This week’s episode is all about buying your first home!! My friend Denise and I chat about buying a property. Denise is a home owner and has gone through the whole home buying process recently, so is full of up to date, handy information to share with us. In part 1 this week, we focus on mortgages, saving for a down payment, and also chat about different types of properties and how to budget for buying a place, as well as something you can use to help buy a home that feels illegal but isn’t.

Please tune in next week for part two where we cover getting a real estate agent, budgeting for home expenses and more.

Key Takeaways

  1. The first thing you should do when thinking about buying a property is establish what you can afford. Look around at the market, and the neighbourhoods you’d like to live in. Look at real estate websites to see what prices are like:
  2. The different types of properties you can buy are: condo, townhouse, freehold townhouse, detached house, semi-detached house. Each have their pros and cons, for example with a detached house, you own this piece of land, but there is a lot of upkeep involved (i.e. snow shovelling, lawn mowing, etc.). It’s important for you to write down a pros and cons list and determine what is important to you.
  3. You can take up to $35,000 out of your RRSP, tax-free, if you’re a first time homebuyer to fund the purchase of your first home. This is called the Home Buyer’s Plan and is a great incentive. You have two years to wait until you have to start repaying this into your RRSP, and then you repay it back into your RRSP over 15 years. This is a super incentive because you get this tax-free money, and in the future you will still have this money for your retirement in the future.
  4. It’s important to talk to a lender to determine what you can afford when looking for a mortgage. There is a new mortgage stress test in place (more info in links section below), which makes it harder to get a mortgage. Things like a higher credit score, and gross debt ratio and total debt ratio
  5. Mortgage terms can depend on your situation, and the rates will be different depending on the length of the mortgage. Usually they’re five years, but this can differ.
  6. A 20% down payment is required to not need to pay mortgage insurance. For a property that costs less than $500,000, the minimum down payment is 5% (with mortgage insurance). For a property that costs more than $500,000, the minimum down payment is 5% on the first $500k and 10% on the excess to a limit of $1m.

Listen Now!

Links

CMHC Mortgage Loan Insurance and Premiums

Mortgage Affordability Calculator

Mortgage stress test further reading

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This week’s episode is all about co-living, or shared housing! Derek Baker and I chat about what co-living is, how it differs from a traditional roomie or hostel situation, its benefits and drawbacks, how to determine if this is a living situation that is right for you, and find a place that is right for you. We also talk about how it looks like in a Covid environment, and Derek’s upcoming co-living plans (on a shoestring budget!)

I’ve always been curious about what the future would look like with regard to more of a sharing economy. There is a lack of affordable housing in major cities across North America, and along with that, people are feeling more isolated now, despite living amongst so many other people. Living in a space with others who are like-minded and share similar values would be a great way to make new connections without the hassle of having everyone on the same lease. Would co-living be the answer to this? As we chatted, I’ve become more convinced of the model.

Key Takeaways

  1. The co-living principle is shared living with the intent of creating intentional community and bringing together people with similar values and goals. Think urban hippie commune, but more luxurious.
  2. It is a great option for remote workers or digital nomads who want to have flexible living terms and travel – leases are typically one to three months in length, so you’re not tied down to one location for long periods of time.
  3. Co-living is a great option to reduce living costs in high cost of living cities and still have access to a comfortable living space with amenities. For example, linens are included as well as weekly professional cleaning of the common areas.
  4. There are private room and shared room options. The shared room options may differ but think upgraded hostel bunk beds.
  5. This is also a great option to travel for longer periods of time internationally. China and India have growing co-living communities, enabling you to stay in cities for longer than a few days or weeks, while still having the benefits of hostels (events, meeting people, location, etc.)
  6. Find co-living spaces through search engines that specialize in long-term stays such as:

Listen Now!

Links

Check out Derek’s blogFreedom Coliving

Follow Derek onInstagram (personal)or his Freedom Coliving account

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Tangerine – new accounts get 2.5% interest (first 5 months), use my Orange key: 40411403S1

EQ Bank – all accounts get 1.5% interest, TFSAs get 2.3% interest!

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Today Gloria is joined by her friend Ivan who is a Registered Nurse. We chat about a variety of personal finance topics. The main goal of this podcast is to normalize conversations about money, and hope that this sparks similar conversations with your friends and family. We’ll go over different types of pensions, life insurance, how to negotiate prices when buying big ticket items, his career path and some investing lessons learned.

Key Takeaways

  1. Shop around the get the best deal. Don’t be afraid to negotiate the price down for big-ticket items, like furniture. For example, ask for the floor model. Each Brick is its own franchise with its own bargaining room, so be sure to visit different locations and see what kind of deals you can get.
  2. Price match to ensure you’re getting the best deal! For groceries in Ontario, you can price match at FreshCo, Real Canadian Superstore, No Frills and Giant Tiger. Other places that do price matching are: Canadian Tire, Staples, Best Buy, and Home Hardware. Here’s a list of places where you’re able to price match .
  3. Be patient with your shopping list! Go back to the stores frequently (or check back on the website) to see if the items you want are on sale.
  4. Life insurance premiums increase as you get older, so if you plan on having a family then it’s a good idea to purchase it sooner rather than later. Again – shop around for this.
  5. Pay attention to the kind of pension you receive and make sure you participate!
    • A defined contribution (DC) pension is one where the retirement payout is not known, what is defined is the amount of money that you put in.
    • A defined benefit (DB) pension is one that guarantees you a certain amount when you retire, so you’re able to plan ahead better with the knowledge of what you will receive when you retire.
    • Nowadays, defined benefit pensions are hard to come by in the private sector but is still common in the public sector.
    • The difference is that with a defined benefit, the amount you receive in retirement is known, whereas with defined contribution it is not known – that all depends on how to investment performs over time.

Listen Now!

 

Check out Gwai Jai on Youtube

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Today Gloria is joined by her friends Jill and Maddy. We talk about investing for the long term. We go over investing basics – asset classes, risk tolerance, and different options for investing. We also discuss our investing strategies and stories. We also get into whether there are gender differences in investing. Canadians, 2021 means $6,000 more in TFSA (tax-free savings account) contribution room! Let’s get this bread!

Key Takeaways

  1. Investing is all about making money while you sleep. You invest your money and then generate passive income through dividends and capital gains when you sell the security. There is an important distinction between saving and investing. When you have your money in a savings account, you’re basically losing money because interest rates are so low and does not keep up with the rate of inflation. Whereas, when you invest – your money is growing at a steady rate (though there is risk involved), historically the stock market as a whole has grown over time.
  2. ETF stands for exchange-traded fund which is typically a collection of securities that track an underlying index. This can be stocks or bonds. Examples are the S&P 500, which is comprised of the 500 largest US companies, or the Agg, which is the Bloomberg Barclays Aggregate Bond Index which is comprised of US government and corporate bonds.
  3. Ways you can invest:
    • Robo advisors – this is ETF based investing, and it’s done automatically for you
    • DIY through a discount brokerage ( or through your bank – you pick stocks or ETFs
    • Mutual funds – an actively managed fund that invests on your behalf, a collection of securities similar to ETFs but are managed actively but a professional
    • GICs – you can buy these through your bank
  4. You are able to find out your TFSA contribution room on your CRA website account

Listen Now!

Sources/Further Reading

Harvard Business Review – When will we see more gender equality in investing?

The CFA Institute – The equality equation: three reasons why the gender investing gap is closing

The New York Times – A trillion-dollar question: why don’t more women run mutual funds

Sign up and get $10 to trade on Wealthsimple Trade

Sign up for no-fee banking with Tangerine or EQ using my referral code!

Tangerine – new accounts get 2.5% interest (first 5 months), use my Orange key: 40411403S1

EQ Bank – all accounts get 1.5% interest, TFSAs get 2.3% interest!

Thanks so much for tuning in!