How to save for the first deposit? | Loans Quebec

How to start?

Image result for how to start First, before you start saving you need to find out how much you could potentially borrow. A mortgage calculator is helpful in determining this amount. Remember, mortgage payments should not exceed 30% of your monthly income. Once you determine the total value of the mortgage, you can determine the amount of the first deposit and the duration of the payments. For example, a first 5% deposit when buying a $ 300,000 home would be the equivalent of $ 15,000 or more. If you extend the savings over a few years, it’s about $ 3,500 a year for 4 or 5 years, which means between $ 250 and $ 310 a month. This may seem daunting, but rest assured, there are several ways to facilitate the savings process.

The larger the initial deposit, the lower the monthly payments will be!

When you make a first significant deposit, the benefits are many. Monthly payments and interest on these payments will be less. Also, a first deposit of 20% could even save the owner from paying the insurance on the loan, which could in some cases represent 1 to 3% of the total amount. For those who can not make a deposit of 20%, expect to pay a higher monthly interest.

Budget forecasts

Driving and respecting your budget will be the key to success in order to save for a first deposit. Sometimes, if possible, having multiple jobs is also a solution. There are two advantages to having multiple jobs: incomes increase while expenses decrease because you have less free time. Finally, selling unnecessary items could also bring you income.

Also, you should monitor your daily expenses. A daily coffee is $ 60 at the end of the month. Taking his luch in town would be $ 100-200 a month. Also, take public transportation, which will save you money on gas and repairs. In addition, when you shop, buy products that are special. If you rent an apartment, it might be better to move to a cheaper apartment or, at least, to have a roommate. Do not forget about tax revenues too.

There are many ways to increase your income, but you must be rigorous. For example, keep detailed monitoring of all your expenses. Afterwards, it’s up to you to see where you can cut.

Improve your savings

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Now that you have established the sources of savings, it is time to improve them. For example, you can earn interest on your savings if you invest in a TFSA, a guaranteed certificate, and so on. Also, as the first buyer, you benefit from a large number of government grants such as the First-Time Home Buyer’s Tax Credit (HICP). This tax credit allows you to withdraw up to $ 25,000 a year from your RRSP. However, this amount will have to be repaid in the next 15 years.

As well, you could benefit from a large number of provincial and municipal grants, including the purchase of homes with responsible energy consumption .

The first deposit can be a much more enjoyable experience if you stick to the plan you set. If, ultimately, you want to own your own home, discipline and rigor are absolutely necessary.

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10 tips for not making ends meet with empty wallet – Finerio | Personal finance blog

Related imageHow many times has it happened to you that you are about to close the month and need money, then go to the cashier, thinking that you still have enough money for the remaining days and you are surprised to see that you have much less. Do not worry, you are not the only one who happens, in fact to most people the fortnight lasts two days less than they should last.

But this does not mean that it is impossible, in fact it is just a matter of good organization and of wanting to do it. For this reason we present 10 tips for you to arrive at the end of the month without worrying about others.

1. Dates and quantities

We all have in mind the day of payment, but seldom the day of cutting other services. However, it is very necessary to know them because you can distribute them so that you do not pay all of them on the same dates and lose half of your salary in those days.

2. Plan

If you do not make a plan, you will not get it or you will give up in a short time. It establishes objectives, can be monthly or biweekly. It can be how to save money on coffee, not go for dessert, take lunch to work, etc. You can use F inerio to create a custom quote. Finerio links your bank accounts to read your financial information and automatically categorize your expenses and keep a complete record. The only thing that you will have to manually write down is the cash expenses.Image result for mobile app

3. Order

If you can have the banking institution’s app it’s better, so you’ll know exactly how much money you have at each moment. If you have different bank accounts in different banks F inerio is an excellent option because you can have an overview of your finances from one place.

4. Avoid ant spending

Those expenses that sometimes are insignificant are, in many cases, the ones that hurt our pocket the most. Do not hesitate to save on those small expenses and thus convert them into “ant savings”.

5. Divide into three parts

Once you know what your fixed expenses are, the variables and savings, divide those amounts, so that you are subject only spend what you have contemplated in each of those items. With F inerio check your budgets daily and set limits if you see that you are already spending in some category. Example: you spend only 1000 pesos in restaurants per month, and when you check your budget you realize that you already spent 800 pesos. Having budgets is easier to identify unnecessary expenses.

6. Consider unforeseen

You are not a fortune-teller, we know it, but it is better to prevent. Always consider a part of your expenses to contingencies, you can put it in the item of variable expenses and if nothing happens during the month, send that part to your savings.

7. Be punctual in your payments

Avoid delinquencies in your credits, remember that this only leads you to have more problems and spend more money monthly.

8. Informed purchasesImage result for verified

When you go to buy something you need always inform yourself correctly, remember that not always the most expensive is the best or that necessarily fits your needs. Take advantage of offers and save a little.

9. Be constant

It will not help you to make all this effort for a month and then forget it, you must be constant so that it has a real reflection in your personal finances, if you follow it literally, you will see how at the end of the year you will have money for whatever you want .

10. Put your money to work or kill your expensive debts

If one of your strong expenses is to pay your different credits, unify your debts, Doopla is the option to do so because it offers much more affordable rates than those of traditional institutions.
If you have extra money, put it to work by lending on the platform and thus obtaining yields much higher than those of the market.

We hope that these tips are very useful and that you no longer suffer at the end of the month because it does not reach you.

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Loans after bankruptcy | Loans Quebec

Image result for bankruptcyOne of the problems when one declares bankruptcy is to know if one will be able to borrow in the future. People often hesitate to declare bankruptcy, even when it is their best option , for fear of not being able to borrow. Even if immediately after the bankruptcy the creditors are less inclined to lend money, in the end, they lenders prefer the people who declared bankruptcy because it shows a desire to improve the situation.

Why would a creditor lend money to someone who has declared bankruptcy before? For 3 reasons mainly. First, the creditor’s ability to offer better terms. Second, the lack of debt following bankruptcy. Third, the best financial management of people who have declared bankruptcy.

Get more favorable terms

Creditors make more money when they are able to charge you more interest. In fact, many credit companies make more money with interest rates than with profits on their merchandise. People in bankruptcy are often unable to demand advantageous terms, unlike people with an excellent credit history. Even if the debtor demonstrates better management of their portfolio, the creditor will still charge a higher interest rate.

Do not have debts

Some people who become insolvent are able to cancel all their debts, although this is not the case for everyone. The ability of the person to repay his debt and the amount of the debt will play a role in the cancellation of the debt or its maintenance. In any case, the monthly payments for people who have declared bankruptcy in the last five years are much less than pre-bankruptcy payments. Why ? Because the creditor is more likely to receive his payments on time, now that he is not competing with other creditors. Creditors prefer to have business with people who have gone bankrupt because the chances of being repaid are greater.

Learn from your mistakes

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Although some people go bankrupt and learn little, there are others who learn from their mistakes. For example, in the United States, the main reason for bankruptcy is medical debt. Subsequently, these people, or few of them, will fall into the same trap of medical debt. Others will learn how to better manage their budget and will even seek advice from specialists. These examples show that people who declare bankruptcy improve their financial management, which is a positive factor for them as both debtors and creditors.

In conclusion, creditors encourage post-bankrupt debtors to apply for loans. In fact, a debtor in this situation is even seen as the perfect candidate for a loan under $ 5,000. For more information, please contact a representative of Prêts Québec.

Interested in learning more about personal bankruptcy? Click here

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5 tips so that money does not ruin your relationship

Image result for relationshipRelationships are not always rosy, especially when the period of falling in love has passed and the relationship progresses. Sharing the same room, adjusting schedules to be able to coexist, change habits, exchange opinions and fight for hours to show that our point of view is correct, are some of the obstacles that we have all faced.

However, one of the biggest challenges is or will be money. That’s right, many think it sounds exaggerated, but several relationships have ended in this cause. When money is not enough and pressures and debts begin to emerge, personal peace is over and our stress level rises, which contributes to an increase in arguments and problems.

Many of these problems are because of who contributes more and who contributes less, or when someone in the relationship generates more money than the other, or if someone loses a job and there is no agreement on what to do, or who forgets to pay the states of account and services, etc.

Although they say that love and money are not a good combination, in our society we have to learn to harmonize them so that our relationships work. Therefore, we present you with 5 financial tips that will help you to keep the love with your partner without the money becoming a constant annoyance:

1. Have good communicationImage result for communication

The most thorny issues that exist are sex and money. However, trust and good communication are essential in a relationship to understand the habits, tastes and goals of our life partner. If you do not talk about money with your partner, they will not be able to agree to acquire goods or achieve goals together. Ironically, in divorces, the issue of money is often the biggest complication.

That’s why, before making financial decisions with your partner, you know your spending habits, your consumption patterns and your future financial goals. It is functional to make a plan together and create a budget that covers the expenses they share. Make clear what you think and want so that misunderstandings do not arise.

2. Keep finances separate

Having a relationship does not mean that the money that both earn goes directly to the relationship and belongs to both. It is necessary to go calmly, maybe in the not too distant future you can share a bank account, but it will always be necessary for each person to have their own money. That does not mean they can not support each other when difficult times come up.

3. Not making a large investment before age 30Image result for house investment

Many couples make the mistake of investing or acquiring, together, a car or an apartment before age 30. The first reason why this is not recommended is because during the twenties most people tend to have several partners and experience what they want in life, so it is likely that the relationship may end and have to deal with legal problems of your investment as a whole.

The second reason is that many of us do not even have investments or acquisitions individually, which would make it difficult to manage them correctly, and problems that may arise could put your relationship on the line. It is advisable that you first make investments on your own and learn how to manage them without obtaining catastrophic results.

On the other hand, if both are good savers, it is advisable that they begin to invest together in instruments that are more secure, such as government cetes or investment funds, this will benefit them if in the future they want to buy a house or invest in something bigger. .

4. Control expenses

The expenses that are in a relationship are more difficult to control than those that are individually, this because we get carried away by emotions and seek immediate satisfaction with our partner. Not in vain exists on February 14.

Maybe in the relationship there is someone who spends more than the other, or both spend a lot, someone spends more on food and someone spent more on entertainment, etc. In any case it is necessary to resolve bad habits, because in the long run they can bring serious consequences. Making a budget and keeping track of our expenses is the best option to identify unnecessary consumption.

5. Divide the financial task

Image result for divide tasksTake advantage of your strengths. If within the relationship there is someone who likes to be more orderly and thrifty, that person can take care of the budget and come to their senses when compulsive impulses to buy appear. Meanwhile, the other person can take care of paying on time the account statements and services, or make day-to-day purchases.

Currently there are several free tools on the Internet that can help maintain a healthy couple’s finances and prevent money from being a headache in the relationship. Finerio is a personal finance platform that can help.

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