Personal Finance and Money Management

For busy students, these hour-long webinars can be a relatively quick and easy way to get a little more finance-savvy. Below you can find a list of these webinars with dates, times, and more detailed information.

• Money 411: October 21 & 28 at 1pm Central time
  This webinar will focus on the top 5 money mistakes made by students which range from how to budget, to the appropriate uses of credit cards and loans.
• Credit Card Smarts: November 4 & 11 at 1pm Central time
  Credit cards can be a great way to pay for everyday items conveniently, but only if youre smart about it.

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All across Canada were seeing the recreational property market continue to go through the cedarshingled roof. Industry experts predict another year in which buyers seeking a property may outnumber the recreational properties available. The boomers are in their peak ie years and have benefited from an unprecedented climb in the valuations on their primary homes. And across the country, theyre scouring every lake, ocean beach and ski slope looking for the perfect getaway.

When cottages first became the vogue around the turn of the last century, those getaways were generally charmingly rustic structures designed to give their owners a taste of a simpler way of life for the summer season.

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The impact of the Durbin Amendment, part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, will begin to be seen soon by banks and consumers alike when it goes into effect on October 1. By reducing the fees that merchants pay for every debit transaction, the act was designed to lower costs for consumers. But the reform will cut into bank revenues and, as a result, could raise the cost of consumer borrowing.

Reviewing the Amendment
The thought behind lowering swipe fees for debit card purchases was to bring prices down. Just last week, Sen. Durbin said, “The retailer will be more profitable. T

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So you’ve just gone out and looked at approximately 285 houses, finally deciding on that perfect place. Now comes what’s arguably the hardest part of the home buying process, which is getting financing for the thing. Of course, you can just avoid this whole process completely by paying cash for the house, but who has a quarter million dollars just hanging around? And that’s just for a cheap place. Unless you’re planning on saving for a long time before buying that house, you’ll have to get a mortgage on it.

When it comes to getting a mortgage, there are two choices. You can either go to your local loans officer, who represents just the bank they work for. Or, alternatively, you can go with a mortgage broker, which is a liaison between you and a finance company. Which should you choose? It’s not such an easy question.

Advantages of Using a Banker

The big advantage to using your local banker is the fact that they have most of your info on file already, which speeds up the whole application process. When you go to a mortgage broker, they have to create a whole new application for your mortgage, since the lender they’ll submit to doesn’t know you from a hole in the ground.

Also, often your bank will have additional stuff on record. If your down payment is coming from your savings account, just a few taps on a keyboard can verify the money is there and has been there long enough to satisfy CMHC requirements. The bank can also take a quick look into your account to make sure your income is steady. A mortgage broker will ask a borrower to supply copies of these records, so a borrower saves time by sticking with his bank.

Also, if you’ve been a customer of that particular bank for a while, you might have fostered a relationship with the loans officer. Perhaps this is your 2nd or 3rd mortgage, and you’ve used the same girl for all of them, and she’s treated you well the whole time. You’re certain the rate being offered is as low as the bank will go, because you trust the loans officer. A good relationship with whoever handles your mortgage is essential.

Many mortgage brokers will tout the number of lenders they work with as a major advantage. The fact is, most brokers send all their AAA business to just one or two lenders, since they know those lenders so well. It kind of ruins the whole mantra of shopping your mortgage hard to get the best deal, doesn’t it?

Advantages of Using A Broker

Saying what I just said, the big advantage of using a mortgage broker is the ability to shop your deal to the best lender for your situation.

If you know you’re going to make large lump sum payments, then a lender who will let you do that without an interest penalty is ideal. Or, maybe you know you’re not going to pay down a nickel more than absolutely necessary, since you’re in no hurry to pay down your mortgage. If that’s the case, then you’ll want to go with a mortgage that has sacrifices prepayment privileges in exchange for a low rate. A good broker will ask these questions and find you a lender that fits your needs.

Another advantage to using a broker is flexibility. One of the reasons online banking has become popular is that people just don’t have time to go to the bank when it’s open. And it’s the same thing with arranging their mortgage. So, the broker comes to them, maybe after dinner or on a weekend, and starts the ball rolling on their deal then. What a great deal for those people who have to work during normal banker’s hours.

Banks are starting to eat away at this advantage though, introducing mobile mortgage people who will come to your house.

Which Should You Use

Well, that’s a tough call.

Using both a broker or a banker has merit. If you’re a disorganized person who hates a lot of paperwork, maybe using a broker isn’t the answer. Or, if you really have no idea about the whole process, maybe a mortgage broker is the route to go. Ultimately, the choice is up to you.

But, if you’re relatively astute financially, you might want to weigh out the options yourself and just approach the lender you like the most on your own. Mortgages aren’t that complicated, most everyone can understand the terms by educating themselves. Doing a little research beforehand will make either route easier.