Today, ING DIRECT Canada announced its new name: Tangerine. Not officially launching until Spring 2014, the name change was revealed early so new and existing customers would not be surprised at the last minute. For a little background info on why the name is being changed, and what other changes may go along with it, keep reading. Continue reading
The following is a guest post from Debt.ca.
If you’re struggling with debt, you’ve likely started to notice all of the different signs, ads, and websites that say there are ways to get out of it. Unfortunately, getting out of debt can be a lengthy process – and the terminology used to explain your options is often confusing, making a tough decision even more difficult. Today, we want to explain your options and make all of the information crystal clear. Continue reading
Personal finance is a hot topic in the news these days – and there’s a good reason for it. No matter what age category you’re in, you likely have a number of decisions to make around what you need to do with your finances. Millennials, on top of struggling to find work, need to pay down their student debt and start saving for the future. Baby Boomers need to make sure they have enough saved for retirement. And everyone in between is thinking about mortgages, refinances, debt consolidation, insurance policies, etc. etc. etc. The list goes on and on.
There’s a lot to learn about money! We know first-hand that the rules are always changing and allowances can be made in all different scenarios. It’s hard to become an expert, or even feel like you have a grasp on it all, but we think everyone should have access to good financial advice. With that in mind, we decided to contact Canada’s personal finance experts and see what advice they could give our readers. Continue reading
The following article is a guest post by Kyle Grooms, a financial security advisor in Toronto, and looks at tactical ways to use TFSAs and RRSPs to save for a down payment.
A common thread that ties recent generations is the desire to own a home. I feel this is a safe statement, however antidotal it might sound, considering conversations with grandparents, parents and peers. As a financial advisor working with young professionals, this seems to be their number one short-term financial goal. This article will focus on a strategy that will look to provide value and flexibility in people’s approach to saving for their first home.
After a review of some the rules and regulations associated with the First-Time Home Buyers’ Plan (HBP), some people may come to the conclusion that it is complicated and rigid in character. I think the HBP is a great way to save for the purchase of a new home for the average Canadian; however, I would not disagree with the above assessment of the program. A recent study by Canada Revenue Agency (CRA) indicated that close to 50 per cent of people do not replenish their RRSPs after withdrawing for a home via the HBP. This is likely due to two reasons: cash flow and not having the proper advice. Unfortunately, the result of not replenishing RRSPs defeats the original purpose of utilizing the HBP. Continue reading
According to a recent RBC poll, a disturbing mortgage trend was revealed, that one third of Canadian mortgage owners will carry that debt into their 70s. Specifically, 33% of these Canadians aged 55 and older still have 16+ years left on their mortgage term! This marks a contrast with the 72% of Canadians that say they hope to be mortgage-free by the time they reach the retirement age of 65. Somewhere along the line, Canadians aren’t planning their retirement smart enough or aren’t taking advantage of the necessary steps to reduce mortgage debt.
With regard to Canadians aged 18-34, more than a quarter project themselves to be mortgage-free by the of age 45. That’s two full decades before the retirement age of 65. Even more shocking is that one in ten predict to be mortgage-free by 35! Is this a product of a younger generation that is financially smarter and better at forecasting and planning? Or is it a symptom of naïve dreaming and unrealistic expectations? We’ll have to check back with RBC after a few years to confirm the results as time reveals all things.
On the positive side, 41% of Canadian homeowners are mortgage-free, representing the highest level it has been in 5 years. This is in part with the majority of baby boomers that have been at or near the end of their mortgages over the past year.