Category Archives: Household Budget

Which is Better? RRSP Loans or Cash Back Mortgages

Have you made your RRSP contribution yet? This year’s deadline is February 29th, so don’t wait too long. Contributing to a Registered Retirement Savings Plan (RRSP) can have a major impact on your financial situation, saving you hundreds on your annual tax statement. And that’s just theĀ beginning! Budget-savvy individuals will also enjoy the long-term growth of their investment.

Unfortunately, finding the money to invest in an RRSP isn’t always easy. According to a recent report from the Investor’s Group, it’s estimated that nearly 58% of Canadian’s won’t invest in their RRSP this year because there simply isn’t enough money left after paying for basic living expenses.

If you’re struggling to make ends meet, now’s the time to consider a cash back mortgage or an RRSP loan. Both will help you free up extra capital to cover expenses, but in very different ways. Here’s what you need to know in order to make a well-educated decision. Continue reading →

How Much Does Mortgage Insurance Cost?

As a first-time homebuyer, chances are you’ve never heard of mortgage default insurance. More often than not, it isn’t until you’re sitting across from your lender that you learn about this expensive requirement. You see, in order to qualify for certain types of mortgage products in Canada you are required to be “insured”. While most insurance products are designed to protect your dependants in the case of an unexpected accident, mortgage default insurance actually protects your lender if ever you are unable to make your mortgage payments. It’s a strange concept for many property virgins, but one that should be discussed early in the homebuying process. Continue reading →

How to Avoid Major Home Buying Errors

Housing affordability continues to remain stable across Canada, creating the perfect environment for savvy home hunters. With more houses available on the market, buyers are becoming much more competitive, rushing to complete their purchase agreements. Situations like this often lead to costly buyer errors, as anxious home hunters make hasty, uninformed choices. These mistakes are sometimes impossible to reverse, so be careful.Ā  Continue reading →

Outlook Shaky As Consumer Debt Expected to Rise

While the Canadian economy appears to be weathering the economic storm with surprising ease, Canadian consumers are beginning to show signs of distress. Just last week, Statistics Canada announced a net worth drop of $4,600 per household in the third quarter. Meanwhile, Canadians continue to borrow and buy on credit. Household debt per capita is up by $600 from the second quarter for a total of nearly $46,100 or 152.98%.

To put this into perspective, the American banks encountered trouble when the ratio of debt to disposable income hit 160%. Canadians are flirting with disaster if indebtedness levels continue to rise. Continue reading →

Are Your Ready to Buy?

You’ve had it with your roommates and you’ve had it with paying rent. You’re ready to move out and you’re seriously considering taking the leap into homeownership. But just because you want to buy a home, doesn’t mean you should. Before you start planning your housewarming party, take a minute to sit down and consider everything that comes along with homeownership. From mortgage rate trends to better budgeting, there’s more to buying a house than simply signing an offer. Continue reading →