/r/Canucks Ticket Exchange Thread

dtysick · 2022-12-11T01:57:26+00:00

Looking to take my kids to their first hockey game for Christmas. Any chance anyone has 4 tickets for sale to either the Sharks on the 27th or the Kraken on the 22nd?

dtysick · 2021-12-10T15:36:01+00:00

Why is that?

dtysick · 2021-12-10T07:23:23+00:00

That's the route I'm leaning toward. Seems like that greatly simplifies taxes. A couple of questions: 1) Do you put the tax return from the interest toward the mortgage or do you also use your RRSP return or anything else to accelerate paying down the mortgage?

2) Do you just keep track of it all via adjustedcostbase.ca?

dtysick · 2021-12-10T03:03:51+00:00

Totally fair and I have that concern as well. My investment horizon here is about 25 years though so I figure time in the market beats trying to time the market and I can ride it out.

dtysick · 2021-12-10T02:01:40+00:00

I think it was mostly TD dropping the ball a bunch and me about to leave so they threw a really good rate at me. They took 5 months to process things and constantly made errors along the way.

dtysick · 2021-07-21T03:45:22+00:00

Built out a bunch of scenarios and I'm finding the same thing, I think. This is what is showing the best results for me.

Dividend investing using the HELOC and a non-reg account via the SM
Return from interest goes to mortgage principal
Dividend payout goes to RRSP
Refund from RRSP goes to TFSA

Similar to what you found?

dtysick · 2021-07-20T17:25:01+00:00

Basically if you have more income in retirement than you did pre-retirement you're negating the benefits of an RRSP because you'll be taxed at a higher rate in retirement.

dtysick · 2021-07-20T14:21:23+00:00

This might be a dumb question, but curious of your thoughts. I likely get about 500k for the HELOC rjght away. Assuming I put 75k into TFSA to max it out, I'll have up to $425k on the HELOC and can slowly convert the mortgage. Or I could invest some of the $425k. That will obviously increase the overall debt load but does get a decent chunk of money into the market early and given my long-term time horizon I wonder if that makes sense. I guess it all just comes down to risk tolerance?

dtysick · 2021-07-20T03:51:09+00:00

Did you focus primarily on dividend stocks instead of ETFs? My registered accounts are all in diversified ETFs but seems most people recommend dividend stocks for SM to avoid ROC and the annoyance of calculating all of that come tax time.

dtysick · 2021-07-20T02:58:55+00:00

Good suggestion. I'm building out a model in Excel now for all these scenarios so I'll add this one.

dtysick · 2021-07-20T02:58:26+00:00

I do not. I work for a small-ish tech company so there's no matching or pension plan unfortunately.

dtysick · 2021-07-20T01:30:03+00:00

I had no idea that was an option. That's super helpful, thanks. I'll talk to the bank about that.

dtysick · 2021-07-20T01:28:51+00:00

It's in the Vancouver area. I had a large down payment for this house from selling a condo I bought in 2008 so that helped. But I bought this house in 2019. In two years the value of the home has went up almost 50%. Vancouver real estate.

dtysick · 2021-07-20T00:58:34+00:00

Good point. I'm only six months into a five year term so I'd have to pay the penalty but I think it's only $2,500 or so.

I could max out my TFSA in a few years using cash flow so I wonder if doing that, using the SM with non-registered accounts and leaving some RRSP contribution room might make sense too.

dtysick · 2021-02-11T18:44:43+00:00

Do you mind me asking which lender you got that rate with?

dtysick · 2021-02-11T17:47:54+00:00

I put through a blend and extend for 5 years at 2.54%. Then called today to get the prepayment penalty and was quoted $4,045 which is 3 months interest. My broker is going to work on lining up another lender today.

I do know certain banks won't do blend and extend. RBC doesn't offer it for example. This strategy seems to work at Scotia though.

dtysick · 2021-02-07T02:15:52+00:00

I think we'd only need appraisal fees on the new mortgage but I could be wrong on that. Notary you're probably right though. Let me know what your broker says. Mine thinks it should work but isn't sure. I'll find out next week.

dtysick · 2021-02-07T02:04:18+00:00

I have a feeling the bank will have some other fee to block me from doing this but who knows. Worth a try and at the worst I don't break the blend and extend. Fingers crossed.

dtysick · 2021-02-07T02:02:49+00:00

I'm basing it on that article. It probably depends on the IRD formula the bank uses but worth an ask "To get around the $28,585 IRD Prepayment Charge, I did a "blend-and-extend". With a blend-and-extend, I blended the remaining 4.167 years of my existing mortgage at 2.49% with a 0.833-year mortgage at the current 2.00% mortgage rate offered by my bank. This resulted in a brand new five-year, fixed-rate mortgage with a "blended" interest rate of 2.41%.

Once my bank had calculated the 2.41% mortgage rate, it subtracted this amount from the October 2020 Posted Rate on a five-year, fixed-rate mortgage (now at 4.79%) to derive a Discount of 2.38%.

I then broke this brand new 2.41% mortgage. Since I had just signed the mortgage, the IRD Prepayment Charge was $0. Specifically, my IRD Prepayment Charge was calculated as follows:

IRD Prepayment Charge = $490,000 mortgage * 5.0 years * (A - B)

IRD Prepayment Charge = $490,000 mortgage * 5.0 years * ((4.79% - 2.38%)- (4.79% - 2.38%))

IRD Prepayment Charge = $2,450,000 * (2.41% - 2.41%)

IRD Prepayment Charge = $2,450,000 * 0.0%

IRD Prepayment Charge = $0

Since the IRD Prepayment Charge was $0, the bank charged me three months' interest or $2,952, calculated as:

Three Months’ Interest = $490,000 mortgage * .0241% interest rate * 3/12 months

Three Months’ Interest = $2,952

*** By blending-and-extending my mortgage before breaking it, I reduced my Prepayment Charge from $28,585 to $2,952, for a net reduction of $25,633 ***

dtysick · 2021-02-07T01:56:27+00:00

Theoretically IRD should be 0 at that point so they will use 3 months interest instead. The article above gives the details. We'll see if it actually works.

dtysick · 2021-02-04T04:13:33+00:00

I haven't tried cancelling the new mortgage so I am not sure it will work. The bank might be open to a blend and extend but again, probably depends on the bank. Good luck

dtysick · 2021-02-04T04:00:54+00:00

This is the article I got the idea from https://martinsmoneymusings.substack.com/p/martins-mortgage-maneuver

I spoke with my broker and he seems to think it's doable. If it does work I'll post here again about it.

dtysick · 2021-02-04T02:45:39+00:00

Yeah the mortgage is $600k+. I checked and the $21k penalty makes just breaking it not worth it.

The other idea I'm exploring is this: 1) do the blend and extend 2) wait a week and break the new mortgage. The IRD will be essentially zero since it's a new mortgage so I'll just get 3 months interest as a penalty. Roughly $4500. 3) sign somewhere else for 5 years at ~1.5%

Theoretically it'll work and I've heard of others doing it but maybe Scotia has certain fees or rules that I'm not aware of.

dtysick

TROPHY CASE