Best of

It seems some money lenders are not happy with the new Mortgage rules, so they are attempting to bamboozle the system by marketing something called a Bundled Loan (or as I call it bungled mortgages ). The CBC’s explanation of this new poly-morphed debt vehicle is:

Canada’s subprime mortgage providers are increasingly teaming up with unregulated rivals to sidestep rules designed to clamp down on risky lending. … The result of these partnerships are so-called bundled loans, which pair a primary mortgage with a second loan from unregulated groups called Mortgage Investment Corporations (MICs).

This loan offer appears to be nothing more than the old trickery of offering 1st, 2nd, and perhaps even 3rd mortgages, except that the 2nd and 3rd mortgages are being provided by different lenders. Despite the fact that this practice is not illegal, the primary lender is obligated to consider all of the borrower’s outstanding debts when offering the main mortgage. It is unclear whether they are taking into account the other parts of the loan bundle. Nevertheless, this situation is a clear example of mishandling mortgages and should be addressed as such.

It is Friday the 13th today. Is it a bad day to invest? I don’t know call me in a year and I will tell you. Should you sell on Friday the 13th? Depends on what you are selling, and whether what you sell goes up in value after you sell it. I never get tired of giving these kind of testicle busting comments. Did you realize that Friday the 13th, always occurs after a Thursday the 12th ?

My Writings for Week Ending January 13th

Last week the year end employment numbers were published by our friends at Stats Canada, and it showed that 2016 Was the Year of the Part-time job, since that is where most of the job growth in Canada took place. It is good there are more jobs, but it is disturbing to see that many folks careers now consist of a few part-time jobs, quilted together to create enough income to live on. Let us hope they are not also looking for bungled mortgages.

A Money Thought

Well, it costs you money, because in Ottawa it is Pothole season!

A giant #pothole in East Ottawa damages a dozen cars in the morning rush hour. @AnnieClaireBO reports. https://t.co/XzfZsJHyfR pic.twitter.com/9VpXDxfUoA

— CTV Ottawa (@ctvottawa) January 13, 2017

Read More »Bungled Mortgages, Friday the 13th and #Moneytalk

2016 has been a real pain in the arse, especially in terms of news and music. It is safe to say that most people are looking forward to seeing the back of it. However, I have a thought-provoking question for you. Do you think the famous individuals who passed away in 2016 anticipated what 2017 has in store and decided to leave early? This is a deep thought from BCM for 2016, and I firmly believe that this year cannot end soon enough.

Have you done any of the things you should be doing for the end of year?

• Top up your Charitable donations ? Those are counted on the calendar year, you have today to try to get it done (or go to Church on Sunday and they might count it as this year too).
• TFSA juggling, if you were planning on taking money out of your TFSA, you should have done it by now, that way you can easily have the deposit space for next year, and you can start paying it back.
• It is never too early to put money into your RRSP (if you have room, and don’t have a lot of debts).
• Make sure you have paid all of your bills for 2016 as well (quarterly CRA, property tax, etc.,).
• Evidently January 2nd is known as Divorce Day, so maybe you should start that early ?

You could always create a financial plan for 2016 as well (never a bad idea either).

My Writings for Week Ending December 30th

I did manage to get a thematic post out this week, discussing the important celebration of Festivus, with Festivus Financial Airing of Grievances, and I have a lot to complain about this year, that is for sure! Next the feats of strength, get ready to rumble, baby!

Read More »Go Away 2016, Deep Thoughts, End of Year and #MoneyTalk

Every Christmas there is a must have gift that parents have to get, or risk being dubbed lame, and this year we have an interesting Canadian Xmas It Gift, that is the Hatchimal. Don’t worry about trying to buy it, you can’t find it anywhere. When my daughters were at the magic age we had Tickle Me Elmo, the Teletubbies and countless other important purchases (that have been donated somewhere). Are these toys that important? When I was a kid, I remember making my Dad run around Montreal looking for Dungeons & Dragons manuals, and it was important to me (at the time), so maybe they are important?

Big C8j Xmas Gift hint Remember that if you are planning on being lazy and giving gift cards, you can buy iTunes cards on sale all the time at Costco (usually you can buy $100 worth of cards for $94), perfect for that friend dealing with an emergency CRA audit? Truly an Xmas it gift (for those being fleeced).

The Bank of Canada kept their key overnight rate at 0.5% for 2016. Their overall view is interesting, and not clear:

In Canada, the dynamics of growth are largely as the Bank anticipated. Following a very weak first half of 2016, growth in the third quarter rebounded strongly, but more moderate growth is anticipated in the fourth quarter. Consumption growth was robust in the third quarter, supported by the new Canada Child Benefit, while the effects of federal infrastructure spending are not yet evident in the GDP data. Meanwhile, business investment and non-energy goods exports continue to disappoint. There have been ongoing gains in employment, but a significant amount of economic slack remains in Canada, in contrast to the United States. While household imbalances continue to rise, these will be mitigated over time by announced changes to housing finance rules.

So they won’t do anything, for now. I suspect if the Americans start running up their rates, Canada will have to react in some fashion, or risk having a 50 cent dollar.

Viola Desmond will be the new face of the $10 bill in Canada, an excellent choice.

My Writings for Week Ending December 9th

I have been mucking around with trying to get Quicken running on my Mac in some fashion, and found a great article about it, but found that at the end of it, it was simply easier keeping an old PC laptop to run things, but I outline what I did in, Mac Quicken (in Canada) ?

The Xmas It Gift

In case you wondered what this miraculous toy might look like, here it is!

Parents' futile struggle to acquire Hatchimals, this year's hottest Christmas toy: https://t.co/3Vjp7ElmYq pic.twitter.com/mCumdk4HXh

— The Daily Dot (@dailydot) December 8, 2016

Read More »Xmas It Gift, Loose Money and #MoneyTalk

Where might you find me this weekend? Surprisingly, I will be at #CPFC16 with a bunch of other Financial Writers, Bloggers, and Industry Folk talking MoneyTalk (and Mortgage Hikes). It is always interesting to put faces to writings (as I am sure it is for a lot of folks when they meet me). Hoping to touch base with many friends (note I didn’t say old) and make a few new ones as well.

Black Friday is coming next week, with American Thanksgiving on the 24^th. What does this mean? For Canadians, not as much as it used to mean, if you can find any deals, you will be lucky. I wandered around Best Buy and they are ready for an influx on Black Friday, but the deals don’t make me want to squander my money just yet.

I note the sun has been rising these days, so the world has not quite ended with Mr. Trump’s election, but it is a much more interesting world (and that is an understatement). One interesting theory I keep hearing is that Mr. Trump is purposely trying to get impeached or thrown out, we shall see if that is a valid theory.

Sounds like Amazon may be extending their Video Streaming capabilities to Canada soon (if you believe tweets by Jeremy Clarkson). Another competitor for Netflix? Not likely, but you never know.

Yes, the Banks are upping their Mortgage rates, as I predicted (6 years ago)! Now might be a good time to lock in for a while, given it might give you a bit more peace of mind? The Bank of Canada hasn’t changed anything yet, but this might be a harbinger of some kind? Bank of Canada will remain quiet until December 7th on the topic of Interest Rates.

My Writings for Week Ending November 18^th

After having a lunch with some prominent financial folk (aka the N.C.F.B.A.) I was inspired and wrote two articles this week. It was sad to read about the death of Leonard Cohen, but I also remembered his financial issues, so I joined the two with Leonard Cohen a Cautionary Retirement Story. Are you sure your retirement savings is safe? I would go check just in case.

The American elections now has reached the blame game and with that, folks are suddenly realizing how simple it is to manipulate Social Media (I know how to, I simply, choose not to), however I outline some things in Fake Money News and other Manipulations. What I forgot to mention was the authors of these less than truthful stories also make money from you coming to their unscrupulous sites too! To quote Yakov Smirnoff, America, what a country!

A Money Thought

I actually stole this one from Crazy Ideas on Reddit, and it seems to have been well received. I would watch those documentaries as well. How do you submit ideas to Netflix ?

They should make documentaries where Ministers of Finances try to live on minimum wage in their countries. https://t.co/sT8gNdJDu0 @reddit pic.twitter.com/S6j1I0MAuy

— Big Cajun Man (aw) (@bigcajunman) November 15, 2016

Read More »CPFC16, Black Friday, Mortgage Hikes and MoneyTalk

Holy Cow! (to quote Harry Caray) the curse of the billy goat that was on the Chicago Cubs, has finally been broken (yea curses broken), and I am glad to see it. I remember the 69 Cubs with Billy Williams, Ernie Banks, Ron Santo and crew making a run for the playoffs and then getting it all derailed by the Miracle Mets (yes, I am very old), so I was happy to see the Cubbies finally winning it all. It seems to be giving new hope to Blue Team fans as well.

Some think that Doomsday may be much closer after the Tuesday elections in the United States. For the record the Doomsday clock stands at 3 minutes to Midnight, so there isn’t much more wiggle room here, in terms of the big boom”. Let us hope cooler heads prevail, and whatever happens on Tuesday, it doesn’t create the Biblical Apocalypse that some have promised.  In other good news, the new Russian Satan II Missile can’t wipe out Texas or the UK as previously advertised (well, not just 1 of them).  Reading that helped me sleep better (sarcasm).

Evidently there is no such concept as a No Fault Divorce From Europe as the UK PM is finding out. Should be interesting to see where this winding road of interesting quandaries leads.

My Writings for the Week Ending November 4th

What Do Investors Complain About the Most ?Inappropriate investing strategies seems to be a big one (like having a 75-year-old retiree investing in a tech start up?), according to the IIROC. Worth reading, but I suspect that is only the tip of the iceberg, in terms of complaints.

A Money Tweet

What happens when Preet meets up with the Blunt Bean Counter? Why don’t you listen in to find out?

Podcast: Family Dynamics & Estate Planning w/ @bluntbeancountr
74% of you should listen to this. Find out why: https://t.co/CuPxtb7q2h

— Preet Banerjee (@preetbanerjee) November 2, 2016

Read More »Curses Broken, Doomsday, and #MoneyTalk