Canadians plan to save more this year than in 2013, poll finds

Canadians plan to save more this year than in 2013, poll finds 



Several recent reports have indicated that the majority of Canadians are focused on personal savings, and paying down debt for 2014.

 The average Canadian aims to save close to $10,000 in 2014, $1,000 than last year. Popular savings goals are trending towards retirement(39%), vacations(48%), and emergency funds(43%).

 Over half of respondents indicated they will be using an RRSP as their savings vehicle, while 47% will opt for a Tax Free Savings Account (TFSA), and 66% plan on using a regular chequing account. Insufficient income, personal debts, and household expenses were all cited as common reasons for Canadians not achieving their previous savings goals, prompting many to subscribe to automatic debits to encourage savings.

  Click here for the full article from the Globe and Mail.

What you need to know before, and after buying a condo

  Condominium popularity is on the rise, especially in large urban centres like Vancouver and Toronto. This housing option appeals to a wide array of Canadians, for various reasons. If purchasing a condo is your home buying plan, what do you need to know before you sign on the dotted line?

• Find out what the maintenance fees will be, and if your complex will soon be facing a "special assessment", which can point to rising fees. To find out, you will need to obtain a copy of the status certificate and review with a real estate lawyer, if possible.
• Talk to current residents, and find out what their impressions are of the neighbourhood, the complex, and the management.
• Find out the name of the builder and check that they are a reputable company.
• Talk to your a Mortgage Broker, and obtain a pre-approval. Before starting your condo search, it is important to know your budget.

Click here for the full article from the Globe and Mail.

Getting your RRSP tax refund in advance

  Tax season is on its way, and many Canadians are looking for ways to maximize their refunds. In this article from the Financial Post, tax expert Jamie Golombek shares some insider tips for getting your RRSP tax refund in advance. Click here for the full article from the Financial Post.

Should you contribute to an RRSP or pay off the mortgage?

  Right now, Canadians are strongly encouraged to make an RRSP contribution before the March 3rd tax deadline. But for those with extra funds to contribute, does investing in an RRSP make the most sense? Every financial situation is different, and for some Canadians, making a lump sum payment on their mortgage can prove a more effective way to plan their retirement. This article from the Globe and Mail details important questions to ask yourself when deciding where that extra cash should go, such as; which gets a better return, is the tax advantage worthwhile, your risk tolerance, and more. Click here for the full article from the Globe and Mail.

Smart debt vs household debt


Chances are by now you've heard the terms "good debt" and "bad debt", but what do they mean to you? In a recently released book, author Talbot Stevens delves deeper into the concepts to show you how to make the most of your financial situation to increase your savings and investment returns. It is widely believed that a mortgage is "good debt", while "bad debt" is defined as high interest credit cards, car loans, and other unsecured credit products. Stevens boils down the definition of bad debt very simply saying, "Anything that doesn't increase your net worth by increasing your income or some asset's value in the future".

 The book includes valuable information on different methods of savings, investments and a manoeuvre that helps make the interest on your loans tax deductible.

  Click here for the full article from the Globe and Mail.

Home Buying Guide - The correct pre-approval process

Home Buying Guide - The correct pre-approval process...

The Pre-Approval Process

In our last 3 Insider Mortgage Tips we discussed the3 components lenders look at in order to make a determinationof your ability to obtain a mortgage.

In this Insider Mortgage Secrets Tip, we will discuss theprocess of getting approved for a loan BEFORE you startshopping for your new home.

Do You Have A Thousand Dollars To Simply Throw Away?

I know this may sound like a very silly question but thatis exactly what happens every day to unsuspecting buyerswho do not get pre-approved for a loan BEFORE they gohouse hunting.

Let me explain with a typical scenario...

You decide it is time to move so you find a realtor andstart looking for a home. After some house hunting youfind the perfect home and make an offer which is accepted.

Now you must meet with a lender to obtain a mortgage forthis home. When you apply for your loan the lender willrequest a check for the appraisal and credit report. It isalso a very good idea to have your home inspected. This isanother fee that you will be required to pay for when theservice is rendered.

So, approximately 7 to 10 days after your contract wasaccepted by the seller you will be required to spend this$1000.00 or more.

Whether Your Loan Is Approved Or Denied These Funds AreNot Refunded!

THE RIGHT WAY...

The proper procedure is to meet with a lender and get yourloan pre-approved BEFORE you go house hunting. Aside fromavoiding the unpleasant situation just described above there areother benefits to having your loan in place as your firststep in the process.

In this pre-approval meeting we can establish what yourcomfort level is for monthly payments as well as theamount of funds you can comfortably use for thetransaction and we can then use these figures to recommend theappropriate program.

In a seller's market where there are many more buyers inthe market than there are homes for sale this can give youa much needed edge. When the seller knows your loan isalready pre-approved your contract has a better chance ofbeing accepted than the one from the buyer who has not yetmet with the lender and may or may not be able to get aloan.

If you would like to get pre-approved and have your moneywaiting for you BEFORE you go house hunting please call meat 778-881-0276 for a No-Obligation Consultation.

Tips on Saving, Pay Yourself First

How to Save: Strategies for Saving Money Each Month The Traditional Methods There are many tried and true ways of how to save money each month. Every day put all of your loose change into a jar. Every once in a while deposit the money in your savings account. In time the money will grow into a little nest egg. Try to set aside a certain amount of money each month or each paycheque for your savings. People have been doing this for years, but it takes discipline.

A Newer Method: Pay Yourself First