Negative Net Worth on Ownership in Toronto Condo | Details on Payments

The problem now is that the condo’s high ratio mortgage, $400,000 is 96% of its equity. The New Condo Owner borrowed $25,000 from  savings in RRSP through the Home Buyers Plan and has to pay that sum back over the next 15 years in equal payments per year. If  the condo owner fails to do that, the annual payments not made will be considered income and will be included in her taxable income.


The total of the two loans, $400,000, exceeds her total assets of $380,000. Condo Owner will have to deal with this high leverage. According to rules set by the federal Department of Finance, her 25 year amortization is the longest anyone can have with a high ratio insured mortgage. Lenders cannot lower and stretch her payments further. The condo has little choice but to pay down the mortgage quickly, then use  cash flow to resume retirement savings that will be suspended while the debt is dealt with.

Is Toronto Catching Chicago Part 2

If you remember from yesterday, I did a post on how Toronto was attempting to catch Chicago in the highrise and skyscraper building game. I went over how Toronto from about mid-20th century has been playing a game of catch up with our more mature mid-western brethen. Although Toronto has not built to the heights of Chicago (CN Tower excluded! of coure) We are making a mark on the Global Skyscraper community in a major way. Well to get you guys up to speed here is a portion of my post from last night:

Is Toronto Catching Chicago in the Highrise Game: Part 1

Chicago has recently built some fine gem skyscraper recently, and while presently they are not building as tall as Toronto, they have had at least a 50 year head start on Toronto when it comes to skyscrapers and classic skyscraper style. But recently lets say in the last 5 years Chicago has built at least 2 of the most skyline defining towers in North America, if not the World. Of course I'm talking about the Trump Tower Chicago and the Aqua Condo Tower. Yesterday I went over the Aqua Condo Tower - Chicago and in Toronto I faced it off against the One Bloor Project. Tonight, I'll take it a step further with a bit of a lopsided comparison of the Trump Tower Chicago, versus the Trump Toronto Toronto Hotel and Residences. 

Right off the Bat this is not a fair fight: For example the Chicago tower is far taller than Trump Toronto and from my opinion is a much better looking building. Take a look at this gem below:

 

Trump Tower Chicago

Trump Tower Chicago, is clad in exquiste glass and steel, and rises to a height of 1,389 feet (423 m) including its spire, its roof topping out at 1,170 feet (360 m). The tower was actually supposed to be the tallest building in the world. But the terrorist attacks in New York City scaled back those plans. Still even at it's current height, it is a gorgous building.