Mortgage deferrals
Ten more timely tips I hope you and your family are enjoying good health and finding some measure of happiness in this strange spring. Certainly, many Canadians are feeling the financial pressures mount as we work together to conquer this pandemic. The good news is there are strategies that can help. The Mortgage Deferral Program has been the first line of defense for thousands of homeowners looking for immediate financial relief. A Mortgage Deferral is not payment “forgiveness” that allows you to simply miss payments. While you don’t pay anything at all during the...
Read MorePause for thought
Did you know that almost half of the savings you have built up in your RRSP/RRIF (Registered Retirement Savings Plan/Registered Retirement Income Fund) could wind up being paid out in Tax at death. Tax free transfers to a surviving spouse will delay the inevitable, but won’t avoid it. First of all, let’s start at retirement. Say you have an RRSP you have been contributing to for years as you worked, or possibly, as your spouse worked (these contributions could have gone into a spousal plan for you). You can convert to a RRIF at the same time as you retire, but, you are not...
Read MoreHappy Halloween!
Here are some financial tips and ‘tricks’ to keep your finances in order. -maximize employment benefits – your employer may match a pension contribution up to a certain percentage, take advantage of your medical and dental insurance while you have it -spend less than you earn – simple, right? Make a budget and stick to it. -don’t automatically sign and send in the mortgage renewal document you receive from your financial institution. Many times, you are able to shop around and get a better rate and/or terms – talk to your mortgage broker. The...
Read MoreWomen under-insured.
Whether a woman works outside the home or not, to be properly protected, the following types of insurance should be considered. 1) – Health insurance. If you are working and your company offers it, sign up. If you are self-employed, work part-time, or work at home, health insurance is important. Sickness can be expensive, for your care, and for the care of those you look after if you can’t. 2) – Life insurance. If you are working and use your income for family expenses, you need life insurance. If you are a single mom, you need life insurance. If you are a stay at home...
Read MoreNews for homebuyers
The recent federal budget included Housing AffordabilityMeasures that may be applicable to your situation, now or in the future. There are three key measures intended to help: an incentive for first-time homebuyers, an increase in the amount of RRSP funds first-time buyers can access for a down-payment, and allowing divorced individuals to use their RRSP funds under the Home Buyers Plan. Let’s take a closer look at each: FIRST-TIME HOME BUYER INCENTIVE (available Fall 2019) This new measure is basically a shared equity program designed to reduce mortgage payments for first-time buyers...
Read MoreTips for Tax Retirement Income
When it comes to tax planning, it’s the little things that really add up. Here are 5 ways in which you can save big at tax time: Have a plan – it is very important that you know where your income is coming from today, tomorrow and many years down the road. At each stage of your retirement, your primary income source may change. Having more than just a vague idea of where this money is going to come from helps make better decisions now. Create income from multiple sources – the saying “don’t have all your eggs in one basket” rings true when it comes to taxation too. Some income...
Read MoreManage your credit score
…it’s your passport to financial opportunities So maybe you let a few bills slide when things were tight. Or maybe you haven’t seen a zero balance on your credit card in longer than you can remember. Then there was that temporary line of credit… that somehow became permanent. It’s amazing how many things we do that weaken our credit score. Your credit score – the higher the better – is your passport to financial opportunities. Known as a FICO score – with a possible range of 300 to 900 — your number tells lenders what kind of a risk you are likely to be as a...
Read MoreVariable rate
This Spring we’re seeing lenders getting aggressive with their pricing for variable rate mortgages: a sign that lenders are fighting for market share, making it a great time to be shopping for a mortgage! First a reminder of the difference between fixed vs variable. Fixed rates are often well suited to first-time buyers or those who haven’t owned a home for long because they want to know with absolute certainty what their payment will be for a set number of years. A variable mortgage has an interest rate that will move in conjunction with your lender’s Prime rate, which in turn tracks...
Read MoreB-20 Stress Test
What is it and what does it mean to you? If you have applied for a mortgage or a preapproval since January 2018, you will have been affected by B-20. Prior to rule changes, Canadians could qualify to borrow approximately 22% more than now (other debts and creditworthiness aside). This impacts borrowing capacity of everyone, first time home buyers, those looking to refinance to take some equity out of their property; possibly to pay out higher interest debt or fund a large purchase. If you have an existing mortgage that will be maturing, these new rules will affect you also. Currently, most...
Read MoreBank tips you won’t get
More new mortgage rules came into effect January 1,which have made it trickier to negotiate a mortgage for many Canadians. With a little expert advice, I can help ensure you have a happy new year that keeps you on the path to prosperity for the coming year and beyond. 1. That “best” 5-year rate? It probably isn’t. Fact is, a “best rate quote” is now meaningless, because mortgage pricing is now based on multiple factors. Everything depends on your personal situation. That’s why I start with an in-depth assessment, and then review a broad range of lenders and products for the best...
Read MoreImportant Mortgage Changes.
Purchase or refinance now before rules change in January If you’re looking to buy and will have more than 20 percent down, or if you are considering refinancing, then you might want to do so before January 1, 2018. Why? On October 17, the Office of the Superintendent of Financial Institutions (OSFI) released new guidelines for residential mortgage underwriting at all federally regulated financial institutions. Beginning January 1, 2018, a new ‘stress test’ will be applied to all new conventional mortgages – and not just those mortgages that require mortgage insurance...
Read MoreBank of Canada rate increase
On July 12th, for the first time in seven years, the Bank of Canada increased the overnight rate by .25%, withdrawing some of the stimulus that was needed after the oil price collapse and 2008 financial crisis. Like many, you may have taken advantage of the low rates and invested in the real estate vs the stock market while money was cheap to borrow. We are still in an ultra-low rate environment and an incredibly stable market. Keep in mind this is a relatively small increase, and we have seen rate increases before that are quickly followed by decreases. Whether you took advantage of the...
Read MoreSaving For Retirement.
Women typically earn less than male counterparts for similar positions, often spend a number of years out of the work force to have and raise children and women also have longer lifespans than men on average; so how do women save enough money to have a comfortable retirement? Here are some top tips to achieve this goal: 1) Take control of your finances, be an active participant in managing family finances, do not leave the financial decision making to your spouse. Educate yourself about investing and money management, don’t rely on someone else to provide your financial security. Don’t be...
Read MorePlanning Ahead.
In today’s times, the chance that someone retires single or spends some time during retirement alone is high. Yes, it could be by choice; but it could be through a critical situation such as an illness, divorce or death. With women living longer than men on average, it is often the women who are left alone. Estate planning before circumstances dictate is vital for the survivor. There are a number of areas that can be addressed prior to the unexpected taking place; for example, spend time documenting what financial institutions hold your bank accounts, investments and safety deposit...
Read MoreIncome Tax Alternatives
If you are filing a personal tax return for 2016, you should know by now, or shortly, if you owe Canada Revenue Agency money or if they will be sending you a cheque. You are probably pleased if you are receiving a refund instead of having to pay, but the less you receive as a refund from CRA, the better. You don’t want CRA to use your money all year and then pay you back your money without interest. If you make regular RRSP contributions throughout the year, you can complete a form with your payroll department at work to reduce the amount of tax that is deducted from each of your...
Read MoreDo one thing monthly
from suggestions that follow, and you will most likely find yourself in a better financial position by the end of the year! 1) Manage your debt – pay off credit cards in full monthly to avoid higher interest charges. 2) Renew an upcoming mortgage maturity wisely, contact a mortgage broker before accepting the first rate offered by your institution. Your financial institution typically offers you a higher rate than available if you shop around. That makes the hassle-free option of signing the renewal document a costly convenience. 3) Review your insurance coverages – life, disability,...
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