Photo by imuttoo via flickr by CC 2.0-sa (compressed)
Getting approved for a credit card can be tough, especially if you’re a newcomer to Canada. With a lack of credit history and steady employment in Canada, getting approved for a traditional credit card can be an uphill battle.
Have you ever thought about lying on your credit application? You’re not alone. 10 per cent of Canadians said it’s okay to lie by inflating their income when applying for a mortgage, according to a recent survey by credit reporting agency Equifax. Even more troubling is the fact that 9 per cent admitted to actually lying on credit card and mortgage applications.
Should I pay down debt or contribute to my RRSP? Although it’s a common dilemma faced by many, there’s no simple answer. It depends on each individual’s financial situation. There are a number of factors to consider.
Contributing to your RRSP and paying down debt both offer benefits – you’ll pay less tax when you contribute to your RRSP, while you’ll pay less interest when you pay down debt. Which should you do? It depends on how much debt you have and how costly it is.
If you’re between the ages of 35 and 44, chances are you’re in debt. With home prices reaching the stratosphere in red-hot housing markets like Toronto and Vancouver, we’re spending more than ever before just to put a roof over our heads.
A recent study from RBC echoes that sentiment – if and when interest rates rise or house prices fall, the most heavily in debt could face a real dilemma. If you’re up to your ears in debt, there are ways to protect yourself when interest rates eventually rise.
If you dream of being a homeowner one day, it’s important to understand how to calculate debt service ratios. With home prices sky-rocketing in major cities across Canada, paying for your home with savings is no longer possible for most homebuyers.
A mortgage can help make your dreams of homeownership a reality a lot sooner. Banks use debt service ratios when reviewing your mortgage application. Good debt service ratios can mean the difference between your mortgage application being tossed in the approved or rejected pile.
Not all debt is bad. Sometimes carrying debt makes sense. With home prices hitting the stratosphere in many cities, it would take the average homeowner years to save up enough to pay for their home in cash. In fact, Millennials are struggling just to save the minimum five per cent down payment. Home prices have ballooned to 10 times the median income, over double the ratio in the 1980’s. In this case, taking on a mortgage makes sense.
