Tag: Millennials

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MORTGAGES FOR SENIORS CANADA: APPARENTLY NOT A PROBLEM

mortgages for seniors canada

Mortgages for seniors Canada: Introduction

TransUnion Canada’s most recent TRANSUNION Q2 2018 INDUSTRY INSIGHTS REPORT found that borrowing for mortgages was reduced in Canada in 2018. A troubling statistic exists for mortgages for seniors Canada. In this Brandon’s Blog, I discuss this and certain other issues arising from the TransUnion Canada report.

Secured home loans for older folks Canada: Home mortgage borrowing decreases throughout Canada

Home mortgage lending has reduced throughout Canada in the first half of 2018. Generally, there was a 3.4% decline in the variety of brand-new home loans in Q1 2018 as compared to Q1 2017; this comes after an 8.8% year-over-year decrease in Q4 2017. This pattern seems to prove that the brand-new home loan guidelines might be affecting customers that are either not qualifying or are not able to obtain the level of home mortgage they want. It is unclear if this decrease in home mortgage demand means that there are fewer people looking for a home mortgage, or if there are more people sitting on the sidelines trying to figure out a way to qualify.

HELOCs for retirees Canada: Seniors bucking the trend

The exception to the decrease in home mortgage originations in Canada in 2018 is older generation Canadians. Canadians in the 73-93-year-old age group saw a substantial year-over-year boost (63%) in the number of home mortgages taken out. Baby Boomers in Canada, those in the 54-72-year-old age group saw an 18% increase. These statistics beg the question, why are Baby Boomers, and those in the Boomers’ parents’ age range, refinancing their mortgages or taking out new mortgages? Although not disclosed in the TransUnion Canada report, presumably a lot of the retirees are taking out reverse mortgages, as they too can’t qualify for a traditional mortgage on their retirement income.

Mortgages for seniors Canada: Seniors use of funds

The TransUnion report does not delve into the uses seniors are putting the new mortgage funds to. However, if I was to speculate, I would think that the funds were being used for:

Baby Boomers –

  1. Seniors debt consolidation
  2. Helping children pay for education.
  3. Giving or loaning their children sufficient funds for the house down payment so they could now qualify for a traditional home mortgage under the new stress test rules.

The 73-93-year-old age group –

  1. Helping children with paying off debts – Baby Boomer’s debt consolidation loans.
  2. .Their own debt consolidation.
  3. Gifts or loans to grandchildren – sufficient funds for the house down payment so they could now qualify for a traditional home mortgage under the new stress test rules.

Real estate loans for baby boomers Canada: Why I believe parents and grandparents are helping children buy their home

The TransUnion Canada report says that the greatest decreases in home mortgage applications were amongst the more youthful generations. There was a year-over-year decrease of greater than 22% amongst Gen Z as well as 19% amongst Millennials.

No doubt some of the decreases is a result of the younger generations’ changing lifestyle habits where homeownership may not be as important as it was to the generations before them. However, I would expect that Millennials as a group would by this point want home ownership, where Gen Z may not see it right now as being important.

Main mortgage changes by location

The biggest downturn in mortgage originations remained in Toronto, with a decrease of 17.6% in Q1 2018 from the previous year. Vancouver stayed reasonably level with an increase of only 0.8% over the previous year. The biggest increase in the home mortgage business was in Ottawa, with a boost of 8.4% over the previous year. Montreal had a 5.2% boost over the previous year.

Mortgages for seniors Canada: Risk distribution

Mortgage originations in the super prime risk tier increased 4.4% year over year in Q1 2018. All other risk tiers combined registered an 8% decrease in originations. TransUnion Canada reported that the decrease has been most significant in the below-prime risk buckets.

It is interesting that the higher risk subprime market mortgages have increased. No doubt private lenders, including the shadow lenders, dominate this market as the borrowers could not qualify for a home mortgage loan from a traditional bank or mortgage lender.

The decrease of new mortgages in the lower risk categories tells me that the new stress test qualifying rules combined with successive increases in mortgage rates have contributed negatively to those who perhaps as recently as last year could have qualified for a traditional mortgage. However, now they can’t be based on affordability.

Do you, your children or your grandchildren have too much debt?

Are your children or grandchildren coming to you for financial help for debt consolidation? Is going into debt the best option for you? Can you afford to carry your new debt in retirement? Is giving away your home equity through a reverse mortgage the right move? Will you need the money you are about to give away for your healthcare?

If debt consolidation is the reason why your children or grandchildren need your financial help, look at other options first. They need the help of a professional trustee. Call the Ira Smith Team. We will listen to your issues and provide you with our thoughts and recommendations for free. That’s right; a free initial consultation. So why not?

We will advise them whether or not we think they are a candidate for either a debt consolidation consumer proposal or bankruptcy. If we feel they can solve their financial problems without an insolvency process, we will tell them straight. Make sure that the money you give for debt consolidation will fix all of their problems. It is possible that with our help, you’ll need to provide just a fraction of what they are asking for.

The Ira Smith Team understands the stress they and you are under and the pain it is causing you and your loved ones. We can eliminate their pain. I guarantee that they and you will start feeling better right away after our free initial consultation. Taking action after that will put you on the right path, Starting Over Starting Now.what does a court appointed receiver do18

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FINANCIAL GOALS FOR MILLENNIALS: STOPPED DUE TO BABY BOOMERS?

financial goals for millennials

Financial goals for millennials: Introduction

Today’s Brandon’s Blog discusses the notion that financial goals for millennials are being hurt by baby boomers. Not only are we living longer; we’re living better. The expression “65 is the new 55” seems to quite accurately describe the changes in our workforce.

Financial goals for millennials: Baby boomers are working longer

Thanks to no mandatory retirement in Ontario, Baby Boomers can work well past 65. According to 2016 census figures, 20% of Canadians are working, either full or part-time, paid or unpaid, past 65. The number of post-retirement workers has doubled since 1995. Unfortunately for millennials who are blaming their financial woes on the Baby Boomers, working longer makes good financial sense.

Financial goals for millennials: The academic’s view

Craig Riddell, a UBC professor of economics, says, “One of the principal causes is increased longevity, and people are staying healthy longer. Another important factor is the decline in pension coverage, especially in the private sector of the economy, and a gradual switch from defined benefit plans to defined contribution plans.

There is no incentive to retire early with the Canada Pension Plan (CPP) if you like working. CPP no longer has a specific retirement age, such as 65. Instead, there is a retirement “window” between the ages of 60 and 70. The later you retire, the larger your monthly payment. If you are going to live an average lifetime, you will get the same amount in total. You don’t pay a penalty by retiring later. If you retire at 60, you get the lowest payment”.

Financial goals for millennials: The benefits to working past 65

Although millennials are against the trend, there are many benefits to working past 65. Karen Zeleznik, a financial planner at Libro Credit Union reports that:

  • Canada Pension Plan benefits jump by 42% if you delay taking them until age 70, even more, if you keep contributing
  • Old Age Security payments work on the same principle, but some or all is clawed back for those with high incomes
  • Many private-sector plans also offer fatter pensions if retirement is put off past 65
  • Tax bills increased by a higher tax bracket from “double-dipping” can be reduced with spousal income splitting
  • In the end, it comes down to one thing: How long are you going to live?
  • It’s a question of taxation, lifestyle and life expectation. If you live to be 90, sure, delay it, because you will get more for a longer time. It’s just math

Financial goals for millennials: Working past 65 is a great advantage

Working past 65 is a great advantage for Baby Boomers who have not saved enough money to retire comfortably. As long as they keep working they can enjoy a lifestyle that they’re accustomed to and enjoy. And many, plain and simply, enjoy working.

Although millennials like to blame Baby Boomers for their financial woes, the high cost of living and the astronomical cost of housing are the real culprits, not the lack of jobs. The job market can be challenging whether or not the Baby Boomers are working longer. And the reality is that millennials will likely have to work longer as well, due to the increased life expectancy and disappearance of defined pension plans.

Financial goals for millennials: Are you struggling financially?

If you’re a millennial who’s struggling financially, you need to take action before things become dire. Consult a professional trustee for help with your financial problems. The Ira Smith Team can help you get back on your feet financially and start saving for your retirement so that perhaps you won’t need to work past 65. Give us a call today and Starting Over, Starting Now, you can put your financial woes behind you.

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TYPES OF INTERNET SCAMS: MILLENNIALS LIKELY TO BE SCAMMED DUE TO TRUST IN TECHNOLOGY

types of internet scamsTypes of Internet Scams: Introduction

Technology has opened the door to increasingly new and somewhat complex types of internet scams which rob us of billions every year. We all know that millennials are the most avid users of mobile and internet technology, but does that make them tech savvy? Well, the truth is that millennials are tech dependent, not necessarily tech savvy. This leaves them vulnerable to internet money scams.

Types of Internet Scams: Why are millennials so vulnerable to internet money scams?

According to a survey by Capital One, millennials:

  • Have grown up in the sharing economy so they’re just so used to sharing information about their personal lives and their details with friends and people on social media
  • Are more likely than other generations to admit they share their PINs with family and friends
  • Use their personal information such as their birthday as their PIN
  • Share their credit card number over the phone or email

Types of Internet Scams: Millennials are the most vulnerable

Although we can all be suckered in by these types of internet scams, millennials are the most vulnerable because they “live” online. However, the more economically challenging times become, the more vulnerable we all are.3bestaward

Types of Internet Scams: The 5 internet scams that are the most dangerous to millennials, and the rest of us too!

  1. Fake job offers: The classic job scams have headlines like “I make thousands of dollars working from home and so can you. All you need is a computer and an internet connection”. “Start your own business from home with no investment. Sign up for training”. When it sounds too good to be true, it generally is. Never send anyone money upfront. Never give out sensitive, personal information.
  2. Become a mystery shopper: Most mystery shopper scams are cheque scams in disguise. Although there are certainly legitimate jobs for mystery shoppers, beware! Remember, if the opportunity is legitimate you won’t have to pay an application fee or deposit a cheque and wire money on to someone else. Always do your homework and check mysteryshop.org for a list of legitimate companies.
  3. Shopping online: Although many of us do some of our shopping online, millennials are true online shoppers. The problem is that millennials are so used to shopping online that they don’t look for danger; but the reality is that danger is lurking around the corner of every transaction. Many e-commerce sites look legitimate but are really fake stores.Always check online reviews before doing business with a new company. Otherwise you’ll give scammers your credit card information that can be used to make fraudulent purchases and/or resold. Check your account statements for any errors or fraudulent activity and check your credit score at least once a year.
  4. Crowd funding: There are so many scams out there about people claiming to be dying of cancer and needing money for treatment, medication or money for their kids, that it’s hard not to be a cynic. Before giving money to any crowd funding campaign, make sure you really check out the people soliciting funds.
  5. Online demands: Blackmail has found its way into the online world. Millennials are used to using email or text and posting the minutiae of their lives to social medial sites.

Types of Internet Scams: Report internet scams to the police?

All of these online channels are insecure. Remember those sexual images you sent to your boyfriend or girlfriend? They can be used against you and used to extort money from you. As embarrassed as you may be, go to the police to report internet scams. Extortion and blackmail are crimes.

Types of Internet Scams: Have you been a victim of an internet scam?

Have you been a victim of an internet scam and are now experience financial hardship? The Ira Smith Team is here to solve your debt problems no matter the reason. We’re here to help and get you back on solid financial footing Starting Over, Starting Now. We’re just a phone call away.

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MILLENNIAL HOME OWNERSHIP: MILLENNIALS ARE STRUGGLING WITH DEBT

Millennials, Gen Y, debt, student loans, credit card debt, credit counselling, debt consolidation, consumer proposals, bankruptcy, millennial home ownership, starting over starting nowMillennial home ownership may be out of reach because there is no doubt that Millennials are struggling with debt and it’s a serious issue. We’ve addressed this problem in two previous blogs – Millennials Debt; A Plan for Escape and Gen Y Trapped: Millennials in Debt. For those of you unfamiliar with the term Millennial, the Census Canada definition is kids born between 1977 and 1994. In Canada Millennials represent a large group; they make up approximately 27% of the population. And unfortunately they also have a lot of debt, the majority of which is student loans and a good proportion can also be attributed to credit card debt.

As a result of student debt, credit card debt and lower than anticipated salaries, many Millennials can’t even dream of buying a house and millennial home ownership is a fading dream. In fact, many can’t even afford an apartment and are living at home with their parents or sharing an apartment with multiple roommates. This situation has affected more than just the Millennials and their families; the lack of millennial home ownership has seriously impacted the housing market. “The first-time homebuyer is really absent from the market,” says David Crowe, the chief economist for the National Association of Home Builders. He says only 16% of new-home sales are to first-time homebuyers. That is half of normal. And in terms of the numbers of new homes getting built, “We’re not even halfway back,” Crowe says. This phenomenon will eventually rebound, but it will take time. Millennials will need to feel comfortable that their debt reduction plans are working before millennial home ownership, and therefore a large group of first-time home buyers, will again be able to enter the real estate market.

Millennials need help dealing with debt. Maxing out credit cards is not a solution. If you’re a Millennial in debt, you need professional help. Responsible hard working millennials deserve to have millennial home ownership included in their reality.

Contact Ira Smith Trustee & Receiver Inc. With sound professional advice and a solid plan in place, you can conquer debt. There are many ways to deal with debt which include credit counselling, debt consolidation, consumer proposals and bankruptcy. It may sound ominous, but the Ira Smith team will guide you through the process and Starting Over, Starting Now you can live a debt free life and plan for your future.

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MILLENNIALS DEBT; A PLAN FOR ESCAPE

I recently read an article on millmillennials, millennials debt, Gen Y, Boomers, Baby Boomers, bankruptcy alternatives, debt, student loan debt, trustee, bankruptcy, credit, counselling, debt consolidation, consumer proposals, restructuring and turnaroundennials debt that actually referred to Millennials as “The Generation of Debt”. We recently reported on this very serious problem in our blog “Gen Y Trapped: Millennials in Debt”. Pew Research reports that Millennials are more distrustful of people than ever, less likely to belong to a party or religion, more in debt, and say they are unable to marry because they lack a solid economic foundation. In addition Millennials are also the first in the modern era to have higher levels of student loan debt, poverty and unemployment, and lower levels of wealth and personal income than their two immediate predecessor generations (Gen Xers and Boomers) had at the same stage of their life cycles.

I found this millennials debt issue particularly interesting because just a few days ago I had a conversation with a Millennial who said that her friends felt disenfranchised and angry with the Baby Boomers who have enjoyed benefits that they expected and will never have like company defined pension plans and old age security benefits at age 65.

Clearly one of the major issues is that Millennials had expectations but no financial plan and many are now trapped in a debt cycle that they don’t know how to escape. Millennials debt is a problem that needs to be dealt with as soon as possible. And dealing with debt is not a DYI project. If you’re a Millennial facing serious debt issues and an uncertain financial future, contact a professional trustee. Contact Ira Smith Trustee & Receiver Inc. There are many ways to deal with debt as well as bankruptcy which include credit counselling, debt consolidation and consumer proposals.

We’re here to help. We can discuss with you the various bankruptcy alternatives for the restructuring and turnaround of millennials debt and your entire financial life leading to your overall well-being. We can put you back on the path to lead a healthy and productive life so that you can escape the millennials debt trap. Make an appointment with the Ira Smith team today so that Starting Over, Starting Now you can live a happy, productive, debt free life.

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GEN Y TRAPPED: MILLENNIALS IN DEBT

debt, Millennials, Generation Y, Gen Y, Baby Boomers in debt, seniors in debt, student debt, student loans, credit card debt, bankruptcy, trustee, financial plan, gen y debt, starting over starting now, trustee, millennials in debt, gen y in debtMillennials in debt is an important issue. There’s been a considerable amount of press surrounding the problems facing Baby Boomers in debt and seniors in debt and we’ve devoted quite a few blogs to these very serious issues:

However, the Millennials (children born between 1982 and 2002), also known as Generation Y or Gen Y, feel trapped as millennials in debt. Only now are we realizing how dire their situation is. BMO recently did a survey of Millennials in debt and discovered that:

  • 56% are so anxious about their debt they think about it multiple times a day.
  • 50% said debt has made them lose sleep.
  • Their household debt is $73,305.
  • 50% feel ashamed at the level of debt they’ve accumulated.
  • 50% of Millennials in debt have had arguments with family, friends and partners over debt.
  • 51% have borrowed money from friends or family to manage household debt levels.
  • Nearly 60% viewed their debt as a major personal problem.

In addition Millennials in debt are more burdened by student debt than their elders, according to David Coletto, chief executive officer of Abacus Data. He goes on to say, “People are maxing out their student loans and getting loans from family to supplement.”

The reality is that debt is increasing across all demographics and the issues facing Millennials in debt should not be ignored. Whether their debt originated with student loans, credit card debt or some other issue, it needs to be managed as quickly as possible by a professional trustee. Contact Ira Smith Trustee & Receiver Inc. for professional advice and a solid financial plan so that you can live a debt free life Starting Over, Starting Now.

Call a Trustee Now!