Can you change your Financial Direction?

General Toni Tosti 31 Jul

 

If you live paycheque to paycheque, the idea of somehow having enough money to invest and eventually have financial freedom seems about the furthest thing possible. But experts in financial education like to point out, no matter your income and place in life, a few changes to the way you’re living life can make all the difference. No matter where you are in life, it’s never too late to start to learn and reverse course. If you’re still not convinced, there are a few simple ideas to get you started.

Pretend You Earn Less Than You Do

Give yourself a cut in pay. The goal is to put 10% in savings from each paycheque into your savings account. The easiest way is to do an automatic direct transfer from your chequing account to your savings.

Create a Budget

In order to stop living paycheque to paycheque, you need to know where that paycheque is going. Creating a budget is simple with Google docs, or look into other online tools and sites to get started.

Build an Emergency Fund

Once you have your budget in place, review it and break it down into non-discretionary expenses (rent, groceries, utilities, etc.) and discretionary expenses (eating out, entertainment, clothes, etc.).

See where you could cut down on eating out and put that money towards your fund. Even starting with just a little amount is great and helps you build the habit.

Consider Downsizing

It may be time to consider a lifestyle change. Consider moving to a smaller place. Replace going to that expensive gym with a trip to the local park. Think about if you really need that brand new car or if a used one would work just as well.

Pay Down Debt

If you have a lot of credit card or unsecured debt, try paying the minimum on all but one of them and aggressively pay down that one card. Once it’s paid off, attack the next one. If you’re so deep in debt that you can’t fight your way out, consider consulting with a company who specializes in debt consolidation. They will help you negotiate your debt into smaller amounts that you can begin to pay off.

Don’t Forget Your Future

Putting at least 3% of your paycheque into a retirement fund is a great idea, or maybe when you get your first raise instead of thinking of it as free money, simply put it into a fund and forget about it. You’ll be glad it’s there when you need it in the future.

Toni Tosti & the DLC Team

 

Things to Know Before you Renovate

General Toni Tosti 21 Jul

 

Renovating your space can be a big project! Before you get started, we have put together a list of the 5 most important things you need to know before you renovate:

1. Know Your End Goal
Before starting your renovation, it is important to know what your end goal will be for the project. How extensively are you renovating? Are you doing so to improve the resale value of your home, or are you doing it to improve your own daily environment? Knowing the reason for the renovation can help you determine a plan for how to proceed and how in depth you want to go.

2. Set a Budget – and Stick to it!
Once you determine the scope of your renovation project, you need to determine your budget. Determining your budget – and sticking to it – is one of the most important parts of any renovation. Renovations can easily spiral out of control or become much bigger than anticipated, if proper budgets and goals are not in place. However, even with the strictest budget there could be unexpected costs, so be sure to add in a contingency fund. While it is easy to want a top of the line renovation, it is important to look at alternative products or substitutes that may be just as sturdy but save you some money upfront.

3. Obtain Permits
Many homeowners forget about this one, but it is extremely vital to your renovation project – especially those that are on a larger scale. While you may consider obtaining a building permit to be an
 

unnecessary headache, it is necessary and will ensure the changes you make today won’t come back to haunt you tomorrow. These permits are necessary to ensure your house remodel meets structural and fire safety requirements. If you ever do put your house up for sale, code inspectors in most jurisdictions can enforce the removal of any non-conforming work if not up to snuff – creating a further (and more expensive headache) down the road.

4. Ask for References
It is important to be sure that the work you are having done to your house will be done in a manner that ensures it remains safe and structurally sound. This is what makes asking for references so important! Don’t rely solely on client testimonials, seek out customers that can give you a firsthand account and answer any questions you may have. It is also important to see before and after images of a contractor’s prior work. Take the time to gather the information and determine which questions to ask!

5. Consider Your Routine
My parents were always  DIYers when it came to home renovations.  So, when it came to considering our routine this was a non-issue. However, for those of you like me (absolutely not a DIYer) who are planning on hiring a contractor, be clear about your daily routine! Work with the contractor to come up with start and end times that cause the least disruption to your daily schedule and help everyone remain comfortable.

Good luck with your renovations from Toni Tosti and the DLC Team.

 

 

What to Know BEFORE You Start House-Hunting

Mortgage Tips Toni Tosti 12 Jul

 

As exciting as it is to start your journey towards home ownership (or even up- and down-sizing), there are a few things you should consider first.

Most importantly, you need to determine your purchase range. Having the proper budget for your future home is the best way to ensure future financial success! To create a proper budget, you need to look at your monthly income and expenses to determine how much you can afford in monthly mortgage payments.  Ideally, it is best to try and find a home that fits your needs that is below your maximum budget, which will give you a lower mortgage payment and a little more financial freedom and security for the future.
Beyond determining what you can afford, you need to identify your housing needs. It is important to know that, unless you build it yourself, no home will have everything you are looking for. However, you can find a home with most of the things you want and all of what you need if you are able to be a little bit flexible and realistic about your deal breakers. You should have a list of your must-have items that you cannot do without, such as needing a second bathroom or a third bedroom for a growing family. Your list of must-have items, or needs, should be things you cannot change; flooring and paint color should never be on this list.
Once you have your list of needs and your budget, you can connect with me and begin the pre-approval process (more information on that below). I can also help to connect you with a real estate agent to begin your search.

Remember, whether it is your first or fourth house, home-hunting can be a process. Be prepared to revisit your list and homes several times to find the right fit. It is out there! As long as you stay within your budget, you will not only build equity in your new home but you will have a solid financial foundation to continue growing from.

Toni Tosti & The DLC Team

To contact Toni:

Cell: 289-213-8547

Email: tonitosti@dominionlending.ca

 

Summer Business Outlook Survey by Dr. Sherry Cooper

Latest News Toni Tosti 6 Jul

 

Summer Business Outlook Survey shows business sentiment is strongly negative in all regions and sectors due to pandemic.

Canadian Business Sentiment Is Negative 

The Bank of Canada released its Summer Business Outlook Survey (BOS)* this morning, covering an interview period from mid-May to early June. In all provinces and all sectors, the sentiment was hugely negative owing to the impact of the pandemic and falling oil prices. 

Since the previous survey, conducted before concerns about COVID-19 has intensified, but as oil prices had already started to fall, business confidence plunged. Surprisingly, however, the business sentiment was not as negative as during the 2007-09 global financial crisis (see Chart 1 below). This was mainly due to the government support offered to cushion the blow of the pandemic. Also, many firms expect a reasonably quick rebound in operations after a temporary decline in sales, unlike the 2007–09 crisis when businesses anticipated persistent weakness in demand.

Highlights of the BOS:

  • Forward-looking sales indicators have collapsed. Many businesses referred to elevated uncertainty. Still, roughly half of firms anticipate that their sales will recover to pre-pandemic levels within the next year.
  • Businesses in most regions and sectors intend to cut their investment spending significantly. Hiring plans are muted, although a quarter of firms plan to refill some positions after recent layoffs.
  • Reports of capacity pressures and labour shortages have fallen significantly. This suggests a substantial widening in economic slack.
  • Expectations for input and output price growth, as well as for overall inflation, are all down considerably.
  • Credit conditions have tightened significantly, but government measures are a helpful offset.
_______________________________
*The Business Outlook Survey summarizes interviews conducted by the Bank’s regional offices with the senior management of about 100 firms selected in accordance with the composition of the gross domestic product of Canada’s business sector. This survey was conducted by phone and video conference from May 12 to June 5, 2020.
BoC Consumer Expectations Survey–Q2 2020

This survey was conducted from May 11 to June 1, in the throws of the ongoing pandemic. Of most concern to consumers was the prospect of losing their jobs. Many believed finding another job would be difficult. As well, consumer expectations for wage growth declined significantly.

According to the survey, consumer expectations for interest rates have fallen sharply, although they expect rates to rise over the 1-year to 5-year horizon, albeit moderately. At the same time, expectations for average house price growth have dropped to zero for Canada as a whole. For Ontario, respondents expect the average home price to rise by 1% over the next year. In BC, people see home prices falling a moderate -0.30%, with Albertan respondents suggesting a price decline of -4.3% (see the chart below). It is important to note that oil prices have risen considerably since the completion of this survey. All of these forecasts are well below the figures in the Q1 study.

It is noteworthy that all of these expectations are well below the CMHC forecast for the national average home price to fall 9%-to-18% over the coming year. 
 By Dr. Sherry Cooper-Chief Economist at Dominion Lending Centres

5 Tips to Stay Cool & Save This Summer

General Toni Tosti 4 Jul

Summer is just around the corner and doesn’t stick around for long, so make sure you enjoy it! We have some great tips for staying cool AND saving money while you do.

  1. Use portable and ceiling fans – Instead of cranking the A/C (and your electricity bill) consider cooling down with portable and ceiling fans. not only are these great options if your A/C unit is on the brink, but they can help ease the stress on your unit when used together or help eliminate the need for it all together. Portable fans work by creating a breeze, helping to circulate the air and causing a wind-chill effect that hits your skin and helps keep you cool. For an extra blast of coolness, place a bowl of ice in front of the fan to create a refreshing mist of air!
  2. Avoid Cooking On The Stove – While cooking indoors can be a great way to warm up the house in the winter, it will create unnecessary heat in the summertime. Instead, consider cold meals such as salads or breaking out the BBQ for grilled chicken or steaks.
  3. Keep the curtains drawn – As nice as it is to let the sun in, this can increase the heat in your house and cause extra stress on your A/C unit and fans. Instead, keep the curtains drawn (at least on very hot days) to help your home stay cool.
  4. Maintain the air filters – As always, the change of the season is a good time to check the air filters in your home. Dirty filters slow airflow and make the system work harder, which can lead to expensive repairs down the road. Replacing your air filters every three months is ideal to keep dirt and dust out of your system.
  5. Swap to Energy Efficient Lighting – You have probably heard some of the reasons why LED lights have become so popular, but did you know that they also produce 75 percent less heat than incandescent bulbs, and can help keep room temperature down? This can help reduce monthly bills and keep your home more comfortable during the summer season.

Have a great summer!

Toni Tosti and the DLC team