INVESTING

Real estate has long been a favored avenue for investment. Yet, with home prices soaring across Canada, many citizens find it increasingly difficult to afford even a single residence, rendering the notion of acquiring a second investment property a distant aspiration for the masses. Statistics from Statista indicate that the average home price in Canada reached $703,875.00 in 2022. While a slight decline in prices is anticipated through early 2023, pre-pandemic pricing levels are unlikely to be restored. This situation places the majority of homes beyond the reach of many Canadians, thereby restricting their ability to engage in real estate investment through conventional means. Fortunately, investing in real estate through Lotly presents a positive alternative, making investment opportu...

If you're contemplating purchasing a condominium, you're likely curious aboutwhat is included in condo fees? In a broad sense, condo fees (also known as strata fees) typically encompass the costs associated with maintenance, amenities, and utilities. While some individuals may perceive these fees as excessive, it's essential to recognize that homeowners of freehold properties also incur maintenance expenses; the key difference is that they have control over when to allocate those funds. Understanding Condo Fees Condo fees represent a fixed, monthly obligation that every homeowner is required to meet. The specific amount is contingent upon the operational costs of the condominium corporation as well as the size of the unit you own. Generally, larger condominiums will incur higher fees. T...

This article is a sponsored feature by the Canada Deposit Insurance Corporation (CDIC) and has been reviewed and approved by Moneywehave.com. Many individuals often inquire about what happens to their deposited funds in the event of a bank's failure. The reassuring news is that your deposits are insured up to $100,000 under the Canada Deposit Insurance Corporation (CDIC). To provide a clearer understanding of deposit insurance, I've collaborated closely with CDIC, who has crafted this informative guest article on safeguarding your money. We all strive to set aside funds for significant life goals—whether it's purchasing a home, financing our children's education, saving for retirement, or planning that dream vacation. We typically store these savings in banks and financial institutions t...

You might feel relieved when you receive the keys to your new property, believing you've covered all initial expenses. However, there are final fees to consider – known as closing costs. Here’s what you need to be aware of to avoid any unforeseen charges. Understanding Closing Costs in Canada Closing costs encompass various additional administrative and legal fees incurred at the conclusion of the home-buying journey. These costs are separate from your down payment and ongoing mortgage payments. Typically, you can expect these fees to range from 1.5% to 4% of your home's purchase price, which can represent a significant sum. To ease your anxiety, it's beneficial to familiarize yourself with these closing costs and anticipate how much each one may entail. Pre-Mortgage Expenses Before y...

Understanding the Tax-Free First Home Savings Account (FHSA) - The FHSA is an innovative financial solution introduced in the 2022 federal budget, which will be accessible to Canadians starting in 2023. This account aims to assist first-time homebuyers by merging the tax advantages found in both a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP). What is the First Home Savings Account? The First Home Savings Account is a government initiative designed to support Canadians in acquiring their first home. Participants can save a maximum of $40,000 specifically for the purchase of a single-family residence, with a yearly contribution limit set at $8,000. Any contribution not utilized can be carried over to future years, similar to the operation of TFSAs and RRS...

What is the Tax-Free First Home Savings Account (FHSA)? This new financial tool was introduced in the federal budget of 2022, with availability for Canadians beginning in 2023. The FHSA is designed specifically for first-time home buyers, offering a savings account that merges the tax advantages associated with both a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP). Understanding the First Home Savings Account The First Home Savings Account is a governmental initiative aimed at assisting Canadians in acquiring their first home. Eligible individuals can contribute up to a total of $40,000, intended specifically for the purchase of a single-family residence. There is an annual cap on contributions, set at $8,000. Just like with TFSAs and RRSPs, any unused co...

A cash back mortgage operates on a straightforward principle: upon closing the purchase of your home, your lender provides you with an additional sum of money known as ‘cash back.’ This financial boost is particularly beneficial for new homeowners, as it can be used to settle various last-minute expenses tied to home buying, including moving costs, renovations, furniture purchases, legal fees, and closing expenses. However, it's important to remember that all mortgage incentives come with associated costs. If you're contemplating whether a cash back mortgage suits your needs, continue reading to understand its functionality, along with its benefits and drawbacks. Understanding Cash Back Mortgages When opting for a cash back mortgage, you're essentially securing a loan that exceeds the p...

If you're considering a new mortgage or need to renew an existing one, understanding the distinction between open and closed mortgages is essential. The primary factor that sets these two types apart is your ability to repay them within the term. The option to pay off your mortgage sooner can lead to significant interest savings over time. However, this flexibility typically comes at a price, as lenders may earn less from your repayments. Choosing between open and closed mortgages becomes straightforward once you grasp their key differences. Defining a Closed Mortgage Closed mortgages come with restricted prepayment features. Typically, you cannot completely pay off your mortgage, refinance, or renegotiate it before the term concludes without incurring a substantial penalty fee. Most ...

Curious about how to invest in index funds? Whether you are a beginner in the investment world or nearing retirement, index investing is a versatile strategy suitable for everyone. Even investment legend Warren Buffett endorses index funds for average investors. The major attraction lies in the low maintenance required and the minimal fees associated with them. This means significantly more money in your pocket—potentially tens or even hundreds of thousands of dollars over time. Although index funds typically offer average returns, it’s important to note that around 90% of actively managed funds fail to outperform comparable indexes. By embracing a passive investment strategy with index funds, you accept average returns but enjoy a considerably lower cost. Over the years, the difference i...

Are you considering purchasing a home in Canada and unfamiliar with the mortgage stress test? Since its introduction by the Canadian government in 2017, the mortgage stress test has left many prospective buyers feeling perplexed. The confusion is further compounded by periodic changes to the rules, making it vital for homebuyers to understand its implications as they navigate the housing market. Regardless of whether you’re applying for a new mortgage or renewing with a different lender, the mortgage stress test is a requirement. Some individuals find this test frustrating, as it limits the amount they are eligible to borrow. While this may indeed be the case, proponents argue that the stress test offers a safeguard, ensuring you are financially equipped to handle rising mortgage rates in...