Is home ownership right for you?

With skyrocketing prices in many major cities, owning a home has become more of an option than a given. For some, homeownership is the best investment they'll ever make, while it's not the way to go for others. Here are some questions to ask yourself before taking the plunge.

Do you really want to own? It sounds great, but are you sure you want to be a homeowner? It's not only a huge expense, it's a lifetime of maintenance, renovations, paperwork, and dealing with neighbours. Remember that ownership isn't the only way to build equity. Regular retirement contributions can also serve you well down the road without the headaches that come with that white picket fence.

Can you service the debt? The hardest part of affording a home isn't saving for the down payment — though that's not exactly a cinch. It's affording the over 25 years of mortgage payments, property taxes, utilities, and home repairs that'll really test your finances. Meanwhile, owning a home doesn't mean you can ignore life's other costs like retirement, an emergency fund, travel, education, daycare, vehicles, food, and more. So take a good hard look at your income, deduct regular expenses and contributions, and ask yourself if you can make the monthly payments.

Are you prepared for the unexpected? Just because interest rates are low now doesn't mean they'll stay that way forever. If you buy, make sure you're in a position to afford higher interest rates down the road. Always use rate comparison sites like LowestRates to keep your eye on rates and stay informed about the mortgage climate. And speaking of unexpected costs, don't forget to factor in the hidden closing costs including legal fees, the land transfer tax, and Canadian Mortgage and Housing Corporation (CMHC) insurance.

Are you where you want to stay? Although playing the buy-and-flip game can be tempting, it's a very risky move. There are no guarantees in real estate. Sage advice says that if you're in a position to afford, buy in an area where you're planning to stay. Hopefully you won't have to take a loss if you ever do need to sell, but buying with the intention of staying tends to be the safer bet.

Learn more about mortgages at LowestRates.ca.

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Do you know how much you're paying for your investments in Canada?

Whether you're investing for your retirement, your kids' college fund or a fabulous vacation, you need your investments to work for you. That means knowing exactly how much you're paying for the management of your investments. You may think this is easy to figure out just by looking at your statement, but the reality isn't that simple.

In the past, Canadian financial firms weren't required to disclose the details of their investment fees, which often made it difficult for investors to tell what their total costs were. Some experts believe this lack of transparency is one reason Canadians pay some of the highest mutual fund fees in the world.

But change is coming soon with the Client Relationship Model — Phase 2. CRM2 is a series of investment reforms that are being phased in over three years by Canadian regulators to improve disclosure. “CRM2 responds to a need for much greater education and transparency in the industry,” says Silvio Stroescu, vice president of deposits and investments at Tangerine. “Too many Canadians still believe they're not paying fees for their investments.  Going forward, Canadians will be more empowered with the kind of knowledge they need to make smarter decisions with their investments, and this is something we have always advocated for at Tangerine.”

For the first time ever, in July this year, your financial firm will have to provide two annual reports that detail:

1. What you're paying your dealer in dollar amounts. The Management Expense Ratio (MER) of an investment fund is made up of two main components: the management fee the fund company charges for the administrative and operating costs of running the fund, and the trailing commission the fund company pays to your investment dealer. CRM2 requires your investment dealer to send you an annual report summarizing their earnings such as trailing commission(s), in actual dollars, as well as any other earnings like deferred sales charges or referral fees. This report will also provide a summary of other account charges like annual administration and transaction fees – all of which will help you see how much you're paying for the services you're receiving.

2. Your financial firm will also have to disclose your personal rate of return. Previously, firms only had to disclose the rate of return for the fund overall but with CRM2 your statement will provide your personal investment returns for the previous year and since opening your account. Now you'll be able to tell if you're actually making money or not.

www.newscanada.com

5 secret ways to save on car insurance in Canada

All drivers need auto insurance and many know the common tips for saving money on your premium, like bundling home and auto policies, keeping your driving record clean, and installing winter tires. But here are five secret ways to save you may not know about:

1. Smarty pants discount. Are you a bright college or university student? You may qualify for a “Good Student Discount.” That's right — some insurance companies will cut you a break for hitting the books. Depending on the provider, certain averages will need to be maintained. Those late nights in the library could pay off sooner than expected.

2. Private parking discount. If you have access to a private garage, your ride is less likely to be damaged. This means you may qualify for a discount on your premium.

3. Empty nester bonus. Enjoy more than a little peace and quiet when your kids have left the nest. If your son or daughter isn't a full-time driver on one of your vehicles, ask your broker about the “Student Away from Home” discount.

4. Brush up on your skills. Even if you already passed driving school, honing your expertise is never a bad thing, especially when some insurers offer discounts for drivers who have recently completed a safe driving course. So ask your broker if they'll recognize your newly polished road skills.

5. Shop around. Sure, it's easy to just renew your policy, but shopping around isn't just for the first time you take out insurance. If you don't compare, you'll never know if you could be saving. So at least once a year, take a few minutes to check out your options on a price comparison site like LowestRates. Who knew that shopping could actually save you money?

www.newscanada.com

How to reduce household noise for stress-free living

Life can be noisy, but your home doesn't need to be. Traffic and everyday noise from plumbing, HVAC systems and household appliances are just some of the sounds that invade your peace and comfort. Fortunately, there are ways to reduce unwanted noise without a major renovation. Start by eliminating air leaks around doors and windows with weatherstripping and rubber gaskets around exterior door sills and frames.

“Noise reduction is a significant issue for single-family residences. A home's fibreglass insulation helps reduce noise but most is placed in exterior walls even though noise transmitted from room to room can be the biggest nuisance,” explains Damon Bennett, home renovation expert. He recommends insulating floor and ceiling joist cavities to reduce airborne and household impact noise, and wrapping pipes with fibreglass insulation to deaden structure-borne noise.

To absorb interior noise, exchange hollow interior doors with solid wood doors. Upholstered furniture, heavy window curtains or draperies, and bookcases full of books all help muffle sound. Bare wood and laminate floors can be noisy, so soften them with carpeting or area rugs. Mute vibration from stereos and appliances by moving them a couple of inches away from walls and placing cork or rubber pads under legs.

“When home renovation clients need solutions that decrease room to room noise transmission, I use CertainTeed NoiseReducer insulation,” Bennett says. “Made especially for wood stud construction, it breaks the path of sound vibration and absorbs noise. It is ideal for home offices, media rooms, adjoining walls of semi-detached houses, and creating quieter bedrooms for a peaceful night's sleep.”

www.newscanada.com

Free national park passes for all in 2017 to mark Canada's 150th anniversary

The federal government is making entry into the national parks and historic sites free in 2017 as a way to mark the 150th anniversary of Canada’s Confederation.

In an emailed statement, Parks Canada said it means any passes purchased this year are valid for two years.

“As a first step towards celebrating Canada150, Discovery Passes for 2016 will be valid for 24 months, rather than 12 months,” wrote Parks Canada’s Natalie Fay. “All Parks Canada Discovery Passes purchased in 2016 will be valid for 24 months from the date of purchase.

“The passes will incorporate the purchase of one year’s admission and free admission to Parks Canada places in 2017.”

It means an annual pass bought today would be valid until January 2018, rather than January 2017. Or visitors can just wait until January 2017 and get a free pass for that year.

Providing free entry into national parks in 2017 was first mentioned in Prime Minister Justin Trudeau’s mandate letter to Minister of Environment and Climate Change Catherine McKenna.

“Make admission for all visitors to national parks free in 2017, the 150th anniversary of Confederation,” it states.

The news came as a welcome bonus to social media users who’ve already bought their park passes for this year.

“Who knew?” wrote Cheri Macaulay on Twitter. “If you get a Parks Canada annual pass now, it’s good until 2018. Because we all get in free in 2017 for Canada’s 150th!”

Replied Calgarian Beth Allan: “I’m excited for my 2016 pass to expire in June now. Hahah!”

Starting in 2018, according to the same mandate letter, Parks Canada could also make admission for children under 18 free and provide any adult who has become a Canadian citizen in the previous 12 months with a year’s free admission to the national parks.

Parks Canada could also expand the Learn to Camp program, which helps low- and middle-income families experience the national parks.

Fay’s statement said they are working closely with the federal government’s partners on other plans to celebrate the 150th anniversary of Canada’s Confederation.

“Exact details on any new initiatives are still being determined and will be announced in due course,” she added.

A single pass gets you in!

Whether you want to explore and appreciate Canada's unique and diverse wildlife, wilderness, and natural environment, or discover the inspiring people, places and events of our fascinating past, the Parks Canada Discovery Pass is the one for you.

NEW! Parks Canada's 2016 Annual Passes are valid for TWO full years.
This is the first step towards celebrating the 150^th anniversary of Canada's Confederation.

Order now!

Sources: Edmontonjournal.com and Parks Canada