Perils of a mortgage life policy
Insurance attached to your home loan can be a poor deal, Ellen Roseman explains
Published On Sun Apr 22 2007
Toronto Star By Ellen Roseman Personal Finance Columnist
You’re buying a house and taking out a big loan to pay for it. Now, the bank is asking whether you want life insurance.
Reluctant to leave an unpaid debt when you die, you say yes. Within minutes, your application is approved and the cost is added to your mortgage payments.
For lenders, life insurance is an easy sell. They suggest it at a time when you’re vulnerable and have yet to do any comparison shopping.
And they make you sign a waiver form if you say no, agreeing not to hold the lender responsible if something bad happens to you.
Most people don’t realize that the life insurance sold by mortgage lenders is different from the policies sold by life insurance agents and brokers.
It sounds like a great deal at the time, but mortgage life insurance can be more expensive than insurance sold separately.
Click here to read more: http://www.thestar.com/Business/article/205853
Many times questions arise as to when CPP and OAS should be applied for as individuals approach retirement. How much CPP are you entitled to and when should you take it? It is important to note that CPP and OAS should make up only a portion of your retirement planning to supplement your retirement income. The rest should come from your RRSPs and your pension plans.
According to the Department of Finance, the following make up the sources of Canadian Retirement Income:
- 28% – CPP/QPP
- 28% – OAS & GIS
- 44% – RRSPs and Pension Plans
What is the Canada Pension Plan (CPP)?
The CPP is a federal program that provides pensions to qualified contributors in retirement. Any benefits paid by the CPP are taxable both federally and provincially. CPP operates throughout Canada. Quebec has its own similar but not identical program, the Quebec Pension Plan (QPP), which is closely associated with the CPP.
more»

I was pleased to read an article in the Financial Post today if couples (or singles!) should use an RRSP or a Tax Freee Savings Account (TFSA) as a vehicle to save for a new home.
In the past Financial Advisors would recommed to their clients, who were buying their FIRST home, to possibly utilize their RRSP under the Home Buyers Plan. Under this plan, you can take out maximum $25,000 of your RRSP as a loan to purchase your first home, tax free. You must repay this loan starting in 2 years from when you take it out, and must pay it back into your RRSPs within 15 years. This is a great tool for someone who is young enough to repay the loan back and who has some savings in their RRSP.
more»
The markets are down; Stocks are falling; Ottawa projects a $34B defecit this year and $30B defecit next year. Although the world is experiencing a decline in the economy there are smart ways for you to keep a well-positioned money strategy and stay secure through this changing economy.
What can you do to keep investing in your future and take advantage of potential growth?
1. Pay Yourself First -
Do you have a pre-authorized monthly savings plan set up that follows your pay schedule? Setting aside part of your income, one for savings and one for retirement, even if its small amounts will grow significantly over time.
more»
10 Ways to Benefit From Contributing to a TFSA

With the launch of the new TFSA accounts this year, many are wondering if they should contribute to one and what the benefits are. Let’s explore 10 reasons why contributing up to $5,000 per year to this savings account is the best plan for your short and long term savings goals.
1. Emergency Funds
Emergency funds or rainy day funds, parked in a high interest savings account, guaranteed investment certificate (GIC) or money market fund, if they are non-registered savings will generate taxable income each year. Save yourself some taxes and keep your savings in the same type of account, but switch it into a TFSA to save you tax money.
more»
Stock markets can be wildly unpredictable, but knowing your risk tolerance will set you up for success
There is no doubt this has been a very difficult year for investors. As the economic situation here at home and around the world continues its bumpy ride, we are all left feeling a bit helpless, and concerned about our own financial security and well-being.
To help reassure you, I thought I would take a few minutes to remind you of some of the steps you have taken to protect your assets.
more»

29DEC2009 – Looking back on the last half of 2008, it has been a scary time in the market for investors. Some analysts say this has been the worst bear market since the 1930s. Yet, as the holiday season passes, I still see people spending money like its going out of style, and not concentrating on their future.
For 2009, I encourage people to choose the FUTURE! Set yourself up for success by saving and investing now while the markets are low.
I have included a couple of articles of what the analysts are predicting for a 2009 turn around:
10NOV2008 – Saskatoon – Star Phoenix “Meet RESP deposit deadline to get matching grant”
An RESP can give the next generation a head start at landing a good job and achieving financial security. The key to growing your child’s RESP is to start early and maximize the government grants each year.
For every dollar you deposit to your RESP, the government will add a 20 per cent matching Canada Education Savings Grant (CESG) of up to $500 annually to boost your savings. The grant formula is even better for low-income families.
Click here to read the full article in the Star Phoenix from November 10, 2008