With the new mortgage rules coming into effect across Canada, you might be wondering what that means for you—and whether you can still enter the market. One of the new rules applies a stress test to borrowers, which means you need to qualify at a higher rate when you have less than 20% as a down payment. Before these new rules, mortgage borrowers who took a 5-year fixed-rate mortgage only had to qualify for the mortgage payment based on the interest rate they were getting. Now with the new rules, you’d have to qualify for a rate at the Bank of Canada’s 5-year fixed posted rate, which is currently 4.64%. The new rules aim to make sure that if interest rates ever go up and are much higher than they are today, homeowners will still be able to make their payments. But the result is also an approximately 20% decrease in the amount of mortgage money available to borrowers. !(/content/images/2016/10/mogo_credit-score_mogomortgage_img2.jpeg) One factor that you can focus on that is within your control to maximize your affordability: your credit score. A higher credit score could result in a higher
The Mogo Blog
Let me tell you a tale… quite possibly a familiar one in your own life. So, Topshop has their annual sale on, which of course I have to hit up. I spot the highly coveted Olivia Palermo bomber jacket which of course just happens to be the last one left and is in my size. I head to the register, bomber in hand, ready to take home my fashion find. As I reach for my wallet, the salesperson tells me I’ll get 15% off if I sign up for the store credit card and use it today. I’m all like, sweet I’ll take it. I charge the $141.33 to my new store credit card, and head off into the sunset. !(/content/images/2016/08/mogo_credit-score-late-payments-image-1.jpg) The next day (being the responsible adult that I am) I transfer $140.00 from my bank account onto the store credit card. I’ve got it covered right? A few weeks later, I get a statement in the mail from the store, which I immediately throw in the trash without even opening it. In my mind, I’ve taken care of it. Next month, the same thing happens.
This week on #AskAnAdult over at the Kastor & Pollux blog, Meghan Yuri Young asks: “As a freelancer, would it be in my best interest to hire an accountant or a financial advisor? Are they different?” Hey gurl, way to go for being a hustler! One of the biggest mistakes that self-employed people make is that they think they can do ALL the jobs and wear ALL the hats. Not always a kewt look. If you are not great at bookkeeping or finance in general, it may make sense to bring in someone to help you. Experts will cost money but they often save you money overall. Image by Olivia Genovese And yes, accountants and financial advisors are different! A financial advisor is usually someone who sells insurance or investments. On your personal financial portfolio, it may make sense for you to talk to a financial advisor if you’re interested in purchasing life and critical illness insurance to protect you in case anything happens. Unfortunately as a freelancer, we don’t have an employer offering us this benefit but we do have the option to go out and get our own insurance. Also, if you are debt-free, a financial
First adulting question for our Financial Fitness Coach comes from Taylor Reynolds, a photographer / animator / all-around artistic badass who’s asking about student debt. This #AskAnAdult series is going to be a regular feature on the Kastor & Pollux blog, and you'll be able to read it here on the Mogo blog as well. !(/content/images/2016/06/mogo_taylor_askanadult.jpg) “I’ve been using OSAP while in university and I am starting to stress about how much my debt has been racking up. What are some tips you have when it comes to paying it all off?!” Hey Taylor! First of all, you need to change your perspective on your student loan debt and not feel so guilty about it. Sometimes you need to borrow money in order to purchase an asset and to get yourself ahead in life. Education is an asset. It’s not like you borrowed to pop bottles at the club! Don’t forget, you don’t actually have to pay it off until 6 months after you’re done school, so this means you’ve got 6 months to get your shit together quick! !(/content/images/2016/06/AskAnAdult_3.jpg) Image by
Our Financial Fitness Coach, Chantel, just wrote an article on the Ottawa Wedding Journal about how to keep it together with your boo while navigating your finances. Check out her 5 Marriage & Money tips: Sorry to break it to you, but when it comes to money honey, you’ve got to bring a business mindset to your marriage. Money issues can be a major reason why marriages fall apart. Like businesses, actually. So while you’re still in the honeymoon phase (aka. when the waters are calm and things are going awesome), you need to lay out a solid plan for how you’re going to handle your finances. The Plan !(/content/images/2016/05/giphy--3-.gif) Image by giphy.com 1. Self assess your money situation. Do a credit check on yourself and look into your report in detail to get an idea of where you stand. Identify any issues you’re having and make a plan to pay them back so you’re not bringing them into the relationship. Lead by example. !(/content/images/2016/05/tumblr_ntwswwhhzk1ses2b6o1_500.gif) Image by im-hoplessly-devoted.tumblr.com 2. Have an open discussion with your partner about your current financial