Home ownership vs other investments

Buying a home may be one of the biggest investments you ever make. But it differs from other types of investments in a number of important ways. Before you buy, make sure home ownership is the right choice for you.

4 key differences

1. May be hard to get your money out

Some investments lock in your money for a while. But you can usually pay a penalty and get your money out if you really need it. Buying a home may tie up most of your savings. Turning it into cash means selling it or renting it out — and that can take a lot of time and effort, especially in a slow market.

2. Difficult to plan for all the costs

Most investments have costs like commissions and fees. The costs to maintain a home are different, and many are hard to plan for.…

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Where to get free things on your birthday

Find the best freebies on your special day

All we read about is what everything costs so lets lets at something that is free. What’s better than free stuff on your birthday? How many retailers actually offer birthday freebies.

The answer? There are dozens of retailers and restaurants giving away free stuff to customers on their birthdays. To claim some of that booty, you’ll have to register online to their newsletter or loyalty program, while for others, no extra effort (apart from showing up and maybe flashing your I.D. as proof that yes, it is your birthday) is required. Not all of the retailers below might be close but hey its worth having a look!

Here are a few birthday freebies you should consider getting your hands on this year. Just check…

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B.C. real estate market forecast for 2017

Turns out 2017 might be the year when B.C. home buyers will finally get a break. But don’t bother throwing a party, yet.

Price drop is due to a lack of supply 

The Canadian Real Estate Association (CREA) predicts prices will drop by about 7.8% in 2017 in B.C., primarily due to a lack of supply of higher-priced single family homes in the Lower Mainland and Vancouver areas.

CREA’s Chief Economist, Gregory Klump, likens this forecasted price decline as the equivalent of removing the basketball team from a Grade 8 class. “Throw in the basketball team and the average height shoots up. The same applies to markets with higher-end homes.” He continues by saying that, “The forecasted drop in B.C. home prices largely reflects an anticipated decline in…

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FAQ on getting a mortgage

FAQ Sheet on Getting a Mortgage

Getting a mortgage is a big thing. For first time buyers this can be a tough and complicated process. Here are some common questions that get asked and some answers that may help with your mortgage application process.

SEE OUR MORTGAGE BROKER DIRECTORY HERE

Q: What is the minimum down payment on a home in BC?

A: A minimum down payment for someone who is fully income qualified is five per cent. However, if the purchase price of a property is over $500K, a minimum down payment of five per cent on the first $500K is required. After that, you will be required to come up with 10 per cent on the remaining amount. For example: The down payment for a property valued at $600K would be five per cent of $500K ($25K) plus…

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Little help for housing in B.C. budget

Finance Minister Mike de Jong repeated in his Tuesday budget speech a by-now-familiar message from Victoria: It’s through increased housing starts that the affordability crisis that has gripped urban centres around the province will be eased.

And while he had much to say on the file, he offered little by way of new spending announcements to reduce the high costs of housing.

“I’ve cautioned before and I’ll say it again,” de Jong said, “we can’t just focus on getting more people into the market. On its own, without adding to the supply, that’s just going to drive prices higher.”

De Jong’s words appeared to be aimed in part at local governments, which share a role in pushing forward new construction. He said the province intended to “help ensure…

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Things to Consider When Buying an Acreage or Country Property

Want to buy an acreage? Need more information?

Finding the right acreage for you will provide years of enjoyment. Make sure that pretty piece of land will support your vision. Read on or click below to jump to the subjects:

• Financing for acreage
• Consider the services
• Maintenance and insurance
• Covenants and Zoning
• Tips
• Develop it yourself

More and more people are leaving the suburbs to live a country life, but buying an acreage is a little different than buying a house in the burbs. Buyers should investigate a number of things on the property, assuring them that the land they purchase is going to support the lifestyle they have envisioned.

Danielle lives on an acreage in Kamloops BC, give her a call to let her guide you on…

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Five common RRSP mistakes to avoid while saving this year

It’s been 60 years since the RRSP was introduced as a retirement savings tool.

But that doesn’t mean Canadians have learned all the lessons of the past. Here’s a look at five common mistakes investors make with their RRSPs:

1. Dipping into the funds:

Carol Bezaire, the vice-president of tax, estate and strategic philanthropy at Mackenzie Investments, says the No. 1 blunder is dipping into an RRSP for expenses other than retirement income.

“People are making random withdrawals out of it for vacation or whatever,” she says. “And what they end up with in April is an unexpected tax bill.”

Financial institutions withhold some of the withdrawal — between five and 30 per cent depending on the province and total sum — and, depending on a person’s…

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What investors need to consider before making RRSP contributions

As we near the deadline of March 1 for making your RRSP contributions, I thought it is an appropriate time to give you a “to do” list of financial and investment planning items to review or consider.

Nancy Woods is an associate portfolio manager and investment adviser with RBC Dominion Securities Inc.

1. If you are the typical procrastinator when it comes to making an RRSP contribution, consider setting up a monthly payment plan into your RRSP. Making a contribution in the first 60 days of the calendar year allows you the option to choose which taxation year you deduct the amount from your income. There’s nothing that says you have to wait until the following year to make your contribution. This is, of course, dependent on you having earned income…

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How a simple credit error can ruin your home-owning dream

Imagine the anxiety of watching your credit score unexpectedly plummet after spending your entire adult life maintaining good credit.

Now suppose this credit decline blocks you from getting a mortgage on the house you planned to buy. That’s precisely what happens to mortgage applicants all across the country with surprising frequency.

All too often the culprit is unpaid phone bills. In some case's cellphone providers send  accounts to a collection agency after being just more than a month late. That can cause credit score to drop like a lead pickle, approximately 80 points (out of a theoretical 900) virtually overnight.

It never should happen that way or should it? Collections are meant for people who can’t or don’t want to pay their debts right?…

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How to Calculate Your Mortgage Affordability

For many first time home buyers, one of the most confusing – and frustrating – parts of the purchasing process is knowing how much mortgage they’ll qualify for.

While it’s always a smart idea to get a pre-approval before embarking on the house hunt, they are usually a more conservative estimate of your affordable home purchase range. Buyers paying less than 20% own must now also factor in the Bank of Canada’s 4.64% stress test, regardless of the mortgage rate they actually qualify for.

Related: Are there other options if I fail the stress test?

What do Mortgage Lenders Look At?

While the size of your down payment will certainly impact your mortgage qualification, other factors such as debt levels, income and credit score are closely…

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