Financial Literacy

If you've ever wanted to know more about TFSA's, you've come to the right place. Suppose you were 18 and you had $5,500 to spare.  Imagine that you opened an account and invested it and that by the time you were 65 you had almost $500,000 in it.  If you left it there until you were 73, it could be more like a $1 million.  Does that sound too good to be true?  What if you had that $5,500 every year until you retired and put it in there?  Can you imagine what this might grow to?  Maybe $5.4 million.  These numbers assume the Canadian government leaves the TSFA intact over your lifetime and that your TSFA earns an average of 9.8% each year (the average annualized total return of the S&P 500 over the past 90 years).  The numbers show the power of compounding and the benefits of a Tax-Free Savings account. First, let’s explore what compounding is.  Compounding means you are earning money on your money earned.  For example you begin wi...

The Home Buyers' Plan (HBP) is a program in Canada that allows an individual to withdraw up to $25,000 in a calendar year from a Registered Retirement Savings Plans (RRSP) to buy or build a qualifying home. The withdrawal is not taxed as income and no interest is owed on those funds. There are set terms governing the payback of the loan. Resources CRA: What is the Home Buyer's Plan? Am I Eligible for Home Buyers' Plan (HBP)

An Annuity is an investment where the investor provides cash to the vendor of the annuity, usually an insurance company, in exchange for the promise to pay a series of periodic payments in return. Payments are paid to the planholder (annuitant) for life (life annuity) or for a defined period (fixed term annuity). Resources Annuities: Your DIY pension plan   How to Select and Shop for an Annuity

Statistics Canada announced this morning that employment increased by a stronger than expected 32,300 in March, driven by full-time job gains. The unemployment rate was unchanged at a four-decade low of 5.8% indicating that the economy is at or near full employment. In the first quarter of 2018, employment edged down (-40,000 or -0.2%) reflecting a decrease in January. On a longer-term basis, jobs have been on an uptrend since the second half of 2016 despite a price-induced weakening in the oil sector. Over the past year, total employment rose by nearly 300,000 (+1.6%), driven by a surge in full-time work and a net decline in part-time jobs-all excellent news for the economy. Over the same period, total hours worked grew by 2.2%. Employment rose in Quebec and Saskatchewan, while there was little change in the rest of the country. As the table below shows, British Columbia continues to post the lowest jobless rate in Canada at a stable 4.7% followed by Ontario at 5.5%. Quebec is third...

While updating the extensive RateSeer database of lenders and banks in the Baltimore, Maryland area, we learned that the 1st Mariner Bank and the Howard Bank merged. The information provided below was copied from the Howard Bank Welcome web page . To read the entire Welcome message, visit the Howard Bank webpage. Howard Bank and 1st Mariner Bank share the vision of being the premier business bank in the Greater Baltimore region offering a sophisticated array of products, local underwriting, decision making and policy setting. In addition, too few banks have focused on the Greater Baltimore community as their home market for corporate philanthropy, employee volunteerism and advocacy. The combination of Howard Bank and 1st Mariner Bank enables us to achieve the vision of becoming the region’s leading business bank in a relentless way. Together, we become the largest community bank headquartered in the Baltimore metropolitan market with the 7th largest deposit market share and the ...

Your credit score is a big factor when you apply for a mortgage. It can dictate how good your interest rate will be and the type of mortgage you qualify for. Mortgage Professionals are experienced helping clients with a wide range of credit scores so we can find you a mortgage product even if your credit is far from perfect. The good news about your credit score is that it can be improved: Stop looking for more credit. If you’re frequently seeking credit that can affect your score as can the size of the balances you carry. Every time you apply for credit there is a hard credit check. It is particularly important that you not apply for a credit card in the six months leading up to your mortgage application. These credit checks may stay on your file for up to three years. If your credit card is maxed out all the time, that’s going to hurt your credit score. Make some small monthly regular payments to reduce your balance and start using your debit card more. It’s important that you t...

The Bank of Canada raised its key lending rate to 1.25 on January 17, 2018. This is the highest the benchmark rate has been since 2009. What does this mean and how will it impact Canadians? Following the BOC rate increase, Canada's biggest 5 Banks - Scotiabank, TD Canada Trust, RBC, BMO and CIBC - all raised their prime lending rate by a quarter percentage. The amount of interest paid on loans including mortgages, a line of credit, or a personal loan will increase. Inversely, the increase in the BOC key lending rate will positively impact savers because the amount earned on savings accounts, including GICs and personal savings accounts, will increase. For additional information on the Bank of Canada key lending rate, see this article from the CBC.

The Financial Consumer Agency of Canada offers a number of services and information for Canadian consumers. The information provided on their website includes financial literacy programs and some handy tools and calculators. One of our favourite tools is the Financial Goal Calculator . From the dashboard you can select a plan to get out of debt, or, set a savings goal. Both are easy to navigate and definitely worth your time.

Did you know that as of November 13, 2017, iAB Financial was transitioned into FirstMerchants Bank? The merger was initially announced in February 2017. As stated on the website, "Customers of iAB Financial Bank will now have access to over 100 First Merchants Bank locations." For more information visit the welcome announcement on the First Merchants Bank website .

President's Choice Financial, otherwise known as PC Financial, customers are now being serviced by Simplii Financial . An article posted to the MacLean's Magazine website in August 2017 stated, "Loblaw Co. is quitting the banking business in a deal that will see two million President's Choice Financial mortgage and banking accounts automatically move to a new, low-fee banking brand operated by CIBC, called Simplii Financial." For further details and information on how this impacts PC Financial customers, you can read this article from The Financial Post .

Do you have any idea how much information hits you every day? Or the effect constant interruptions really have on your productivity? Email, texts, news sites notifications, never in human history have we had to process as much information as we do now, and more comes every minute. How do we process it all? How do we see it all? Or rather, how do we see only what we need to see? Jonathan Spira is the CEO and Chief Analyst of Basex, a research firm focusing on issues companies face as they navigate the knowledge economy. In his book Overload! How Too Much Information Is Hazardous To Your Organization , published in 2011, Spira estimated that interruptions and information overload were eating up 28 billion wasted hours a year, at a loss of almost $1 trillion to the U.S. economy. I wonder what the estimate is at present, and what the projected growth on this loss is. Clearly, organizations and individuals need to get a handle on information inflows. When I began my career in finance o...

The interest rate you pay on loans for every major purchase you make throughout your lifetime depends on various factors, and is dependent on your creditworthiness - everything from the mortgage on your home to your car loan or line of credit And, given today's ever-changing mortgage requirements and rising interest rate environment, your credit score has become even more important. Your first step towards credit awareness and well being is to know where you stand. Request a free copy of your credit report online from the two Canadian credit-reporting agencies - Equifax Canada and TransUnion Canada - at least once a year. This will also help verify that your personal information is up to date and ensure you haven’t been the victim of identity fraud. Newly established credit If you're new to credit, you may wonder why your credit score pales in comparison to your friends. Payment history is a key factor for both Equifax and TransUnion. As well, if you don't talk to you...

Did you know that Kentucky Telco Credit Union is now Transcend Credit Union? We copied the text below from the Transcend Credit Union Our History page: "Transcend Credit Union (formerly Kentucky Telco Credit Union) has played an important role in the financial well-being of our members since 1934. Our first members were Southern Bell Telephone & Telegraph Company (later BellSouth, AT&T) employees, and we are proud of our heritage serving telecom employees, businesses, and individuals. However, the name, product, and service changes of the "Telephone Company" through the years required the Credit Union to diversify its membership in order to remain financially strong. The state charter conversion in December 2015 opened the door for the Credit Union to serve the Louisville, Lexington, and Owensboro communities. Membership is open to anyone who works, lives, worships, volunteers, or attends school in the following counties: Anderson, Bourbon, Boyle, Bulli...

On September 11-14, FinovateFall returns to New York to showcase the best, new innovations in fintech. This year's selection process was the most competitive yet, and we have been chosen to present! As part of RateSeer Technology Inc's network, we wanted you to be the first to know and we hope you will join us! We will be showcasing our latest innovation, denoti , powerful technology technology that will change the way individuals and organizations source and consume market and financial data. Come see some of the most exciting names in fintech - including us!

This article was originally published on the Dominion Lending Centres blog . For many people, a home will be the largest purchase of their life. It stands to reason then, that when you are shopping around for your mortgage you will want to take certain steps to ensure you are getting the sharpest rate and best product. We have a few pointers to make you a savvy shopper when you are out looking at different mortgages – get ready to take a few notes. 1. Do not always rely on the bank for the sharpest rates Mortgage Brokers can often beat the bank rates by using different lenders. They can also often get you a SHARPER rate at your own bank simply because of the high volume that they do with them. Brokers have access to a number of different lenders giving you more options for not only the best rate, but also the best product for you. 2. Know your credit score Your credit score is a large factor in your mortgage application. You need to know where you stand with your credit BEFORE...

This article was originally published on the Dominion Lending Centres blog . Some of you are going to ask what is an ARM and VRM? These two acronyms are mortgage speak for adjustable rate mortgage and variable rate mortgage. These two mortgage products are based both on the prime rate of interest, in most cases this is 2.70% at the bank. TD chose to be higher by .15% at 2.85% so it isn't controlled by the Bank of Canada. It is an individual financial institution policy. With the Bank of Canada hinting strongly at moving up the interest rate, most likely by .25%, we will see an increase in the prime rate most likely to 2.95%. If you have an adjustable rate mortgage then you will see your monthly payment increase to match this new rate. So an Adjustable Rate Mortgage moves up with prime and you continue to gain ground by making your payments. Variable rate mortgage is different. The VRM works likes this, your monthly payment will stay the same but you will not be paying less t...

This article was originally published on the Dominion Lending Centres blog . Most working Canadians have an income range in the middle class. This income class includes teachers, firefighters, plumbers, engineers, nurses, construction managers and chefs – workers from across the economic spectrum. They provide and consume the bulk of services that keep society afloat, driving economic growth and investment with every purchase. The middle class also has great challenges. Wages have been stagnant and the cost of housing and everyday goods puts a squeeze on the average budget, leaving six out of 10 Canadians living paycheque-to-paycheque with most accumulating debt. In part, this has to do with everyday life and the growing demands on our set of unique challenges. However, we need to "control the controllables" and be smart and strategic to get ahead. Here are some tips to keep your economic future on the right path: 1. Spend within your means. Most people keep a balance...

Simply put, a blockchain is a chain of blocks, where each block represents an electronic record that cannot be revised or tampered with once it is included in the chain. Each block has its own timestamp and a link to an earlier block in the chain, which enables all the parties to have easy access to information via a secure network. Wikipedia explains blockchain as, "A blockchain - originally block chain - is a distributed database that is used to maintain a continuously growing list of records, called blocks. Each block contains a timestamp and a link to a previous block." Further, it is noted that blockchain is "typically managed by a peer-to-peer network", and "By design, blockchains are inherently resistant to modification of the data. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network." Interested in learning more? The Wharton School of the Uni...

The difference between an interest rate and an annual percentage rate is that the interest rate is the cost you pay on a yearly basis to borrow money from your lender, or, the annual cost of borrowing the principal amount. The interest rate can be variable, or fixed, and does not include fees or any other charges you may have to pay for the loan. The annual percentage rate is the annual cost of a loan to a borrower including fees and other charges. To see today's rates on various lending and deposit products, visit rateseer .

A home-equity line of credit, also referred to as a Heloc, allows homeowners to access funds, when needed, over the term of the loan as long as the amounts stay below the loan limit. With a home equity loan, you receive the money you are borrowing in a lump sum payment and the interest rate is typically fixed. With a home equity line of credit (HELOC), you can borrow or draw money multiple times from an available maximum amount. Unlike a home equity loan, HELOCs usually have adjustable interest rates. A HELOC can be used to fund major expenses including home improvements or college tuition. The Line of Credit is secured by a mortgage, and typically has a 10-year term that requires interest only payments. Following the initial 10-year period, the Heloc will “reset” and the principal becomes due. At that point, homeowners can choose to pay off the balance, refinance it into another first or second mortgage or make monthly payments of principal and interest, typically for a 20-year ...