HELOCs often used for home improvement and renovation spending has been on a steep climb for 18 years: Scotiabank report
Total chartered bank household credit growth in Canada accelerated in August, supported by an expansion in residential mortgage credit and non-mortgage credit that was the fastest in about two years, says a new report by Scotiabank. But the report also said that growth in home equity lines of credit (HELOCs) has slowed since its peak…
A financial plan is a six-step financial planning process that starts with having an initial meeting with your prospective planner
Many people don’t understand the difference between a financial plan and an investment plan, and often assume that they’re one and the same. They’re not. An investment plan is focused solely on your investments and the return on those investments, which is important. But that’s only part of the story. What happens to your investment plan…
There’s no hiding from the success tax, but several things can help legally reduce or even eliminate the amount your estate or your heirs pay
There’s no official estate tax in Canada but we do have what I call the success tax. It's what we pay if we’ve been financially successful in a lifetime of investing and asset accumulation. The more successful you’ve been, the greater the tax could be. If you have assets that will be taxable when sold or when deemed to have been…
Seek professional help if your financial plan doesn't protect you from the four Ds: death, divorce, disability and disaster
Your financial plan should provide you with as much protection as possible from the four Ds: death, divorce, disability and disaster. While you can’t totally protect yourself from any of these events, you should at least have a good plan in place in case something does happen. Death is the only D that can’t be avoided,…
Robert McLister, managing editor of Rates.ca, talks about the pitfalls of the government program and why fewer Canadians are likely to take part than anticipated
Robert McLister is managing editor at Rates.ca. What is Rates.ca? McLister: Rates.ca compares insurance, mortgages and credit cards from dozens of companies across Canada. By juxtaposing numerous providers, it's easier for consumers to quickly compare terms and find the best prices. How does the new down payment assistance program for first-time homebuyers work? McLister: The…
Yes, but probably not for at least another 20 to 30 years
Eliminating cash has huge potential benefits including convenience, security, and cost reduction for retailers, banks, and governments. For customers, there is the benefit of flexibility – a priority increasingly driven by younger generations more comfortable with digital technology and the online world. The combination of these forces means the need for cash has reduced significantly.…
Let’s be very careful about electing a government that’s bribing us with our own money
Before we select our next set of national leaders in the Oct. 21 federal election, we should be paying attention to matters that don’t usually concern us day to day, like the treasury. What the treasury does we call fiscal policy, but it’s essentially budgeting: determining levels of revenue (taxes) and expenditure (all the programs…
The "good news" is that debt is growing at a slower pace
Household credit market debt as a proportion of household disposable income fell to 177.1 per cent in the second quarter of this year, the third consecutive quarterly decline, as income grew slightly faster than debt, according to a report released Friday by Statistics Canada. “In other words, there was $1.77 in credit market debt for…
Never mind that reducing the choices available to a fund manager can result in negative consequences for pensioners
Some Canadian institutional investment and pension funds have faced scrutiny recently because they owned or own shares in American prison-management companies GEO and CoreCivic. That criticism is unwarranted and unfair. These firms operate prisons, detention centres and rehabilitation facilities in the U.S. Given that the U.S. incarcerates more people than anywhere else in the world,…
Choosing investments that fit your emotional limits will help you to minimize your bad investment behaviour
There are three main reasons why investors consistently under-perform the investment indices: bad investor behaviour high investment costs, and high investment Portfolio Turnover Ratios (PTRs) Of the three reasons listed above, No. 1 (bad investor behaviour) is the biggy – accounting for over half of all lost investment returns. When it comes to our investment…
Square Reader is changing the way small businesses process transactions, putting budding entrepreneurs on a more even playing field with big business
The Square Reader is well used at cafes, markets and events like art walks. And now it’s expanding its reach with new payment solutions. Perhaps you want to start a little enterprise or maybe just get rid of some unused household items. But few people use cheques or carry cash. Square lets you give these…
Overall consumer credit balances continued to grow in the second quarter – up to $1.88 trillion
Cash-strapped Canadians may be treating their homes like ATMS to pay off their bills, says a study by MNP Ltd. In a news release on Tuesday, the largest insolvency firm in Canada said three in 10 Canadian homeowners with a home equity line of credit (HELOC) say they have used the funds borrowed to pay…
C’mon Canadians, break out of the grim consensus, do your homework and invest your TSFA in the Canadian economy. The banks won't
The great Canadian experiment Justin Trudeau represents is struggling. It seems our very Canadian desire for consensus and safety are undermining the prosperity upon which all our other virtues depend. The desire for consensus – worthy in its own right – seems to be undermining the ancient principle of private property. For centuries, the norm…
September is around the corner. I was in school for so long, I think September will always feel like the start of the year. One of the things on my to-do list for the fall is to take my annual personal retreat. The retreat is my time to sit back and reflect on the past…
Kitchen stoves could soon be following the sewing machine as unnecessary household appliances
For many of us, the kitchen has always been a sacred place in our homes, often referred to as the heart of the home. But kitchens seem to be losing their lustre. An increasing number of condos and apartments are being sold and rented without a stove. In pricey Yorkville, one of Toronto’s most expensive…