When you sell your home, you have three options: • to sell through a real estate agent, who will usually charge from 3% to 6% of the sale price, • to sell through a company that charges a flat fee to help you advertise and list your home, or • to sell on your own privately. You can investigate all these options by talking to the companies and agencies and searching the web.And be sure to get advice from a lawyer when you sell your home. Learn more
Some people prefer to manage their own investments without the help or cost of a professional.You can set up your own investment account at a discount brokerage, or with a financial institution.There are still costs associated with buying and selling these investments but the costs are often less than what it costs to use an adviser. But, in this case, you will not be given any advice on which investments to buy and sell—or when to buy and sell. See page 236 for a list of some of these. Learn more
The value of a car depreciates (goes down) as it gets older and the rate of depreciation is fastest in the first two years of ownership.That is why some people buy used cars rather than new cars. Most car dealers also sell used cars. Used cars are also advertised in newspapers and special magazines. If you buy a used car, see if a “warranty” of any kind applies or is available.
The Canadian Foundation for Economic Education (CFEE) has a web site that answers questions about “MONEY” and “WORK”. It also provides you with other sources of help.To learn more, visit www.virtualadviser.ca
Most people borrow money to buy a home.A loan used to buy a home is called a mortgage.You can get a mortgage through a financial institution.The amount of money you borrow for a mortgage is the “principle.” The amount you can borrow for a mortgage can be limited to a certain percentage of the price you pay. Visit DayPlanner web site – Link #128 to learn more about mortgage savings, preparing an offer, and closing a deal on a home.
Do you have savings that you would like to invest? Investing can help the value of your savings grow more quickly—especially when interest rates are low.There are many types of investments, including GICs, bonds, stocks, and mutual funds. Investments differ in terms of their possible risk and return—the higher the possible return the higher the risk. For more information, visit the web site of the Canadian Securities Administrators www.csa-acvm.ca. Learn more
You won’t be able to lease a car privately.You can only purchase a used car privately. If you decide to buy a car privately, you should have it inspected by a professional mechanic before closing the deal.The service garages attached to many gas stations can help you arrange an inspection. See if it has been “certified” by a mechanic.
The Canadian Foundation for Economic Education (CFEE) has a web site that is organized by “life events.” That is, people often look for help when they have a “life event”—for example, getting a job, getting married, having a baby, retiring.To learn more, visit www.mymic.ca
When you take out a mortgage you will need to negotiate “terms.” The term sets the interest rate and payments you have to make for that period of time (e.g. 6 months, 1 year, 3 years, 5 years, etc.).An “open” mortgage means that, during the term, you can pay off any part of your loan at any time.A “closed” mortgage means you must pay back the amount you agreed to, for the time you agreed to, when you selected the “term.” When the term ends, you can pay off as much as you like and decide on a new term.
When you invest money, you hope to make money.The amount of money you make will depend on the rate of return. In general, the greater the possible gain, the greater the possible loss.That means that investments with higher possible returns are usually more risky. If you choose to make a risky investment, make sure you can handle the risk of losing that money. Learn more