Foreclosure Lists
  
Attached - Langley
Attached - Pitt Meadows, Maple Ridge
Attached - Chilliwack, Sardis
Attached - Surrey, N.Delta, Cloverdale (1)
Attached - Surrey, N.Delta, Cloverdale
Attached - Mission, Abbotsford
Detached - Burnaby, New West
Detached - Chilliwack, Sardis
Attached - Burnaby, New West
Detached - Langley
Mortgage Renewal Challenge
Over the next two years, more than 4 million mortgages—around 60% of all outstanding mortgages—are set to renew. A large share of these mortgages haven't come up for renewal since interest rates began rising in 2022. Even with recent rate declines, most borrowers will likely face noticeably higher payments.
Higher payments could lead households to cut back on spending more than anticipated, potentially slowing the economy. They could also create financial stress for borrowers and result in losses for lenders and mortgage insurers.
If your mortgage is coming up for renewal, don’t wait until the last minute to explore your options. Starting early gives you a better chance of securing a favourable outcome. Reach out to me, and I’ll help you review and compare the available options.
Why You Should Own Life Insurance in a Company
Owning life insurance through your company offers several advantages for business owners and incorporated professionals. Here's why it's worth considering:
1. Tax-Efficient Funding
Premiums are paid with pre-tax corporate income, which is typically taxed at a lower rate than personal income. This tax efficiency can significantly reduce the overall cost of the policy compared to paying with after-tax personal dollars.
2. Enhanced Estate Planning
In Canada, the death benefit proceeds (minus the policy’s adjusted cost base) are credited to the Capital Dividend Account (CDA), allowing your corporation to distribute these funds tax-free to shareholders or beneficiaries. This creates an effective way to transfer wealth to your heirs or shareholders without significant tax erosion.
3. Protecting Business Obligations
A corporation can own a life insurance policy on a key employee, owner, or partner to provide liquidity for debts, buy-sell agreements, or loss mitigation in the event of their passing. This ensures your business remains financially stable and operational during unexpected circumstances.
4. Investment Growth Within the Policy
Cash value in permanent life insurance policies (e.g., whole or universal life) grows tax-deferred, making it a tax-efficient savings vehicle. The cash surrender value can also be used as collateral for loans, providing an additional source of liquidity for the business.
5. Strategic Retirement Planning
Upon retirement, the corporation can borrow against the policy’s cash value or redeem it strategically, creating a tax-efficient source of income. This ensures your family or business will have financial support even after you step away.
6. Cost Sharing and Split-Dollar Agreements
Split-dollar arrangements between you and the corporation can make premiums more affordable. Policies can be tailored to meet both personal and corporate needs, maximizing benefits.
7. Creditor Protection
Life insurance policies owned by the corporation can provide a layer of protection for assets, shielding funds from creditors in some scenarios, depending on jurisdiction and structuring.
8. Flexible Succession Planning
Life insurance ensures a smooth transfer of ownership by funding buyouts when a partner or shareholder passes away. It also provides funds to keep the company stable during transitions, ensuring long-term stability for successors.
When Is Corporate-Owned Life Insurance Right for You?
This approach is ideal if you are incorporated and have surplus cash in your company, if you’re looking for tax-efficient ways to protect your family or business, or if you have a long-term goal of optimizing estate or retirement planning.
|
