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Budgeting for Back to School

September 9, 2020 By Samantha 3 Comments

The global pandemic has already transformed schooling in Canada and around the world. Boards, teachers, children, and parents prepare for a different school year during which they either stay home or attend classes every other day. Budgeting for back to school has also become important as many parents face financial hardship and challenging times ahead.

How Spending Patterns Have Changed

It does not come as a surprise that Canadian parents spend less on back-to-school supplies this year. A survey by the Retail Council of Canada shows that the percentage of shoppers who spent more than $0 dropped across different categories in 2020 – 81 percent for supplies compared to 86 percent in 2019, 69 percent for apparel compared to 78 percent, and 33 percent for books and movies, down from 35 percent. According to Suzan Krecsy, executive director of the St. Albert Food Bank, parents need about $1,000 to prepare kids for the new school year which is a lot of money for those who are unemployed or have low incomes.

Save Money on Back-to-School Supplies

A new Deloitte survey asked parents how much they would spend on supplies and other items that kids need in grade K-12 this year. On average, parents said that they would spend $316 on online subscriptions and electronic gadgets, $395 on hardware and computers, $216 on clothing and apparel, and $102 on supplies. This is a lot of money. On top of this, parents are stocking on wide-mouth water bottles, facemasks, hand sanitizers, and other items they would have never thought of buying before the pandemic.

Obviously, supplies can be expensive when all purchases add up, from new uniforms and clothes to pencils, erasers, highlighters, and index cards. Shopping out of season is one way to save money as once the new school year starts, retail stores discount all the folders, notebooks, pencil sharpeners, and markers.

To save money on back-to-school supplies, it also pays to shop around, check flyers, use coupons, and make a list of stores to visit and benefit from the best deals they have on offer. Sales are also posted daily online.

If your children need big-ticket items such as a laptop or tablet to do their homework, it also pays to ask the principal if they have a budget for this or electronics that you can borrow. If this is not the case, visit stores that advertise educational discounts or offer refurbished devices.

 Include Your Kids in Back to School Budget Planning

Ask your children to go through what they have from last year as some items can be reused, whether markers, erasers, or pencil cases. Sit together and make a list of all the items they will need, depending on age and grade. In kindergarten, for example, your kids will need things like glue sticks, colored pencils, crayons, and assorted construction paper. Children in grades 1 – 3 use index cards, rulers, pencil grips, pencils, and washable markers. The list is quite long for students in high school and middle school. They need graph paper, loose-leaf paper, highlighters, plastic folders, book socks, etc. Go through all the items that you have at home to find out if they can be reused. If you have children in different grades, you probably have plenty of stuff that younger kids can reuse.

Asking children what they find important can also save a lot of money. They might be more than happy to reuse their backpack or lunch box from last year. This is also a good way to teach them how to budget and handle money. Learning about budgeting, spending, and saving early in life helps children to make informed financial decisions later on. They have the skills for successful financial interactions.

Teach Kids to Manage Finances

Involving children in back-to-school shopping is also a good way to teach them how to manage personal finances. Many Canadians lost their jobs and live with uncertainty but this is not the main lesson that you want to teach your children. Making responsible choices and spending decisions is the lesson that you would like to stick with school-aged children. This is also a way to encourage kids to distinguish between wants and needs.

Teaching children to manage finances also helps them to learn how to delay gratification and wait to buy the things they want. In fact, this concept is difficult not only for kids but for grown-ups of all ages. It pays to start early, and back-to-school shopping definitely helps parents teach kids important money lessons. When going to the store together, only pick things that you have on your list. This helps children learn not to buy things for the sake of buying which is basically splurging. When going to a store to buy a gift for someone, tell your kids that you are not there to buy things that they just spotted but only that gift.

Other ways to teach children about finances are to ask them to set goals, create sharing, spending, and saving jars, and involve children in money decisions and your family budget. Always tell them how much you have for leisure activities and entertainment, be it board games, toys, movies, or anything else. You can also try to come up with a family goal that they like and keep track of how close you are to achieving this goal. You may want to create a progress chart and ask kids to color in so that you can all check where you stand.

Save for Your Child’s Postsecondary Education

Budgeting for back to school also helps save for university or college, provided that you plan to fund your child’s postsecondary education. Unless you run a successful business or are really well paid, you have to give up on something, be it your retirement savings or things that are not worth splurging on. Saving on supplies can also help fund college education, especially if done on a year-to-year basis. To this, it is a good idea to create a back to school budget and compare what you spend and save each year. The first step is to list all essential items and decide what you can buy later and what is a must. You can buy non-essential items when you find good deals /for example, off season/. Next, you should check how much money you have. Add up your monthly income and expenses such as utility bills, rent, grocery shopping, loan and credit card balances, etc. Look at how much you have left after you deduct all expenses and compare this figure to the total cost of school supplies on your list. This will show you whether you might have to put any items on your credit card. If so, go through your shopping list once again to decide which items are must-haves. If you need extra money to buy back-to-school supplies, this shows that you might have to start saving for next year early on.

Choosing a Credit Card That Is Right for You

July 3, 2020 By Samantha Leave a Comment

Most people who apply for a credit card use it for a long time, whether to pay for small purchases or big-ticket items. Some customers never switch between issuers while others use their card for years, making the choice of a provider and product an important one. When comparison shopping, the most important factors include your spending habits, credit history, whether you tend to carry a balance, and if you are going to use it to pay personal or business expenses.

Spending Habits

If you usually pay your balance in full and want to collect loyalty or rewards points, then a rewards or cashback card is a good choice. Many issuers offer bonus points across categories such as business-related spending, dining, grocery shopping, gas, and travel purchases. If you are travelling a lot for work or leisure, for example, you may want to look into different travel rewards cards. Scotiabank PassportTM Visa Infinite, for instance, offers users 2 points per $1 on transit, entertainment, dining, and groceries and 1 point per $1 on all other purchases. Spending $1,000 during the first three months earns 30,000 travel rewards points worth $300. Added benefits include car rental discounts, no foreign transaction fees, and complimentary lounge access.

If this is your first card, a cashback credit card is a better option as money back offers are easier to understand than airmile, hotel, and travel rewards. The BMO Cashback MasterCard is one product to look into if groceries make a large chunk of your spending. BMO offers 3 percent back on groceries, 1 percent on utility bills, and 0.5 percent on other eligible purchases. The TD Cash Back Visa Infinite is another good card for household spending if you have a personal income of $60,000 or higher. All purchases earn 10 percent back during the first 3 months and 1 percent after the introductory period. Added perks include concierge service, travel medical insurance, and emergency road services.

Bad Credit

If you wish to improve your credit, then you may want to choose a secure credit card. Refresh Secured Card is one option to consider as it comes with a low deposit of just $200 and an annual fee of $48. All payments are reported to the major credit bureaus to help customers improve their score provided that they make timely payments. The Home Trust Secured Visa is another card for persons with poor and bad credit, and the best part is that they don’t have minimum income requirements. It works just like a regular card, with payments reported to both TransUnion and Equifax. Customers are free to choose between low interest or no annual fee and a limit of up to $10,000.

Low Interest

If you only pay the minimum and want to save on interest charges, then choosing a low interest card is a smart move. MBNA True Line comes with the lowest rate by far – just 8.99 percent on access cheques, balance transfers, and regular purchases. Not only this, but MBNA offers trip assistance, emergency services, car rental discounts, and zero interest rate on balance transfers that are made during the first 10 months. Desjardins Modulo Visa also comes with a low rate of 10.9 percent, rewards scheme, travel insurance, and insurance for tablets, smartphones, and mobile phones. All purchases earn 1 percent, and rewards can be redeemed for travel, show tickets, and gift cards and rewards such as small and major appliances, pet accessories, robotics, drones, and toys, and more. Points can also be exchanged for savings products, insurance, service fees, TFSA, RESP, and RRSP, and other financial products.

Students

If you are enrolled in college or university, then applying for a student credit card is a smart move. This is a good way to build your credit history provided that you make regular payments. Some issuers also offer cash back and rewards that help cover food, textbooks, and bills. A good starter card would be the Scotiabank Scene Visa as it comes with no annual fee, discounts on car rentals, and supplementary cards. The best part is that customers earn 5 bonus points per dollar spent at Cineplex.com and Cineplex theatres. The Scotiabank Scene Visa won the CreditcardGenius People’s Choice award in 2020 and is ideal for students with no credit history.

Balance Transfers

This is a good choice for borrowers with high interest credit cards so that they benefit from low promotional rates. Some issuers also offer to wave fees on balance transfers and feature cashback and rewards schemes. Others offer products with low introductory and standard purchase rates, the BMO® Preferred Rate MasterCard® being one example. Customers benefit from a low introductory rate of 3.99 percent and a standard rate of just 12.99 percent on purchases and cash advances. Users who have a Performance Plan with their checking account are also offered a $20 annual fee rebate. Another card with low intro and standard rates is the MBNA True Line® Gold Mastercard, featuring a zero balance transfer rate over a period of 6 months. The standard purchase rate is just 8.99 percent. Up to 9 users can be added free of charge. MBNA also offers emergency services, trip assistance, and Budget and Avis car rental discounts. Some balance transfer cards also offer money back, rewards points, insurance coverage, and other incentives. The Tangerine World Mastercard® comes with a low promotional rate of 1.95 percent, mobile device insurance, and 2 percent money back. Customers can choose 2 categories to get money back, and featured categories include public transportation and parking, entertainment, recurring bill payments, restaurants, and furniture.

Business Owners

If you run a business, you may want to get a business card to build credit for your company. The main benefits for customers include simple expense management, larger credit limits, and control over employee spending. The choice of a card depends on whether you travel often, wish to save on interest charges or annual fees, or are looking for a comprehensive insurance package. The card that offers the largest welcome bonus by far is the Marriott Bonvoy Business American Express® Card. Holders are offered 50,000 welcome rewards points worth 3 hotel nights and 3 points per dollar on travel, dining, and gas purchases. Points can be redeemed toward nights at luxury hotels such as Westin, Sheraton, Four Points, and The Luxury Collection. Holders can also redeem points for pro golf clinics, backstage concert passes, meet and greets with famous athletes and artists, and airfare. Another card that offers a generous welcome bonus of 42,000 rewards points is the American Express Business Edge Card. Customers earn 3X points on business-related purchases such as gas, rides, electronics, and office supplies. The fact that American Express offers comprehensive purchase, travel, and business insurance is an added benefit. The coverage includes a buyer’s assistance protection plan, car rental damage and theft insurance, and employee card misuse protection. Added incentives for members are special experiences and offers and front of the line e-updates, reserved tickets, and advance access.

Top 12 Best Credit Cards in Canada for 2020

February 27, 2020 By Samantha 23 Comments

This post has been updated on February 27th, 2020 with our most recent reviews and rankings of popular credit cards offered to Canadian consumers.

The best credit cards offered by Canadian finance companies, unions, and banks feature money back, airmiles and bonus points, comprehensive insurance coverage, no or low foreign transaction fees, and plenty more.

Credit CardInterest RateAnnual FeeType
1. Scotia Momentum Visa Infinite20.99 %$120Cashback Credit Card
2.SimplyCash American Express19.99 %No annual feeCashback Credit Card
3.Tangerine Money-Back Credit Card19.95%No annual feeCashback Credit Card
4.Scotiabank Gold American Express19.99 %$120Travel Credit Card
5.BMO World Elite MasterCard19.99 %$150Travel Credit Card
6.Home Trust Preferred Visa19.99 %No annual feeNo Foreign Transaction Fees
7.Rogers Platinum MasterCard19.99 %No annual feeNo Foreign Transaction Fees
8.Scotiabank Platinum American Express19.99 %$399.00Insurance Coverage
9.BMO Cashback World Elite MasterCard19.99 %$120Insurance Coverage
10.Scotiabank L’earn Visa Card19.99 %No annual feeStudent Credit Card
11.Scotiabank Scene Visa Card19.99 %No annual feeStudent Credit Card
12.Refresh Financial Secured Card17.99 %$48.95Secured Card

Best Canadian Cashback Credit Cards

There are credit cards that feature extra cash back during the promotional period as well as no annual fee, generous welcome bonuses, and no categories or limits.

1. Scotia Momentum® Visa Infinite Card

Offered by the Bank of Nova Scotia, the Scotia Momentum Visa Infinite Card, for example, goes with 4 percent cash back on groceries and gas. The card also features concierge service, travel accident insurance, flight delay insurance, car rental discounts, and a lot more. Optional protection is also offered in case of critical illness, lockout, strike, job loss, or disability. Customers with no credit history are welcome to apply.  However, there is a minimum income requirement of $60,000 a year. Supplementary cards are available to earn more cash back.

There are plenty of added benefits for holders. They are offered discounts on wine, vineyard tours, wine tastings, access to exclusive and premier events, hotel room upgrades, and more.

  • New Offer: Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). A welcome offer value of $350*.
  • Purchase interest rate: 20.99 percent
  • Balance transfer and cash advance rate: 22.99 percent
  • Annual fee: *$120 waived for the first year, including on supplementary cards. For accounts opened by November 1, 2020
  • Credit limit: $5,000 or higher

2. SimplyCashTM American Express

The SimplyCash American Express Card is also a great choice to earn cash rewards and goes with supplementary cards, no annual fee, and entertainment and travel benefits. Customers earn 5 percent  back during the 6-month promotional period and 1.25 percent back afterwards. Additional benefits include car rental theft and damage coverage, promotional balance transfer rate, shopping discounts, weekend gateway deals, and access to exclusive events such as theater performances and concerts.

  • Funds advance rate: 22.99 percent
  • Purchase rate: 19.99 percent
  • Annual Fee: No

3. Tangerine Money-Back Credit Card

Another option to look into, the Tangerine Money-Back Credit Card goes with no annual fee, 0.5 back on regular purchases, and 2 percent back on select purchases (categories of your choice). Customers earn unlimited rewards and can either redeem them into their savings accounts or add them to their card balance.

Best Travel Credit Cards

Canadian travel rewards cards feature travel benefits and opportunities, rewards programs, welcome bonuses, double or extra points on travel expenses and gas, and so on. Some cards feature deals and saving opportunities as well as VIP lounge access, travel upgrades, free baggage, and airfare discounts. There are added incentives such as access to luxury airport lounges, car rental and hotel discounts, and comprehensive insurance, including car rental collision, flight delay, and trip delay. Most issuers advertise cards with no blackout dates and other restrictions and limitations.

4. Scotiabank® Gold American Express®

The Scotiabank Gold American Express Card is the perfect choice for customers with no credit history and for newcomers to Canada. The card features add-ons and perks such as special offers, access to airport lounges, concierge service, and travel insurance. Concierge services cover things like show and concert ticket reservations, restaurant reservations, and more. The comprehensive insurance coverage includes lost and delayed baggage, flight delay, trip cancellation, travel accident insurance, etc. The best part is that there are no travel restrictions, and points can be redeemed at any time.

  • New Offer: Earn 20,000 bonus Scotia Rewards points with your first $1,000 in everyday purchases in first 3 months. (For accounts opened by March 1, 2020)
  • Balance transfer rate: 22.99 percent
  • Cash advance rate: 22.99 percent
  • Purchase rate: 19.99 percent
  • Annual fee: $120

5. BMO® World EliteTM MasterCard®

Offered by the Bank of Montreal, the BMO World Elite MasterCard is also a great choice to earn rewards points and take advantage of a host of added benefits. The list of perks includes complimentary lounge access, medical and travel coverage, roadside assistance, and a generous welcome bonus of 35,000 points on purchases over $3,000 during the first 3-month period. Holders earn 2 points on all purchases and 3 points on entertainment and restaurant and travel purchases.

  • Annual fee: $150
  • Purchase rate: 19.99 percent
  • Cash advance rate: 22.99 percent

Best Credit Card with Low/No Foreign Transaction Fees

No foreign transaction fee cards come handy when making purchases abroad or overseas. This is because conversion and foreign transaction fees hike up your card bill. Banks and finance companies offer cards with added incentives such as travel points, complimentary one-time bonuses, no annual fee, money back, and complimentary travel insurance. Some cards also feature cash statement credit, roadside assistance, cash sign-up bonuses, and supplementary cards. There are plenty of perks to look into, including discounts on hotel bookings, extended travel insurance, travel enhancement credit, and a lot more.

6. Home Trust Preferred Visa

The Home Trust Preferred Visa card is one option to consider to avoid foreign transaction fees. In addition to no conversion surcharges, the card goes with guaranteed hotel bookings, complimentary roadside assistance, 1 percent money back, and auto rental loss and collision coverage. There are no cashback limits and restrictions and no annual fee. Emergency cash is also available for peace of mind and so is emergency card replacement. To apply for the Home Trust Preferred Visa customers are asked to provide details such as address and name of current employer, annual income, previous address, etc.

  • Cash advance rate: 19.99 percent
  • Purchase rate: 19.99 percent
  • Grace period: 21 days or more

7. RogersTM Platinum MasterCard®

Another great card with a low foreign transaction fee, the Rogers Platinum MasterCard is offered by the Rogers Bank and goes with a complimentary bonus, money back rewards, and an annual fee waiver. Cash back can be redeemed at different locations, including Fido and Rogers as well as for merchandise, tickets, subscriptions, and more. Points can be redeemed for pre-payed services as well (like Chatr). The Pay with Rewards app by Rogers is a convenient way to redeem money back rewards.

  • Foreign transaction fee: 2.5 percent of the amount/
  • Balance transfer and cash advance rate: 21.5 percent
  • Purchase rate: 19.99 percent
  • Annual fee: none

Best Credit Cards with Insurance Coverage

Insurance credit cards feature comprehensive coverage, including medical, emergency travel, baggage loss, trip cancellation, and other types of coverage. Providers offer a host of added benefits such as free travel, money back, exclusive shopping and travel offers, and no or low annual fees. Customers gain access to tickets for music and theatre performances, fine dining experiences, perks at resorts and luxury hotels, concierge, and more.

8. Scotiabank Platinum American Express®

This credit card by the Bank of Nova Scotia allows users to collect rewards points for select and everyday purchases. They earn 1 point for each dollar on regular purchases and 4 points per dollar on entertainment and dining, grocery purchases, and gas. There are no travel restrictions, and points can be redeemed at anytime and anywhere. The card also goes with a large minimum credit limit of $10,000. Users are offered 7 types of insurance coverage, including trip interruption and cancellation, emergency medical, lost and delayed baggage, flight delay, etc. Added benefits include premium concierge, VIP pass for exclusive events, complimentary lounge, and a lot more. Customers also enjoy access to special events and experiences, including dining, theatre shows, films, music, and shopping.

  • Purchase rate: 19.99 percent
  • Balance transfers/cash advances: 22.99 percent
  • Annual fee: $399.00

9. BMO® Cashback® World Elite® MasterCard®

Also a great card with comprehensive coverage, the BMO Cashback World Elite MasterCard goes with a host of benefits and incentives, including cash back, supplementary cards to earn more. Customers are offered insurance coverage, including extended warranty and purchase protection, collision damage waiver on car rentals, as well as out of country and out of province emergency medical coverage. In addition, holders earn 1.5 percent back on all purchases charged on the card. Cash can be used in the form of credit or held in an investment or savings or checking account. The minimum income requirement is $80,000 for individual cardholders and $150,000 for households.

  • Interest rate on purchases: 19.99 percent
  • Interest rate on cash advances: 22.99 percent
  • Annual fee: $120

Best Student Credit Cards

Many banks in Canada offer student credit cards, including Scotiabank, TD Canada Trust, RBC, and others. Student cards feature multiple benefits such as competitive interest rates, no annual fee, and rewards points. Users earn points on pharmacy and grocery purchases, gas, bills, and more. Some cards offer extra points on entertainment, restaurant, and travel purchases. The best part is that banks have lenient requirements when it comes to credit rating.

10. Scotiabank L’earnTM Visa Card

Scotiabank offers a student Visa that allows customers to build credit with responsible use and timely payments. Applicants with little credit exposure and no credit history qualify and so do newcomers to Canada. The card goes with no annual fee, money back, car rental discounts, and other benefits. Optional protection for unexpected events is available, including death, critical illness, loss of employment, and others. Students also earn cash back at a rate of 1 percent. The minimum credit limit is $500, and the grace or interest-free period is 21 days or longer. Applicants are asked to provide personal and school information such as expected graduation date, start date, and name of college, university, or another institution.

  • Cash advance rate: 22.99 percent
  • Purchase rate: 19.99 percent

11. Scotiabank Scene® Visa Card

Also a great card by the Bank of Nova Scotia, the Scotiabank Scene Visa Card allows customers to earn rewards points on select and regular purchases. Users earn 5 points per dollar at Cineplex, both online and at Cineplex theatres, and 1 point on regular purchases such as clothing, transportation, groceries, meals, and so on. Thus, customers who spend $200 on movies a month will earn a total of 1,000 points. During the first 3 months, the first $500 spent on regular purchases earn a bonus of 2,500 points. Points can be redeemed in different ways – for meals, movies, and more. There is a minimum annual income requirement – $12,000.

  • Annual fee: none
  • Cash advances: 22.99 percent
  • Purchase rate: 19.99 percent

Best Secured Credit Cards and Credit Cards for Bad Credit

Secured cards allow customers with poor and tarnished credit to rebuild their history and rating. This is good news for customers with missed and late payments and a history of delinquencies, foreclosures, and other negative events. Making regular and timely payments over a certain period of time allows borrowers to rebuild credit and apply for loans and cards with beneficial terms. Some secured cards go with higher interest rates, but this is not always the case. The credit limit varies and is usually equal to or lower than the deposit made. The deposit acts as a guarantee of timely payment. This is the reason why customers are approved without credit check. What is more, some providers offer the option to add an authorized user free of charge. Other benefits include Visa and MasterCard benefits, no annual fee, low rate options for authorized and primary cardholders, and more.

12. Refresh Secured Card

This secured Visa by Refresh Financial helps customers to improve their credit score and goes with a competitive interest rate and low annual fee. Virtually everyone gets approved, regardless of their rating. In addition to fast and easy approval, there are added benefits for users, among which free financial education and the opportunity to build savings. The financial intelligence training program offers short educational movies to teach customers how to set financial goals, build personal wealth, save for the future, and use credit cards responsibly. Responsible use is obviously the key to building or rebuilding credit. Wise money management is also essential to stay away from debt in the long run and build a financial safety net. Users also learn how credit works and how to create a personal brand.

  • Interest rate: 17.99 percent
  • Annual fee: $48.95

motusbank – Meridian Credit Union Creates a New National Bank

May 3, 2019 By Samantha 2 Comments

A subsidiary of Meridian Credit Union, Motus Bank features a suite of financial products, including mortgages, personal loans, investment solutions, and savings and checking accounts. As a full-service digital bank, it will soon introduce banking services tailored to the needs of business customers. Motusbank is a Canadian federally chartered bank that opened doors in 2018 and is headquartered in Toronto, Ontario. It is also a member institution of the Canadian Deposit Insurance Corporation.

The idea behind the new bank is to offer customers across Canada the opportunity to access all services and products and to manage accounts online. In fact, virtually everything can be done by phone, mobile app, and online. The new bank is customer-oriented and offers checking and savings accounts with no monthly fees.

Meridian Credit Union

As Canada’s third largest credit union, Meridian offers personal and business financial products and online banking services. Individual customers are offered a selection of checking accounts, including U.S. dollar, senior, electronic, and limitless. Meridian also features youth, advantage, and high-interest savings accounts. There is an array of credit cards to choose from, with cash back, U.S., travel, and Visa benefits. Lines of credit, personal loans, and fixed and variable rate mortgages are also available. Travel insurance and mortgage protection are also offered as well as investment solutions such as registered retirement income funds and tax-free savings accounts. Business customers also benefit from a wealth of financial products, including business U.S. dollar checking and small business checking accounts. In addition to cashback credit cards, customers are offered business lines of credit, loans, and mortgages, and equipment financing and leasing. Meridian also features cash management and investment solutions and business planning assistance.

Competitors

Unlike financial institutions that have shareholders and pay profits, motusbank has members and the main goal is to offer personalized service, competitive rates and pricing, and the option to access all products online, including mortgages, investment solutions, lines of credit, and more.

Why Choose motusbank

This new full-service digital bank features a selection of investment, borrowing, and savings solutions with competitive rates. Given that Motus has no physical branches and associated overhead costs, customers enjoy affordable interest rates on mortgages and personal loans. Another benefit is the fact that decisions on applications for loans, mortgages, and other products are made quickly.

Personal Loans and Other Borrowing Solutions

Personal loans come with low interest rates that can be as low as 5.15 percent, and members can borrow up to $35,000. Secured lines of credit feature even lower interest rates (3.75 percent) to help customers secure financing for major purchases. It is quick and easy to apply, and customers only need to provide their social insurance number and information such as housing and family status and employment type. They are also asked about the amount required and the loan purpose, i.e. vacation, investment, home repairs, debt consolidation, or recreational vehicle, boat, or vehicle purchase. Motusbank also features fixed and variable rate mortgages with affordable interest rates that can be as low as 2.90 percent. 5-year fixed rate mortgages come with an interest rate of 3.09 percent. In comparison, Scotiabank offers an interest rate of 5.34 percent on the same type of mortgage, and the Bank of Montreal offers 3.54 percent. Secured home equity lines of credit also feature a low rate of just 3.75 percent. CIBC, for example, offers a rate of 3.95 percent on secured credit lines.

Savings and Checking Accounts

Motusbank also features a selection of checking and savings accounts, including RRSP, TFSA, and high interest savings accounts. Customers who choose to open high interest savings accounts can enjoy a rate of 2.25 percent. Savings accounts offer multiple benefits such as the option to make unlimited withdrawals and purchases, free-of-charge access to ATMs, no banking fees, no minimum balance requirements, and no monthly account charges. Motusbank also features checking accounts with no monthly fees, and customers enjoy unlimited Interac e-transfers. There are plenty of reasons to choose this type of account over products offered by other banks. The account has no minimum balance requirement and allows for unlimited bill payments and debit purchases. Another benefit is that every dollar earns 0.50 percent interest. Customers are free to make mobile check deposits and are offered 25 checks free of charge. Those who are travelling to the U.S. can access cash through the Cirrus or Accel ATM networks.

Investment Products

Motusbank also features investment solutions such as 5-year RRSP guaranteed investment certificates, 18-month TFSA GICs, and 18-month GICs. The 5-year RRSP GIC, for example, comes with a competitive interest rate of 3.25 percent, which makes it a good addition to a balanced investment portfolio. In comparison, CIBC offers non-redeemable 5-year RRSP GICs with an interest rate of 1.25 percent. Opening an account is quick and easy, and customers are asked to provide details such as personal information, term and length, and renewal option, i.e. reinvest in the same term or payout to the account. The bank features additional benefits such as tax free options, choice of non-registered and registered plans, and a low minimum investment of just $100. Terms vary from 1 month to 5 years.

Online Banking and Features

The online banking platform of motusbank offers convenient features to access and monitor investment accounts and view e-statements. Customers are free to download deposit forms and transactions and filter and sort accounts. Notifications, alerts, and secure messaging are also available. Depositing checks is also quick and easy and can be done from the customer’s phone. There is also an option to set up mobile alerts. The mobile app offers convenient features that allow customers to transfer money, make bill payments, and check account balances, including savings and checking accounts and tax free savings accounts. Mobile Bill Pay is a convenient feature that allows users to make bill payments and access more than 10,000 payees. The app can be used on Android and iOS devices.

The Money Mover service featured by motusbank offers customers the option to transfer large amounts of up to $10,000 daily and is free to use. Money is transferred within 3 business days. Users are also free to set up recurring and future transfers through the mobile app or online. Motusbank also features Interac payments to transfer amounts of up to $3,000 a day, and money is deposited immediately. Customers can make an unlimited number of transactions up to $10,000 a month.

The bank’s contact centre offers assistance to members and can be reached by dialing its international or toll free number. While the bank is fully digital, the fact that it is customer-centric means that the emphasis is on customer service. Motusbank also places an emphasis on safety and security, and all deposits are insured by the Canada Deposit Insurance Corporation.

Finally, the new bank also offers advice and practical information across a host of different topics related to borrowing, investing, and saving. The goal is to help customers learn more about dealing with debt, planning for retirement, preparing financially for a new child, and choosing the best investment solution. Other topics include home improvement loans, choosing between variable and fixed rate mortgages, down payments. The bank also features handy online tools such as mortgage prepayment calculator, savings calculator, retirement planning calculator, and loan and line of credit calculator. These online tools help customers figure out what size of mortgage to apply for, whether their monthly payments are affordable, and other important issues.

Student Loans in Canada – The Ultimate Guide

September 9, 2018 By Samantha 1 Comment

There are plenty of ways to pay for college in Canada, and many young people opt for student loans to pay tuition fees, room and board, textbooks, books and other expenses.

Student Loan in Canada Overview

Who Offers Student Loans

Financing is available from different sources, including the federal and provincial governments as well as private providers such as banks, finance companies, and credit unions. The Government of Canada offers federal loans to students enrolled in designated universities and colleges. The provincial governments also offer funding in the form of grants, bursaries, and loans. The rules and requirements vary by province and territory. Quebec, the Northwest Territories, and Nunavut, for example, have their own funding programs, and federal loans are not available. Depending on the student’s territory or province of residence, when applying for funding, students may be asked to provide information such as their bank account number in Canada, their last year’s income tax return, birth date, social insurance number, spouse or parents’ social insurance numbers, etc. Undergraduates who fail to qualify for federal or provincial assistance often apply for a loan with their local bank or credit union or a major bank such as BMO or RBC. Many financial institutions feature education or student lines of credit with reasonable interest rates to help pay major expenses such as residency and tuition fees. Personal loans are also available to meet college-related expenses and come with either variable or fixed rate. Some banks also offer scholarships based on merit and scholarships for females, indigenous and aboriginal people, children of their employees, and people in special circumstances in general.

Laws and Regulations

A number of regulations and laws govern loan provision, including the Canada Student Financial Assistance Act, Canada Student Loans Act, and others. The Canada Student Loans Regulations, for example, include provisions on applicable interest rates, payment of interest rate and the principal, agreements and alterations, consolidation, reinstatement and continuation, and a lot more.

Federal Government Student Loan Programs

Canada Student Loan Program (CSLP)

Funding under the Canada Student Loan Program is available in most Canadian territories and provinces, including Quebec, Ontario, British Columbia, Nova Scotia, and others. There are certain eligibility criteria to meet, one being financial need. Students qualify for financial assistance provided that they are enrolled part-time or full-time in a certificate, diploma, or degree program. Permanent residents and citizens qualify for funding, and protected and designated persons are also eligible to apply. People aged 22 and over are required to pass a credit check.
The repayment period begins once people leave school, transfer from full-time to part-time studies, graduate from school, or leave school for a period of more than 6 months. There are different types of repayment assistance plans for undergraduates who find it difficult to keep up with payments, including Canada Student Loan Rehabilitation, revision of terms, the Repayment Assistance Plan, and others.

Canada Student Grants Program (CSGP)

Government grants are available to students from middle- and low-income families who are enrolled in a post-secondary program. Only people in designated institutions qualify for grants. Designated colleges and universities include the Red Deer College, Mount Royal University, College of New Caledonia, Atlantic Business College, Maritime Business College, and more.
There are plenty of options to look into, among which grants for part-time and full-time students, for persons with disabilities, people with dependents, aboriginal people, registered apprentices, and others. Full-time scholars are eligible to apply provided that they are enrolled in a certificate, diploma, or degree program. Funding is based on financial need, i.e. factors such as household annual income and family size. In addition, there are different programs to look into, examples being the Athlete Assistance Program and Post-Secondary Student Support Program.

Provincial and Territorial Student Loans

Alberta: The Alberta Learning Information Service

Scholars are eligible to apply for grants and student loans based on financial need. Funding is available to help meet expenses such as supplies and books, mandatory fees, and tuition fees. The monthly allowance is different for people with dependent children and those with no children. Students with dependents can also apply for dental, optical, and medical coverage.

British Columbia: StudentAidBC

People in British Columbia have different options to meet college expenses, including scholarships, grants, and loans. Other types of financial assistance include the Youth Educational Assistance Fund, work study programs, bursaries, awards.

Manitoba: Manitoba Student Aid

Students in Manitoba are offered financial aid in the form of bursaries, grants, and loans. Protected persons, landed immigrants, and Canadian citizens qualify for assistance. Undergraduate loans are interest-free during the repayment period and while enrolled in a diploma or degree program.

New Brunswick: New Brunswick’s Student Financial Service

Scholars in New Brunswick have access to a number of programs and services, among which personal learning and academic upgrading programs, digital literacy training, GED preparation courses, employment counseling and assistance services, financial assistance, and others. When applying for financial assistance, people are asked to provide details such as citizenship, province of residence, visible minority status, and category, i.e. married, single parent, or dependent.

Newfoundland and Labrador: Newfoundland and Labrador Student Aid

Aid is offered in the form of grants and loans and is available to part-time and full-time students as well as to persons with permanent disabilities. Applicants who are landed immigrants or Canadian citizens and demonstrate financial need qualify for assistance. To maintain eligibility, students are required to have an 80-percent course load for provincial funding and a 60-percent load for federal funding. Different types of assistance are available, including NL and Canada loans, the Canada Student Grant for Adult Learners.

Northwest Territories: NWT Student Financial Assistance

In the Northwest Territories, funding is available under the Student Financial Assistance Program. There are different types of funding for part-time and full-time students, including course reimbursement, the NWT Grant for Students with Permanent Disabilities, repayable loans, remissible loans, and basic grants. Repayable loans are offered to help students meet expenses such as travel, books, tuition fees, etc. Remissible loans, on the other hand, are in the form of a monthly living allowance.

Nova Scotia: Nova Scotia Assistance

There are different types of funding available, including grants and Canada Student and Nova Scotia loans. Financial assistance is available to both full- and part-time students. When applying, they are asked to provide information such as their income and spouse’s income, course description, start and end date.

Ontario: Ontario Student Assistance Program

In Ontario, funding is available to students who are enrolled in private career colleges, diploma and college programs, and universities. The type and amount of funding depends on factors such as parental income, number of children, and the year in which the student graduated from high school. Financial assistance is also available to people in special circumstances such as those on social assistance, deaf students and those with hearing problems, former and current crown wards, and other categories. Sources of funding include the indigenous people bursary, living and learning grant, and others.

Prince Edward Island: PEI Student Financial Services

People enrolled in the College de l’Ile, Maritime Christian College, Holland College, and UPEI are eligible to get a bursary in the amount of $4,400 to $8,800. There is no need to apply. They can also apply for the Government of PEI Marine Atlantic Bursary and Community Service Bursary. Loans are also offered to students from middle- and low-income families. In addition, there are different types of funding available, including the Island Student Award, Island Skills Award, George Coles Graduate Scholarship, Career Connect, and others. Debt reduction is available to scholars who are unable to keep up with repayment.

Quebec: Aide financiere aux etudes

Part-time students are offered loans while full-time students are eligible to apply for grants and loans. People with special needs are also offered material resources, special needs housing, paratransit, and specialized services. Scholars with disabilities are eligible, including those with organic and motor impairment, speech and language impairment, and severe hearing and visual impairment.
People who are unable to repay their loan are offered a deferred payment plan whereby the government of Quebec pays monthly interest on behalf of the debtor over a certain period of time /up to 6 months/.

Saskatchewan: Saskatchewan Student Financial Assistance Program

The Government of Saskatchewan offers grants and loans to scholars who are enrolled in post-secondary programs. When applying for a loan, people are asked to provide personal information such as social insurance number, dependents, ancestry, program information, name of institution, and so on. Students enrolled in designated universities are eligible to apply, including St. Peter’s College, Luther College, First Nations University of Canada, University of Regina.
Student Loan Forgiveness for Nurses and Nurse Practitioners is a program that targets healthcare practitioners and encourages them to move to small remote and rural communities. To be eligible under the program, applicants must have a license to practice in the province as a nurse practitioner, licensed practical nurse, registered psychiatric nurse, or registered nurse. To apply, healthcare practitioners are asked to provide employment information such as name of facility, profession, work address, valid registration number, loan forgiveness period, and attestor or supervisor information.

Yukon Territory: Yukon Student Financial Assistance

Students in Yukon have plenty of options to explore when it comes to financial assistance, including scholarships, training allowance, Yukon Excellence Awards, Canada student grants and loans, and the Yukon Grant. The latter is offered to people enrolled in post-secondary studies, including PhD and Master’s Programs. Only scholars enrolled in designated institutions qualify, such institutions being the Yukon College and Alkan Air Flight Training.

Private Student Loans

Loan Types

Financial institutions in Canada offer student lines of credit, personal loans, and specialty and standard student credit cards. Big banks such as the Royal Bank of Canada and the Canadian Imperial Bank of Commerce offer lines of credit with competitive interest rates, extended grace periods, and flexible limits. Credit lines are offered to undergrads who are pursuing a degree in Veterinary Studies, Dentistry, Medicine, Law, Engineering, Accounting, and others. Applicants are asked to provide proof of citizenship or residency status, list of financial resources, cost estimate, and confirmation of enrollment. Examples of financial resources to include are part-time employment, government financial assistance, bursaries and scholarships, RESPs, and others. Scholars are also asked to provide a cost estimate, including travel expenses, room and board, fees, supplies and textbooks, and tuition fees. Credit unions, banks, and other establishments also offer personal loans with flexible repayment periods. Some banks offer loans with no prepayment penalty. Many finance companies and banks feature student credit cards with attractive interest rates, welcome bonuses, awards points, cash back on purchases, and other beneficial features. There are credit cards that go with sign-up bonuses, no annual fees, comprehensive travel and medical insurance, and generous discounts.

Who Offers Private Student Loans

Big banks such as TD Bank, Scotiabank, BMO, CIBC, and RBC offer private loans and other borrowing solutions. TD Bank, for example, offers home equity and personal loans to help students pay major college expenses.

Education Savings – Canada Education Savings Grant and Registered Education Savings Plans

The Canada Education Savings Grant is money contributed to a RESP by the government. The goal is to help parents save toward education. The money can be used to cover the cost of part- and full-time studies in a designated university, college, trade school, publicly funded college or pre-university, or apprenticeship program. Parents, guardians, relatives, and others that choose to open a Registered Education Savings Plan are required to make a personal contribution. For every $1 contributed, the Canada Education Savings Grant contributes 20 cents.

Top 5 Student Credit Cards for Young Canadians

January 8, 2016 By Samantha Leave a Comment

Young Canadians usually have a more limited exposure to credit, which makes it more difficult to get approved for unsecured loans and specialty credit cards. The good news is that issuers offer student cards that are specially designed for young people enrolled in college.

Options Available to Young People

Young Canadians have several options to look into, including department store, secured, prepaid, and student credit cards. Secured cards require that customers first make a deposit and then use the money to pay bills and make payments. This is one option if you want to build credit. A department store card is another option that gives you access to exclusive promos and deals but the rate is often higher compared to standard cards. A prepaid card is a third option that works much like a standard debit card and payments are not reported. A student credit card is also an alternative, and there are perks such as cash back incentives, no annual fee, and discounts on school-related items and purchases.

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What Are the Benefits of Student Credit Cards

Student credit cards offer a number of benefits, among which additional protection in the form of zero fraud liability, miles, cashback points and other incentives, and lower credit limits. Many issuers also offer convenient tools to save users valuable time, help them stay current on their payments, and avoid penalty interest and negative impact on their credit score. Such tools are, for example, automatic bill payment, spend analyzer, and others.

How to Apply

It is easy to apply for a student card if you meet the requirements. Many issuers offer online applications and ask customers to provide employment, personal, and financial details such as your social insurance number, mother’s maiden name, whether you are a landed immigrant or Canadian citizen, and whether you are a domestic or foreign student. You may be asked to provide information such as your expected graduation date, program start date, whether you apply on your own or together with a co-signer, etc.

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Fees to Watch for

Like other credit cards, student cards come with fees such as penalty interest, annual fee, cash advance fees, foreign currency conversion fees, and others. If you find good deals with no annual fee, this is a great way to save on charges. There are other fees to check for with your issuer, including late payment and over-the-limit fees, replacement, lost, or emergency issue card charges, and additional cardholder fees. The latter is usually $0 on no annual fee, low fee, and low rate credit cards. Fees and charges vary from one bank to another and can be different for business and individual cards. Some issuers charge fees for urgent card delivery as well as balance transfer fees, overdraft fees, surcharges, and so on. Make sure you check with your provider to ensure there are no hidden charges and penalties.

Top 5 Student Credit Cards

Many credit unions, banks, and online services offer student cards, including CIBC, Laurentian Bank, Desjardins, and others. If you are a regular customer and have a savings or checking account or an outstanding balance, it pays to check with your bank first.

#1. No-Fee Scotiabank Value® Visa Card SB

Scotiabank features a handy student card with card protection and introductory rate of only 3.99 percent. The introductory rate is for both cash advances and balance transfers, and makes it a good choice if you need to consolidate high-interest credit card balances. The card also offers car rental discounts, itemized transactions, and free supplementary cards. All in one this is a great student credit card choice.
• Annual fee: none
• Interest rate: 16.99 percent
• Credit limit: $500 (min)apply

#2. Tangerine Money-Back Credit CardMoney-Back Credit Card

The Tangerine Money-Back Credit Card is a great choice for students, as it doesn’t have annual fee, and is actually one of the top cashback credit cards in Canada. The card offers 2% money back in many categories, and 1% on everything else. However for a limited time you can get 4% cashback in the 2% categories for the first 3 months. The card has no limit on the amount of cashback rewards you can earn.
• Annual fee: none
• Interest rate: 19.95 percent
apply

#3. Desjardins VISA® FOR STUDENTS ONLY Credit Carddesjardins-students

Also a great choice to start building credit, VISA for Students Only comes with handy features such as free-of-charge access to credit reports, travel insurance covering the first 3 days of each trip, mobile device insurance, and more. Cardholders benefit from additional perks such as flexible financing, no annual fee on additional cards, payment reminders, and the option to manage their account from their tablet, mobile device, or computer. There are additional features such as generous Hertz discounts, mobile payments, and no transaction fees.
• Interest rate: 12.9 percent
• Annual fee: $30

• Interest rate: 19.9 percent
• No annual fee

#4. Laurentian Bank Student VISA® Black Cardvisa_laurentian

Laurentian Bank also features a student VISA card with perks such as exclusive discounts, free additional cards, and more. In addition to virtual mail statements, customers also benefit from convenient payments at bank branches, online, by phone, and by mail. This product is a great choice to build credit if you are studying aboard and are a full-time student. You can use it to make payments in emergency situations or pay daily and small expenses. If you usually maintain a balance, you may want to look into other options.
• Interest rate on purchases: 19.99 percent
• Monthly fee: none

#5. CIBC Aventura® Visa* Student Cardcibc-student

CIBC Aventura is another student card that offers the option to collect rewards points and features benefits such as accident coverage, travel medical insurance, mobile and online banking, authorized spending limits, and a lot more. Customers are free to use the online banking system to request additional cards, increase their limit, and make payments. The first purchase earns 5,000 rewards points. Cardholders also earn 2x bonus points on travel purchases at the CIBC Rewards Centre and 1 bonus point on regular purchases.
• Interest rate on purchases: 19. 99 percent
• Annual fee: $39
• Up to 3 free additional cards

#6. MBNA Rewards MasterCard® credit card for Studentsmbna-student

This student credit card is yet another option if you are new to credit and offers immediate cash access, online account access, and unlimited rewards. Each dollar spent brings 1 rewards point. You can redeem points for charitable donations, money back, gift cards, travel purchases, and brand-name merchandise. To apply online, college students are asked to provide information such as date of birth, SIN (optional), monthly payment and housing status, employment status (unemployed, self-employed, retired, homemaker, employed, etc), and other financial and personal information.
• Interest rate: 19.99 percent
• Grace period: 21 days
• No annual fee

Conclusion

As you can see, big banks and other major issuers offer plenty of choice to help you build a solid credit history and stay current on utility and other payments. A student credit card is a handy tool if you make payments by the end of the grace period. Just make sure you check for transaction fees such as cash equivalents, over-the-counter cash, and ATM fees, account fees, and other charges. Ask about the default rate in case you are late on your payments because penalty charges can be considerably higher. If you have a credit card with high interest charges, there are student cards with a balance transfer option to benefit from a lower interest rate. Ask about the promotional rate as well and the amount you can request if you choose to make a balance transfer.

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This card is owned and issued by Digital Commerce Bank pursuant to license by Visa International. Use of the card is governed by the agreement under which it is issued. The Visa Brand is a registered trademark of Visa International. All credit and approvals are provided by Refresh Card Solutions Inc. Digital Commerce Bank provides no credit or loans. All funding and lending for this program is provided by Refresh Card Solutions Inc.

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