Q I have opened accounts with a discount brokerage and built a portfolio with the following ETFs:

Vanguard FTSE Canada All Cap Index (VCN)
Vanguard U.S. Total Market Index ETF (VUN)
iShares Core MSCI EAFE IMI Index ETF (XEF)
iShares Core MSCI Emerging Markets IMI Index ETF (XEC)
BMO Aggregate Bond Index ETF (ZAG)

Are these ETFs enough for my RRSP and TFSA, or should I add others, like a dividend-producing funds and real estate investment trusts (REITs)?
– Natalie
A Carl Richards, a financial planner and author of The Behavior Gap, has observed an odd human tendency. “People say they want things to be simpler—investing, life insurance, retirement planning, etc.,” he writes. “But when a simpler (and effective) option is proposed, they reject it as too simple.”
The Couch Potato portfolio is a shining example. The appearance of ETFs has made building a diversified portfolio easy and shockingly cheap, yet many investors seem bent on making it more complicated and more expensive…

Growth and innovation are better forms of climate insurance.

Natural Resources Minister Jim Carr is set to unveil about $1 billion in financial supports for softwood lumber producers and their employees.
Cabinet discussed the options for a package May 9 but the federal government wanted more input from the provinces via the special working group Carr established in February.
A government source confirms Carr will unveil the details Thursday in Ottawa along with Foreign Affairs Minister Chrystia Freeland.
It will include employment insurance enhancements for laid-off workers, loan guarantees in some form and funds to assist companies with exploring new markets and innovations.
The source _ not authorized to discuss the matter in advance of the announcement and so speaking on condition of anonymity _ characterized the money as a support package, not a bailout.
Were the United States to view the package as as bailout or subsidy, it could make the situation worse.
On April 28, the U.S. Department of Commerce slapped countervailing import duties as high as 24 per cent on Canadian softwood, arguing Canada unfairly subsidizes its industry by keeping the price of logging artificially low…

Robin Farquhar has one of those wonderful-sounding travel credit cards, ScotiaGold Passport Visa, that comes with six types of insurance coverage — everything from burglary to lost luggage to cancelled flights. As a longtime Bank of Nova Scotia customer, imagine his reaction, a year ago, when he tried to claim for missed flights after being trapped […]

Robin Farquhar has one of those wonderful-sounding travel credit cards, ScotiaGold Passport Visa, that comes with six types of insurance coverage — everything from burglary to lost luggage to cancelled flights. As a longtime Bank of Nova Scotia customer, imagine his reaction, a year ago, when he tried to claim for missed flights after being trapped […]

The possible impact of closing a credit card will be mostly offset by the benefits of opening a new one — if your available credit doesn’t shrink and your credit utilization ratio doesn’t increase

This post is part of The Canada Project, a representative survey of Canadians from across the country. You can find out more right here.
For The Canada Project, we asked 1,500 people for their views on a wide range of issues—including money. In partnership with Abacus Data, we asked respondents about their views on credit cards, tipping and charity. Here are 10 results worth noting:
1. Most Canadians would need to scramble for emergency funds. 
Thirty-four per cent of Canadians could come up with less than $1,000 right away without borrowing or using credit and 24 per cent could come up with between $1,000 and $5,000. But only 21 per cent would be able to find $25,000 or more. Men are also much more likely than women to have $25K lying around, with 26 per cent saying they could find the cash compared with 16%.

The best place to stash your emergency fund

2. We are not especially generous tippers!
Fifty-four per cent leave a tip between 11 per cent and 15 per cent of the bill for good service, while 18% would leave 10% or less…

News, Tips & TricksIn the U.S. news broke that Hilton Honors is going to go exclusively with American Express as their credit card issuer in 2018. One could only hope the same will happen here. Hilton Honors Gold status is part of the Platinum Card from American Express and the program is a transfer partner of Membership Rewards so there is a possibility this could happen. With Amex likely losing Starwood Preferred Guest next year as it merges with Marriott Rewards, it would be beneficial for Amex to have a new hotel card not only for them but for all Canadians as we’d be down to only 2 hotel chains offering credit cards in Canada after the loss of SPG. Keeping our fingers crossed! (Source Hilton)Posts since our last update: Earning Stories: Marriott Rewards – 54,138 points for a two room stay Welcome to the next post in the Earning Stories series right here on Rewards Canada. For years we have…Earn up to 1,000 Bonus Airline Miles for Marriott stays in Europe If your summer plans are taking to you Europe and you are not planning on earning Marriott Rewards points…Travel Deals Cathay Pacific is offering some of the lowest prices we have ever seen for their flights between Vancovuer and Hong Kong with fares starting as low $657! Book by June 6 for travel over most of the next 11 months…

Google’s Android Pay, a mobile wallet that allows people to pay with their smartphone, is available for Canadians to download starting Wednesday.
Users can pay with the app in stores that accept contactless payment and on apps such as Uber and Lululemon that have an Android Pay button.
Android Pay will work with Visa and MasterCard credit cards from Bank of Montreal, CIBC, Scotiabank, National Bank, Desjardins, President’s Choice Financial, ATB Financial and Canadian Tire Financial Services.
On Monday, Google will start to roll out support for Interac cards from those banks.
Missing from the list of partners are TD Bank and Royal Bank, which both offer in-house digital wallets that are compatible with some Android devices.
Pali Bhat, vice-president of Google payments, said the company expects to add more banks to the pay system.
Android Pay comes to Canada more than a year after Apple Pay became available in the country.
The Android app, which is already in use in 11 other countries, will work on all NFC-enabled Android devices running on the operating system KitKat 4…

Robin Farquhar has one of those wonderful-sounding travel credit cards, ScotiaGold Passport Visa, that comes with six types of insurance coverage — everything from burglary to lost luggage to cancelled flights. As a longtime Bank of Nova Scotia customer, imagine his reaction, a year ago, when he tried to claim for missed flights after being trapped […]

News, Tips & TricksYou only have a few hours left to take advantage of the Rewards Canada Exclusive Offer for the WestJet RBC World Elite MasterCard. If you apply for it by the end of today you’ll receive WestJet Rewards Silver Status as well if you are approved for the card. Find all the details on this offer here!Posts since our last update: Earn up to 10,000 Cathay Pacific Asia Miles for Hertz rentals – exact amount depends on how far you drive! OK so we’ve seen lots of great bonus offers lately for car rentals (SAS, Iberia, United) and all are…Travel Deals KLM is celebrating 2 years of service from Edmonton with seat sale fares starting as low as $855 all in. Find out more here. Canadian Bonus Offers N/A Other Bonus Offers Air France / KLM Flying Blue- June Promo Awards – Save 20% to 50% on the Award Miles usually required for an award ticket. Destinations vary by each promotional period. More… Book by Jun 30 for travel Aug 1 – Sep 30, 17Hilton Honors- 1,000 Bonus Honors Points for your first stay at a Tru Hotel Worldwide…

May 31, 2017: The national average APR for new card offers broke another record this week, rising to an all-time high, according to the CreditCards.com Weekly Credit Card Rate Report.

TORONTO — Home Capital Corp. says one of its independent directors with extensive regulatory experience will now chair its board of directors as the mortgage company suffers from a further outflow of money from its high-interest savings accounts and GICs.

The Toronto-based mortgage company says its new chair is Brenda Eprile, who joined the Home Capital board last year. She replaces Kevin Smith, who will remain on Home Capital’s board of directors.

Eprile was a senior member of the Ontario Securities Commission staff prior to beginning a 17-year career as a consultant focused on regulatory affairs.

Signage outside the Home Capital Group Inc. headquarters office in Toronto, Ontario, Thursday, May 4, 2017. (Photo: Cole Burston/Bloomberg via Getty Images)

The company is also adding two former CEOs of major Ontario pension funds — Claude Lamoureux from the Ontario Teachers’ Pension Plan and Paul Hagis of OMERS — as well as Sharon Sallows, a trustee for two major real estate trusts…

A subsidiary of alternative mortgage lender Home Capital has struck a deal to sell $1.5 billion worth of mortgage commitments and renewals to an unnamed buyer.

TORONTO — Ontario Premier Kathleen Wynne says she expects any provincial appointee or employee involved with troubled alternative mortgage lender Home Capital to step down if they have a conflict of interest. Home Capital is a Toronto lender under investigation by the Ontario Securities Commission, which alleges that the company, two former chief executives and […]

Third-party extends a lifeline and opens the door for an outright sale of the embattled alternative lender

Ontario Premier Kathleen Wynne says she expects any provincial appointee or employee involved with troubled alternative mortgage lender Home Capital to step down if they have a conflict of interest.
Home Capital is a Toronto-based lender under investigation by the Ontario Securities Commission, which alleges that the company, two former CEOs and the current CFO broke the law in their handling of a scandal involving falsified loan applications.
Wynne was asked about Kevin Smith, who is the CEO of St. Joseph’s Health System in the Hamilton and the Niagara areas. Smith was also on the board of the Healthcare of Ontario Pension Plan (HOOPP) and chairman of the board of Home Capital, until recently.
On April 27, Home Capital announced HOOPP had agreed to provide the company a $2-billion loan and, at that time, Smith advised HOOPP he was stepping down from its board due to that potential conflict. He has since resigned as chair of Home Capital, but remains on the company’s board.
The Progressive Conservatives have questioned whether relationships between the boards of Home Capital, HOOPP, and the provincial government and its agencies are inappropriate…

Former Canadian prime ministers have largely eschewed the highly visible globetrotting, do-gooding, and glad-handing common to ex-U.S. presidents, preferring to take ceremonial roles at law firms and sit on a few boards. Given his interests while in power, it seemed that Stephen Harper’s post-politics career would be padded out with a few energy company directorships and maybe another hockey book. But while he’s got the obligatory LLC affiliation (Denton’s), Harper’s collection of interests has confounded expectations. The ex-PM has started an international business consulting firm based in Calgary and joined the board of real estate giant Colliers International. His latest gig: Advisor to Silicon Valley venture capital firm 8VC.
In a Medium post announcing his appointment, Harper wrote that the firm “is at the leading edge, tackling the deep and difficult problems that institutions and citizens are facing today.” 8VC’s most notable portfolio companies are virtual reality player Oculus and putative health insurance disruptor Oscar…

Here at RateSupermaket.ca, we keep you in the loop of different ways to save, whether it be on your mortgage, through investments, or on your car insurance. The Financial Services Commission of Ontario (FSCO) has reported that Ontario car insurance rates have increased by 1.24 per cent on average.
Car insurance rates fluctuate based on a number of different factors. However, before an insurance company can change rates, it must first be approved by the Financial Services Commission of Ontario (a regulatory agency of the Ministry of Finance).
FSCO publishes approved rate changes quarterly, and the latest results are in:
In the first quarter of 2017, approved rates from auto insurance companies increased by 1.24 per cent on average.
The range of approved rates seemed to be significant, with some companies lowering their rates by as much as 3.33 per cent, and another inflating its rates by 7.08 per cent on average.
“Ontario has a very competitive marketplace,” FSCO said in its quarterly statement…

TORONTO Ontario has the most expensive auto insurance premiums in Canada despite also having one of the lowest levels of accidents and fatalities, a report has found. “While the number of automobile accidents in Ontario — especially very serious ones — have consistently come down, the cost of claims has consistently gone up. Ontario […]

Medical costs over a pet’s lifetime can be steep. Insurance plans will cover some veterinary costs, but pet owners are divided on whether they’re worth it.

The Toronto-based insurance and investments company is to add another $500-million (U.S.) in capital from Alberta Investment Management Corp. toward its acquisition of Allied World Assurance

March Break is here, giving most people the first real opportunity this year to get away for more than the weekend. But before you load up your suitcases or the back of your trunk, take a load off by buying travel insurance.
You’ve probably heard about the “importance” of travel insurance before. Maybe you’re even skeptical about its merit. But according to TD Insurance, 49 per cent of Canadians planning to travel during March Break are still stressed about potentially falling ill while abroad.
Travel insurance can put your mind to rest so you can focus on enjoying your vacation. Better yet, within a minute, RateSupermarket.ca can provide you with travel insurance quotes for as low as $15 to cover your entire trip. But still, the TD study found that only 39 per cent of survey respondents reported purchasing the appropriate travel insurance to relief their stress.
For the remaining 61 per cent, not having travel insurance in place can be a huge (not to mention costly) mistake as medical treatment outside of Canada can be incredibly expensive…

Ottawa police have charged two people in connection with the trafficking of stolen vehicles. In November, police launched an investigation into an alleged criminal operation in the city’s west end that specialized in dealing in stolen vehicles. The investigation, dubbed “Project Heisenberg,” also involved the Ministry of Transportation of Ontario, Service Ontario, the Insurance Bureau of Canada […]

TORONTO — An emergency fund is meant to be there in times of need, but a new survey suggests nearly half of Canadian homeowners would be ill prepared for a personal financial dilemma such as job loss.

The poll released today by Manulife Bank finds that 24 per cent of those surveyed don’t know how much is in their emergency fund, 14 per cent have not put away any funds and nine per cent have access to $1,000 or less.

The remainder of those surveyed have up to $10,000 saved, with the average amount being $5,000.

Forty-six per cent of Canadian homeowner households say they would have difficulty making mortgage payments within six months of the primary earner losing their job, a survey from Manulife Bank has found. (Photo: Roy Hsu/Getty Images)

Manulife says among those polled, homeowners had an average of $174,000 in mortgage debt, with an average of 28 per cent of their net income going toward paying off their home each month.

About half (46 per cent) of those polled say they would have difficulty making their monthly mortgage payments in less than six months if their household’s primary income earner lost his or her job…

Long-term U.S. mortgage rates continued to surge this week in the aftermath of Donald Trump’s election win.

Transcription Ottawa real estate salesperson, Jessica Lacasse, explains why getting a pre-approved mortgage can help you not only land the house of your dreams but also one that you can afford. Video by Darren Brown. Just because the temperatures in Ottawa are dropping doesn’t mean the Ottawa real estate market is slowing down at all. […]

brightcove.createExperiences();

Would $1,000 in the bank cover all your bills for the next six months? Probably not. And yet, about a quarter of Canadian homeowners confess to only having $1,000, or less, set aside for an emergency.
These are the findings of the latest survey by Manulife Bank of Canada. Turns out, more than a third of mortgage holders in Canada would have difficulty making their regular mortgage payment within three months if the main income earner in their household lost their job. Yet, experts, including Manulife Bank, recommend that each household keeps enough in emergency savings to cover three to six months of expenses.
“A high-interest savings account is a good option. Or, if you’ve got a home equity line of credit, you could use your savings to reduce your debt and save interest – and still have access to that money if an emergency arises,” said Rick Lunny, president and CEO of Manulife Bank of Canada…

We all know that last month the federal Liberals made changes to mortgage rules across Canada, mainly requiring a stress test for borrowers of the common five-year fixed rate mortgage. Borrowers are now required to qualify for loans at the Bank of Canada’s posted rate (about two percentage points higher than current offered rates). Sure, we’ve heard the numbers, but it’s difficult for the average home buyer to fully know what all this means for purchasing power and their bottom line.
Well, now we know. Mortgage rate site Ratehub.ca has crunched the numbers for several cities across Canada and what they found was consistent throughout—it’s going to take a much larger household income to buy a home than just a year ago.
In fact, they found that to get an insured mortgage on an average-priced house, you will need at least 20% more income than you did before the rules came into place last month.
For instance, in Toronto, you’ll need nearly 25% more income (an extra $29,000 or so) than before to afford an average house…

Canadian homebuyers were already exposed to interest rate hikes when the federal government started implementing new rules to stem skyrocketing prices.

New mortgage rules requiring borrowers to undergo a “stress test” at the Bank of Canada’s (BoC) posted rate could help prepare them for such hikes.

But they could also “exacerbate” any slowdown in housing in markets like Toronto, Vancouver, Calgary and Montreal, should those regulations prove “too constraining,” said a commentary released Thursday by credit rating agency DBRS.

A real estate for sale sign is pictured in front of a home in Vancouver, B.C. on Sept. 22, 2016. (Photo: Ben Nelms/Reuters)

Earlier this month, the federal government implemented new rules that make it difficult for borrowers to buy as much house as they used to.

They’re also aimed at keeping people from piling up more debt than they can afford.

Under the rules, you can negotiate an interest rate as low as 2.5 per cent with a bank. You also have to undergo a test to see if you could still make your payments at a rate of 4…

Finance Minister Bill Morneau says recent changes to mortgage rules will keep Canada’s economy secure and protect Canadians in the long run.

Canada’s housing market watchdog sounded alarm bells about the price of housing in several markets across the country Wednesday, claiming that overvaluation and overbuilding in markets like Toronto and Vancouver are finally showing cause for concern. Canada Mortgage and Housing Corporation (CMHC) said in its national housing market assessment that soaring housing prices coupled with […]

TORONTO – A romantic proposal or an invitation to move in with a partner may seem like an awkward time to start planning for a smooth divorce. But with nearly half of Canadian marriages ending before death does couples part, a pre-nup can help individuals emerge from breakups financially unscathed.
Slightly more than 43 per cent of couples married in 2008 will divorce before reaching their 50th anniversary, according to Statistics Canada, which stopped providing information on the country’s divorce rate after that year.
“Why wouldn’t we do some advance planning?” asks Michael G. Cochrane, a partner at Brauti Thorning Zibarras in Toronto and author of “Surviving Your Divorce: A Guide to Canadian Family Law.”
.cbR{box-sizing:border-box;display:block;width:100%;margin:1em 0;border:1px solid #bbb;padding:.5em}@media (min-width:480px){.cbR{width:250px;margin:0 0 1em 1em;float:right}}How to loan out an RRSP mortgage
Marriage agreements are called pre-nuptials if signed before the legal marriage ceremony…

TORONTO – There is growing evidence of risk in the country’s real estate markets as home prices have climbed faster than income and population growth, a report by Canada’s federal housing agency says.
Canada Mortgage and Housing Corp. increased its risk rating for the national housing market on Wednesday to strong, from a moderate rating that it gave in July.
“We now see strong evidence of problematic conditions overall nationally,” CMHC’s chief economist Bob Dugan said in a news release.
“This is fuelled by overvaluation — meaning house prices remain higher than the level of personal disposable income, population growth and other fundamentals would support. This overvaluation coupled with evidence of overbuilding in some centres means that growth in house prices will slow and housing starts are expected to moderate in 2017 and 2018.”
The agency also said it now sees moderate evidence of price acceleration. That occurs when home prices go up at a faster pace and is a possible sign of speculation…

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Long before I turned 60, I fantasized that a foundation piece of my ultimate financial independence would be taking the Canada Pension Plan (CPP) as early as possible: at age 60.
Mind you, there used to be a slight actuarial advantage to taking early CPP at 60 but that was negated a few years ago. And while several friends I know are happy to have collected it at 60, here I am at 63, and have still not opted to receive CPP. (However, as we wrote in my previous column “Why I’m taking OAS right at 65,” even though there is a premium paid to those who defer starting their OAS, I DO plan to take OAS as soon as it’s on offer when I turn 65.)
CPP guru Doug Dahmer, CEO of Burlington, Ont.-based Emeritus Financial (see their CPP Optimizer tool) insists an uninformed decision about when to start collecting CPP can cost hundreds of thousands in potential benefits…

Canada Post could start charging annual fees for door-to-door delivery, resume its push to community mail boxes, or distribute legalized marijuana, but the troubled Crown corporation won’t be financially “self-sustaining” over the next decade unless it deals with its looming pension crisis. So says a task force that’s been looking at options for the future of the nation’s postal service. […]

Q: I over-contributed about $900 to my RRSP but I’ve already submitted my taxes. I want to remove the excess and put it in my TFSA. If I do that, what steps do I have to take to adjust my tax return and will I owe a penalty?
—Eileen Tan, Toronto
A: Take a deep breath. You don’t need to do anything. You are within the $2,000 of wiggle room the CRA provides on over-contributions. And if the $900 contribution was made in the first two months of the year, it can be applied to either the prior year or current year.
Even though you aren’t facing a penalty, there are a few ways to shift that amount to your TFSA if you really want to. Ian Collings, a CFA and CFP at Vancouver-based Collings Financial, says, “the most complex way to transfer the funds is to file a T3012A and withdraw the funds. Then file a T1OVP to calculate your penalties.” Yaaaawwwn. I’m way, way too lazy to do that, so luckily Collings has another option. “The simplest is to reduce your future RRSP contributions and save in your TFSA…

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Ottawa homebuilders are aiming high in 2016, according to a slew of new statistics released detailing the current state of affairs in the city’s housing market. Canada Mortgage and Housing Corp. (CMHC) released its monthly update on new home construction Friday, stating that the number of new homes started by construction companies in Ottawa during the month of […]

If you feel pinched making payments on your debts, it may make sense to roll them all into one monthly bill. But bear in mind that while it’s meant to ease your debt situation, you’ll need to qualify for that lower-interest consolidation loan. Here’s how to stack the odds in your favour.
1. Choose your battles
Not all debts are worth consolidating. The most common contenders are high-interest, unsecured consumer debts like credit cards and personal loans. Things like student loans are better dealt with separately as you are eligible for tax credits on interest.
2. Review your budget
You should know how much you can realistically pay per month against your debts. Take a hard look at your expenses and decide what you can spare to pay down your loans. You’ll need to have this figure ready if and when you approach a consolidator.
3. Choose your consolidation method
Now you have some options: You could consider a consolidation loan, take on a secured or unsecured line of credit, or refinance your home…

FICOM’s new commission disclosure proposal appears to be moving full steam ahead. And it leaves certain consequences to the imagination. RBC Capital markets put out a report on this recently, and touched on some of those key questions. The report asks the following (our comments are added in italics): “Will mortgage brokers lose market share to banks, given they will need to disclose how much they get compensated whereas bank personnel do not?” It’s tough to judge the overall outcome at this stage (mainly because the rules aren’t finalized), but one thing seems certain. The changes could cost full-commission brokers business from consumers who will use explicit compensation data READ MORE

The U.S. Justice Department on Monday announced a $5 billion US settlement with Goldman Sachs over the sale of mortgage-backed securities leading up to the 2008 financial crisis.

Finance Minister Bill Morneau is urging Canadians to just wait and see after his changes to mortgage rules failed to cool down home prices in certain cities across the country.

In December, Morneau announced that mortgage holders would need to make minimum down payments of 10 per cent on any portion of a home’s price above $500,000, up to $1 million.

The presumable aim was to cool down staggering home prices in some of Canada’s hottest markets — but that hasn’t happened yet, and the rule has been in effect since Feb. 15.

In fact, things seem to have gone the other direction in certain cities.

Finance Minister Bill Morneau (Photo: Adrian Wyld/CP)

Vancouver’s housing market saw sales top 5,000 for the first time ever last month, while detached homes in Toronto hit an average price of $1.8 million.

Regardless, Morneau is optimistic that the new rule will have some impact down the road.

“We’re only one month into that change, we hope that change, and we expect that change will have some impact,” the finance minister told Business News Network (BNN) on Friday…