Recession Proofing Your Finances.

General Derek Cole 5 Feb

Published by DLC Marketing team

The latest news has been focused on rising interest rates, surging inflation, and economic uncertainty with suggestions that the Canadian economy could be tripped into recession.

With all this information circulating, now is a good time to discuss ways to adapt your finances and protect your future. Fortunately, there are a few key things you can do to get started today!

Set a budget and reduce monthly expenses and overall debt by including the following:
Review your income and expenses and identify areas for reduction – such as getting a cheaper cell phone plan, reducing streaming service subscriptions, reviewing transport costs, etc.
Make a list of your current high-interest loans (such as credit card balances). If your mortgage is up for renewal, you may be able to benefit by consolidating debt into your mortgage to save on interest and free up cash flow with one payment. Refinancing your mortgage before the renewal is also an option, but a review of the penalty cost versus your debt consolidation goal should be considered. As your mortgage professional, I can assist you with this analysis.
Allot a percentage of your income towards savings such as an emergency fund. Your goal should be to have the equivalent of 3 to 6 months of earnings in this fund to provide breathing room should you lose your job or face any unexpected expenses. Another form of emergency funds could also be a line-of-credit. Once set-up, these generally have no cost to you unless you use it in the event of an emergency.
Having a healthy and realistic budget will give you peace of mind and allow you to properly allocate your monthly cash flow between debt, expenses, and savings.

Evaluate your investment portfolio:
While you will want to avoid making any knee-jerk reactions, it maybe a good time to diversify your portfolio to help reduce risk. Consider rerouting your investment to real estate or other areas to ensure you have various sources of income and always talk to an expert.
Find additional income sources!
Many people have found innovative ways to increase their income by asking the following three questions:
Are you a fit for a potential promotion?
Do you have a review coming up?
Do you have transferable skills that you can apply to consulting or additional contract work?
One final reminder – don’t panic. I know the word “recession” can be stressful but understanding what is happening and making appropriate adjustments will help you stay financially secure.

If you have any additional questions, don’t hesitate to reach out to a Dominion Lending Centres mortgage expert. We would be happy to chat with you anytime about the impact on your mortgage, or how to make changes for the long-term.

4 Key Things to Know about a Second Mortgage.

General Derek Cole 31 Jan

Published by DLC Marketing team.

A second mortgage is a mortgage that is taken out against a property that already has a home loan (mortgage) on it. Generally people take out second mortgages to satisfy short-term cash or liquidity requirements, have an investment opportunity or to pay off higher-interest debts (such as credit cards and student loans) that a second mortgage might offer.

If you are considering a second mortgage for any reason, here are a few key points to keep in mind:

Second Mortgages and Home Equity: Your second mortgage and what you can qualify for hinges on the equity that you have built up in your home. Second mortgages allow you to access between 80 and 95 percent of your home equity, depending on your qualifications.

For example, if you seeking 95% Loan-to-Value loan (“LTV”):

House Value = $850,000
95% LTV (maximum mortgage amount) $807,500
less: First Mortgage ($550,000)
Amount Available Through Second Mortgage $257,500

Second Mortgages and Interest Rates: When it comes to a second mortgage, these are typically higher risk loans for lenders. As a result, most second mortgages will have a higher interest rate than a typical home loan. There is also the option of working with alternative and private lenders depending on your situation and financial standing.

Second Mortgage Payments: One advantage when it comes to a second mortgage is that they have attractive payment factors. For instance, you can opt for interest-only payments, or you can select to pay the interest plus the principal loan amount. Work with your mortgage broker to discuss options and what would work best for your situation.

Second Mortgage Additional Fees: A second mortgage often comes with additional fees that you should be aware of before going into the transaction. These fees can vary widely but often are a percentage of the mortgage. Other fees to consider include appraisal fees, legal fees to set up the second mortgage and any lender or broker administration fees (particularly with alternative or private lenders).

Second mortgages are a great option for many homeowners and, in some cases, may be a better solution than a refinance or a Home Equity Loan (HELOC). If you are interested in learning more or want to find out if a second mortgage is right for you, don’t hesitate to reach out to me today.

What to Know About Title Insurance.

General Derek Cole 23 Jan

Published by DLC Marketing team.

There are many insurance products when it comes to your home, but not all are created equal. One such insurance policy that potential homeowners may encounter is known as “title insurance”.

This particular insurance is designed to protect residential or commercial property owners and their lenders against losses relating to the property’s title or ownership. In fact, it is so important to lenders that every single lender in Canada requires you to purchase title insurance on their behalf. It is not a requirement to have coverage for yourself, but that doesn’t mean you should dismiss it outright.

While title insurance can protect you from existing liens on the property’s title, the most common benefit is protection against title fraud.

Title fraud typically involves someone using stolen personal information, or forged documents to transfer your home’s title to him or herself – without your knowledge. The fraudster then gets a mortgage on your home and disappears with the money. As the old adage goes: “It’s better to be safe than sorry” and the same goes for insurance.

Similar to default insurance, title insurance is charged as a one-time fee or a premium with the cost based on the value of your property. This insurance typically runs around $300 for the lender and $150 for the individual. It can be purchased through your lawyer or title insurance company, such as First Canadian Title (FCT).

If you are wanting to know more about title insurance, or confirm that you (and your home) are properly protected, don’t hesitate to reach out to a Dominion Lending Centres mortgage expert today for a mortgage review!

Post-Holiday Debt? Consolidate Today!.

General Derek Cole 15 Jan

Published by DLC Marketing Team.

The holidays are a season of giving and often times, households can often find themselves carrying some extra debt as we enter the New Year.

If you happen to be someone currently struggling with some post-holiday debt, that’s okay! Whether you’ve accumulated multiple points of debt from credit cards or are dealing with other loans (such as car loans, personal loans, etc.), you are likely looking for a way to simplify your payments – and reduce them. Rolling them into your mortgage could be the perfect solution.

Consolidating other forms of debt into your mortgage has multiple benefits. For starters, this process can help you to pay off your loans over a longer period of time with smaller payments per month, and often at a reduced interest rate when compared to a credit card.

By freeing yourself from these high interest rates and gouging interest payments, you will not only have more money each month but have a better chance of taking back your financial control and getting your loans completely paid off!

If you’re still not sure if this is the right solution for you, here is an example… if you have $30,000 of credit card debt, you are probably paying AT LEAST $600 per month and $500 per month of that is likely going directly to interest. If you let me help you to roll that debt into your home equity and monthly mortgage, your payment to this $30,000 portion would drop down around $175 per month, with interest charges closer to $140 per month. That is huge savings!

Not only does debt consolidation into your mortgage help with reducing interest charges and making your loan more manageable, but it is also much easier to keep track of and pay a single monthly installment versus managing a dozen different loans or bills.

While debt consolidation through refinancing will increase your mortgage since you have to add the debt into your existing mortgage amount, the benefits to lowering your overall payments and management can be well worth it when it comes to cost savings, time and stress. Keep in mind, you need at least 20 percent equity in your home to qualify for this adjustment.

If you are looking for a way to simplify (or get out of) debt, reach out to a Dominion Lending Centres mortgage expert! They would be happy to take a look at your financial portfolio and current mortgage and help you come up with the best option to suit your needs.

Top Eats Across Canada: Favourite Dishes per Province.

General Derek Cole 8 Jan

Published by DLC Marketing team.

Here in Canada, we are fortunate to be a melting pot with so many incredibly diverse cultures, languages, beliefs and (most importantly)… foods!

We have gone through and found the top dishes from each Province for you to try the next time you’re looking for something new and fun to make in the kitchen.

British Columbia – Nanaimo bars
Over the years, this delicious treat has gone by many names. In fact, the first recipe actually originated in the 1952 edition of the Women’s Auxiliary Nanaimo Hospital Cookbook where it was simply named “chocolate square”. A similar recipe was later published in a 1953 edition of the Edith Adams’ Cookbook with the name “Nanaimo Bar”. In fact, the recipe clipping still hangs in the Nanaimo museum!

A no-bake dessert bar, this mouth-watering treat consistent of three main layers: graham wafer crumb and shredded coconut for the bottom, a custard-flavoured butter icing in the middle, and a chocolate ganache on top.

Ingredients:

1/2 cup unsalted butter
1/4 cup granulated sugar
3 Tbsp Dutch-processed cocoa powder sifted
1 large egg lightly beaten
1 tsp vanilla
2 cups graham cracker crumbs
1 cup fine coconut unsweetened
1/4 cup unsalted butter room temperature
2 cups powdered sugar
2 Tbsp custard powder
3 Tbsp milk room temperature
8 oz good quality dark or semi-sweet chocolate chopped
2 Tbsp unsalted butter
Directions:

Grease a 9 x 9″ pan and line with parchment.
Place 1/2 cup butter, 1/4 cup sugar, and 3 Tbsp cocoa powder into a large, heatproof bowl over a pot with simmering water. Whisk until combined.
Slowly pour in egg while whisking vigorously. Add vanilla. Continue whisking over simmering water until mixture has thickened and resembles a pudding.
Remove mixture from heat and stir in graham cracker crumbs and coconut.
Spread mixture evenly into the bottom of your 9×9 pan. Press down firmly to pack in. Chill in fridge while making custard.
For the Custard:

Cream together butter and powdered sugar, add in custard powder and milk and beat until smooth.
Spread evenly over base layer and return to fridge. Chill for 30mins.
For the Chocolate:

Place chopped chocolate and butter in to a microwave safe bowl. Microwave for 30 seconds, stir. Continue microwaving in 10 second intervals, stirring in between, until chocolate has melted.
Spread evenly over custard layer. Chill in fridge until set (about 1 hour).
Cut with a hot serrated knife.

Alberta – grilled steak

Alberta produces 44% of Canada’s cows and subsequent beef so it is no surprise that a favourite dish for this province would be a grilled steak!

Ingredients:

4 1 1/4-to-1 1/2-inch-thick boneless rib-eye or New York strip steaks (about 12 ounces each) or filets mignons (8 to 10 ounces each), trimmed
2 tablespoons canola or extra-virgin olive oil
Kosher salt and freshly ground pepper (or your choice of steak spice)
Directions:

Remove the steaks from the refrigerator and allow to sit (covered) at room temperature for 20 minutes.
Heat your grill to high.
Brush the steaks on both sides with oil and season liberally with salt and pepper (or your choice of steak spice).
Place the steaks on the grill and cook until slightly charred – approx. 4 to 5 minutes.
Turn the steaks over and continue to grill 3 to 5 minutes for medium-rare, 5 to 7 minutes for medium or 8 to 10 minutes for medium-well steaks.
Transfer the steaks to a cutting board or platter, tent loosely with foil and let rest 5 minutes before slicing.

Saskatchewan – Saskatoon berry pie

Did you know? The berry is actually so important to Saskatchewan that they gave Saskatoon its name? The city of Saskatoon takes its name from the Cree word for berries! While you can find their berry jams and berry muffins delicious, nothing quite showcases the essence of summer like the Saskatoon berry pie.

Ingredients:

¾ cup white sugar
3 tablespoons all-purpose flour
4 cups fresh serviceberries
¼ cup water
2 tablespoons lemon juice
1 (14.1 ounce) package double-crust pie pastry, thawed
1 tablespoon unsalted butter, cut into pieces
Directions:

Preheat the oven to 425 degrees F (220 degrees C).
Combine sugar and flour in a bowl.
Simmer berries and water in a large saucepan for 10 minutes.
Stir in lemon juice and then stir in sugar mixture.
Press one pie pastry into the bottom of a 9-inch pie pan.
Pour berry mixture into the pan and dot with butter.
Place second pie pastry over top; seal and flute the edges.
Bake in the preheated oven for 15 minutes. Reduce the oven temperature to 350 degrees F (175 degrees C) and bake until crust is golden brown, 35 to 45 minutes more.

Manitoba – perogies

Did you know? One of the most emblematic foods from Manitoba are perogies! I mean, who doesn’t love a pierogi!? Make them even more Canadian with a touch of bacon and onions!

Ingredients:

1/4 cup butter
3 cups all-purpose flour
1 teaspoon salt
1 egg
3/4 cups water (approx)
12 oz russet potatoes peeled and chopped
1/4 teaspoon pepper
1 pinch salt
3 bacon strips
2 onions finely
Directions:

Melt 2 tbsp of the butter.
Whisk flour with salt in a bowl and add in egg, water and melted butter
Stir into flour mixture, adding up to 2 tbsp more water if necessary to make dough soft but not sticky.
Turn onto lightly floured surface; knead until smooth.
Divide dough into 2 balls; cover with plastic wrap or damp towel and let rest for 20 minutes.
Meanwhile, cook potatoes until tender in a large saucepan with boiling water and salt for approx. 15 minutes. Drain and return to pan; mash well. Stir in pepper and salt.
Cook bacon, turning occasionally, in a skillet over medium-high heat until crisp, about 5 minutes. Transfer to paper towel–lined plate and blot dry.
Chop bacon finely; add to potato mixture.
Drain all but 1 tbsp fat from skillet; cook onions over medium heat, stirring occasionally, until deep golden and very soft, about 12 minutes.
Stir into potato mixture.
Working with 1 ball of dough at a time and keeping remainder covered, roll out on lightly floured surface to about 1/8-inch (3 mm) thickness.
Using 3-inch (8 cm) round cutter, cut into rounds.
Place 1 tsp filling on each round.
Lightly moisten half of edge of round with water; fold over filling, gently stretching as needed to fit. Pinch edges to seal.
Place perogies on flour-dusted cloth; cover with tea towel.
Repeat with remaining dough and filling, rerolling scraps, to make 36 perogies. (Make-ahead: Freeze in single layer on baking sheet. Transfer to airtight container and freeze for up to 1 month. Increase boiling time to 5 to 7 minutes.)
In large pot of boiling salted water, cook perogies until floating and tender, about 4 minutes.
With slotted spoon, transfer to colander to drain.
In skillet, melt remaining butter over medium heat
Cook perogies, in batches and turning once, until golden, about 5 minutes.

Ontario – beaver tails

Home to many things, Ontario is a bustling place home to Canada’s capital, Ottawa. In fact, a great many things were invented in Ontario including Hawaiian pizza to butter tarts! But one of the more famous treats is the Beaver Tail, named right after our emblem of Canada!

Ingredients:

½ cup warm water
5 tsp active dry yeast
¼ tsp sugar
1 cup milk
⅓ cup sugar
1 tsp salt
1 tsp vanilla
2 eggs
⅓ cup vegetable oil
5 cups all purpose flour
oil for frying
½ cup sugar
1 tsp cinnamon for dusting
Directions:

Mix ½ cup sugar + 1 tsp cinnamon, for dusting and set aside in a large bowl.
Mix the yeast, warm water and ¼ teaspoon of sugar in a large bowl. Allow to stand a couple of minutes for yeast to swell and dissolve.
Add sugar, milk, vanilla, eggs, oil, salt, and more flour to the yeast mixture.
Knead for 5 to 8 minutes using a dough hook, adding flour as needed to form a firm smooth, elastic dough.
Place dough in a lightly greased bowl and cover.
Place in a warm spot and let rise for 1 hour.
Pinch off a golf ball sized piece of dough. Roll out onto a floured surface into an oval and let rest, covered with a tea towel, while you are preparing the remaining dough.
Heat the oil in a deep fryer to 375F (190C).
Add the dough pieces to the hot oil one at a time. Turn the beaver tail once to fry until both sides are deep brown.
Lift the beaver tails out with tongs and drain on paper towels.
While warm, toss the beaver tails in the sugar mixture, coating both sides and shake off the excess.

Quebec – poutine

Fries, cheese AND gravy!? Does it get any better?! Poutine is a Quebec original that has become a classic Canadian favourite! It first came about in the late 1950s. While there are many explanations for the name, did you know? The word “poutine” is slang for mess in Quebec? A delicious mess that is!

Ingredients:

3 Tbsp cornstarch
2 Tbsp water
6 Tbsp unsalted butter
1/4 cup unbleached all-purpose flour
20 oz beef broth
10 oz chicken broth
Pepper, to taste
2 lbs Russet potatoes, (3-4 medium potatoes)
Peanut or other frying oil
1 – 1 1/2 cups white cheddar cheese curds, (Or torn chunks of mozzarella cheese would be the closest substitution)
Directions:

Prepare the gravy: In a small bowl, dissolve the cornstarch in the water and set aside.
In a large saucepan, melt the butter. Add the flour and cook, stirring regularly, for about 5 minutes, until the mixture turns golden brown.
Add the beef and chicken broth and bring to a boil, stirring with a whisk. Stir in about HALF the cornstarch mixture and simmer for a minute or so. If you’d like your gravy thicker, add a more of the cornstarch mixture, in small increments, as needed, to thicken. Season with pepper. Taste and add additional salt, if necessary, to taste. Make ahead and re-warm or keep warm until your fries are ready.
For the Fries:

Prepare your potatoes and cut into 1/2-inch-thick sticks. Place into a large bowl and cover completely with cold water. Allow to stand at least one hour or several hours. When ready to cook, heat your oil in your deep fryer or large, wide, heavy cooking pot to 300° F.
Remove the potatoes from the water and place onto a sheet of paper towel. Blot to remove as much excess moisture as possible.
Add your fries to the 300°F oil and cook for 5-8 minutes, just until potatoes are starting to cook but are not yet browned. Remove potatoes from oil and scatter on a wire rack. Increase oil temperature to 375°F Once oil is heated to that temperature, return the potatoes to the fryer and cook until potatoes are golden brown. Remove to a paper towel-lined bowl.
To Prepare Poutine:

Add your fried or baked fries to a large, clean bowl. Season lightly with salt while still warm. Add a ladle of hot poutine gravy to the bowl and using tongs, toss the fries in the gravy. Add more gravy, as needed to mostly coat the fries.
Add the cheese curds and toss with the hot fries and gravy. Serve with freshly ground pepper. Serve immediately.

Newfoundland – toutons

Newfoundland feels very different from the rest of Canada, but their food is just as exquisite! A great way to ease yourself into Newfoundland cuisine is with one of their provincial favourites – toutons. For those who don’t know, a touton is essentially a cross between a pancake and a flatbread and can be served in a variety of ways with berry jam and butter or fried up in pork fat! You can even use them in place of an English muffin for your eggs benedict!

Ingredients:

4 Cups of white flower
1 Tbsp, fast rising or traditional yeast
1/2 Tsp sea salt
1 Tsp sugar
1 1/2 cups, or more, of warm water
1 tbsp, melted butter or margarine
Directions:

Combine 4 cups flour and 1/2 tsp sea salt in a large bowl and mix together
In another bowl, add 1 tbsp dry fast rising or traditional yeast with 1 1/2 cups warm water and 1 tsp sugar. Let rise for about 5 minutes.
In another bowl, melt butter or margarine.
In flour mixture make a hole in the middle to pour yeast and warm water and butter, mixing all ingredients together with a wooden spoon or kitchen aid until it thickens, then keep adding 1/2 cup of flour to work dough together.
Knead dough, add more flour (if necessary), until dough is smooth, no longer sticky and you can hear cracking of the dough when folding. Keep working dough into a ball.
Sprinkle some flour over the top of dough, then cover with a piece of parchment paper and a towel.
Let dough rise in a warm place until dough rises for 30 minutes.
Don’t deflate! Cut small or large pieces of dough about half the size as your hand and pull apart to make a flat dough.
Pre-heat your frying pan to medium heat and add 1 tbsp butter and 1 tbsp olive oil.
Place about 6 small pieces or 3 large pieces of flat dough in your pan and fry for 4 to 5 minutes on each side or until golden brown.

New Brunswick – oysters

Famous for its beautiful Atlantic coastline, New Brunswick has an incredible assortment of seafood. Atlantic oysters (also known as “Caraquets”) in particular are harvested in the province and are the perfect dish for first-time oyster goers due to their more subtle, briny flavour. For those who prefer to grill them, check out the recipe below!

Ingredients:

12 fresh oysters
1 stick unsalted butter, room temperature
1 clove garlic, finely grated or minced
1 tablespoon dry white wine
1 tablespoon diced chives
1 teaspoon kosher salt
1/2 tablespoon finely diced parsley
Directions:

Combine the unsalted butter, garlic, white wine, chives, salt and parsley in a small bowl and set aside.
Preheat the grill for direct grilling with lump charcoal at 500 degrees F.
Shuck the oysters if you did not buy pre-shucked
Layer a pan with slightly crumpled aluminum foil.
Place shucked oysters onto the pan and gently press down so they sit well.
Place one heaping teaspoon of the compound butter into each oyster. Reserve some to top the oysters after they come off the grill.
Place gently over direct heat and grill for 4 – 6 minutes. The butter will bubble and remove when you start to see the edges of the oyster flesh slightly brown.
Remove with high heat gloves or tongs. Be careful not to spill what’s left of the liquid when removing the oysters.
Top each oyster with a little of the remaining compound butter.
Serve warm on the half shell
nova scotia – lobster roll bites
Another seafood-centric province, Nova Scotia is particularly famous for its fresh Atlantic lobster! Did you know? Nova Scotia even has its own way of serving lobster rolls compared to New England-style! In Nova Scotia, we serve them cold with the bun buttered. YUM!

Ingredients:

1 pound (500 g) lobster meat
6 hot dog buns
3 oz soft butter
2 tbsp mayonnaise
1/4 cup diced celery
Salt and pepper
3 oz spinach
Directions:

Crack the cooked lobster and extract lobster meat.
Roughly chop lobster meat into bite-sized pieces
Finely dice celery stalks
Butter hot dog buns on both sides and grill them on a frying pan.
Toast the outside of the hot dog buns until golden brown
Mix the lobster meat, mayonnaise and celery into a bowl and add salt and pepper to taste
Open the grilled bun and place 1/2 oz spinach per bun.
Spoon the lobster mixture onto the center of the hot dog bun. Squeeze lemon juice on if preferred.

Prince Edward Island – potato and leek soup

Did you know? Prince Edward Island grows more potatoes than anywhere else in Canada?! In fact, they represent more than 1/5th of the country’s total acres of potato farms! So, naturally, our provincial favourite includes potatoes. While we’ve chosen just one to focus on, you can find even more on the PEI potato website, here (who knew!?).

Ingredients:

3 large potatoes
2 tbsp (30 ml) olive oil or butter
2 cups (500 ml) leeks, washed & chopped
2 garlic cloves, chopped
1 medium onion, chopped
1 tbsp (15 ml) summer savoury (herb) dried
1/4 cup (50 ml) all-purpose flower
5 cups (1250 ml) chicken or vegetable stock
1/2 tbsp (8 ml) fresh thyme, removed from stems
1 cup (250 ml) milk
Salt and pepper to taste
Directions:

Heat a large pot over medium-high heat; add oil, leeks, garlic, onion and summer savory.
Reduce heat and cook stirring occasionally until vegetables are softened; approximately 7-8 minutes.
Add flour; stir to coat, do not brown.
Add stock stirring constantly; add potatoes and thyme and bring to a boil.
Cover and reduce heat; simmer 15 minutes stirring occasionally.
Puree in a food processor or blender in small batches.
Return to pot, add milk and season with salt & pepper
Heat thoroughly and serve .

Northwest Territories – bannack

The Northwest Territories are most well-known for its variety of traditional First Nations foods such as bison (or other game), fish and wild fruits. One of the more versatile dishes is Bannock, which is a traditional First Nations food that can even be cooked over a campfire!

Ingredients:

3 cups all-purpose flour
2 tablespoons baking powder
1 teaspoon salt
1 ½ cups water
¼ cup butter, melted
Directions:

Stir flour, baking powder, and salt in a large bowl.
Pour water and melted butter over flour mixture.
Stir with a fork to make a ball.
Turn dough out onto a lightly floured surface; knead gently about 10 times.
Pat into a flat circle, 3/4- to 1-inch thick.
Warm a greased frying pan over medium heat.
Place dough in the hot pan and cook until browned, about 15 minutes per side. Use two lifters for easy turning.

Financial Mistakes to Avoid in Today’s Economy

General Derek Cole 19 Dec

2022 has been nothing but bad news financially for most Canadians. Our stock portfolios are worth a lot less, everything we buy costs more, and interest rates are making our mortgages and other loans a lot more expensive. More than ever it is time to tread carefully and avoid any financial mistakes, so we gathered up the top 5 missteps you definitely want to steer clear of for the rest of this year and beyond!

1. Not understanding your loan agreements.
It is shocking to see how many people fail to understand the terms and conditions before entering into potentially life-changing contracts like a mortgage or student loan. Don’t assume your student loan will have a low interest rate and make sure to investigate the amount of your monthly payment post-graduation, and how many years you will be paying.

Mortgages can be complicated, but that’s no excuse and a good mortgage broker will take the time to answer all of your questions. Trigger rates in mortgage agreements have recently been in the news with rising interest rates and are a good example of people not full understanding what they signed.

2. Not having any system to track your expenses.
“I don’t know where my money goes” is a common refrain as prices continue to rise. However, given the number of mobile applications, web programs and other online tools available to simplify this task (or just use a pencil!), there isn’t any excuse. Regardless of how much income you have coming in, monitoring and controlling expenses is critical step as plenty of high-earning-now-bankrupt athletes and actors have proven!

3. Investing before paying off debt.
The question of whether it’s better to invest any “extra” cash or pay down debt needs a re-think given recent economic changes. In 2021, mortgages and lines of credit could be had for around 2% and most stock indexes reported double-digit gains. Paying down those debts with money you could have invested in the markets was not the best option.

A year later, borrowing rates have doubled in many cases (mortgages for example) and financial markets are wobbly at best, with many deep into the red year to date. These aren’t the only factors to consider, and you need to do the math for your situation, but the case for paying down debt is getting stronger by the day.

In case you are wondering, credit card debt is another deal altogether! In almost every case you would be much better off by throwing all you have at the unpaid balance before investing any of that money.

4. Not saving and investing.
As higher prices and interest rates suck up more of our disposable cash, something has to give, and putting a little bit of money away each month may be on the chopping block. If you need the money for essentials like food or rent, then you have no choice but be honest with yourself on what is essential! Once you break the saving habit it’s hard to get it back and saving is not really a discretionary expense unless you have an alternative plan to fund your retirement? Catching up on savings might be possible when things get better, but that could be years and the earlier you start, the more your savings are going to grow.

5. Spending too much on a car. 
You should be aiming for 15% of your take-home pay for total car costs including the loan payment, insurance and gas. This leaves you between $30K and $35K for a vehicle if you make $100k annually. That’s not a lot given new and used cars have been in short supply in 2022 and prices are through the roof. Although repairs aren’t cheap and you won’t get that new car smell, hanging on to your current ride may be the best option financially.

At the end of the day, financial knowledge is the best defense for avoiding mistakes and we hope you continue to learn with us.

10 “Must Know” Credit Score Facts.

General Derek Cole 12 Dec

Published by DLC Marketing team.

If you are in the market for a home or a new car, you are probably very familiar with your credit score. Lenders are one of the primary users of credit scores and it can have a huge impact on whether you get approved for a loan and just how much interest it is going to cost you. What isn’t well known about credit scores is where they come from, what makes them go up (or down!) and who else besides potential lenders uses them to make decisions? Your credit score is going to be with you for life, so why not take a couple of minutes to get the facts.

There are two credit-reporting agencies in Canada: Equifax and TransUnion. Your credit score may vary between the two. Lenders may check one or both agencies when you apply for credit.
Your credit score is actually derived from the data in your credit report — which can be had for free once per year from Equifax and TransUnion. Some banks, credit unions, and other financial services companies provide your credit score for free as part of their services.
Credit scores range between 300 and 900 with the Canadian average being 650.
Your credit score is used for a lot more than just borrowing money; insurance companies, mobile phone providers, car leasing companies, landlords and employers may all require your credit score to make decisions.
Five factors affect your credit score: length of credit history, credit utilization or how much of your limit you have used, the mix/types of credit you hold, the frequency you apply for credit, your payment history.
Mistakes and omissions are not uncommon and is a good idea to check the details of your credit report. Both agencies have a process to report errors and get them corrected.
Credit scores of 700+ are considered “good” and offer a higher chance of loan approval, greater borrowing limits, and lower or “preferred” interest rates and insurance premiums.
Credit scores are continuously evaluated and adjusted. If you have “errored” in your past, the damage is not permanent! Your score can be raised/rebuilt by using credit responsibly (see #10).
Checking your credit score regularly is a good idea and will help detect errors, monitor improvements, and identify fraud. This is a “soft” enquiry and will not affect your score.
To increase your credit score: make payments on time, pay the full amount owing, use 35% or less of your available credit, hold a variety of credit types, apply for new credit sparingly.
Don’t make the mistake of ignoring your credit score. Even if you aren’t looking to borrow money anytime soon, there are a lot of reasons to keep an eye on it.

When Higher Rates Can be Better.

General Derek Cole 4 Dec

Published by DLC Marketing team

When it comes to getting a mortgage, there is a common misperception that a low rate is the most important factor. However, while your rate does matter for your mortgage, it is not the only component to consider.

If you’re looking to get a mortgage, these are some other important factors that you should look at beyond simply the interest rate:

Term: The length of time that the options and interest rate you choose are in effect. A shorter term (5 years) allows you to make changes to your mortgage sooner, without penalties.

Amortization: The length of time you agree to take to pay off your mortgage (usually 25 years). This determines how the interest is amortized over time.

Payment Schedule: How often you make your mortgage payments. It can be weekly, every two weeks or once a month and will affect your monthly cashflow differently depending on your choice.

Portability: An option that lets you transfer or switch your mortgage to another home with little or no penalty when you sell your existing home. Mortgage loan insurance can also be transferred to the new home.

Pre-Payment Options: The ability to make extra payments, increase your payments or pay off your mortgage early without incurring a penalty.

Penalty Calculations: Where variable rates typically charge three-months interest, a fixed rate mortgage uses an Interest Rate Differential (IRD) calculation. This can add up quite quickly! In fact, in some cases, penalties for breaking a fixed mortgage can sometimes be two or three times higher than that of a variable-rate.

Variable versus Fixed: For fixed-rate mortgages, the interest rate does not fluctuate over time. For variable-rate mortgages the interest rate fluctuates with market rates, which can be great when rates drop but not so great when rates are rising.

Open versus Closed: An open mortgage is similar to pre-payment options, allowing you to pay off your mortgage at any time with no penalties. A closed mortgage, on the other hand, offers limited to no options to pay off your interest in full despite often having lower interest rates.

When considering your mortgage, the above components all have a part to play in your overall mortgage as well as your homeownership experience.

It is easy to think that a low-interest rate is good enough, sign on the dotted line… but you may be overlooking important options such as portability, which allows you to switch your mortgage to another property should you choose to move. Or pre-payment options, which give you the choice to make additional payments to your mortgage. Without looking deeper at your mortgage, you may find yourself being forced to pay penalties in the future because you wanted to make a payment or a change to your mortgage structure. In some cases, agreeing to a higher rate to have more options and flexibility is better in the long run than the savings received from a lower rate.

Before agreeing to any mortgage, it is best to talk to your Dominion Lending Centres mortgage expert about the contract, as well as your future goals and any potential concerns you have to ensure that you get the best mortgage product for YOU.

4 Financial Myths

General Derek Cole 27 Nov

Published by DLC Marketing team

Enriched Academy was launched back in 2013 after a successful appearance on the TV show Dragons’ Den by co-founders Kevin Cochran and Jay Seabrook. Although they would have loved to appear on the hit TV show MythBusters as well, fact-checking financial advice just didn’t have the mass appeal of learning whether one could survive on a desert island with only a pallet of duct tape.

Undeterred, Kevin and Jay set out to investigate the issue and educate the Canadian public about the most common financial myths out there. After many years on the case, here are their top four.

Myth #1: You need money to make money.
Careful investing is the secret to building wealth and you do need an income to get started, so this myth is not entirely untrue. However, what most people don’t realize is that the amount of money you need to make money can be surprisingly small. Financial guru Dave Ramsey’s research group found in their survey that 70% of millionaires never earned a 6-figure income. Former BC school teacher Andrew Hallam wrote an entire book devoted to how he leveraged a modest teacher’s salary with some basic investing principles to fund an early and very comfortable retirement. Check out his best-selling financial bible the Millionaire Teacher if you are wondering how he did it!

This myth is busted!

Myth #2: Money is too complicated.
Managing your money isn’t complicated, it just that having too little (or too much) leads to a lot of issues that make it seem complicated. Enriched Academy offers plenty of free webinars where you can easily pickup all kinds of financial knowledge with just one-hour of your time. While one short webinar may just get you started, the fact is that mastering a wide variety of money skills doesn’t take as much time or effort as many of the other things we spend time trying to learn. A lot of us spend more time learning how to use some app on our phone or make the perfect pasta sauce than we do learning how to manage our money.

The knowledge required to effectively manage your money is not difficult to learn — this myth is busted!

Myth #3: Investing is too risky.
It might be easy to say this one is true given the abysmal performance of most financial markets in 2022. Investing can be risky, but you can learn how to monitor and adjust your risk to suit your targeted returns, life stage, and other factors affecting your risk tolerance.

Your investing timeline also plays a huge role. Investing for the short-term is always going to be a lot more hit and miss than holding a well diversified portfolio of equities and other financial assets over a number of years. Financial markets have a long history of proven resiliency, and they will recover. Given current inflation and interest rates and the chance they will persist for some time makes investing and even greater priority these days

This myth is busted!

Myth #4: Earning money is more important than saving money.
Careful field research by an endless stream of bankrupt athletes, actors and reality TV has-beens has proven that when it comes to cash, “the more you earn, the more you burn!” The belief that more income is a sure-fire solution to your financial difficulties is busted! Carefully tracking your spending, making wise spending decisions, and adjusting your spending appropriately to “enjoy life more” as your income rises is the golden rule, regardless of how much money you are making.

Money myths can be debilitating and can put all sorts of mental obstacles in your path that just don’t need to be there. Financial literacy will help you separate fact from fiction and give you the right mindset to overcome whatever money beliefs may be holding you back.

So, You Want To Be A Landlord?

General Derek Cole 20 Nov

Published by DLC marketing team.

Are you dreaming about owning a rental property and making some extra income each month? Before diving into becoming a landlord, there are some things you should know from the advantages and disadvantages to some tips when it comes to buying a rental property.

Advantages of Owning a Rental Property

If you’re looking to purchase a property for rental and become a landlord, you are likely already aware of some of these advantages, but just in case, some benefits to this include:

Earning additional regularly monthly income
Allows you to continue to build home equity in the property(s) that you rent
Ability to deduct certain items from your gross rental income such as mortgage interest, property taxes, insurance, maintenance costs, property management fees and utilities.
Disadvantages of Owning a Rental Property

As with any investment, there are also some disadvantages to owning a rental property, which are important to consider before you make the leap. These can include:

Responsibility of maintaining the rental property and managing your tenant(s)
Rental income is taxable and must be included on your income tax. Depending on the value of the extra income, it may push you into a higher tax bracket.
Unexpected expenses and issues may crop up over time. It is ideal to budget 2% of the purchase price of your property for potential repairs. You’ll also want to keep some money aside should your tenant leave and you need to cover a few months to find a new tenant.
If you choose to sell the rental property in the future, it will be subject to capital gains tax.
What to Know BEFORE You Buy

Before getting started, it is important to calculate the cost of your investment (purchase price and closing costs), as well as consider maintenance amounts (approximately 1% of the property value for the year) and compare to current rental prices to be sure it is a profitable investment before purchasing. In addition, note the following:

The minimum down payment required is 20% of the purchase price, and the funds must come from your own savings; you cannot use a gift from someone else. Another option is to utilize existing equity in your primary residence and refinance for the cash to purchase your rental or investment property. Be sure to factor in funds for closing costs, potential repairs and maintenance in your amount.
Only a portion of the rental income can be used to qualify and determine how much you can afford to borrow. Some lenders will only allow you to use 50% of the income added to yours, while other lenders may allow up to 80% of the rental income and subtract your expenses.
Interest rates usually have a premium when the mortgage is for a rental property versus a mortgage for a home someone intends on living in. The premium can be anywhere from 0.10% to 0.20% on a regular 5-year fixed rate.
Final Tips on Becoming a Landlord

If you’ve decided to move forward with getting a rental property and becoming a landlord, here are some tips to consider:

Don’t forget about insurance! Ensure you have proper coverage for a rental situation and to cover any unforeseen events.
Educate yourself on what it means to be a landlord in your province from tenant laws to rental responsibilities.
Do your research on rental rates and locations before you choose to buy so that you are aware of where the market is at when it comes to potential earning power.
Choose the right mortgage for your rental property. Your mortgage broker can help you with this!
If you’re looking to run multiple rental properties, consider hiring a property manager who can be a go-between with you and the tenants.
With the right purchase price and rental costs per month, a rental property can be a great way to supplement income. If you’re looking to purchase an investment property, be sure to reach out to a Dominion Lending Centres mortgage expert to discuss your options and understand what is required