HowToSaveMoney.ca

Great Reads On My Radar Today

SavingMentor — Fri, 11 Nov 2011 12:00:00 +0000

Welcome to the How To Save Money Radar!

This is where you will find a new approach to connecting you with some of the best quality articles on the internet about saving money and personal finance. Many bloggers publish links posts to share content written by other bloggers with their readers, but the focus is almost exclusively on new articles from the past week. My approach is to scour my favourite blogs and even ask the bloggers themselves for the absolute best content they have produced since their blog’s inception.

Why do this? Because many bloggers have the most passion in the early days of their blogs before they gain popularity but those articles quickly get buried in their archives never to be read or linked to again. Now I’m digging it all up so you guys get to read the best possible stuff that you never would have seen otherwise. Enjoy!

Great Articles You Should Read Now

Mrs January made a practical guide to Canadian coupons so that you can learn how to become an extreme couponer in no time!
Retire By Forty ironically wrote an article on how to retire by 40 and turns out it’s pretty good!
Krant Cents suggests 10 changes you can make that could end up being worth millions of dollars.
Frugal Under Forty wrote a nice piece on the importance of cash flow and how people often steal money from themselves without even realizing it.
Daily Money Shot has come up with an amusing article on what watching Roseanne has taught them about money.

One Of My Own Articles You May Have Missed

The Aeroplan rewards program is one of the most popular rewards programs in Canada and it seems almost all Canadians are collectors. However, not all Canadians truly understand how get the most out of their points and that their rewards selection can impact the monetary value they receive for those points. I have written a 4 page guide to Aeroplan that should get your earning more points and getting the most out of your points ASAP.

Some Recent Articles That Were Actually Top Notch

There are some gems to be found among the rough of recently published articles as well. Here are a few that I particularly enjoyed.

Prairie EcoThrifter compiled a massive list of 101 ways to use vinegar and it is extensive to say the least!
Good Financial Cents talks about how being a quitter made him more of a success.
Young And Thrifty takes a shot at how she thinks discount brokers have changed the stock market.

Carnivals I’ve Been In Since Last Time

Since I haven’t really posted about carnivals I’ve been a part of before, there will be a lot of them this time. Next time there should be much less.

Submit Your Own Articles

If you have your own blog and would like to submit your articles for my consideration you can do so using this form. Please only submit your top quality material though as I will only be linking to those articles that have the right stuff!

5 Reasons You Should Use a Mortgage Broker

Mon, 17 Oct 2011 12:00:00 +0000

In my last blog post in this series I want to debunk the myths around mortgage brokers. Now, in ANY other industry, adding a middle man to any purchasing process usually means that YOU pay more. (Think of travel for example...we all now know that booking flights ourselves saves us some serious dough.)

BUT - did you know that getting a mortgage broker can literally save you thousands of dollars? So - why is it when it comes to making the biggest money decision in your life, that it will actually save you money to add a middle man? Here’s why...a mortgage broker is someone who is trained to represent YOU - not the bank when you’re shopping for a mortgage. Plus...

#1. Mortgage Brokers are FREE

Let me repeat that for you...mortgage brokers don’t cost you a penny. So not only do they work for you, and save you thousands....their services don’t cost you a thing.

So..who pays the brokers? Good question. Brokers are actually paid by the lenders once they close a mortgage deal with you.

#2. Mortgage Brokers Do the Leg Work

Imagine this scenario...you’re looking for a mortgage and you want to do the wise thing and compare mortgage rates. Would you rather visit the lenders and negotiate everything yourself, or would you rather let an expert do the leg work for you and get you the best rate in the market? (Most would prefer the latter of the two!)

Mortgage brokers are trained experts that will find you the best mortgage rate for your personal situation. It’s their job to talk to you, understand your needs and then search the market to find you the best rate based on those needs. What could be better?

#3. Mortgage Brokers Protect Your Credit Score

Did you know that if you go to multiple lenders on your own, you will have multiple credit reports pulled from your account? Yikes! Protect your credit score - using a mortgage broker means that your credit report is only pulled once.

#4. Mortgage Brokers are Gurus

Mortgage Brokers are trained and certified professionals on all things mortgages...what they’re NOT is trained salesmen from your bank. This means that a good broker should be able to give you insight into the latest mortgage information, economic news and the ins and outs of the mortgage industry.

#5. Mortgage Brokers Save Your Money (KA-CHING!$$)

Those that compare rates with a broker, generally do get a better rate since they’re shopping around for your best interest. PLUS - since brokers are such a wealth of knowledge, they can also give you great tips on how to save in the long run, while fitting in with your budget.

So...have I convinced you yet? Go ahead and contact a mortgage broker, or compare mortgage rates to see what rates brokers can offer you.

Kelvin

Read The Whole Mortgage Monday Series

This is the 5th and final post in the Mortgage Monday series. Kelvin has put together a fantastic set of posts relating to how to save money on your mortgage so, if you haven’t read the other ones as of yet, you should start from the begging and read the entire Mortgage Monday series.

11 Car Buying Tips To Get The Best New Car Price

Wed, 12 Oct 2011 12:09:59 +0000

Over the years I’ve learned many car buying tips and tricks from various friends and relatives as well as from my own online and offline research. I have been buying vehicles for about 18 years and these tips can and do work very well. Some are easier to use then others, but if it means saving a few hundred or thousands of dollars, it’s worth it!

Buying a new car isn’t like buying a pair of jeans; you’re spending a huge amount of money. Of course if you’re buying a $500 used car that looks like “The Old Jalopy” from the Archie comics, then you won’t have much to negotiate on.

Keep in mind, I have only used these car buying tips at actual dealerships. Buying privately is different and you don’t have as many techniques to work with, and cars sold privately are always sold as is. I personally have never bought a vehicle privately.

11 Car Buying Tips You Can Use At Any Dealership:

Shop at the end of the month - the very last day, or even the last hour of the last day. That’s when the car salesmen want to make their quota for rebates, bonuses, etc. At the start of the month, they don't worry since they have the entire remainder of the month to sell cars. Just make sure you have done your research beforehand, test drove the car, and are 100% ready to buy a new car. That way you can just go in, give your price and be done with it.
Shop when no one has any money - especially after the Christmas holidays. That is when car dealership sales are at their lowest. Between the start of December and end of February is best. Even car shopping on March 1^st instead of February 28^th will make a difference because that’s when “spring fever” hits and people are in the mood to buy new cars.
Make sure your car is trade-in ready - If you are trading in your old car, make sure it is going in “as is”, not, "Well it comes with everything except the stereo and the subs", or "I’m keeping the rims and putting on my olds one". Dealerships don't want that hassle and it saves you from explaining it every time.
Clean your car - make sure the carpets are clean, the outside is washed, and all trim/tire are Armor-Alled or dressed up so they look nice and dark. Nothing looks worse than McDonald's wrappers all over the place or encrusted mud and grime on a car you are trying to sell. Show them you are serious when selling.
Touch up your vehicle - Touch up small paint chips and scratches; make sure the rubber is within reasonable wear all around. If not, go to a car wrecker and buy tires with tread. Torn seats, buy some seat covers. Replace any burnt out bulbs and headlights.
Don’t flaunt your income or status - When they ask what you do for a living, it is best to down play your job so it doesn’t look like you have oodles of cash. Salesmen will set their attitude and price on your employment status and position.
Go in prepared - Take in a notebook and a pen, print outs of the similar vehicle from other dealerships in the area, even prices of insurance and registration. Take in price quotes from websites. Show that they can’t pull anything over on you.
Remember who’s in charge - I’ve seen it plenty of times where a salesman thinks they are in charge and they start either pushing things or denying a legitimate offer you are making to them. I’ve actually walked out on a salesman because they wouldn’t throw in free moulded mud flaps. Surprising thing was he stopped me before I got to my car and had magically worked it all out. I got my free mud flaps and a bug deflector thrown in as well. Never let them think that you owe them anything, they owe you. You are the one with the money, and you can find another car somewhere else. Until that contract is signed you owe them nothing. And make sure everything is 100% clear before you sign and it’s too late.
Start a price bidding war - This one is my personal favourite, and has worked for the last 3 cars I have purchased with great results. It works even better if you have dealt with different salesmen at different dealerships. Both salesmen must know who you are beforehand to get the desired results. This it how it works: I call up a dealership that I was browsing at recently and leave a message for the salesman who knows me. I tell him I was just driving by another dealership and saw another vehicle that I was interested in. Be sure not to talk to the salesman in person, just leave a message. When it works, I’ve actually had the salesman call me on either my cell phone or the other dealership’s number and try to get me out of there to buy his car instead. The guy you are with wants to keep you there and the other salesman want you to leave. I’ve had a pricing battle happen in front of me without even lifting a finger. The one salesmen says one price, I repeat it to the guy I am with, he counters and it goes back and forth like that. On my last new car purchase, I saved almost $2000 doing this. The really funny part was, the salesman I did end up buying the car from said, “I’ve never had a salesman call a customer like that before.”
Salesmen aren’t your friends - they work on commission and they will try and get every penny from you. Don’t fall into that, because once you do its harder to say no to them.
Know the car’s invoice price - Find out what the invoice price is, or what the cheapest price is in the local area on a certain vehicle model. Go in and offer $100 over invoice. No questions asked - just $100. Easy on the salesmen, no haggling or bargaining. Most major dealerships have their stock, prices and technical information online. Printouts are good to take in, they then know you have done your research. A great place to get this information cheaply is through Car Cost Canada.

So, I hope you found these car buying tips informative. I have used all of them in the past and they have worked well for me. It all depends on your attitude. If you go in with a “don’t mess with me I’ve done my research” attitude they wont even try their usual tricks.

One final thing to watch for is the “cough”; I’ve gone to many dealerships and they use the cough technique as a cue to whether you’re just looking or serious about buying. I’ve caught them doing it and brought them up on it. I was nice enough to say, “You should take care of that cold, every time I’m here you’re coughing”

This is a guest post by Ken Wallin, a deal enthusiast with loads of experience saving money on consumer goods. After reading many of his helpful forum contributions over the years, I invited him to guest post here at HowToSaveMoney.ca and he graciously accepted. I’m hoping this will be the first of several posts that he will contribute to the site.

4 Ways to Kick Your Mortgage in the Butt and Pay it Off Faster

Mon, 10 Oct 2011 14:22:53 +0000

One of our customers once emailed me and asked …“Kelvin – it’s not just about GETTING a mortgage is it? It’s all about what happens after that. How do I pay it off faster? What’s the trick?” I couldn’t but think – she is SO right. There is so much info out there about how to get a mortgage…but the key to saving money is what happens next.

This article is dedicated to that customer, as well as anyone else who wants to adopt great money practices to pay off their mortgage faster. (And just to be clear – that should be anyone WITH a mortgage.)

#1: Switch to Rapid Payments.

Consider this…with a mortgage of $300,000 amortized over 25 years (basically an average mortgage), this would save you $19,887 in interest payments, plus cut 2 Years off your mortgage (based on an interest rate of 3.52% - our average best 5 year fixed rate over the past year). That’s right…$19,887 and 2 Years!!! (And if you don’t believe us, do the math by using our Mortgage Calculator.)

SO - how do rapid payments work exactly and why do they save you a small fortune? Take Bi-weekly rapid payments for example. This splits your monthly payment in half and means that you pay it every other week. The result? You make one extra full payment a year. That’s right – that one extra payment spread out over the course of the year, saves you a butt load of interest.

#2: Make Lump Sum Payments.

So let’s go back to our example, you’ve got a $300,000 mortgage amortized over 25 years (again – an average mortgage)…making lump sum payments of only $1,000 a year would save you $10,747 in interest, PLUS cut 1 Year off your mortgage.

Now I know what you’re thinking…I don’t have an extra $1,000 bucks lying around every year. But consider this - saving $1,000 a year means putting away $83.50 each month (or cutting back on 17 lattes). Everyone’s budget is different so take a look at your expenses and see how much you can put aside. Just think of all the money you’ll be saving in the long run.

The great thing about lump sum payments is that the payment goes directly towards the principal of your mortgage, in other words you’re paying down your mortgage directly instead of just paying pesky interest.

#3: Do NOT Sign Your Mortgage Renewal Letter.

You’re a few months away from your mortgage renewal and chances are, you’ve completely forgotten about it. So you get a letter from your bank letting you know that it’s time to renew but not to worry, because all you need to do is sign this letter, send it back to them, and they can renew it for you automatically. Phew! Sounds easy enough! Don’t ever ever ever do this. Ever.

First of all (here’s a newsflash) the bank will NEVER give you the best rate straight off the bat. So even if you’re sticking with your current lender – make sure that at the very least you negotiate your rate. Secondly, consider looking at other lenders. Compare the market and find the current best rates. If your lender can’t match the competition – consider switching teams.

TIP: Don’t Forget Your Renewal Date!

Put your renewal date into your electronic calendar (even if it is years away)…OR – sign up for a mortgage renewal reminder from RateSupermarket.ca. We’ll email you 120 days before along with the current best mortgage rates.

#4: Compare Mortgage Rates.

The bottom line is those that compare mortgage rates save BIG money. Now I don’t mean for this to be a pitch for RateSupermarket.ca, BUT users on our site who compared rates on average save 72 basis points (or 0.72%) on their mortgage than those who opted for the big five banks’ discounted rates.

Now what does this mean in terms of $$ savings? Based on an average mortgage (remember our $300,000 mortgage amortized over 25 years?) users who compare on our site would save $34,907 in interest over the course of their mortgage.

Let me repeat that…$34,907!!! (I had to make the font bigger there since this was such a mammoth amount of savings.) Plus as an added bonus (like that number isn’t reason enough), comparing rates gives you negotiating power with your lender.

Think of it like when you’re shopping for a big screen TV…you wouldn’t dream of making that purchase until you’ve compared prices at Future Shop, Costco., and Best Buy. Because not only do you want to get the best deal out there, BUT you could always get a price match.

If you’re looking for a great way to compare, check out our site and compare mortgage rates to see how much you can be saving.

That’s it for this week! I hope that you learned some great ways to kick your mortgage in the butt and pay if off faster. Next week is our final article in this series, where I’m going to break down for you why to use a mortgage broker.

Have a great weekend,

Kelvin Mangaroo

President, RateSupermarket.ca

PS – If you’re the visual type, we have a great Infographic that walks you through how to SAVE $65, 541 on your Mortgage.

Mortgage Life Insurance (...and why you should never, EVER get it.)

Mon, 03 Oct 2011 12:00:00 +0000

You’ve found your perfect dream home, and shopped around for the best mortgage rate (high five). So - you’re sitting down at the bank with your mortgage specialist and they offer you Mortgage Life Insurance. You want to protect your mortgage, because who wouldn’t want to protect the biggest money decision they’ve made? By answering a few “simple” questions, and by filling out one more document you can get the protection you need. How easy! How convenient! Take our word....don’t do it.

The banks try and sell you Mortgage Life Insurance just like BestBuy tries to sell you extended warranties - with the sole intention of boosting their profits. Not to say that protecting your mortgage is a bad thing. It’s actually a wise move...BUT chances are the Mortgage Life Insurance your bank is offering will not only be overpriced, but can end up burning you in the end.

Here are four reasons why you should never EVER get Mortgage Life Insurance from your bank....

Reason #1: You are ONLY Approved Once You MAKE a Claim

When it comes to Mortgage Insurance banks use something called post claim underwriting. What this means is, you are only approved AFTER you make a claim - NOT before. So what’s the big deal?

If let’s say the worst happens and your family needs to make a claim, you could be denied for coverage even though you’ve been paying your premiums the whole time. PLUS if you answered any of the questions on your form incorrectly, that’s enough to reject your claim all together.

Of course you will be reimbursed for the premiums you paid out...but what about your coverage? If you’re paying for protection, we think that a product should do just that.

(The CBC did an awesome expose on this a few years back. Check it out!)

Reason #2: The Longer you Pay...the LESS You are Covered for

Think about how you pay down your mortgage - each payment means you end up owing less and less. With Mortgage Life Insurance since you are covered for the mortgage balance this means that the total amount you’re covered for in Year One, is significantly more than how much you’ll be covered for in Year Five.

Your coverage actually decreases over time BUT - your premiums don’t decrease. In other words you’re paying the same amount...for less coverage. Does this seem fair to you?

Reason #3: You Aren’t Covered Forever

Did you know that your coverage only lasts as long as your mortgage term? That means that every time you renegotiate your mortgage, you’ll need to also renegotiate your Mortgage Life Insurance. So - it might seem super convenient NOW but be aware that you’ll need to deal with it again later (and again..and again...and again).

Reason #4: The Bank Gets Your Money $$$

Compared to other forms of life insurance, with Mortgage Life Insurance the lender is the beneficiary who gets your payout. With other forms of life insurance, the money goes to the beneficiary of your choosing so that they can spend the money as they see fit...instead of lining the banks’ pockets.

So...What’s the Alternative?

I’ve got three words for you: Term Life Insurance. With Term Life Insurance you’re approved before you make a claim, your coverage doesn’t decrease over time, and the money goes straight to your family.

Got questions? We recommend speaking to an Insurance Expert to find out what best suits your needs. Request a Call from an Insurance Expert >

That’s it for this week! I hope you learned about how to protect your mortgage. Tune in next week when I share how to pay off your mortgage faster (exciting stuff - eh?).

Kelvin Mangaroo

Founder, RateSupermarket.ca

Should I Rent, or Should I Buy?

Mon, 26 Sep 2011 12:00:00 +0000

So – you’re thinking about buying your very first home. Great! BUT…are you really ready for everything that homeownership has to bring? It’s true there are advantages to owning your own home, but it isn’t for everyone.

Here are some questions you should ask yourself when it comes to renting vs. buying to see if you’re ready to lose your homeowner virginity.

How do you feel about rules when it comes to where you live?

“I want to be able to make my own rules and do whatever I want. Be it – have people over late, paint the walls bright red, or rip out the carpets. My home, my rules baby.”

If you’re looking at buying compared to renting one of the first benefits is that no one tells you what to do (unless of course your better half has some stipulations on your colour choice for painting the bathroom).

BUT – if you don’t mind living by someone else’s rules, then renting might suit you just fine.

How often do you like to move around?

“I want a place where I can settle into and make a home.”

If you get misty eyed just thinking to yourself “Home is where the Heart Is”, you might just be ready to take the homeownership leap. Buying a home is a serious commitment in terms of your mobility. Unlike renting, you can’t just walk with three months notice.

If however, you hate being tied down to one place and the thought of living somewhere for even 12 months makes you cringe, you might want to reconsider home ownership.

Renovations! How do you feel about making alterations to your abode?

“I always want to make changes wherever I live so that I can customize my living space to my own needs.”

If you love home renovations so much that you sleep with a hammer every night (or if you like the idea of making changes and don’t mind paying someone to make it happen), putting money into renovating a rental space is never a wise move. Owning a home means that the renovations you put in adds value to your property – imagine that!

Do you have enough saved up for a down payment?

“I have enough saved for 5 to 10% down payment.”

If you’ve got enough saved, and you qualified for all the other questions above – go for it! You’re on your way to homeownership. To determine how much you can afford check out our Affordability Calculator.

Typically people want to live by their own rules, don’t mind moving around constantly, and would love to renovate their living space – but then they get stuck at the down payment. If you don’t have enough saved…don’t sweat it! Now is the perfect time to start. (We’ve got great tips for Saving for a Down Payment you might want to check out.)

Do you want to learn more about being a First Time HomeBuyer?

“Heck Yes! I would love to become a home buying guru.”

Buying your home can be overwhelming (at the very least). That’s why we created the First Time HomeBuyer Guide, 14 emails over two weeks that will kick you into shape to become a home buying expert. Plus…did I mention it’s FREE? :)

Sign up for our First Time HomeBuyer's
Guide, a series of 14 daily emails that
will take you through the exciting
process of buying your first home.

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Mortgage Rates | Credit Cards | Savings Rates

That’s all for this week! Tune in next week when I break down Mortgage Life Insurance.

Till then,

Kelvin Mangaroo

Founder, RateSupermarket.ca

US Bank Account Comparison For Canadians

SavingMentor — Thu, 22 Sep 2011 12:00:00 +0000

If you have to deal with US currency on a semi-regular basis, then you know how quickly currency conversion costs can eat into your money! Your credit card charges you at least 2.5% off the top whenever you make a purchase in US dollars and the banks typically charge even more than that for buying US currency unless it is a large volume transaction. Worse still, if you ever get paid in US dollars, then you can wind up converting money to Canadian dollars when you receive payment and then BACK into US dollars when making a USD purchase. You are also at the mercy of ever-fluctuating exchange rates if you don’t have a US dollar bank account.

Running this website, I do occasionally receive advertising or affiliate payments in USD so I frequently find myself in costly currency conversion situations and it’s starting to get really expensive. I always knew US dollar bank accounts were out there and I had done some preliminary research surrounding them, but I’m getting much more serious about it these days and I plan to open a US bank account at a Canadian bank very soon to reduce these currency exchange costs.

How A US Dollar Bank Account Reduces Currency Exchange Costs

If you open a US dollar bank account at a Canadian bank you will gain complete control of your money. This means that you, not the bank or Paypal, get to decide when and how you will be charged currency conversion fees, if at all. This is a major advantage because it gives you much more flexibility and cost savings:

Keep US Dollars in your bank account without ever converting them and use them for future USD purchases.
- Great for foreign travel or when cross border shopping.
No automatic currency conversion is triggered if you receive payments in US Dollars.
Freedom to wait for a better exchange rate before converting to Canadian dollars.
Opportunity to choose a 3rd party to exchange your money at much better exchange rates.
Can wait for US cash to accumulate in your US bank account before conversion, which often results in lower rates.
Withdraw US funds from Paypal without their inflated currency exchange fees.
- This is possibly only with accounts from RBC for very convoluted reasons (click the link for more info).

US Bank Account Comparison – Chequing Accounts & Savings Accounts

In the table below, you will find a side-by-side comparison of all the US dollar denominated accounts currently available through the big Canadian banks. Most of the most popular features are compared along with an overview of the requisite fees you must pay for using the accounts. This should make the US bank account selection process much easier for you, as it certainly did for me.

I have lumped the chequing and savings accounts all together in this one table because there seems to be no clear distinction between chequing and savings in the space; I’ve found that many accounts with cheque privileges also offer interest on balances and similarly several accounts deemed as “savings” also allow you to write cheques.

Note: The table scrolls horizontally!

Bank
BMO
CIBC
ING Direct
National
RBC
RBC
Scotiabank
TD
TD

Account Name	Monthly Fee	No Fee Minimum Balance	Included Trans-actions	Trans-action Fees	Free Transactions Minimum Balance	US$ ABM Withdraw	Interest	Additional Notes
U.S. Dollar Bank Account	$4.00	$1,000	10	$0.60	N/A		0.00% – 0.20%	BMO only requires you to pay one monthly fee for ALL of your accounts. So if you bank there already, a US Dollar account is essentially free.
US$ Personal Account	$0.00	$0.00	0	$0.75	N/A		0.05% – 0.30%	US$ withdrawals are limited to select CIBC ABMs. You can deposit US dollars at any ABM according to the CSR I spoke with.
US$ Investment Savings Account	$0.00	$0.00	Unlimited	$0.00	$0.00	*	0.50%	Can use both ING bank machines and any bank machine that is part of the Exchange Network. US$ withdrawals are limited to select ABMs. No bank card is issued if you only* have a US$ account but US ABM withdrawals are possible if you have a bank card.
Progress Account in U.S. $	$3.50	N/A	0+	$0.65 - $1.25	$2,500		0.00% – 0.20%
U.S. Personal Banking	$2.00	N/A	6+	$0.75	N/A			US$ withdrawals are limited to 200+ select RBC ABMs. US$ deposits are not accepted at any RBC ABM according to the CSR I spoke with.
RBC US High Interest eSavings	$0.00	$0.00	1	$3.00	N/A		0.12%
U.S. Dollar Daily Interest Account	$1.00	$200	2	$0.60	N/A		0.00% – 0.15%	To view account balance in online banking and to get a bank card you need to have another Scotia account in Canadian dollars.
U.S. Dollar Daily Interest Chequing Account	$0.00	$0.00	0+	$1.00	$1,000		0.00% – 0.20%	Extended TD branch hours are very valuable because US transaction are often lacking or restricted at ABMs.
Borderless Plan	$4.95	$3,000	Unlimited	$0.00	$0.00		0.00% –0.20%	Extended TD branch hours are very valuable because US transaction are often lacking or restricted at ABMs.

What Is The Best US Bank Account For Canadians?

Best is usually relative based on your personal situation. However, there are some things that stood out to me when analyzing all this data that make some USD accounts better than others:

Only one bank, CIBC, claims to allow US dollar deposits at their bank machines and it is only those ABMs that are designated as US dollar bank machines. Two banks, CIBC and TD, offer US dollar chequing accounts that don’t require a minimum balance to waive the monthly fee; these would be good options for most people who do very few transactions in US dollars and don’t want to keep their money tied up in a foreign currency for a long time just to avoid fees.

TD is the only bank to offer an account that is both no fee with no minimum balance required and allows for unlimited free transactions if you keep your balance above a reasonable $1,000. It’s all possible with their US. Dollar Daily Interest Chequing Account. This is a great choice for people who want to pay no fees and deal in relatively large sums of US currency on a regular basis or that want to keep some money converted and ready in USD for whenever they need it.

BMO stands out as a good option for people who already bank with BMO because you can take advantage of your existing banking package to provide you with a US dollar account at no additional monthly cost along with the ability to use your existing quantity of free transactions towards US dollar transactions.

Finally, TD’s Borderless Plan offers a lot of extras for a reasonable price including unlimited free transactions, free cheques, and a waived annual fee on a US dollar credit card so you can spend your American currency that much easier while traveling the world.

A Note About Online Banking With US Bank Accounts

Figuring out what kind of transactions are possible in US dollars using online banking is pretty difficult because asking questions about it seems to confuse most CSRs. They start telling you what is available but often mix it up with what you can do with Canadian accounts. I had several tell me that I could do an email money transfer with my US account but I don’t think that is actually possible unless maybe you were doing an EMT to another Canadian US dollar account or you were converting the USD to Canadian dollars.

If a range of online banking functionality is important to you like electronic funds transfers in USD, bill payments in USD, etc then you may need to call and ask some very pointed questions or take the online banking for a test drive yourself.

Which Account Did I Choose?

I personally opted to go with the TD US Dollar Daily Interest Chequing Account for several reasons. The $1.00 per transaction fee is higher than most of their competitors but I like that there is no annual fee no matter what my balance is. Saving the monthly fee will make up for any of the few transactions I have to do during a given month. Secondly, there is the option to waive all transaction fees with keeping a minimum balance of $1,000. That is quite a bit of money for a temporary holdings account, but I can foresee keeping money there for when I travel to the USA and abroad as we like to do once or twice a year so my balance is bound to add up. TD also has the best business hours of all the big banks in Canada so, because many USD transactions need to be done at the teller, it will be much more convenient and ensure I will always be able to access my US cash when needed.

The other reason I chose TD is because I’ve always been allured by the high end TD Select Service account and the Borderless Plan. In the future I may transfer all my banking over from President’s Choice and RBC to just deal with one bank if I think that I can get enough value out of keeping a $5,000 balance with TD to waive the monthly $30 fee. Having a Select Service account also waives the fee on the borderless plan, which in turns waives the annual fee on their US$ Visa, which I think would be very handy to have when traveling. Having the option to switch to the Borderless Plan is also good because it allows me to order US denominated cheques at no additional cost other than the $4.95 monthly fee and then I can easily switch back once the cheques are ordered and save $30 or more each time I need cheques.

What US Bank Account Would You Choose?

Given the above information, which account would you choose? Please let us all know in the comments!

Your Guide to Getting the Best Mortgage Rate

Mon, 19 Sep 2011 12:00:00 +0000

One of the most popular questions we often hear is “how do I get the best mortgage rate?”. Whether you’re shopping for your first mortgage, your mortgage is up for renewal, or you already have a mortgage, let’s face it everyone is looking to get the best mortgage rate.

Here’s a checklist we’ve put together to help you find the Best Mortgage Rate:

Preparation is Key

Find all of your mortgage documents ahead of time. We know that it can be a pain, but trust us when we tell you it will save you a headache in the long run.

If you already have a mortgage, make sure you know your current details including who your current lender is, what interest rate you’re currently paying, what type of mortgage you have, and when you are due to refinance. You will need these details to weigh your options.

If this is your first mortgage, get your budget in order and figure out how much you can afford to borrow. Make sure that you understand the costs associated with home ownership and make sure that you’re not over-stretching what you can afford. If you’re looking to calculate how much you can afford, check out RateSupermarket.ca’s Affordability Calculator – it will calculate how much you can afford and what your costs are based on your situation.

Shop Around

Do some research first by comparing current mortgage rates. Figure out where your rate stands, or see where your current lender is coming in at. Using a comparison engine like RateSupermarket.ca will give you the power to negotiate a better rate with your current lender, or who knows, you might just find a better rate that’s worth switching for.

Ultimately, if your current lender can’t offer you a better rate you should consider switching. Switching lenders might result in some extra paper work, but more often than not the savings are well worth the time. (Especially when 0.20% can save you over $8,000 in interest based on a $250,000 mortgage over 25 years!).

Talk to an Expert

Let’s be honest, very few people have an in depth knowledge of mortgages. And unless you’re one of them, it’s best to seek out some help along the way. That’s why we recommend using a mortgage broker.

Think of a mortgage broker like your mortgage personal shopper. A mortgage broker can give you personal advice on which product best suits you, and then they can shop around for you to make sure you get the best rate. In fact, the average Canadian who renewed or renegotiated their mortgage through a broker, saw their interest rates decrease by 1.25% on average. Now that’s savings!

Lock That Down

If you’re not 100% sure if you want to switch lenders, consider getting pre-approved by the new lender to lock in the rate. Most pre-approvals hold your rate for up to 120 days at no charge.

This is also a great option if you’re buying but just haven’t found that dream home quite yet (but have found that dream mortgage rate).

Know your Renewal Date

When should you start shopping for a new mortgage rate? 120 days before your mortgage contract is up for renewal. That way you’ll have plenty of time to compare the market and sort out a new deal.

If you’re not the greatest at remembering a date five years into the future, consider signing up for a Mortgage Renewal Reminder at RateSupermarket.ca. We’ll send you a notice 120 days beforehand, along with the current best mortgage rates, making renewing your mortgage a breeze.

Knowledge is Power

At the end of the day, an educated consumer will always come out on top. Don’t be afraid to ask for a second opinion. Compare the market and research current mortgage rates before settling on a rate. The more you know, the more power you will have.

This weekly Mortgage Feature has been brought to you by Kelvin Mangaroo, President of RateSupermarket.ca. For more information about Mortgages, Money Saving Tips, Personal Finance Guides and more join us at www.ratesupermarket.ca/learn or sign up for our weekly Newsletter for more great money saving tips.

Mortgage Mondays Coming Your Way – Win $125!

SavingMentor — Fri, 09 Sep 2011 12:00:00 +0000

Buying a house is likely the biggest purchase you will ever make and, similarly, your mortgage should be the biggest loan you ever take! For that reason, I’ve always wanted to write about how to save money on mortgages, but I just never found the time to make up for my considerable lack of expertise.

Then recently, I had the opportunity to connect with Kelvin Mangaroo, the president of RateSupermarket.ca, and he suggested to me that he would be interested in doing a series of guest posts on mortgages and how to get the best possible rates. This would both serve to educate all of you on a subject I wanted to cover anyway while simultaneously helping to promote their site – a fair trade, I thought. Even more so because this way you get actual experts who deal in mortgages every day, instead of just my uneducated opinion!

A New Mortgage Article Every Monday

Starting very soon you will see a new article on mortgages pop up on HowToSaveMoney.ca every Monday for 5 straight weeks! Although I haven’t see all of the articles yet myself, Kelvin has given me a sneak peak on the topics he is planning on covering:

$25 Giveaway With Each New Mortgage Article

To sweeten things up even more for you guys, RateSupermarket.ca has offered to run a new giveaway for each of the 5 Mortgage Monday articles. Entering will be very simple in that you can gain entries into the contest by connecting with both RateSupermarket.ca and HowToSaveMoney.ca via our social media and email subscription options. That way you’ll receive regular updates with new ways to save money as well as additional information about mortgages and other interesting topics.

Don’t worry, if you already subscribe or follow us on Twitter or Facebook, you can still enter for a chance to win the $25 prize. There will be a simple widget included at the bottom of every post allowing you to indicate the different ways you have entered the contest with a few simple clicks.

Update: All of the contests are now over. Thank you very much to those who entered!

Driver's Guide to Different Types of Car Insurance Coverage

Thu, 25 Aug 2011 12:00:00 +0000

Ideally, you would be able to purchase one type of auto insurance coverage, and be covered for any circumstance that might expose you to a financial loss. Unfortunately, insuring your vehicle is a bit more complex. You need to choose the types of coverage that make the most sense, given your needs and budget. You also need to decide on the limits for each type as well as their respective deductibles. It is little wonder why many consumers prefer to get past the experience as quickly as possible.

Our goal here is to provide a brief guide to the most important types of coverage you'll need for your car insurance policy.

Comprehensive Coverage: Damage from non-accident events

If your vehicle is stolen or damaged as a result of an incident unrelated to a collision, comprehensive coverage provides compensation. Examples of non-accident events include floods, fires, rock slides, and vandalism. In most cases, there are also several exclusions, such as an overheated engine, for which compensation is not provided. These exemptions are clearly listed in your policy.

Comprehensive coverage is the cheapest coverage you can purchase for your car insurance policy. It provides good value for your money. It is also very cheap to purchase for older cars (vehicles that are 10-15 years old or older) as it works out to be only a few dollars per month.

Collision Coverage: Damage resulting from an accident

This type of coverage provides insurance to your vehicle in the event you are involved in a collision. Just like comprehensive, collision coverage is optional.

As a side note, if you currently have comprehensive and collision coverage on your policy, yet you drive an older car (a car 10 years old or older) you have the option of dropping either comprehensive or collision or both. Doing so will lower your premiums and help you save money as you are paying less for your insurance.

Accident Benefits: Personal costs related to an accident

Accident benefits compensate you and your family for injuries or fatalities that result from a collision. These benefits pay for expenses that arise from hospitalization, surgery, physical therapy, and attendant care. They also provide income replacement benefits in the event your injuries prevent you from returning to your job. If the accident results in your death, this coverage pays for expenses related to funeral services as well as compensation for your family.

One thing worth mentioning is unless you live in Newfoundland and Labrador, this coverage is mandatory in order to legally drive.

Uninsured/Underinsured Motorist: When the other driver lacks insurance

Although driving without sufficient auto insurance is illegal throughout Canada, many people do it each day. And unfortunately, these same people sometimes cause collisions.

What this coverage provides, is in the event you get involved in an accident with someone who does not have auto insurance – you are still covered. Your own car insurance policy will provide you with the coverage and protection you need in this unfortunate event. This coverage is mandatory, and offers valuable protection.

Other Optional Insurance Coverage

In addition to the coverage described above, you can purchase various endorsements or, optional provisions for your policy. For instance, you can add a rider that pays for towing in the event your vehicle breaks down (i.e. emergency roadside service). You can add coverage that pays for a rental car while your damaged vehicle is being repaired (loss of use coverage).

You can also buy Family Protection coverage. This endorsement compensates you and your family if your vehicle is hit by someone who lacks sufficient coverage to pay for property damage and injuries. If your limit is above the at-fault driver's limit, this provision is activated to fill the gap.

When you shop for auto insurance, bear in mind that your rate is heavily influenced by the coverage you choose as well as your limits and deductibles. Compare car insurance quotes from several insurers to find the auto insurance policy best-suited for your needs.

This is a guest post by Natasha Carr from Kanetix.ca. Kanetix is an online resource for comparing insurance rates of all kinds including home, auto, life, and travel insurance. I personally made use of Kanetix.ca a few years back when shopping around for better car insurance rates so when Natasha approached me to write a guest post, I thought it was a great idea.