EW16 T h e
Va n c o uve r Co u r i e r friday, february 4, 2011
$ense special advertising feature
New Mortgage Rules Impact Buyers by Maury Lum
I
n Canada, new mortgage rules will be in effect as of March 18, 2011. Will your plans be affected?
The three new rules:
2.00% 2.05 *
16 month RRSP/RRIF/TFSA GIC
Make your investments work harder. Open or renew a RRSP, RRIF or TFSA GIC and you can Scratch & Earn® a bonus of up to 3%** on posted rates! Ask about mutual funds, TFSAs and other investment options.
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Park Place 604.688.8711
Kitsilano Kitslano West Broadway 604.732.4262 604.730.8818 www.cwbank.com
*Rates subject to change without notice. Available in branch only. Interest compounded annually. See branch for full details. **Scratch & Earn Bonus available on WestEarner® TFSA, RRSP and RRIF GICs only. Mutual funds are available through our wholly owned subsidiary Canadian Western Financial Ltd.
1. Reduced maximum amortization period of 30 years. 2. Lowered maximum amount that one can refinance their mortgage to when taking out equity. The new maximum is 85 per cent of their home’s value. 3. Cancellation of the home equity line of credit (HELOC) product. These new rules apply to government insured mortgages (i.e. when there is less than 20 per cent down payment or equity in the property). It is not confirmed yet if banks will go outside of these rules when a mortgage does not need to be insured. The first of the above changes I see as having the potential for the most impact to one’s plans. As a rough estimate, the impact of the first change (lower maximum amortization period), is a seven to eight per cent reduction in the maximum mortgage amount that one can be qualified for. There is no short cut or way around this change and as such, people may have to make adjustments to their plans (e.g. lower the purchase price range in their prop-
What's going to happen to the RealWest Estate postthe Olympics? Special focus on BC, and USA! Find out at our 18th Annual
erty search, save additional money for a down payment or have assistance from parents for a larger down payment). Some may feel that these new mortgage rules could bring down property values. In some markets this may be true, however, in other markets it may have little to no effect. It also may affect different segments in different ways. For example, the reduced amortization period will further make it more difficult to qualify for a mortgage for a rental/investment property. As such, we may see these types of purchases further decrease. This could also likely have a carry-over effect on vacancy rates and therefore average monthly costs for renters. In terms of property values, my initial feeling is that it will not have a negative effect on values in the Lower Mainland. Vancouver, and surrounding areas, continues to be a desired area to live, for both domestic and international buyers. These new mortgage rules will encourage people to either delay their purchase slightly to save more money, or adjust the type and/or location of the properties they are considering so that the purchase price is slightly more affordable. Maury Lum, MBA, AMP is a dedicated Vancouver mortgage broker who writes on the subject – www.maurylum.com.
Jackie Read Celebrates Anniversary as Dunbar - Southlands Edward Jones Advisor
LAND RUSH
Jackie Read, an Edward Jones advisor in Dunbar-Southlands community, still remembers the day she decided to join the Mississauga based financial services firm. That was ten years ago.
2010 2011
“After learning how Edward Jones advisors were required to meet many members of a community before opening an office, I knew this was the right firm for me,” Jackie Read said. “Personal service for individual investors is key to the success and longevity of Edward Jones, and I’m proud to be celebrating ten years of representating those values.”
Real Estate Conference/Trade Show
“I’ve enjoyed doing busines the old-fashioned way – in person,” Jackie Read said. “And I am looking forward to many more years serving the investment needs of my friends, neighbours and business associates.”
with
Edward Jones is a full-service investment dealer with one of the largest branch networks in Canada. It is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund, and a participating organization of the Toronto Stock Exchange. Including its affiliate, Edward Jones serves nearly 7 million individual investors in Canada and the U.S. from more than 11,000 locations.
Ozzie Jurock and Guests
Edward Jones is a limited partnership in Canada and is a wholly owned subsidiary of Edward D. Jones & Co., LP, a Missouri limited partnership. Edward D. Jones & Co., LP is a wholly owned subsidiary of The Jones Financial Companies, LLLP, a Missouri limited liability limited partnership.
Saturday 26th SaturdayFebruary March 20th 9:00 am - 3:30 pm
Renaissance Harbourside
Jackie Read
Financial Advisor
1133 West Hastings Street, Vancouver The next 18 months will be crucial for the Real Estate investor in BC. What are the future prices in B.C.? Buy now or sell now? Has Alberta peaked? What about the U.S.?
3560 West 41st Avenue, Vancouver, BC V6N 3E6 604-731-6117
PREMIUM TICKET PACKAGE - 2 for$ $177 (+hst) PREMIUM TICKET - 2 for (Reg 147price: (+gst)160) Price includes: CD sets of PACKAGE the full Conference!
There’s more Financial $ense
ONLY 100 every year! ONLY 50PACKAGES PACKAGESAVAILABLE! LEFT! SoldSold out out every year! For Tickets call 604-683-1111 or 1-800-691-1183
To advertise on these pages, call a Courier sales rep. at 604-738-1412.
$
Price includes: CD sets of the Conference! (Reg price: $160) plus Exclusive Reports onfull LOW COST BC Real Estate! (other ticket packages available for $97) plus Exclusive Reports on LOW COST2 BC Real Estate!
Watch for the Feb.18 edition of the Vancouver Courier, where Financial Sense will showcase some money-saving tips and RRSP / tax advantage info. from our prestigious finance experts, right here in Vancouver.
fr i d ay, f e b r u a ry 4 , 2 0 1 1 T h e Va n c o uve r Co u r i e r
RRSP Income-building Strategies
T
he concept of Registered Retirement Savings Plans (RRSPs) is fairly simple. You put money in, get an immediate tax deduction each year up to your annual contribution limit, and your money grows in a tax-deferred environment. “An effective RRSP strategy also includes taking advantage of all the options available to you to maximize the power and potential of your RRSP,” said Debbie Ammeter, a retirement planning expert at Investors Group. “These options can include the retiring allowance, pension adjustment reversal and RRSP beneficiary designation.” When you leave a company pension plan or deferred profit sharing plan, you will receive a pension adjustment reversal
(PAR) if the total value of your past pension adjustments exceeds the benefit you receive out of the plan. The PAR restores lost RRSP contribution room and getting professional advice on your potential PARroom can pay off, Ammeter noted. In most provinces, you can designate a beneficiary on your RRSP – and most people automatically designate their spouse. If your beneficiary is your spouse, your RRSP is transferred on a tax-deferred basis to your beneficiary’s registered plan. There can be instances, however, when it is more beneficial to name your estate as the beneficiary of your RRSP instead. This allows some of the proceeds to be taxed in the hands of the deceased and the remain-
EW17
Info/photo courtesy www.newscanada.com.
How Money Works
der to be taxed in the hands of the spouse. And, by naming your “estate” and granting your executors the authority to make tax-deferred rollovers, you may be able to reduce taxes payable on other assets. Your RRSP is an important part of your overall retirement plan and estate plan. To be sure you make the right choices that keep your RRSP on track for your benefit, and to maximize your legacy to your heirs, seek the advice of a professional financial advisor.
On Monday, Feb. 7 from 7 to 10 p.m., attend this informational workshop. Is long-term security impossible on your income? The truth is, no matter what your income level, you can achieve financial security - if you take the time to learn a few simple principles about HOW MONEY WORKS: from Financial Dependence to Independence! Attendees must pre-register for this free-with-membership program. Workshop presented by Alice Garrod, MBA Hon, Branch Manager of PFSL Investments Canada Ltd. Location: Killarney Community Centre, 6260 Killarney Street; call 604-718-8200.
The Art of Wealth and Estate Preservation
Designing successful investment and estate planning strategies for affluent families.
• Will your income last? • When health and wealth collide • Pitfalls of joint ownership • Avoiding family conflict in your estate
If it took a lifetime to accumulate your nest egg, isn’t it worth protecting? Ensure your investment and estate planning will provide you and your family with a sense of security. This seminar is best suited to those with an investment portfolio in excess of $250,000 who want to avoid costly planning mistakes.
JIM DOYLE CFP, CLU, CFDA, TEP
Senior Financial Consultant Certified Financial Planner, Chartered Life Underwriter, Certified Divorce Financial Analyst, Registered Trust and Estate Practitioner
Tuesday, February 15th, 2011 • 1:30pm-3:00pm Vancouver Lawn Tennis & Badminton Club 1630 W. 15th Avenue, Vancouver
Thursday, February 17th, 2011 • 3:30pm-5:00pm Kerrisdale Community Centre 5851 W. Boulevard, Vancouver - Senior’s Craft Room
LIMITED SEATING - To reserve your seats call Trish 604-682-5431, ext 243
FRAME YOUR FUTURE with a RRSP from G&F Financial Group
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*Rates subject to change. Some conditions apply.
Investors Group Financial Services Inc. 770 – 666 Burrard St Vancouver BC email:jim.doyle@investorsgroup.com Trademark owned by IGM Financial Inc. and licensed to its subsidiary corporations. Insurance products and services distributed through I.G. Insurance Services Inc. Insurance license sponsored by The Great-West Life Assurance Company. Investors Group Guaranteed Investment Funds are segregated fund policies issued by the Great-West Assurance Company.
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