Portfolio diversification is a way to spread risk

Examples of safe investment instruments are money market funds and savings accounts. High-risk appetite investors can choose from different investment options such as junk bonds, high-yield bonds, non-convertible debentures, and others. Other high-risk instruments include commodities, futures and options, and stocks. Different factors determine investment decisions, including cash flows, financial incentives, and risk profile. Investors consider different factors such as legal and safety risks, objectives, and financial performance. Taxes and whether there are enough options available also play an important role. Contracts for difference include provisions regarding the difference between the sales and original price of an asset. With these in mind, there is a large number of instruments for prudent and aggressive investors. Municipal bonds, stocks, and real estate are examples of investment instruments. Other products investors are interested in include precious metals, managed and hedge funds, collectibles and valuable items, and so on. Portfolio diversification is a way to spread risk among different types of assets and thus reduce potential losses. Businesses and individuals can choose from low-risk investment products and check the differences between futures swaps and options.

It may come as a surprise, but bank accounts are considered risky because the rate of interest is lower than inflation. Some people invest in esoteric assets and risky instruments such as structured products. While structured products are risky, some investors use them to diversify their portfolios, adding derivatives such as options and futures. Some investment vehicles like venture capital trusts buy shares of small companies and start-ups. Venture capital trusts attract investors because they offer tax-free dividends and tax relief. Many governments provide tax rebates to entities that invest in early-growth businesses. Finance experts recommend that prudent investors maintain a balanced portfolio that includes safe investment instruments such as bonds and certificates of deposit. Safe instruments help avoid undue risk and include products such as treasury bonds, treasury bills, and money market accounts.

Low-risk investors often opt for government issued securities such as bills, notes, and bonds. There are a number of financial derivatives for investors to consider, including mortgage-backed securities, asset-backed commercial paper, futures contracts such as commodities futures, and others. The main problem with derivatives is that it is difficult and even impossible to predict their future value. Governments, companies, and other entities offer different types of investment products that earn interest or pay dividends (e.g. bonds and shares. Depending on their risk tolerance, investors can choose from instruments such as hedge funds, government bonds, and others. There are many high- and low-risk investments, including complicated types of securities, life policies, unit trusts, and others.

How a Self-employed Person Can Get Preapproved

Depending on the applicant’s circumstances, banks may also require bankruptcy discharge papers, copies of leases, maintenance agreements, and others. Self-employed persons can get preapproved, but they must meet additional requirements and get insurance from CMHC. Canadian banks take different factors into consideration, including debt-to-income ratio, payment history, income level, and others. Borrowers with a poor history are not likely candidates or they will be offered less favorable conditions. They may get a higher interest rate. 


Businesses and self-employed individuals may have to present their income tax returns, current balance sheets, and others. Applicants may want to include information such as homeowner’s insurance, employment and residential history, income verification documents, and others. Other information to supply includes loan balances, number of loans, lines of credit and credit cards, and monthly payments. Businesses that own land, machinery and equipment, and plants and receive rent should supply information about their income.

The amount owed, types of loans, and other factors play an important role. Factors such as regular payments and length of credit history are taken into consideration and affect the credit score. The location, cost, and history of the property also pay a role

The applicant may qualify for bridge financing, equity mortgage, or conventional mortgage, depending on the bank. There are different loans to consider, including first-time homebuyer loans, tracker and fixed rate products, and others. The outcome of the application process depends on the type of mortgage and funds in hand.

The amount of paperwork and documents to present depend on the financial institution. Applicants should present information such as tax, investment, and bank documents, paycheck stubs, etc. Some banks require that applicants present information such as recent tax returns, their investment accounts, and more. Applicants for a mortgage loan should present information about different sources of employment and investment income. There are different sources of income, and some of them are taxable while others are not. It is advisable to include different sources of income that prove one’s ability to make regular payments. Some examples include income from barters, interest and dividends, canceled debt, and pensions. Other sources of income include some types of insurance policies, inheritances, gifts, compensatory damages, and others.

Banks require information about the applicant’s legal sources of income, including taxable and tax-free. If unsure whether to include some source of income (for example, fellowships or scholarships), it is best to ask your bank of choice.

CreditCardReview.ca Launches a FAQ Video to Help Customers Master the ABCs of Credit Cards

A new credit card FAQ video by CreditCardReview.ca helps customers to choose a card and keep track of their credit expenditure.

 (PRWEB) January 28, 2014
A new credit card FAQ video (http://www.creditcardreview.ca/) was released today to help visitors to choose the right credit card and rack up rewards.

The video was created by the content and video development team at CreditCardReview.ca to offer answers to some frequently asked questions and help customers to pick a card that best suits their shopping and travel needs. Being a valuable addition to CreditCardReview.ca, which presents in-depth reviews of popular credit cards, the new video offers a lot of information in an engaging way, saving users valuable time and helping them become information-rich and educated customers. The ultimate goal is to make credit card decision making easier.

“The goal of CreditCardReview.ca has always been empowering Canadian consumers, by giving them the right tools and information so that they can choose a credit card that meets their needs. Our new credit card FAQ video will hopefully save many hours of research and substantially improve the credit card shopping experience of our users,” said John Williams, marketing consultant at CreditCardReview.ca.

Customers are involved in different financial transactions on a daily basis and even the choice of a credit card requires an educated decision. The new FAQ video presents different types of credit cards that feature perks such as cashback, bonus points and rewards programs, car and travel insurance, and many others.

Today, consumers are faced with important but complex decisions, from managing credit card debt to buying a home and saving for retirement. Credit card literacy affects financial behaviour and helps customers to make good decisions. The problem is that many people use credit cards to fund a lifestyle that is beyond their means and pile excessive debt. It is difficult to balance a large debt load without the skills and knowledge necessary to make educated decisions. Credit cards offer many beneficial features and make shopping easier if used responsibly and within boundaries. Yet, many accounts go into arrears each year, showing that consumers lack basic credit card skills. The new FAQ video is designed to simplify decision making, help customers to pick a credit card that suits their needs, and avoid the debt trap. Given that the financial markets offer a wide array of financial services and products, it is important to gain basic knowledge of finance and credit cards.

About CreditCardReview.ca: CreditCardReview.ca is a Canadian credit card directory offering information on the major banks and credit cards in Canada, along with many useful credit card related articles and guides.

CanadaBanks.net Launches a New Calculator to Keep Pace with Rapidly Changing Mortgage Markets

CanadaBanks.net offers a new mortgage calculator for home buyers who are looking for promising products and affordable financing.

(PRWEB) December 12, 2013

A new mortgage calculator (http://www.canadabanks.net/Mortgage-Calculator.aspx) was released today to help home buyers to make prudent purchasing decisions.
The calculator was created by the content development team at CanadaBanks.net and tested internally and by a group of external users. The goal is to help visitors understand the real cost of mortgage financing. In tough economic times, with the global financial crisis still lingering, housing, credit, and financial choices are more costly. Planning ahead and making use of a range of possible tools helps home buyers to avoid high interest rates. The new calculator allows visitors to play with various scenarios – different repayment and amortization schedules, terms, and interest rates – to increase their chances of gaining access to affordable home ownership.
“With Canadian real estate values reaching dangerous levels, controlling mortgage costs should be priority number one for Canadian home buyers. Our mortgage calculator is a tool that can help Canadians to understand the real costs of mortgage loans and make an informed decision when borrowing to buy a home,” said John Williams, marketing consultant at CanadaBanks.net.
The new calculator was created to help visitors explore their options and access affordable financing, including low-income families, rural residents, persons belonging to ethnic and racial minorities, baby boomers, and other underserved populations. Many financial institutions focus on active markets at the expense of moribund housing markets. This explains why they tend to serve communities and areas that are considered more lucrative. Given the unequal access to mortgage loans and the differences in terms and interest rates, making a wise purchasing decision is of utmost importance. The calculator uses the mortgage term in years, the annual interest rate, the amount of down payment, and the property price to calculate the monthly payments. Many people are unaware of the real cost of home ownership which makes budgeting more difficult. In times of changing home buyer profiles, rapidly shifting markets, decreased economic security, and wide array of products available, financial literacy and the use of convenient tools help borrowers to take advantage of interesting opportunities and attractive financial and housing options.
About CanadaBanks.net: Canadabanks.net is an informational resource, focused on the Canadian banking industry.
For the original version on PRWeb visit: http://www.prweb.com/releases/CanadaBanks_net/mortgage_calculator/prweb11415534.htm

CreditCardReview.ca Launches a New Credit Card Guide to Save Big and Stay Debt-free

CreditCardReview.ca offers a new credit card section to help visitors to maximize rewards and earn free money.

(PRWEB) December 11, 2013

The new rewards credit card guide (http://www.creditcardreview.ca/creditcard-1-2-2-2-2-2-2-2/) went live today to present in-depth reviews of popular cards and rewards programs offered by Canadian banks.    

The guide was created by the content development team at CreditCardReview.ca and offers comparisons of rewards credit cards. Developed in response to visitors’ requests, the guide shows customers that using a credit card can result in substantial savings. Holders earn bonus points on various categories of purchases, including gas, restaurant meals, and others.
“We believe that we created the most comprehensive Canadian rewards credit card guide offering in-depth reviews of over 80 rewards cards,” said John Williams, marketing consultant at CreditCardReview.ca.

The new section features detailed reviews of 84 rewards credit cards by MasterCard, Visa, and AMEX, offered by major Canadian banks. Visitors of CreditCardReview.ca can do easy comparisons to save on charges, maximize rewards, and take full advantage of the promos. Rewards credit cards feature sign-up bonuses, complementary upgrades, hotel points, and other perks and benefits. International and domestic travelers earn rewards and are offered the chance to score some low-cost or free flights. Cardholders benefit from high-end perks, generous bonuses, and no-expiration policies. At the same time, choosing the right credit card can be a challenge given the wide variety of products available. Some products come with inactivity penalties, sign-up requirements, and point caps. Another problem is that bonus miles and rewards points are often devalued due to inflation. Complimentary bonuses and rewards also require heavy spending. What is more, some credit card issuers penalize holders for inactivity meaning that they lose the bonus points they’ve collected so far. Unlike them, there are rewards credit cards that save money, offer rewards, and smooth consumption. To choose the right product, however, it is important to consider the costs along with the perks and benefits. The new section of CreditCardReview.ca offers detailed descriptions and comparisons of direct costs such as annual fees and interest charges. The goal is to help visitors to learn about spending requirements, redemption rules, bonus categories, and other features of rewards credit cards.

About CreditCardReview.ca: CreditCardReview.ca is a Canadian credit card directory offering information on the major banks and credit cards in Canada, along with many useful credit card related articles and guides.

For the original version on PRWeb visit: http://www.prweb.com/releases/CreditCardReview_ca/rewards_credit_cards/prweb11410378.htm

Mortgage Loan Costs

The principal and interest charges are only part of the payments that borrowers make. The closing costs vary and include fees such as re-conveyance, title policy, processing, and others. The loan origination fee, for example, varies depending on the state or province of residence and can be as high as 2 percent of the total amount. It is also called processing, administrative, and underwriting fee.

Lenders charge inspection, application, escrow, and other fees. An appraisal is necessary to determine the value of the property, which varies in buyer’s and seller’s markets. Different factors play a role in appraisals, including overpricing, too many short sales and foreclosures in the area, and fewer home buyers on the market.

Finance companies include different charges in the closing costs, including statement and release fees and discount points. Points are basically prepaid interest charges that help reduce the rate of interest. Discount points are known as loan discount, premium fees, and origination fees and are offered to borrowers who apply for certain types of loans. Applicants who seek funds for home improvement projects, remodeling, improvements, and construction works qualify for discount points. Those who want to buy a vacation or second home are unlikely candidates, especially if they plan to charge a rent. Beneficiary demands are associated with the status of the loan, and borrowers who apply for a second mortgage or home equity loan are asked to submit a statement. There are associated fees to pay, including late fees, recording and statement fees, and other charges, if applicable. The demand is usually valid for a period of one month. The document contains details such as phone number and address of the financial institution, the outstanding balance, etc.

There are different ways to calculate the closing costs by adding the property taxes and charges associated with the loan. Borrowers can use online calculators for this purpose or to check whether they can save on other charges. Charges to include are endorsement and re-conveyance fees, title insurance, and others. The user can add other fees as well, including title document prep fees, transfer taxes, and government recording charges. Some lenders also pull the borrower’s credit report and add the associated charges. These fees are considered miscellaneous, and many borrowers think that the interest rate is the most important factor. The interest rate varies but as a rule, credit unions offer more favorable rates. Generally, there are three types of mortgages – variable rate, fixed rate, and hybrid loans. There are different types of interest rates, including capped, fixed, and discounted. Some borrowers opt for a discounted interest rate while others for cash back deals and fixed rates. Ask whether the mortgage comes with insurance because banks keep extending and updating the range of products they offer. Online calculators help determine the closing costs as well as the right type of mortgage product.

Bank Accounds for Kids

Bank customers can choose from different types of checking, savings, and special accounts. Some banks offer all types while others have only checking and savings accounts on offer. Savings accounts are offered to individual customers and are good for adults, children, and teenagers. There are minimum requirements such as residence and to be of the age of majority. For an individual account, customers should fill in an application form and present an ID such as a passport or driver’s license. Financial institutions are also interested in the source of funds, whether in the form of superannuation payments, government benefits, rental or investment income, savings, salary, etc. Some banks ask about the types of expected activities, for example, money transfers, clearing checks, check credits, withdrawals and deposits, and others. If applying for a joint account, both applicants should fill in the application form. Holders are allowed to deposit and withdraw money up to a certain limit. The main drawback is the low interest rate compared to certificates of deposit and money market accounts. Only checking accounts have a lower interest rate than savings ones. Some customers opt for a basic checking account that allows them to make monthly payments towards loan and mortgage balances. There are many benefits to opening a basic account, and one is that holders enjoy low-cost money transfers and check cashing. There are different types of products, and one example is Swiss bank accounts. The drawback is that this product earns no or little interest, i.e. it is not an option for people who are looking for safe ways to invest.

Banks also offer money market accounts that come with a fixed interest rate and minimum balance requirements. Customers can make a limited number of withdrawals. The range of minimum deposit also varies of $5,000 - $10,000. Banks advertise competitive interest rates, but there are transaction limits. Time deposits or CDs are another option for customers who agree to keep their savings in an account until maturity. The term varies from 1 month to 10 years, and a longer term means a higher interest rate.  There are also health savings accounts that allow deposits but have contribution limits. In addition to checking and savings accounts, there are investment instruments such as commodities, cash, bonds, mutual funds, and others. Some investment instruments are risky (Forex trading) while others are safe to use.

A cash reserve or overdraft protection account is a solution for those who want to play safe. There are many beneficial features such as telephone and online banking and an unlimited number of transfers between different accounts. Customers enjoy high interest rates on deposits of $10,000 and more. One of the main benefits is that there are no monthly service fees. Finally, there are individual retirement accounts that allow holders to earmark funds and earn pre-tax income. Holders can place assets such as funds, bonds, stocks, and other assets. The contribution limit may be higher for holders over the age of 50. 

Reference:

YourLoan.ca

TD Bank