When is the last time you checked your own credit rating? I’ve made it a habit to check my credit bureau every 6 months or when I close a loan or credit card and here’s why. I purchased a new computer in the fall. I had the money to buy it out right but decided to use the 0% financing & no payments for 3 months. The balance was paid on the very last day and received a stamped confirmation of payment. Two months later, I receive a call from CitiFinancial that I owe $106 in late interest. I corrected…
Maximize your RRSP as a First Time Homebuyer
Are you a First time Homebuyer looking to buy this spring/summer? First Time Homebuyers can use up to $25,000 of their RRSPs without facing any holding tax and you have up to 15 years to recontribute those withdrawn RRSPs. This is the time to maximize your RRSP contributions to build your downpayment. First Time homebuyers who are looking to buy their first home in the $300,000 price range, will require a minimum 5% downpayment of $15,000 plus additional $3000 for closing costs (home inspections, legal fees, etc). If you are a First Time homebuyer and are a few thousand…
4 Tips to Manage a Layoff
4 Tips to Manage Your Finances When Faced with a Layoff The Canadian economy is in a recession and there are uncertain times for many. Low oil prices and the change of both Provincial and Federal government leadership has had a tremendous impact on the economy, resulting in many layoffs in 2015. More layoffs are predicted in the upcoming months. What happens if you have lost your job or are faced with a huge income cut? Losing a job or facing an income reduction is an emotional time when many are already living pay check to pay check. Step out…
Be Life Rich, Not House Poor
BE LIFE RICH, NOT HOUSE POOR! Buying at the top end of your pre-approval price could be setting you up for many dull years to follow. WHY? Because, your home cost is more than just a mortgage payment. There are property taxes, maintenance, utilities and more due every month. If those add up to 35% of your total income, you’re on the right track. If not you might have to sacrifice in other categories such as vacation, debt repayment or savings. Budgeting is really a piece of cake, or a pie in this circumstance. The pie chart here illustrates a…
Annual Mortgage Reality Check
A Mortgage Reality Check Most of us tend to think of our mortgage as the ultimate “buy and hold” purchase. After all, who wants to spend any more time in the “borrower” chair than is absolutely necessary? You get a 5- year term, and then go on automatic pilot until it comes due again. You might wring your hands over your other finances, but your mortgage is set in stone, right? Well, not exactly. In fact, it’s a great idea to have an annual mortgage review to see if it’s really working for you – especially in the context of…