INVESTING

I have been a huge admirer of EQ Bank since their entry into the financial landscape, particularly due to their appealing interest rates. However, I was initially disappointed that they lacked a Retirement Savings Plan (RSP). Thankfully, this concern has been addressed with the recent launch of the EQ Bank Retirement Savings Plan. The RSP operates under a structure similar to the Savings Plus Account, offering a straightforward account that provides an attractive interest rate without any monthly fees. Check out my review of the EQ Bank Retirement Savings Plan for detailed insights into this account. Key Features of the EQ Bank RSP RRSP Savings Account 3%* base interest rate RRSP GIC options The EQ Bank RSP is quite straightforward, featuring two main aspects. You can deposit funds i...

EQ Bank has established itself as a popular banking option over the years, recognized for its streamlined approach to financial services. With attractive interest rates and no monthly fees, it’s hard to find fault. However, one recurring piece of feedback was the absence of a Tax-Free Savings Account (TFSA). The appeal of saving increases significantly when it can be done free of tax burdens. In response to customer feedback, EQ Bank has rolled out the EQ Bank Tax-Free Savings Account. Much like the Savings Plus Account, this account combines a competitive interest rate with the absence of typical banking fees. Read on for a comprehensive review of the EQ Bank TFSA. Features of the EQ Bank TFSA Tax-Free Savings Account option 3%* daily interest rate GIC option within the TFSA The EQ ...

As interest rates climb and the housing market cools, many buyers are facing challenges in securing mortgages. Consequently, some are exploring what a vendor take-back mortgage entails. A vendor take-back mortgage (VTB) isn't commonly known and is typically not provided by mainstream financial institutions. However, it can be particularly useful for buyers who may have negotiated a favorable purchase price but still find themselves lacking sufficient funds. Continue reading to discover more about vendor take-back mortgages. What is a vendor take-back mortgage? Commonly abbreviated as VTB, a vendor take-back mortgage—also called a seller take-back mortgage—occurs when a seller, who owns the property outright, lends money to the buyer to facilitate the sale. This arrangement differs from ...

Have you ever considered how to move your RRSP to a different financial institution? This is a valid inquiry for those contemplating a switch. Some individuals prefer to consolidate their financial affairs with a single bank, while others may be frustrated with excessive fees or subpar returns from their current financial provider. Initially, the process of transferring your Registered Retirement Savings Plan may seem daunting. If approached incorrectly, you risk triggering tax consequences by making withdrawals, and it’s likely you’ll incur closure fees. However, moving your Registered Retirement Savings Plan to a new provider is actually a straightforward procedure. Generally, all it entails is signing a single form with your new financial institution, and they will manage the transfer ...

If you're in the market for a home, you've likely pondered the question of how much mortgage can I afford in Canada? This is a crucial inquiry because your mortgage approval amount significantly influences the type of home you can purchase. However, the mortgage amount you qualify for provides only a partial view of your financial situation. Lenders employ their own methods to assess affordability, primarily concentrating on the direct costs of homeownership while often overlooking extra expenses such as personal hobbies, retirement savings, or the financial demands of raising children. Although you can technically utilize the maximum mortgage for which you are approved, it’s advisable to be prudent with your borrowing to avoid financial strain. How much mortgage can I afford in Canada?...

Curious about RRSPs? RRSP stands for Registered Retirement Savings Plan, a widely utilized investment account among Canadians aiming to save for their retirement. Though the RRSP concept is straightforward, many find themselves puzzled by the related regulations. While there are considerable tax benefits associated with the account, it's crucial to understand your contribution limits, withdrawal regulations, and the overall operation of the account prior to beginning your investment journey. Understanding RRSP An RRSP is a designated account that Canadians may create to accumulate retirement savings, allowing contributions until the age of 71. One of the key attractions of RRSPs is that each dollar you contribute reduces your taxable income accordingly. For instance, if your taxable in...

Have you heard about variable rate mortgages? While they stand in contrast to fixed rate mortgages, many are unaware that variable rate mortgages come in multiple varieties. Understanding the differences among the various types of variable rate mortgages is crucial, as your choice can significantly influence your monthly payments. Understanding Variable Rate Mortgages A variable rate mortgage means that while your mortgage payments remain constant, the interest is subject to change. For instance, if your variable rate mortgage is set at prime -1% and the prime rate is 6%, you would pay an interest rate of 5%. However, if the prime rate rises to 6.5%, your interest would then adjust accordingly to 6.5%. Despite these fluctuations, your mortgage payments do not alter, meaning a larger por...

What is a trigger rate? This inquiry may seem unfamiliar to many homeowners, but in light of the Bank of Canada’s ongoing interest rate hikes, it's become an increasingly relevant concern. Homeowners with fixed-rate mortgages can breathe easy as their payments remain constant, irrespective of interest fluctuations. However, for individuals with variable-rate mortgages, it's crucial to understand trigger rates, as you may be nearing or already at your trigger rate. Understanding Trigger Rate A trigger rate occurs when your standard mortgage payments are insufficient to cover the interest portion. In essence, this leads to the accumulation of negative equity, which is detrimental to both borrowers and lenders alike. This situation arises within a climbing interest rate context, impacting...

If you're looking into how to brace yourself for a potential recession, rest assured that you're not alone. Many individuals have observed declines in stock prices, diminishing real estate valuations, and rising interest rates, prompting questions about what the future holds. Although a severe recession may not be on the horizon, it's clear that an economic slowdown is likely. Here are strategies to effectively prepare for a recession. Understanding a recession A recession is defined as a period when a nation experiences two consecutive quarters of declining gross domestic product (GDP). While it's a natural aspect of the economic cycle, no one looks forward to it. Interestingly, government interventions, like managing interest rates, can influence the length and severity of recessions,...

In Canada, current interest rates are among the lowest seen in over a decade, which makes the notion of seeking high-interest savings accounts seem unusual. This complexity is further heightened by the plethora of banks offering disparate accounts with varying features. Without knowledge of what to prioritize or why such accounts hold value, you risk settling for the first account that’s presented to you. It’s important to recognize that the leading high-interest savings accounts in Canada won't lead to sudden riches. Indeed, the interest rates might not outpace inflation; however, the fundamental benefit is the safety of your deposited funds along with earning some interest. These accounts are ideal for short-term savings goals, such as a down payment on a home or as a reserve for emerge...