Category: Toronto Personal Finance Posts

Category: Toronto Personal Finance Posts Toronto home sales decline, could sign to a return to normal market

  Toronto real estate market has seen the effects of a confluence of policies: Ontario’s Fair Housing Policy, including a foreign buyers’ tax aimed at cooling the market; a new mortgage stress test targeted at protecting Canadians from dangerously high household debt levels; and the Bank of Canada’s moves to increase interest rates.   The Ontario government needed to act to cool the over-heated market when it peaked at more than 30 per cent year-over-year price growth last April, 2017..   If the government’s policy target was to increase affordability of buyers, that has not happened yet. The short supply

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Category: Toronto Personal Finance Posts OSFI’s new mortgage rules will decrease home affordability

  OSFI’s new mortgage rules will decrease home affordability. OFSI’s (Canada’s banking regulator) has published final guidelines for its mortgage qualification rule. It will impose tighter standards on the uninsured market. Lenders will be required to “stress test” all uninsured mortgage loans at the greater of the Bank of Canada’s five-year (5) posted rate or 200 basis points (2 percentage points) higher than the negotiated contract rate. The rule is applicable where the buyer makes a down payment of at least 20 per cent of the home’s purchase price or higher. Home affordability will undoubtedly affect as a result of

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Category: Toronto Personal Finance Posts How much you need to earn to sustain a home in Toronto

  Looking at the Toronto housing market through an analytical lens of percentages, changing sales numbers and interest rates may be the go-to method for industry insiders, but for many average customers, there’s really one thing that are important: “What can I afford?” To help answer that question, let’s calculate what degree of salary you or your household are going to need to attain in order to purchase a home, based on average prices in 2017 so far. First, we looked at costs for the entire Greater Toronto Area (both the 416 and suburban 905) by property type. There’s no

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Category: Toronto Personal Finance Posts Major changes to Canada’s housing and mortgage lending rules

  In toronto real estate, the Liberal government has announced sweeping changes aimed at ensuring Canadians aren’t taking on bigger mortgages than they can afford in an era of historically low interest rates. The changes are also meant to address concerns related to foreign buyers who buy and flip Canadian homes. Below is a breakdown of the four major changes Finance Minister Bill Morneau announced Monday. The current rules In toronto mortgage, buyers with a down payment of at least 5 per cent of the purchase price but less than 20 per cent must be backed by mortgage insurance. This

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Category: Toronto Personal Finance Posts 10 Tips For Using Credit Cards for Shopping Safely Online

    When shopping online, shopping safely online can be a challenge, especially if you stray from the larger e-tailers to get a better deal from a lesser known site. Here are 10 tips to help you gain some peace of mind while shopping online.   1. Check the seller’s customer satisfaction ratings. Other people’s experiences with the merchant that you are considering are often an excellent gauge of what to expect when you order. Review other user’s comments and check out the seller’s rating on sites like Google Shopping. Low “star” ratings may provide a red flag that cautions

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Category: Toronto Personal Finance Posts Identity Theft – 15 Signs Your Identity Was Stolen

  A thief could be feeding off of your identity for years before you find out—and when you find out, it’s only when you apply for a loan or to rent an apartment and get rejected on the grounds of bad credit—which the thief has tanked. Another way people find out by accident that their identity has been stolen is when they’re denied admission to a school. And yet another tip-off that you’re a victim is when you get calls from a collection agency demanding you pay up for products you never bought or even heard of. The way your

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Category: Toronto Personal Finance Posts Pothole menace angers motorists, creates business for repair shops

  MONTREAL – An annoying sign of spring — the dreaded pothole — is testing the patience of Canadian drivers this year while also creating a financial bonanza for auto repair shops. Extreme fluctuations in early spring temperatures along with lots of rain have unearthed a high number of potholes that are exposing motorists to hefty repair bills. “It’s probably the worst year I’ve seen in the last 10 to 15 years,” Ben Lalonde, president of My AutoPro service centres in Ottawa, said in a recent interview. Business is up as customers are showing up with bent wheels, punctured tires,

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Category: Toronto Personal Finance Posts 12 Tips for Buying a Car With Bad Credit

  Your credit history plays a major role in getting approved for a car loan. Unfortunately, buying a car with bad credit is tough, even if you have the income and a stable job history. A history of late payments, high debt, bankruptcy, or repossession is a sign to the lender that you’e at risk of defaulting on your loan payments and the lender wants to avoid the expensive process of repossessing your vehicle. Bad credit doesn’t have to stand in the way of your new set of wheels, but you’ll have to shop a little differently and be prepared

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Category: Toronto Personal Finance Posts How to use your RRSP to invest in real estate

  As the Canadian real estate market continues to rise, some investors want to put their RRSP money to work in a real estate investment. While there are limitations, there are also several options available to investors. Unfortunately, those looking to buy a rental property with their RRSPs are out of luck. Tax-free RRSP withdrawals of up to $25,000 can be taken under the Home Buyer’s Plan (HBP) to buy or build a qualifying primary residence to live in, but not for a rental property investment. Real estate investment trusts (REITs) are RRSP-eligible investments that pool together income-generating real estate.

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Category: Toronto Personal Finance Posts RRSPs are about much more than just retirement

  While the word “retirement” makes up one of the four letters in the RRSP acronym, many investors just starting out may not realize that an RRSP can be useful for many things other than post-work income. RRSPs can be used, for example, (1) to generate an emergency source of income after unexpected job loss; (2) to help come up with a down payment to purchase a first home; and (3) to pursue higher education that may lead to a new career. Those are the big three, but there are other uses too, such as (4) holding your own mortgage

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