-78167 In reply to Mortgage Guy.

I always wondered, if that BC Boomer tax deferral (evasion) scam were audited, how many occurrences there are of non-payment of back taxes owed after the home was sold. Do municipalities go after Boomer tax cheats as rigourously as the RCMP and CRA go after money-laundering? If so, I bet many of them never pay a dime.

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By: Heather https://betterdwelling.com/canadian-home-equity-has-been-used-to-secure-69-more-debt-than-helocs-show/#comment-78164 Tue, 21 Dec 2021 20:02:42 +0000 https://betterdwelling.com/?p=19188#comment-78164 Yes, Boomers can have property tax deferral. When the house or condo is sold, the tax has to be paid.

Boomers living alone in their house can also check with the city to see if they can have a 25% cut in water, sanitary and solid waste pick up. However, that makes sense because they aren’t using as much as a family or family and rentals.

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By: Arthur https://betterdwelling.com/canadian-home-equity-has-been-used-to-secure-69-more-debt-than-helocs-show/#comment-78163 Tue, 21 Dec 2021 20:00:41 +0000 https://betterdwelling.com/?p=19188#comment-78163 The PM and BofC Gov crossed the Rubicon imposing below market interest rates long ago. HELOC borrowers who still haven’t crossed into deep debt yet need to decide whether they or their bank will be ok in a downturn. Personally, I root for the small folks but I won’t be betting against the banks in a battle for survival.

Typical part of a HELOC agreement you signed:
We have the right, at any time, to block, suspend, terminate, freeze or otherwise deny access to or use of the credit account or any benefits or privileges to the credit account, all without any reason and without telling you in advance, whether or not we have terminated the Agreement or demanded on the Debt.

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By: RW https://betterdwelling.com/canadian-home-equity-has-been-used-to-secure-69-more-debt-than-helocs-show/#comment-78157 Tue, 21 Dec 2021 17:46:57 +0000 https://betterdwelling.com/?p=19188#comment-78157 In reply to Vincent Fornelli.

Except if you borrow the money for investments, the interest is tax deductible. Never make an income, but defer it and borrow against assets.

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By: Vincent Fornelli https://betterdwelling.com/canadian-home-equity-has-been-used-to-secure-69-more-debt-than-helocs-show/#comment-78156 Tue, 21 Dec 2021 17:45:13 +0000 https://betterdwelling.com/?p=19188#comment-78156 In reply to RW.

What does this even mean? You’re borrowing money, so it costs you to draw on the home equity and it’s a loan.

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By: RW https://betterdwelling.com/canadian-home-equity-has-been-used-to-secure-69-more-debt-than-helocs-show/#comment-78155 Tue, 21 Dec 2021 17:44:13 +0000 https://betterdwelling.com/?p=19188#comment-78155 A wonderful way to avoid paying income taxes. Uh… I hear.

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By: Mortgage Guy https://betterdwelling.com/canadian-home-equity-has-been-used-to-secure-69-more-debt-than-helocs-show/#comment-78154 Tue, 21 Dec 2021 17:43:29 +0000 https://betterdwelling.com/?p=19188#comment-78154 In reply to Lou Chao.

He’s definitely not. Most provinces will defer property taxes for seniors assuming they can’t afford it.

In BC, the interest rate is 0.45% on property taxes deferred as well, so every senior with half a brain does it. No income requirement, and with inflation at 4.5% (or even a target of 2%), they dump the liabilities onto everyone else. It’s quite comical people even allow this, especially on multi-million dollar homes.

To boot, it’s the lowest property tax rate in the country in Vancouver, which supports way higher home prices.

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/annual-property-tax/tax-deferment-interest-fees

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By: Lou Chao https://betterdwelling.com/canadian-home-equity-has-been-used-to-secure-69-more-debt-than-helocs-show/#comment-78153 Tue, 21 Dec 2021 17:39:41 +0000 https://betterdwelling.com/?p=19188#comment-78153 In reply to Van YIMBY.

What’s this about not paying property taxes? That has to be a joke, right?

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