Five Things You Need Before Applying for Mortgages in Canada

Getting ready to buy your own home is a rewarding process. Soon, you will have the comfort that investment in your own piece of real estate will provide.

However, a less comforting part of the process is applying for mortgage loans. The application process is full of stress about how you will afford your mortgage, if you will get approved, and if you are going with the right lender. You can get preapproved, so you know up-front what you are eligible for, but preapproval requires a lot of paperwork.

Putting your paperwork together requires some time, but it will make the rest of the process much easier. Here are the documents you will need.

1. Proof of Identification

The first step is providing proof of identification to your mortgage broker or lender. The entity lending you money wants to know that you are exactly who you say you are and not someone attempting to commit fraud.

Any government-issued ID will help with proof of identification. However, it needs to have your current address on it, so make sure all of your address information is up to date. You will also need to provide your SIN number.

2. Proof of Employment and Income

The next important step in the mortgage process is proving to the lender that you are employed. Mortgage loans are investments by lenders in you, so they want reassurance that you will be able to pay that money back. The most reliable proof is proof of employment.

You have to prove that you are employed at a reliably paying job, preferably one where you have been for a year or two and that your income is enough to afford the mortgage. Documents that fit in this category are pay stubs, tax forms such as a T1 or T4, or even a letter of employment. If you have none of these documents because you are self-employed, you will need to submit detailed proof of income going back several years.

3. Information About Other Debts

When mortgage lenders agree to give you a loan, they want to know that you don’t have too many other debts that will get in the way of your ability to pay your mortgage. If you have regular car loans or student loan payments but can still afford a mortgage, that won’t affect your chances, but you will need to share information about them.

Mortgage lenders will also look at your credit score.

4. Proof That You Can Afford the Down Payment

Besides paying your mortgage, there are other expenses involved in buying a house, such as the down payment and closing costs. You may be able to afford a monthly mortgage payment, but banks want to know if you have the savings to afford a down payment as well.

You can prove that you have the money for a down payment by showing statements from savings accounts or investment accounts or proof that you have sold your existing house and will use that money for a down payment. If this is your first time buying a house in Canada, you can apply for the RRSP Home Buyer’s Plan and use that as proof of down payment.

5. Information About the Property

Finally, your mortgage lender wants to know the details of the property you will be buying to know the value. Documents include the real estate listing and accepted purchase and sale agreement.

Putting together the relevant documents for applying for a mortgage in Canada is difficult, but keep these categories in mind and start gathering paperwork today.

 

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8 Money-Saving Hacks for Young (& Broke) Adults

Saving money when you are young and broke can seem like an impossible task. With the right mindset and strategy, you can save money despite the hurdles ahead. Putting your spare cash each month can make a world of difference. All you need to do is be willing to commit to your financial goals! The following hacks can help.

#1: DRINK MORE WATER

You will save more money if you stop buying bottles of soda and cups of take-away coffee. Bottled water is cheap and tap water is cheaper. There are many great options for filtering your water if you are not a fan of water from the tap. Nonetheless, eating out with a family of 3 can easily save you money just by drinking water alone.

#2: GET A PART-TIME JOB

If you just graduated and you are trying to reach a goal that seems to be taking longer than expected, you can get a part-time job. This job can be a temporary solution to get past whatever situation you are in. Moreover, it is a wonderful way to pay off your dues and debt. If you are building an emergency fund, having another source of income can aid your quest. Market your skills online to boost your job search.

#3: CREATE A MEAL PLAN

Whether you are living alone or living with your roommate, you can save more money by planning your meals. It eliminates food wastage and helps you create more affordable meals. Rather than buying what looks good at the grocery store, you can opt for budget-friendly alternatives to complete your dishes.

#4: CANCEL YOUR UNNECESSARY MEMBERSHIPS AND SUBSCRIPTIONS

You are cash-strapped! You do not need your hefty gym membership or subscriptions to different music and entertainment apps. Think about all the wasted money because of not taking the time to cancel the things that you no longer use.

Image Credits: unsplash.com

#5: ALWAYS BRING A SHOPPING LIST

One of the easiest ways to go over budget is going inside the grocery store without a plan! If you do not want to spend too much money in one place, always bring a shopping list with you. Only go down the aisles that you truly need to grab what you need. Skip the rest!

#6: KEEP YOUR SAVINGS ACCOUNT SEPARATE

Are you breaking because of your shopping habits? Keeping this from happening again by having your savings completely separated. Find an online savings account or open a separate checking account. Make it a little more challenging to take money out of your savings. Your future self will thank you.

#7: EMPLOY THE 30-DAY RULE

When you are considering making large purchases, use the 30-day rule. If you still want it just as much after 30 days, consider saving money for it. Having a waiting period eliminates impulsive purchases made out of excitement or other overwhelming emotions.

#8: DO REGULAR CHECK-INS

Before spending a large amount of money on a significant purchase, have your trusted partner or friend assess the situation with you. Have regular check-ins to look into your current financial situation. This might sound silly at first, but it can keep you from spending money impulsively on things that are not in your budget. Find someone that can help make you accountable for your spending.

Sources: 1 & 2

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When hoarding becomes a problem: How to convince your elderly parents to stop

hoarder

You’ve been noticing it for a while now.

Your elderly parents have been hoarding more and more stuff in their home, to the point where there’s barely any room to move.

You’ve tried to talk to them about it, but they just don’t seem to understand how serious the problem has become. They’re convinced that they need all of that stuff, and they’re not willing to let go of any of it.

What can you do? Let’s explore how to convince your elderly parents to stop hoarding. With patience and perseverance, you can hopefully expect a change.

What is hoarding?

Hoarding happens when a person accumulates a lot of stuff and can’t get rid of it.

For your parents, it might be newspapers, magazines, clothes, or knick-knacks. Basically, anything and everything.

The problem with hoarding is that it can severely impact a person’s quality of life. It’s unhealthy to live in a cluttered environment, and it’s harder to keep things clean and organized. Plus, it’s a serious fire hazard.

Why do the elderly hoard?

You may be wondering why your elderly parents are hoarding. What could possess them to hold onto so many things?

Well, there are a few reasons.

Often, elderly people have a hard time letting go of things because they’re afraid of forgetting the past. They may also feel like they’re the only ones who see the value in all those items. Other old folks may hoard as a way to relieve boredom or loneliness.

How does hoarding affect the elderly?
a granny hoarder

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Hoarding can have a serious impact on the elderly, both physically and emotionally.

Physically, it can lead to health problems like joint pains and respiratory issues. And emotionally, it can lead to feelings of isolation, loneliness, and even depression.

Ultimately, hoarders need help sorting through their belongings and deciding what to keep and what to throw away. It’s not a straightforward process, but it can be life-saving for your elderly parents.

How to approach your elderly parent about their hoarding

It can be tough to broach the subject of hoarding with your elderly parents.

After all, this is a behavior that they’ve probably been practicing for years, and it’s likely something that’s been ingrained in their lives for a long time.

But the longer you wait to address the issue, the worse it’s going to get. So how do you go about it? The first step is to set up a time when you can have a calm and private conversation with your parents. Try to avoid accusations or judgments.

Express your concerns openly and honestly, and be prepared to listen to your parents’ side of the story. Remember, this is a difficult topic for them to deal with, so be patient and respectful. If they’re receptive, you can work together to come up with a plan that will help them overcome their hoarding behavior.

It can be hard to deal with a loved one who hoards, but there are ways to help them. Approach the situation delicately, and if serious, get them to see a therapist or counselor who can help them address the underlying issues behind the hoarding. There may also be support groups available for people who deal with loved ones who hoard. Join one of those groups, or start your own, so you can share your experiences and build a community around people in a similar situation. All hope is not lost!

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Should a professional be judged based on what they do during their leisure time?

DJ and clubbers

Imagine you are a professional.

You work hard during the week, putting your all into your job. But what you do during your leisure time is none of your boss’s business, right?

Well, not exactly.

While it’s true that your personal life is just that—personal—the line between professional and personal can sometimes get blurred. And if you’re not careful, the things you do during your free time can end up reflecting poorly on you and your job.

What is leisure time?

Leisure time is time that is not spent at work. It is the time when you are not occupied with any responsibilities.

Now, some people may choose to spend their leisure time doing things that are considered to be “productive.”

For example, they may choose to read books, work on their hobby, or spend time with their family and friends. Other people may choose to spend their leisure time watching television, playing video games, or going out for drinks.

Should a professional be judged?
man adjusting his suit

Image Credits: unsplash.com

Now, you might be wondering if you should let your hair down and just be yourself when you’re not at work.

After all, you’ve been working hard and you deserve it, right? Well, maybe. But maybe not. Because what you do in your leisure time can reveal a lot about you.

Are you the type of person who likes to go out and party hard on the weekends? Or are you more likely to stay in and watch Netflix? Do you golf or play poker with your buddies? Hang out at the park with your kids?

All of these activities can say something about you as a person. And if someone is looking to judge you, they’re going to look at what you do in your free time to get a sense of who you are.

How to balance your professional life and leisure time

There’s a big difference between completely relaxing and taking a break and letting your professional persona bleed over into your leisure time.

If people start to associate your leisure activities with your professional persona, then it could create some confusion about who you are as a person.

So how do you find the right balance? It’s all about being intentional about it.

If you’re going to let your hair down, make sure you’re not revealing everything on social media sites without thought. Also, ensure that you’re not letting your guard down so much that people start to question your work ethic.

While we all need a break sometimes, we also need to be aware of how we’re perceived by others.

So, what do you think? Is it wrong to judge a professional by what they do during their leisure time? Or should people maintain their professionalism no matter where they are or what they’re doing? It’s up to you to decide what you think is the right thing to do. Weigh the pros and cons and decide what’s appropriate for you and your career.

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See the positives: Why stopping avoidance of conflict is crucial

person in a hoodie

Conflict is an inevitable part of life.

It can arise in personal relationships, at work, or in any other situation where people are interacting.

It’s human nature to try to avoid conflict, but in many cases, this simply leads to more problems down the road.

If you’re someone who tends to run away when problems arise, it’s time to stop and take a closer look at the reasons why avoidance is not the answer.

Conflict can be uncomfortable and challenging, but it’s also an opportunity for growth and learning. By seeking to avoid conflict, you’re only limiting yourself and your ability to resolve problems effectively.

What is avoidance conflict?

When you avoid conflict, you’re essentially running away from the problem.

You’re not confronting it head-on and trying to find a solution. You’re just hoping that it will go away on its own.

But that’s not how conflicts work. They don’t disappear just because you ignore them. In fact, they often get worse when they’re not dealt with properly. So what happens then? You bottle up your emotions and end up resenting the other person—or worse, you lash out in anger.

Why do people avoid conflict?

People might avoid conflict because they’re afraid of what the other person will say or do.

They might avoid conflict because they don’t want to deal with the emotional stress that comes with it.

But here’s the thing: avoidance of conflict doesn’t solve anything, and it just leads to more frustration down the road.

So how can you start facing conflicts head-on?

First, understand why you’re avoiding them in the first place. Then, develop some strategies for dealing with conflict in a healthy way. And finally, practice these procedures until they become second nature.

The benefits of stopping avoidance of conflict

friends talking near the ocean

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When you stop avoiding conflict, you open yourself up to a whole new world of possibilities:

  • Become better at dealing with problems. You will learn how to handle difficult conversations and how to stay calm in the face of adversity.
  • Start building trust with the people around you. They will know that they can come to you with their problems and that you will be willing to work through them together.
  • Become more productive. When no unresolved conflicts are taking up your time and energy, you will be able to focus on what’s important: getting the job done.

Overcoming the challenges of stopping avoidance of conflict

It’s not easy to face our problems.

We might be tempted to run away or bury our heads in the sand. But if we want to grow as individuals and as teams, we need to learn to deal with our conflicts healthily.

Yes, it can be uncomfortable for some.

We might not want to deal with the emotions that come up when we’re in conflict. But if we want to resolve the conflict and move on, we need to be able to face those sentiments.

And finally, we understand that it can be risky.

We might not know what the outcome will be, and we might be worried about what might happen if things go wrong. But if we want to achieve our goals, we need to take chances and learn from our blunders.

Conflict is an unavoidable part of life. The sooner you face it, the sooner you can start to resolve it. By avoiding conflict, you only make things worse. It’s time to stop running from your problems. When you face them head-on, you will find that most conflicts are manageable. With a little bit of effort and communication, you can resolve any conflict in a way that benefits everyone involved. So stop avoiding conflicts in your life. Come face-to-face with your problems, and you will be surprised at how straightforward they can be resolved.

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