How financially fit are you? If you've been wondering - or if you have an inkling that you're not as financially fit as you should be - Genworth Financial Canada and the Canadian Association of Credit Counselling Services has put together a number of resources to help educate yourself on the topic.




To find out your Financial Fitness score, visit financialfitness.ca. This quiz asks you questions about your financial goals and situation. At the end of the quiz, you'll get a score and some advice on how to improve your current situation.



Genworth and CACCS also held a number of financial fitness seminars this past month, and have a number of pre-recorded webinars for you to learn from. They're definitely worth a listen!



10 Steps to Financial Fitness (Parts 1-4)

http://www.youtube.com/embed/BwYP8VlwmDM

http://www.youtube.com/embed/8REfVmscUwo

http://www.youtube.com/embed/vsvEIkp8bBY

http://www.youtube.com/embed/QjkLKohO1gg





Money Gobblers

Where does all your money go? If there seems to be a Goblin in your pocket, eating away your hard earned cash, then this webinar is for you! Join us in identifying ways that you can combat the endless battle with those pesky Money Gobblers and start saving more money where you may not have realized you could.

http://www.youtube.com/embed/yYxVT97ToQk





Teaching Your Kids the Art of Financial Self-Defense

This webinar will help you in providing financial literacy training to children in easy and fun ways. Help your kids understand the importance of Financial Fitness and the art of financial self-defense!

http://www.youtube.com/embed/hb_kIxxORz8





Debt Detox

This webinar will provide an in-depth overview of personal debt management, the realities of having debt and the variety of ways one could tackle their own debt levels in reaching their ideal level of financial fitness.

http://www.youtube.com/embed/wAkUfmIqFI4





On the Right Track - Getting Organized

Do you have boxes and boxes of financial statements that you don't know what to do with? Have you created a budget but need help getting started? This webinar will give suggestions and tricks that you can use to keep your financials organized

http://www.youtube.com/embed/ZQV12gTnCCc

Buying More Than You Can Afford – It’s easier than you think

A mortgage application is nothing more than a snap shot of your life on the particular day you have decided to seek financing.  It doesn’t take a look back to see where you’ve been nor does it take a look at the future and determine where you’re going.  Seriously, it’s nothing more than organizing information in a format that analyzes criteria or a lender to give you their money.  If the boxes line up you get a whole lot of debt.  Congratulations!  Have a nice life.

So who’s to blame when things go wrong?  Lately lenders have been legislated into making the decision process a little tougher.  But no amount of legislation can replace some good honest adult conversations about money.  If you’re married you must have the money talk from time to time.  If you’re single then financial honesty with yourself is even more important.  No economics degree can prepare you for every event and most of us will be called upon to face some financial challenges. 

So is there really anything we can do?  I think there is.  There are a lot of websites springing up with great information.  There are even money coaches showing up who will do goodness knows what.  I have my favourites and we’ve spent some time looking into things that work.  We have adopted a simple yet effective “budget sheet” that we have been sharing with our clients.  As you might have guessed it’s the same document given to people applying to be on the show “Till Debt do us Part” with host Gail VazOxlade.  We like it because it shows you where your money is going and so if you have an emergency you can quickly determine where you can cut costs to help you through. 

If you would like a copy of this budget sheet please email mberg@mdgroup.ca and I will send one to you.  Have a great week.    

ING Launches their New to Canada Mortgage

The word is out today that ING has added a "New to Canada" mortgage program to their already impressive line up of mortgages.  'The New to Canada program is intended to provide financing for permanent and non-permanent residents who have been residing in Canada for less than 60 months with no or limited credit history" the press release said. 

Here are a few of the details of this wonderful program.

• Mortgages up to 65% will be considered for conventional and loan amounts over 65% will be available under an "insured" program such as CMHC and Genworth.
• this mortgage will be available for purchases and refinances including debt consolidation.
• Properties must be owner occupied but will allow up to two units. (only one unit for those applying on a work permit)
• ING will lend up to 95% on purchases and 90% for those on work permits
• Refinances are available up to 85%
• 35 year amortizations are available for loan to value under 65% and 30 years available on all other terms
• credit scores and not required if due to new credit otherwise ING is looking for credit scores of 620 minimum 
• no minimum net worth 
• minimum down payment is 5% from own resources but the rest can be a gift from a family member
• there must be confirmation of landed immigrant status or a valid work permit along with a job offer and relocation to Canada within the last 60 months.

You can email me if you would like more information on documentation requirements.  All and all I think this is a very competitive mortgage product from a very competitive lender.   If you think this mortgage might work for you please get in touch with me and feel free to forward this information to anyone you know who is new to Canada and would love to own a home. 

REITs: The Basics

Last week, the Globe and Mail featured an article about Real Estate Investment Trusts (REITs) and their tendency to be a better investment vehicle than purchasing and renting out a condo. While only you can decide which path is the right one for you, we can help by clarifying exactly what REITs are and offer some resources for further research.
Essentially, an REIT is an opportunity to dip your toe in the real estate investment market without becoming a full-fledged landlord. REITs pool investors' money and purchase real estate properties with that money. These trusts then pay their investors a portion of their profits, typically from monthly rents.
REITs have the ability to invest in different types of real estate - from hotels to multi-unit residential properties. This allows investors to further diversify their investment, so instead of simply investing all their money in one condo in one market - hoping that it eventually increases in value - they can reap the benefits of different real estate assets across different markets.
If you're interested in learning more about REITs, or real estate investing in general, check out the following resources:
- Real Estate Investment Network is a great place to go if you're looking to get into real estate investment. At the very least, sign up to gain access to their free public forum.
http://myreinspace.com/
- Million Dollar Journey offers a good primer on the basics of REITs.
http://www.milliondollarjourney.com/canadian-real-estate-investment-trusts-reits.htm
- RioCan Trust is one of the biggest REITs in Canada.
http://www.riocan.com/
- Me! Drop me a line and I will point you in the right direction.

What you need to know about a Home Equity Line of Credit (HELOC)

Home Equity Lines of Credit (or HELOCs) have become a popular way to borrow money at a lower cost than a credit card or line of credit. Because you're essentially borrowing from the equity you've built up in your home, you can do so at a much lower interest rate - with a lot more flexibility.
This has enticed many homeowners across the country to take advantage of this mortgage product - volume-wise, HELOCs have grown by 170% in the last 10 years, according to the Bank of Canada.
What many homeowners tend to lose sight of is that this product is still a form of credit - and still has the potential to turn into burdensome debt. Because they don't require any principle payments, and you have the option of making interest-only payments, it's easily-accessible cash that requires little discipline.
So if you've been thinking of getting a HELOC, what precautions can you take to avoid falling down a slippery, debt-laden slope? Here are a few tips:
1. Go in with a plan.
Establish ahead of time what you will use your HELOC for ? and what you won't. Some uses, such as consolidating higher interest debts, are maybe more worthy of tapping into your home's equity. A vacation is something that should probably be saved up for.
2. Don't pull down too much.
Deciding on a "magic number" amount is important as well. Start with the end in mind, and only pull down an amount that you can realistically pay off in two to five years.
3.Borrow from your home to improve your home.
Your home is likely one of your biggest investments, so it's important to strategically decide how much of that hard-earned equity you want to sacrifice. Typically, using equity to improve the value of your home is always a good move - especially if you decide to sell it soon afterward, and can use the increased selling price to pay off your loan.