Not sure how to make a savings plan? Read on…
Latest News
Does a 21-year-old need life insurance? + MORE Jul 20th
Q: I am 21-years-old, studying full-time, working part-time, and I would like to know when is the “right” time to get life insurance and if I really need life insurance this young. I work in the banking services industry and I hear a lot of my customers discussing their insurance detail.... More »
New rules of saving + MORE Nov 9th
Rainy day savings accounts are a bad idea
In this new age of low interest rates, rainy day savings make a lot less sense. It’s hard to justify keeping six months’ salary in a plain-vanilla account. “If you have a mortgage, money in a savings account is better spent putting it towards the mort.... More »
Should I Get a Variable or Fixed Mortgage? RBC Cuts Rates and the Answer is No Longer Clear Feb 1st
Last week, Canada’s biggest bank, RBC, cut its five-year fixed rate by 15 basis points. This gave customers the option to lock in their mortgage rate at 3.74 per cent, for a five-year term. And surely enough, TD Bank and BMO Bank of Montreal followed suit and cut their five-year fixed rates to th.... More »
How to save money in Canada: A new way that offers higher interest and more flexibility + MORE Dec 17th
If you’re saving up for a financial goal or large expense—whether it’s a vacation, future vet bills or just your rainy day fund—chances are you’re setting aside money in a regular chequing account, a high-interest savings account (HISA) or a guaranteed investment certificate (GIC). Maybe y.... More »
Shares in Japan Post, bank and insurance units soar after $11.9 billion IPO, 2015’s biggest + MORE Nov 3rd
TOKYO – Shares of Japan Post jumped nearly 17 per cent in the first day of trading after the company and its banking and insurance units raised a combined 1.44 trillion yen ($11.9 billion) in the world’s biggest initial public offering of stock this year.
The long awaited sale of stock i.... More »
How to split the mortgage
– moneysense.ca
Photograph by Tony LanzQ: When two people buy a house, is it normal for them to make the same mortgage payment monthly, even if one person makes more money?—M.S., Toronto
A: Relationships are funny. What’s considered “normal” behaviour for one couple may be considered completely absurd by another couple living right next door. In my opinion, “normal” doesn’t matter. What matters is what works for the two of you, based on what you want. Take a big step back and talk about what you want for the future—both as individuals and as a couple. Then figure out how you’re going to pay for it. Not just the mortgage—all of it: house maintenance, groceries, vacations, cars, kids, retirement savings and your respective vices. Sure, when there is a disparity in income it can be a challenge to decide on priorities. When thinking long term, it is best if your retirement incomes are as close as possible, in order to minimize the tax you pay. This means the higher-income earner should pay more of the expenses pre-retirement…
Low Interest Rates to Last for Years: Stephen Poloz Speech
– ratesupermarket.ca
Canadians can expect rates to stay ultra-low until 2016, according to Bank of Canada Governor Stephen Poloz. The top banker made this revealing statement at a Saskatchewan luncheon this week, adding that even if Canada’s economy returns to full capacity, rates will be slow to follow. While improvements in the U.S. have sparked speculation Canadian rates will rise in the shorter term, Poloz maintained that inflation must reach 2 per cent before any change occurs.
A Return to Normalcy
The overnight lending rate, which determines floating or variable rate loans, has been at 1 per cent since September 2010. But rates had been ultra low as early as 2008, even dipping as low as 0.25 per cent in 2009.
This was all in name of protecting the Canadian economy during the financial crisis. However, the issue now is consumers’ reliance on super low rates – the Bank of Canada must help Canadians readjust to normal borrowing conditions.
Record low rates stoked Canada’s debt loads, and contributed to an overheating housing market – though Poloz remarked that the risk posed by the housing bubble is “subsiding”…
Banks Should Do a Better Job Teaching Canadians About Money: Survey
– ratesupermarket.ca
Canadians are finding it harder than ever to save money, and they believe banks should do a better job of teaching them how, according to a recent poll from a group of credit unions.
The study found six in 10 Canadians said their current level of debt does not allow them to save as much as they would like, with three in 10 (31 per cent) unable to save any money at all.
Household Debt Rises, Personal Saving Plummet
Schools educate youth about geography, history and mathematics, but when it comes to financial literacy we’re on our own. While household debt continues to climb, the personal savings rate is shrinking. The average Canadian household owes $1.63 for every dollar in disposable income earned, according to Statistics Canada.
“In the last 20 years, the personal savings rate in Canada has plummeted while household debt has grown dramatically,” explains Marie Mullally, president and chief executive officer of Credit Union Atlantic. “More needs to be done to develop innovative options to help Canadians and their families develop healthy financial habits that will allow them and our economy to thrive…
