Design of a Financial Life in Vancouver
- Credit score is important in Canada - it’s factored in for just about everything, from loan interest rates to mobile phone deals and getting ahead when bidding for an apartment.
- To build up a good credit score, work on a good looking credit history: 1) always pay your credit card in full and on time; 2) avoid using other lines of credit.
- Newcomers will not have the best credit cards available due to lack of credit history, but banks will often have a “welcome package” for immigrants.
- Keep an eye on your credit score and switch to a credit card with better benefits when possible. Pick a credit card that gives benefits most compatible with your spending style.
- High Interest Savings Account is a savings account that typically pays many times over the traditional rates offered by big banks, though often requiring a sizable initial deposit or minimum balance or offering fewer banking services.
- Some banks offer savings accounts with interest close to the BoC’s rate, sometimes even beyond. This is an easy way to mitigate inflation while maintaining liquidity.
- Many banks will offer promotional savings account rates for new deposits and albeit temporary, these will frequently surpass HISA-like ETF yields. This might require “churning” and haggling to keep the yield above ETFs consistently.
- There are a few ETFs that promise low volatility and similar returns as a HISA which might be a good choice to integrate a HISA component into a portfolio. Examples: HISA.NE, CASH.TO, PSA.TO, CSAV.TO.
- CASH.TO makes regular distributions so it’s best when kept on a registered account
- If these savings are used regularly do not use a registered account. It will be a pain to track contributions and withdrawals.
Get help telling you what houses to avoid, what to look for while viewing, is the house overpriced or underpriced.what’s the market like, what’s fair to offer, etc.
Before you start contacting realtors, talk to the bank or credit union you want to get your mortgage from and get a pre-approval.