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Monday Money Links – Dividend Stocks Newsletter Promo, New Mortgage Rules and More

Dividend Stocks Rock Promotion (sponsored)

I mentioned this in a recent newsletter blast but I’ll share it here for readers not subscribed to the newsletter. Longtime colleague Mike from Dividend Investor has started a dividend growth investing newsletter called Dividend Stocks Rock (Canada and the US), and it’s good!  So good in fact that I’ve convinced him to offer an exclusive discount to MDJ readers but only for the next 30 days.  The membership includes complete dividend portfolios, dividend stock rankings, trade alerts via email, and a live buy list.

The regular price is $149.99 for a one-year membership but the exclusive MDJ reader price is $77 (annual fee will never increase)!   Also, this is a no-risk offer! If you sign up and feel that the newsletter is not for you, you can cancel and get a full refund anytime within 60 days of signing up.  Check out all the details here.

Monday Money Links

In addition to Mike above, there are a number of bloggers starting new ventures.  Check out Stephen Weyman’s free credit card genius tool that offers a comprehensive analysis of the best credit card based on your spending.  Well done Stephen!  Here is my opinion of the best free cash back credit cards in Canada.

Robb from Boomer and Echo has an excellent article about dealing with losses in your portfolio.  My tip?  Keep your eye on the horizon and keep that long-term investing mentality.  The market goes up over the decades, even if you buy at market tops.

My Own Advisor gives some great advice on how to invest like a pro.

Do you have a RESP?  We have a family RESP set up for the kids and it’s growing on schedule.  There are must-know tips, tricks, and rules when it comes to contributions and withdrawals from a RESP.  This article from Moneysense is one of the best that I’ve read on the topic.

Big news last week for buyers in the real estate market. The Office of the Superintendent of Financial Institutions Canada (OSFI)  has created new rules for new mortgages.  The biggest rule being that buyers must pass a financial stress test in order to qualify for the mortgage.  “Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.”  As of this post, the benchmark rate is 4.89%.  In my opinion, this might not be a bad rule – more details here.

Remember when I wrote about the proposed tax changes for small business in Canada?  Well, the Finance Department has finally provided some clarification and has even backtracked a little from their original stance.  In particular, passive income within a corporation was targeted by the feds with the plan to penalize passive investment portfolios with new taxes.  The feds have now indicated that they will allow up to $50,000 in passive income within a corporation/year.  I’m uncertain on how they will enforce this and the composition of what they consider “passive income” (capital gains? 50% of capital gains? dividends? interest?  return of capital?).  I will post more when I know more.  In the meantime, here is the best I have found on the new passive income rules.

If you would like to read more articles like this, you can sign up for my free newsletter service below (we will not spam you).

FT About the author: FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.

{ 6 comments… add one }
  • Ms99to1percent October 23, 2017, 9:26 am

    FT,

    You are right that the new mortgage rules might not be too bad. Even though they might decrease our house value a little bit, but at least it gives us hope that our 1 yr daughter will be able to afford a house of her own one day.

    99to1percent recently posted…How we plan to pay off our mortgage in 5 years
    https://99to1percent.com/pay-off-mortgage-5-years/

  • Leo Ly @ isaved5K.com October 23, 2017, 4:35 pm

    For the mortgage rule, everyone is talking about how will new qualifiers be able to afford a home with the higher requirements. What I am even more interested in is to see how the rule will affect the mortgage renewal folks who had stretched their limits when they first bought. Will these folks have a hard time renewing under the stricter rules?

    • Future money-bags October 23, 2017, 6:23 pm

      I was told that if your financial situation does not change, and you stay at hot current lending institution, you will be able to qualify for another term without the new stress test of 4.89%.
      Not guaranteed though.

  • Leo Ly @ isaved5K.com October 24, 2017, 9:37 am

    Thanks FMB. It will be interesting to see how competitive the lenders will be when it comes to offering their clients renewal rates.

  • GYM October 29, 2017, 3:14 pm

    Thanks for sharing the article about the RESPs. We have started our first RESP for our son and am looking forward to the CESG and the seeing growth over the next 17 years :) (of course, I am also looking forward to seeing our baby grow over the next 17 years too haha)

    • FT FT October 30, 2017, 8:09 pm

      GYM, as I’m sure you’ve heard from other parents, kids grow up fast! Seems like yesterday that my oldest was born… and that was over 9 years ago! But through contributing enough to maximize CESG, we already have over $40k in her RESP.

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