Learning Hub

Want to learn best practices to help manage your finances?
Our Learning Hub includes resources to help guide you through your financial decisions.

Independent Services

If you're looking for independent information to help you understand more about Lending Products and educate you more about borrowing better and responsibly.

Who are they?

Canada Mortgage and Housing Corporation has been Canada's authority on housing for more than 70 years.

What do they do?

CMHC helps Canadians meet their housing needs. As Canada’s authority on housing, we contribute to the stability of the housing market and financial system, provide support for Canadians in housing need, and offer objective housing research and advice to Canadian governments, consumers and the housing industry.

Prudent risk management, strong corporate governance and transparency are cornerstones of our operations.

How can they help?

CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, while making vibrant, healthy communities and cities a reality across the country.

To learn more on how they do this and utilize their other great services, connect with them through the below link:

W: www.cmhc-schl.gc.ca
T: General inquiries call 1-800-668-2642
E: contactcentre@cmhc.cacontactcentre@cmhc.ca

Who are they?

Service Canada is a Government Service that has prepared general information about managing your debt.

How can they help?

Service Canada has information that can assist you in the following areas. There are independent services, that are available to all Canadian’s Area’s they have information on to help you:

  • Understand Your Credit Report and Credit Score
  • Take Charge of Your Debts
  • Dealing with Mortgage Payment Difficulties
  • Manage Your Student Loan Debt
  • Help through life events
  • Being a caregiver
  • Buying a home
  • Changing your address
  • Finding a job
  • Following a death
  • Getting divorced
  • Getting married
  • Having a baby
  • Having your credentials recognized
  • Living with a disability
  • Lost wallet
  • Managing your debt
  • Raising a family
  • Retirement planning
  • Starting a business
  • Starting post-secondary education
  • Travelling abroad

To learn more on how they do this and utilize their other great services, connect with them through the below link:

Website: www.servicecanada.gc.ca

Who are they?

Consolidated Credit Counselling Services of Canada, Inc. is a national non-profit credit counselling organization that educates consumers about personal finance and has helped over 500,000 Canadians tackle their debt.

Consolidated Credit’s unbiased debt-counseling service offers alternatives to help people get their debts under control. Alongside consolidating payments, Consolidated Credit’s counselors focus on education and understanding. Strategies include teaching basic, but vital concepts, such as how to budget, understanding credit, and how to manage money.

How can they help?

The following services are provided:

  • Debt Solutions: This will help you determine the best option for your individual situation.
  • Credit Card Debt: This is designed to give you easy access to information to get out of credit card debt.
  • Financial Advice: This covers personal finance from A to Z. We provide information and advice on budgeting and saving, get access to useful financial calculators and information on how to get ahead and maximize your overall financial outlook.
Contact details:

T: 1 (844) 363-7957
Monday-Thursday - 8:30am-8:00pm
Friday - 8:30am-6:00pm
Saturday - 9:00am-2:00pm
W: https://rckstrtrk.com

Who are they?

One of Canada's oldest business associations, the CBA was founded in Montreal on December 17, 1891 and subsequently incorporated by a special act of Parliament in 1900.

During the revision of the Bank Act in 1890, both bankers and the government realized that a more formal banking organization was required, similar to what existed in the United States and Britain. George Hague, General Manager of the Merchants Bank of Canada, was elected President of the new association in 1891.

Today, the Canadian Bankers Association works on behalf of 59 domestic banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 280,000 employees and it continues to provide governments and others with a centralized contact to all banks on matters relating to banking in Canada. The CBA advocates for effective public policies that contribute to a sound, successful banking system that benefits Canadians and Canada's economy. The Association promotes financial literacy to help Canadians make informed financial decisions and sponsors two financial literacy seminar programs: Your Money Students and Your Money Seniors. The Association also works with banks and law enforcement to help protect customers against financial crime and promote fraud awareness.

How they can help you?

The site provides valuable insights on banking within Canada and provides information on programs to help young adults and others learn more about banking.

To learn more on how they do this and utilize their other great services, connect with them through the below link:

W: www.cba.ca
T: 1-800-263-0231

Please note that the CBA is not a regulator and does not intervene in matters between banks and their customers. The CBA can only provide general information about banks in Canada. Please do not include any personal or banking information in any of your communications with the CBA.

Debt Consolidation

Debt consolidation is not the right solution for everyone and this site is not here to provide advice but help educate people about the debt consolidation provide more awareness of the option.

Consolidating debt usually involves you taking out new credit to pay off existing outstanding credit.

Main reasons consumers would consolidate debt are:

  • Gain better control over their finances and pay off outstanding debt Reduce the interest rate on their debt To bring down their monthly payment amount Reduce the number of companies they owe money to
  • If managed well; debt consolidation can be a powerful asset to you when managing your finances. However, if not thought through, it could cause further financial challenges. Debt consolidation should not be confused with debt management.
  • Debt consolidation involves taking out new credit to pay off your debts.
  • Debt management is when you are agreeing affordable payments terms with the lenders you are currently in debt with.
  • Both work towards the same result, which is to lower your payments but they approach this in completely different ways.

If you're not sure which option suits your circumstances then it is advised you get advice from a Government organisation, charity, or another institution that helps consumers trying to get out of debt. Above provides details of such organizations that specialize in free and independent advice.

There are many things that could happen if you do not manage your debt well or take control of your situation in time.

Your credit profile will suffer: Having a high level of debt, can work against you on your credit profile. This impacts you in many ways but the more important one is, if you are looking to apply for another loans, phone, apply for a job, or do anything where they need to see how well you manage debt. Holding a high level of debt may mean they don’t want to give you the service or product your asking for or even if you are applying for a job, they may reject your application if they think you would be too risky to hire due to how you manage your money.

If you own a property, you may have to sell to pay off your debts: If your ability to manage your debt gets out of control and you are not able to make payments on time and you continually default. There is a risk that the people you owe money to may file an action to make you pay and the only way to pay them back may mean you need to sell assets or even your property.

Stress of managing debt: The stress of having debt may cause personal illness to yourself and/or others within your family. The capability of not knowing how to get yourself out of the situation may trigger many health challenges that could cause severe health challenges.

Supporting sites:

Debt Relief Canada

Tips For First Time Home Buyers W: www.reliefcanada.ca
T: 1.855.305.9940
E: info@reliefcanada.ca

Credit Canada

W: www.creditcanada.com
T: 1.855.305.9940

Calculators

Before taking out debt, it is important to understand what you can afford. Knowing this will help you manage expectations and allow you to manage your finances better.

Once you know how much you are looking to borrow, use our service to search, compare and apply with the provider of your choice.

Try out our calculators and see what lending products will work for you

Tips For First Time Home Buyers

Getting on property ladder is a challenging and life changing experience. There are various schemes that are available to help you when trying to get your first home. The government offers some and lenders offer some directly.

Land Transfer Tax Refunds For First-Time Home Buyers

WHAT: This program provides a 15 per cent income tax credit towards closing cards for eligible applicants. The credit applies to a maximum of $5,000 in closing costs, which would result in a credit of $750.

WHEN TO CLAIM: Must be claimed in the year the home is purchased and claimants are only eligible if both they and their partner have not owned or lived a home for the year they buy and four preceding years.

LINK HERE: www.fin.gov.on.ca

WHAT: The Home Buyer’s Plan (HBP) enables to withdraw up to $25,000 from their RRSP to buy or build a home. If it is a joint application, couples can withdraw up to $50,000. This enables you to utilize your tax saving's to get a property.

WHEN TO CLAIM: There are numerous rules that you need to understand before you can utlize this option. Click on the link to learn more before you choose this option

LINK HERE: www.cra-arc.gc.ca

WHAT: This program provides access mortgage insurance on house purchases with a down payment ~5% percent down.

WHEN TO CLAIM: There are various criteria’s that the customer must abide by

  • Customers must meet the requirements of a 5 year fixed-rate mortgage.
  • Must prove you can cover closing costs of 1.5% of the purchase price.
  • Properties eligible for the Five Percent Down Program must be owner-occupied and the mortgage cannot exceed a 25 year amortization.
  • Property in question must not be greater that $1 million in value.
  • Proof showing where the source of funds some form is important

LINK HERE: www.cmhc-schl.gc.ca

WHAT: When you purchase a home you must pay Land Transfer Tax. This tax is levied provincially based on the purchase price of the home. Some municipalities, such as Toronto, levy their own Land Transfer Tax in addition to the provincial fee. The maximum provincial Land Transfer Tax (LTT) rebate is $2,000 and the maximum Toronto rebate (MLTT) is $3,725. The provincial rebate is based on a percentage of the purchase price from .5 percent on the first $55,000 and increasing incrementally to 2 percent for anything over $400,000.

The Toronto rebate uses a similar structure. If you are eligible for a rebate of all or a portion of the MLTT you owe, your lawyer will be able to claim the rebate electronically through Teraview software when he/she registers your transfer/deed.

LINK HERE: www.fin.gov.on.ca

WHAT: A rebate can be gained on part of the HST paid on the purchase a home. New home buyers can apply for a 36% rebate on the federal portion of the HST paid up to a maximum of $6,300 on a home costing less than $350,000. Homes costing more than this receive less of a rebate and homes over $450,000 no longer qualify.

LINK HERE: www.fin.gov.on.ca

Tips For The Self Employed

Being an entrepreneur and running your own business should not be a hindrance to you when applying for a mortgage. Therefore, below are some tips and utilize to ensure you are well prepared before you decide applying for a mortgage.

TIP 1 - Write off fewer expenses in the two years leading up to the property purchase. The result is you pay more personal taxes. The outcome is your income will be higher which will easily qualify you for the mortgage amount that you are looking for.

TIP 2 - Utilize a certified accountant when submitting your taxes. Lenders prefer self-employed income submitted through a professional. The benefit to you is, a certified accountant has the experience and awareness to process your taxes in an effective manner which will benefit you personally and as a business.

TIP 3 - Ensure you and your mortgage broker focus on presenting stated income. Stated income is based on you being in the same profession for at least two years previous to being self-employed. Lenders look at your industry and average income of someone in that same prfession would make during the same amount of time.

TIP 4 - Documents that you need to keep safe and ready for your application are items such as bank statements, showing consistent deposits, list of all personal debts, and any other the lender specific requirements. It is important to call and ask each lender as each may have slightly different requirements.

TIP 5 - Avoid applying for bankruptcy in relation to your business. If you do, it's not the end of the world as there are lenders that specialize in lending to customers in such circumstances. Just be prepared that a higher interest rate may be offered, given the risk lenders may attribute to those who have declared bankruptcy.

TIP 6 - Clean credit history. Ensure you pay your outstanding debt in time, you have no missed payments, and you continually drive down your outstanding debt to show you are responsible when managing your debt.

TIP 7 - Begin saving for your down payment now. The larger the down payment the less you require in borrowing and will open more options for you when you are ready to apply.