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CTV News
2 days ago
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Hidden costs of home ownership that most people forget to budget for
Personal finance contributor Christopher Liew breaks down some of the most commonly forgotten costs of owning a home, so you can budget smarter, plan ahead, and step into homeownership with confidence. (gopixa / Getty Images) Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial. Are you planning to become a homeowner in the near future? One of the biggest mistakes that prospective buyers make is to focus solely on the estimated mortgage payment, while forgetting about the host of additional ownership expenses that can easily mount up to hundreds of extra dollars per month. Below, I'll break down some of the most commonly forgotten costs of owning a home, so you can budget smarter, plan ahead, and step into homeownership with confidence. It's not just about the mortgage A recent report from Equifax Canada showed that an increasing number of homeowners are missing their mortgage payments. This is something that you really want to avoid if you want to keep your credit in good standing. If you're a first-time buyer who's used to renting where you live, it's easy to start shopping for homes by their estimated mortgage price, the same as you may shop for apartments based on your monthly rental budget. When you make the jump from being a renter to a homeowner, though, you'll be required to take on the full financial burden of many of the same responsibilities that your landlord used to take care of on their dime. Overlooking these expenses can quickly stretch your budget and turn homeownership from a dream into a financial strain, trapping you in a living situation that you find difficult to afford. What is considered a hidden cost in home ownership? Each house is going to come with various associated expenses based on a number of factors, including: How old or new the home is What type of neighbourhood is the house in The property under and around the home The type of dwelling (condo vs house) Some properties are lower maintenance, while others require constant upkeep. With this in mind, here are the potential expenses to watch out for as you begin your home-shopping journey. 1. Home insurance Home insurance isn't legally mandated in Canada, but if you finance your purchase with a mortgage, your lender will nearly always require it, especially if your down payment is less than 20%. This protects their investment until you fully own the property On top of that, if your down payment falls below 20%, you'll also need mortgage loan insurance, often called CMHC insurance when provided by the Canada Mortgage and Housing Corporation. It's required by law for high-ratio mortgages (i.e., those with more than 80% loan-to-value) and allows you to borrow up to 95% of the purchase price 2. Property taxes Another inescapable expense is going to be your annual property tax. Failure to pay your property tax can result in your home being taken away by the government. The amount you'll be taxed is usually determined by the current estimated value of your property, which ca fluctuate significantly from one year to the next. 3. Everyday repairs If you live in a recently built home, you likely won't have too many repairs to worry about, and much of the building and appliances may be covered by a limited warranty if a hiccup occurs. However, if you live in an older home, you'll need to budget for maintenance and repairs such as: Plumbing leaks Electrical repairs Roof or window leaks Locks and door hinges Railings, banisters, and stairs If you're a DIY type of person with the tools, time, and knowledge to do your own repairs, you can save a lot of money here. If not, then you could easily find yourself paying $1,000 or more every year in simple household repairs. 4. Increased heating and cooling costs If you're coming from renting a small, well-insulated apartment, you're going to notice a sizable increase in your monthly heating and cooling costs. Larger homes require more power to heat and cool. There are a number of ways you can better insulate your home and reduce energy costs (some of which are also tax-deductible), but this is yet another expense you'll foot the bill for. 5. Roof replacement A classic shingle roof will typically need to be replaced every 10 to 15 years. When purchasing a house, it's a good idea to ask the realtor or seller when the last time the roof was replaced. Depending on how big the roof is, replacement can cost anywhere between $5,000 on the low end to $20,000 or more on the high end. 6. Pest control and prevention If you want to prevent a costly infestation, you'll want to periodically treat your home and property for pests. Compared to some of the other expenses on this list, pest control is more affordable. A pest control company will typically visit your home on a monthly or quarterly basis, spray a few pesticides, and be on their way in less than an hour. 7. Appliance upgrades Again, if you have a newer home, you likely don't need to worry about appliance upgrades. However, if you're purchasing an older home with older appliances, you need to weigh the possibility that appliances will need to be repaired or replaced in the near future. Most appliances such as refrigerators, dishwashers, stoves, washers, and dryers have an average lifespan of 10 to 15 years when well cared for, but each can cost upwards of $500 or more to replace with a brand-new unit. Finding the right home within your budget All in all, between various monthly expenses and building an emergency savings account for major repairs, you could easily end up paying an extra $300 to $500 per month in addition to your mortgage. This means that a home with a $2,500 mortgage could really end up costing you $3,000 or more each month, skewing your annual budget by $6,000 per year. Unlike renting, where you can easily downgrade and move to a cheaper unit at the end of your lease, you're stuck with your home and all of its expenses unless you want to go through the tedious and lengthy process of selling your home. To ensure you don't end up with more home than you can afford, create an estimated list of expenses for each home you're considering, and then add that to the estimated mortgage price. More from Christopher Liew:
Yahoo
13-06-2025
- Business
- Yahoo
Pension-Like Income: 2 Dividend Stocks Built to Last
Written by Christopher Liew, CFA at The Motley Fool Canada Canadians who meet the required number of contributions are eligible to receive the Canada Pension Plan (CPP) pension. Individuals 65 years or older who meet specific residency requirements are eligible to receive the Old Age Security (OAS) benefit. While the CPP and OAS are lifetime benefits, are they enough to live comfortably in the later years of life? Retirement planners and financial experts recommend supplementing these pensions with additional income sources. But how? If you scout for investments on the TSX, a pair of dividend stocks are built to last and can provide pension-like income. Canadian Utilities (TSX:CU) has raised its dividend for 52 consecutive years, while Imperial Oil (TSX:IMO) has been a dividend payer for more than 100 years. Canadian Utilities is Canada's first dividend king. The $10.3 billion Alberta-based diversified global energy infrastructure corporation boasts a stable business model. Its economic moat stems from its regulated utilities. At $37.67 per share (+10.9% year-to-date), prospective investors can partake in the 4.9% dividend yield and expect higher payouts in succeeding years. In Q1 2025, adjusted net earnings increased 3.1% to $232 million versus Q1 2024. The ATCO Company invested 91% of its $401 million capital budget in regulated utilities. Notably, cash from operations rose 27% year-over-year to $637 million. Bob Miles, President and Chief Operating Officer of Canadian Utilities, said, 'We see positive momentum in Alberta with significant opportunities for growth.' Its Chief Financial Officer, Katie Patrick, added, 'We remain focused on strong cash generation to finance our enhanced capital program.' Because of increased industrial investment across the company's service areas and a supportive regulatory environment, Miles believes that Canadian Utilities is in a favourable position. Management expects to invest $5.8 billion in regulated utilities in Canada over the next three years. The $1.5 billion investment in the natural gas transmission business, tied to the Yellowhead pipeline project within ATCO Energy Systems, is a potential driver of earnings growth. Regarding dividend growth and sustainability, Canadian Utilities is a time-tested utility stock. The company has raised dividends yearly for 52 years, notwithstanding uncertain environments and several recessions. Utilities are generally slow-growth businesses, although the annual earnings growth forecast over the next five years is 4%. The business should withstand a recession in 2025. People invest in Imperial Oil not for yield but more for financial stability and reliable dividend income. At $105.81 per share, current investors are ahead by 21.2%-plus year-to-date, in addition to the modest but safe 2.8% dividend (27.4% payout ratio). The $52.4 billion integrated energy company is Canada's largest refiner of petroleum products. American oil giant Exxon Mobil has a 69.6% ownership stake in Imperial Oil. Also, the construction of the country's largest renewable diesel facility at the Strathcona refinery is on track to commence operations this year. In Q1 2025, net income increased 7.8% year-over-year to $1.3 billion, while cash flows from operating activities climbed 41.9% to $1.5 billion. Its Chairman and CEO, Brad Corson, before his retirement in May 2025, said, 'Our integrated business model, low break-even and focus on low-cost volume growth continue to support Imperial's strategy of paying a reliable and growing dividend.' Canadian Utilities and Imperial Oil can fill the shortfall of the CPP and OAS benefits. Both buy-and-hold stocks can deliver pension-like income. The post Pension-Like Income: 2 Dividend Stocks Built to Last appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025
Yahoo
13-06-2025
- Business
- Yahoo
Big Comeback: This Big Bank Stock is Outperforming Its Peers
Written by Christopher Liew, CFA at The Motley Fool Canada Canada's banking sector is known globally as a bedrock of stability. The Big Banks, in particular, stand tall to this day despite economic downturns and financial crises. However, Toronto-Dominion Bank (TSX:TD) lost favour with investors last year. The country's second-largest financial institution pleaded guilty to violating the U.S. Bank Secrecy Act and paid a substantial fine of US$3 billion. Fast-forward to 2025, and the $166.6 billion bank looks stronger from the money laundering-related case. As of June 11, 2025, TD outperforms its Big Six peers as well as the broad market. The share price is $95.98, with a commanding year-to-date gain of plus-28.8% and a corresponding dividend yield of 4.4%. What is the reason for the big comeback? Has TD regained investors' confidence? Should you buy this large-cap stock now? TD never lost its handle on profitability despite a tarnished reputation in the financial markets. In Q2 fiscal 2025, net income climbed 334% to $11.1 billion compared to Q2 fiscal 2024. The Wholesale Banking segment reported a record $419 million in net income, a 16% jump compared to the same quarter last year. In the first half of the same fiscal year, the reported net income was $13.9 billion, a 158.3% increase from a year ago. Interestingly, TD's U.S. Retail Bank demonstrated resilience and delivered its sixth quarter of consumer deposit growth and double-digit growth. Raymond Chun, TD Bank Group's new President and CEO, said, 'TD delivered strong results this quarter, with robust trading and fee income in our markets-driven businesses as well as deposit and loan growth in Canadian Personal and Commercial Banking.' 'We are well-positioned as we enter the second half of the year,' he added. U.S. regulators imposed a cap on TD's US retail banking assets. The US$434 billion asset cap forms part of the penalty agreement with the Office of the Comptroller of the Currency (OCC). TD must downsize and comply with specific remedial actions before pursuing growth initiatives. The probationary period is five years. On February 10, 2025, TD announced the sale of its entire 10.1% stake in financial services firm Charles Schwab. Chun said, 'As part of our strategic review, we have been evaluating capital allocation and have made the decision to exit our Schwab investment.' TD intends to use a portion of the US$5.6 billion proceeds for share buybacks. The rest will be invested in businesses to boost performance and accelerate organic growth plans. Moreover, the private transaction provides the Canadian bank with a significant capital boost and liquidity flexibility. TD also realized a significant return on investment. Several factors contributed to TD regaining investors' confidence. First, the core Canadian personal and commercial banking segment delivered better-than-expected but solid revenue growth. Second, there is consistent progress on the Anti-Money Laundering (AML) remediation, according to Chun. Third, the broader positive sentiment in the financial sector, aided by lower interest rates, is another factor for the stock's surprise surge. Last, TD remains well-capitalized and has a sufficient buffer (14.3% CET1 ratio) against potential economic downturns. You can safely say that this Big Bank stock is back on investors' radars in 2025, primarily for income-seeking investors. The post Big Comeback: This Big Bank Stock is Outperforming Its Peers appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Charles Schwab is an advertising partner of Motley Fool Money. Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Tariff Shockwave 2025: US Stocks Crater While Canada Rides the Wave
Written by Christopher Liew, CFA at The Motley Fool Canada Trump's tariffs and ensuing turmoil hurt Wall Street more than other global markets. Instead of booming, U.S. stocks cratered, with the S&P 500 losing around US$2 trillion in value to start April 2025. However, Canada's stock market showed remarkable resilience despite the escalating trade tension. As of this writing, the TSX is up 7.3%-plus year-to-date compared to the S&P 500 Index's 2.4-plus. The Dow Jones Industrial Average (+0.8%) and Nasdaq Composite (+2%) also underperformed, falling behind due to concerns about tariffs. TSX stocks from various sectors continue to surge, notwithstanding the tariff-induced headwinds. Orla Mining (TSX:OLA) and Kits Eyecare (TSX:KITS) are among the high-flyers with unstoppable momentum. Orla Mining is hard not to notice because of its stellar performance this year. At $14.84 per share, the year-to-date gain and trailing one-year price return are 86.4%-plus and 169.3%-plus, respectively. Had you invested $7,000 a year ago, your money would have grown to $18,851.49 today. This $3.5 billion mining company has two operating gold mines and a development project. The Musselwhite mine in Ontario has been in operation for 28 years and is expected to continue producing for many years to come. Its strong cash flow generator is the Camino Rojo Mine in Mexico. In Q1 2025, total gold production increased 43.8% year-over-year to 47,759 troy ounces (oz), a new quarterly production record. Revenue rose 109.1% to $140.7 million versus Q1 2024, although net loss reached $69.8 million compared to the $17.5 million net income a year ago. Orla President and CEO Jason Simpson said, 'Over the next two quarters, our focus will be on integrating Musselwhite, laying the foundation for long-term success.' The plan for the next 24 months is to invest significantly in exploration to reshape Musselwhite beyond 2030. Making eye care easy and revolutionizing the eyewear industry is the mission of Kits Eyecare, a vertically integrated digital eyewear brand. The $444.3 million company offers a wide range of eyeglasses, sunglasses, contact lenses, and vision care products. Performance-wise, the consumer discretionary stock has a market-beating return of 63.1%-plus thus far in 2025. If you invest today, the share price is $13.75. Market analysts recommend a buy rating for KITS. Their 12-month average price target is $17.79, a 29.4%-plus potential upside. In Q1 2025, total revenue and glasses revenue increased by 34% and 46.4% respectively to $46.6 million and $6.6 million compared to Q1 2024, both new records. Net income jumped 2,566.7% year-over-year to $1.6 million. Also, during the quarter, the number of delivered glasses reached a record-breaking 104,000 pairs. Roger Hardy, co-founder and CEO of KITS, said, 'These results reflect the strength of our vertically integrated model and our team's continued focus on operational efficiency. We remain confident in our ability to drive sustained profitable growth while advancing our mission to make eyecare easy.' Management expects consistent and stable recurring customer orders to deliver recurring long-term earnings and profitability. The revenue forecast for Q2 2025 is between $48 million and $50 million. Gold stocks, such as Orla Mining, are safe havens during times of economic uncertainty. Meanwhile, Kits Eyecare stands out and continues to garner a commanding share in a rapidly evolving market. U.S. tariffs have minimal or zero effect on these high-flying TSX stocks. The post Tariff Shockwave 2025: US Stocks Crater While Canada Rides the Wave appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kits Eyecare. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
12-06-2025
- Business
- CTV News
How to start building credit from scratch in Canada, without a credit card
For those starting from scratch financially with no credit history to speak of, personal finance contributor Christopher Liew shares some tips to help you build a solid foundation for the future. (Getty Images / iStockphoto / Anyaberkut) Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial. From the time you're old enough to sign a legal contract, you can start building your credit profile and the scores tracked by Canada's two credit bureaus: Equifax Canada and TransUnion Canada. Despite how important it is to build credit score early, most schools do not do a good job of showing young adults how to get started, especially when they are beginning from scratch with no credit history at all. Below, I'll share some tips to help you start from zero and build a solid foundation for the future. Credit history in Canada: Why it matters Whether you like it or not, your credit score matters. Even if you're the type of person who likes to avoid unnecessary debt, pay with cash, and be as frugal as possible, your score still matters. A good score can: Qualify you for a lower security deposit on your apartment Allow you to receive low-interest financing for your car Qualify you to receive a mortgage for your home Qualify you for lower insurance premiums How can I increase my credit score? The good news is that building credit doesn't mean that you have to get into mountains of debt or go on a shopping spree with your new credit card. It's entirely possible to build great credit while also being frugal and financially responsible. Typically, at age 18, you'll start off with no credit. New immigrants to Canada may also start off with no credit in Canada, although Equifax is launching a program to help immigrants transfer credit from their home countries. This is because your credit score is built over time. As you apply to lines of credit, maintain accounts, and make payments, your creditors will send reports of your activity to the two major credit bureaus. Each bureau has an advanced algorithm that's used to generate your credit score (from 300 to 900), based on how well or how poorly you maintain your accounts. The easiest way to start building your credit score is to start using a credit card or take out a loan and start making payments. The only issue here is that with zero credit, it can be difficult to obtain either a loan or a credit card in the traditional manner. But there are ways to build your credit score starting from ground zero. How can I build credit fast? 1. Open a secured credit card to build the best credit score Most major banks in Canada offer secured credit cards, so named because the card is secured with an upfront deposit. Essentially, these cards work like prepaid debit cards except they help you build your credit. The issuing bank reports a positive payment to the credit bureaus each time you reload the card, which helps you build payment history. The bank takes on no risk since you're pre-paying the card balance and you get to build your credit, making it a win-win scenario for both parties. After successfully building six months to a year's worth of credit history with a secured credit card, there's a good chance you'll be eligible to receive a traditional credit card. 2. Sign up for a credit builder loan An increasing number of fintech companies such as Credit Karma and KOHO are offering small credit-building loans. These loans typically range between $500 and $2,500 and are paid monthly, with payments as low as $10 to $15. The difference between a traditional loan and a credit-building loan is that you don't receive the funds upfront with a credit-building loan. Instead, the lender typically puts your money into an account and holds it as collateral until you repay the loan. 3. Pay your rent and utility bills on time If you've rented an apartment, chances are that you have a rental credit score. Many landlords report your payment history as well as lease violations and evictions on your credit. Being a good tenant pays off, as your future landlords will be able to see this, resulting in lower security deposits or increasing your chances of approval. Failure to pay your utility bills can also show up as a negative ding on your credit score, especially if the utility provider has to send your account to a third-party collection company. Paying your rent and bills on time should be just as high of a priority as making your credit card and loan payments on time. This is also why it's a good idea to thoroughly vet potential roommates, so you don't end up in a situation where their failure to keep up with their end of bills and rent doesn't negatively affect you and your credit. Building good credit: A game that pays off Today, a lot of your opportunities are determined by your credit score. The earlier you start to build a positive payment history and diversify your credit, the easier it will be for you to purchase an affordable and reliable vehicle, get a small business loan, get approved for an apartment, and one day, a house. If you're starting from no credit whatsoever, then start using some (or all) of the tips above. With a little bit of time and consistency, you'll give yourself a massive head start in the game and will be able to reach your credit goals faster. More from Christopher Liew:
