“New Democratic Party leader Tom Mulcair and his wife have repeatedly refinanced their home west of Montreal, gradually increasing the debt on the property over a series of 11 mortgages, land records show.
Mulcair’s office will not explain why the couple have loaded more and more financing onto the West Island home they’ve lived in since the early 1980s, saying only that it’s a “private matter.”
It is unclear why Mulcair would need to refinance the modest two-garage home in Beaconsfield so many times, bumping the value of the mortgage from $58,000 to $300,000.”
“They paid $64,000 for the home in 1983, with a $56,000 mortgage from the Caisse Populaire du Lac St. Louis at 10.7 per cent interest — the going rate of the day.
Every few years, new financing with the Royal Bank of Canada was registered on the property with mostly increasing values as the amount owing rolled over.
The couple obtained loans in 1984, 1987, 1988, 1990, 1996, 1997, 2001, 2003, 2006 and 2009.
Nearly a year after the last transaction, Mulcair filed a report with the federal ethics commissioner, saying that he taken a line of credit with his wife from the Royal Bank.
Under the MP’s Code of Conduct, material changes in a member’s assets or liabilities must be reported to the ethics commissioner within 60 days.
The value of the line of credit is not specified.
Today, Mulcair earns $157,731 annually as an MP plus a $75,516 stipend as Leader of the Official Opposition. When in Ottawa, he lives for free at the official residence, Stornoway.”
– from ‘NDP leader has remortgaged his home 11 times since early 1980s’, Ottawa Citizen via Vancouver Sun, 28 May 2012
NDP, Liberal, Conservative… the political ‘stripe’ here may or may not be important, that can be debated. We are of the opinion that many Canadian politicians, across all parties, are, like the general citizenry, overdependent on RE for their financial health.
That said, this piece of information certain won’t help NDP promises of being capable of fiscal prudence.
This anecdote illustrates:
1. a nice concrete example of ‘RE-ATM’; it is now commonplace, with escalating home prices, for individuals from all walks to allow mortgages to balloon over time, rather than to pay them down; many longterm owners still have considerable mortgage debt;
2. our politicians, like our general citizenry, have strong personal interest in the RE market remaining robust.