Repaying your Canada Student Loans

For those that received OSAP for your post-secondary studies, you are required to repay your loan after your school year ends. Although you are not required to make payments until 6 months later, the interest is charged during the 6 months period. If anyone is planing to make a lump-sum payment, I recommend you don't wait after the 6 month grace period.
If you have trouble making the monthly payments after the 6 month grace period, you can also apply for Interest Relief Program.
Interest Relief is a program that government helps students pay the interest for 6 months, and you are allowed to apply continuously as long as you are qualified and within your 5-year end of study date. Keep in mind that the principal balance of your loan is remaining the same when you are on Interest Relief Program.

Who is qualified:

• Your student loan is already in repayment and consolidated(a signed consolidation form must return to the student loan center)
• You must reside in Canada on the day you sign the application
• Your loan account is up-to-date
• Your gross income for the month you want your Interest Relief to start on, must below the eligible income limit.

Ontario Interest Relief Application http://osap.gov.on.ca/eng/PDF/0506/34-1531.pdf
Ontario Interest Relief Income Eligibility Chart http://osap.gov.on.ca/eng/PDF/0506/Income%20Eligibility%20Chart%20-%20August%201%20%202005.pdf

Simple Steps On "How To Open TD RESP E-Series Account"

TD E-SERIES is a perfect account for someone who has small lump sum to invest, and wants to invest periodically. With the easy-to-manage feature and unbeatable low management expense rate, it's best place to set up your RESP or TSFA. Here are the simple steps:

1. Go to branch in person to open up an RESP mutual fund account, make purchase to "money market fund'. If you do not have any account with TD, ask for 'access card', you will need the account number to access your online account.
2. Designate where you want to hold your government grants.
3. Go to TD website and print off 2 forms(Consent & application to convert), fill them out and mail them back to their fund administration office(address is written on the form). http://www.tdcanadatrust.com/mutualfunds/tdeseriesfunds/convert_acct.jsp
4. You will receive an email in about 2 weeks stating the conversion is completed and ready online.
5. Log in to your account and select 'switch mutual fund purchase', make sure you select the index funds with 'e' in the end, that's indication of e-series funds which has extremely low MER.

For more information, please go to http://www.canadiancapitalist.com/investing-in-td-e-series-funds-for-your-resp/


Extra tips

• must present your & your child's SIN card at the branch
• you can set up link between the other bank account to this account when filling out the form 'application to convert to a TD e-series funds account', and also set up "Pre-Authorized Purchase Plan"
• when doing the investment risk tolerance test, try to put yourself in a higher limit, that way in the future if you ever want to invest in a more aggressive fund, you will be able to do so without contact the bank again
• You must hold the money in 'e-series' for minimum of 90 days
• TD mutual fund help line is 1-866-234-8888 and option#4

Dealing With Real Estate Agent When Selling

After going through buying & selling too many times, I can always pick up something new to learn about real estate agents, and I would love to share them with you, and hopefully those tips can save you thousands, because I know I could have! The house market is down, it doesn't mean you should lose more than you should!
Here are the tips when dealing with seller agents:

1. Do not believe everything real estate agent says. The reality is, at one point, especially when they feel they want to close the deal quick to get the commission, they will do anything to make you believe the deal is good and must act quick.
2. Do not go with the numbers agent suggests if you are not comfortable with. Do your own research! Again, it's extremely important you are not total depend on the paper works the agents provide, they are somewhat useful, but a lot of times they are not the whole story, they are mostly going to show you the listing comparable that matches the listing price they want you to list, and they are always low! unless you sit next to him/her and do the research together. Must keep in mind that few thousands off are more important to seller, but not buyers. Why? seller will see the extra bucks after the deal is done, but buyer will only see $10 or $20 extra on their monthly mortgage statement. The agents love to play number games with each other, don't fall into their number game strategies. Do your own research please!
3. Do price reduction on existing listing. Your agent will suggest doing price reduction on the brand new listing is more benefit for you because all agents get fresh listings in their mail box therefore more chance to get view! I can tell you now in today's market, doing price reduction on existing listing is more benefit for you! Why? first of all, all buyers love to get good deals, what's consider 'reasonable offering price' in today? about 10% lower than the listing. It's almost the standard figure now. it's almost impossible for buyer to offer the listing price! when they see your price reduction, they know they are already getting the good deals, so when they do their calculation more chances they will not going to offer a ridiculous low numbers. If you have a brand new listing with lower price, there is a good chance your offer will be again 10% less!
4. Always Negotiate the Commission with your agent, or even ask for cash back. Trust me, there are too many agents out there that wants your business. It's way too simple job for them to get that generous commissions. If I could just pay to list my house on MLS, I would had gone for it! About 1% - 1.5% commission reduction is fair in today's market.

Moving Expense

If you move to a new location, and it's 40 kilometres closer to the new work place than the old residence(even for the same employer), you are allowed to claim moving expenses. Same for self-employed and students.
Moving expenses are deductible only from net income from employment at new location. If there are no earning from the new location, you can carried forward to the next and future years. However, the expenses can never be claimed against earnings from a different location.

*Please keep in mind that you are not allow to claim moving expense if you are moving 40 km closer to existing job!

Renting Below Fair Market Value

Sometimes it's good idea to rent part of your house to help out with some house bills.
If you are considering to rent it to family members, and wanting to claim them on your rental statement, make sure you don't charge below fair market value.
As per CRA website:"you can deduct your expenses only if you incur them to earn income", in another word, if you have rental loss due to insufficient rental income to cover the expenses, you are not allow to claim. Instead, it's a cost-sharing arrangement.
How do I know if it's below market value or not? add up your basic monthly expenses together(make sure it's calculated based on rental portion):
Mortgage interest + Utilities + Maintenance fee + phone/Internet
If the rental payment you collect is less than the above figure, you are considered 'renting below market value'.

Steps For Money Management

1. Spend less than you make, pay yourself first
2. Set a financial goal for short term and long term
3. Use TFSA/RRSP/RESP/non-registered account wisely
4. Do not hold any debt with interest attached, try to convert bad debt into good debt
5. Educate you and your family about money management
6. Develop multiple streams of income
7. Start investing and diversify your portfolio

Every Canadian Must Learn Money Managment

I remember read a line from one investor's blog:"you do not have to have a good decent pay job to generate wealth, manage your money wisely can also get you there".
Whenever I think about the word 'financial freedom', first thing came to mind is I must have enough money in my account to cover all my expenses. But the true question is how can I have enough money? most of people would then say 'get a decent job, get more pay, and save hard, then you will have plenty siting at your account'! What most people don't realize is when you make more, your expenses will also go up! You will want a better car, a bigger house, and extra clothing allowance, dinning-out, etc.
But is saving and cut-back the 'extras' the final solution to this?
The author for [Rich Dad Poor Dad] said "some wealthy people gave rich a such bad reputation because they been so cheap!" What's the point of been rich if you are not willing or can't spend a dime and enjoy life?
Do you ever wonder why there are more Canadians in their 30s and still living with parents? Because of lot of them still don't know how to manage what they make and spend all the way!
It's never too early or too late to learn about money management. Learn how to save wisely, and spend wisely. I wish they even offer this money management course in HS.
Money management a life time survival kit you will never regret to learn.

Canadian Tax Advise

For those that haven't done your taxes and may have a balance owing, I need to remind you that you better file your taxes no later than Thursday April 30, 2009.
Few tips for my fellow Canadian:

• Transit Pass Credit: besides monthly passes, you can also claim your electronic fare products and weekly passes which covered at least 20 days in a 4-week period.
• Children's Fitness Amount: each kid allows up to $500 spent on eligible program of physical activities, such as swimming, hockey.
• Caregiver Amount: you can claim caregiver amount ($4095) If you have parent/grandparent living with you and over age of 65(regardless of their income).

Why Second Opinion

I truly believe everyone needs a second opinion.
A second opinion about their health, about their finance, about their school, about their relationship....and the list goes on and on. Sometimes an experienced person can teach more than a licenced/professional advisor.
At age of 30 and mother of 2 small children, I have slowly come to my way realizing why sometimes simple is priceless, and why responsible sometimes a great thing.
If you have not yet learned how to give, you will not gain.
A person with a narrow heart will never generate wealth, and only if you forgive, you will have the world.
learning life lessons don't come cheap. maybe you are also like me, who just have to jump into it first and dig out the trouble. What really matter is what you can learn from the mistake.
I love to share all my life experiences with you.
You never know what we will learn from each other, but only if you open the door.
Wisdom does not grow with your age, it only grows if you open up your mind.
Join me to this learning jouney.