What happens to an RESP when you die + MORE Nov 16th

No one sets out to max out their credit cards. Sometimes, people get into this difficult situation because of an unexpected emergency such as losing their job or experiencing an illness. Many people have to rely heavily on credit cards during that time to cover their everyday expenses. For others, they may have difficulty controlling their spending and their debt gets out of control.
No matter the reason why your cards are maxed out, using up the last of your credit is often an important wake up call to address your financial situation and get control of your spending. While you might be tempted to just focus on repaying your debt, it’s important to consider your credit score during this period. Having a low score can greatly impact your financial future and your ability to get approved for mortgages and other loans and get a good interest rate. In addition, many employers and landlords require a credit check when deciding whether to hire or rent to you.
If you’ve maxed out your credit cards, here are a few suggestions on what to do to ensure your credit score stays high:
Ask for More Credit
This might seem counterintuitive, but increasing your available credit can help boost your credit score significantly…

Starting tomorrow, home buying customers with RBC will pay higher mortgage rates.
The national bank announced rate changes that will impact fixed-rate and longer amortization loans. Scheduled to kick in tomorrow, Thursday, Nov. 17, 2016, RBC will raise its discounted rate for a five-year fixed rate mortgage to 2.94%—an increase of 30 basis points; raise rates on its four-year fixed rate mortgages to 2.79%, while three-year fixed rate mortgages will rise to 2.69%. Home buyers looking to extend the amortization on their loan above 25 years can expect a 40 basis point increase to 3.04%.
“When considering our rates, we look at a number of factors,” explains Mary Ellen Brown, vice-president of deposits and trade services at RBC. “When making changes we base our decisions on balancing today’s market conditions, what clients expect and the cost of funding mortgages.”
Brown adds, “there is no singular driver, but this recent change does reflect current SWAP, bond and liquidity market conditions…

Q: I am the account subscriber for an RESP for a child to whom I am not related by blood. I have been told by the financial institution that the only way to name the child’s father as the subscriber upon my death is through my will, which would be subject to probate. Is that correct? I would have thought that I could name the father as a beneficiary as you can for a TFSA or RRSP.
—Wayne
A: A parent or grandparent would be the most common subscriber for a Registered Education Savings Plan (RESP). But it’s not unheard of for an aunt, uncle, godparent, etc. to open an RESP to save for the education of a special child in their lives. No matter who the beneficiary of an RESP is, it’s important for the subscriber to understand how RESPs factor into their estate planning (or lack thereof).
Even though an RESP is generally opened and intended for a child, grandchild, or, in your case, Wayne, an important child in your life, the RESP is technically yours. The child is simply the beneficiary—or more specifically, the potential beneficiary—of the RESP…

(Getty Images / Sarah Jones)
Paying for a house in Canada just got a bit more expensive—and you may only have 48 to 72 hours to lock in the best rates. That’s because the recent announcement by RBC to increase fixed mortgage loan rates is just the start of things to come.
Royal Bank’s rate change announcement
RBC announced rate changes that will impact fixed-rate and longer amortization loans. The changes are scheduled to kick in this Thursday November 17, 2016.
According to the RBC press release, the bank will raise its discounted rate for a five-year fixed rate mortgage to 2.94%—an increase of 30 basis points; advertised discount rates on four-year fixed rate mortgages will increase to 2.79%, and three-year fixed rate mortgages to 2.69%—a 30 and 25 basis points increase, respectively. And home buyers looking to extend the amortization on their loan above 25 years can expect a 40 basis point increase to 3.04%.
“These are jarring numbers,” says Robert McLister, an independent mortgage broker and founder of Ratespy…