scrubbedexpat091

We are trying to save for a down payment for a house someday, but just shoving money into a generic savings account isn't going to bring much if any return.

I am not looking for anything high return or overly risk, some risk is okay as obviously it's investing so there is always some risk, but we are more on the conservative side.

We don't know much about investing and we do have an appointment next week at our bank RBC but I feel they may be biased and more concerned with however they get paid and I just don't fully trust bank employees.

If we dump cable, and cell phone, we can do put away 200 a month, not a lot, but it's all we can do right now, we have no real time frame other then 5 to 10 years, based on 10% down for what we could qualify for we need 15,000 to 20,000 saved.

200 is just a starting point, and what we put in will go up over the years as debt it paid off.

We have never invested before, and its mind boggling how many options there are out there for it....


We still also have to call the ministry to see if we are even allowed to have investments and they do limit what we can have income and asset wise, so it might be all useless and moot from the start.

But I am certain there have to me some investor types on this board who have some sort of unbiased knowledge.

BristolUK

If you want minimal or no risk but a better return than banks check out the products available on these two links.

Canadian Direct

Peoples' Trust

Interest rates much more than the banks and the same guarantee protections as if you used a run of the mill bank.

RBC will likely point you to their products but that's not necessarily a bad thing as they'll be much the same as the other banks. If you do your own comparison you can see one bank offering slightly more interest than others in, say, the first year of a five year GIC but then in the last year their rate is lower than others.

You could use your appointment to identify what appeals to you, go away to "think about it" and then look for the equivalent product with better rates elsewhere.

The two links seem to be the stand outs that I've seen.

Don't forget the tax free accounts which do not have to be just bank accounts.

scrubbedexpat091

Thanks for the links.

I am not fully sure we can even have any investments, its confusing when you have the government involved, and confusing asset limits and exemptions.

I am not sure a TFSA is permitted when on BC PWD, but I don't know for sure, I get easily confused by the website since the government doesn't provide the info in an easy to understand way, and they don't have anyone you can call and get accurate information.

RDSP would be ideal, but we don't meet the criteria CRA has (they have a higher threshold of what is disabled then BC does.)

I know we are permitted up to 10,000 in non-exempt assets so I would think we could have up to 10,000 before they take away disability.

They don't want poo disabled to be able to save money....

Once I am not confused anymore, I am sure it will make more sense...

Photoplex

Nothing like the Calgary Attainable Homes program there in BC?

They get you into a brand new home, with a minimum $2000 downpayment from you.

Welcome to Attainable Homes | Attainable Homes

scrubbedexpat091

Not that I have heard of or can find on google, I found some old info from 2-3 years ago when the BC government had a grant program, but it was very temporary and since ended.

Seems like an interesting program.

scilly

A friend got very bad advice from RBC which resulted in her losing a large amount of money with no come back to the bank.

Mind you, I always seem to have problems when I go into RBC to do any transactions with them so I am biased against them!


I'd much rather go to an independent financial advisor ......

..... any good advisor (including a bank one) will ask each of you to fill out quite a long form to find out what kind of investor you are. They do not want you to consult with each other ..... they want to know what kind of risk taker each of you is.

They should then offer you a portfolio of investment opportunities that fits your joint profiles, with a selection of bonds, shares, securities, etc, and your intended purpose

We always come out as very conservative, with me being a little more conservative than OH

Tirytory

That's me too... An investors worst client.

Aviator

An independent advisor charges a fee for service to you the client and will go to any investment that works for the client. Those that get their commision from the funds they invest in (you don't directly pay them yourself), like banks have their portfolio of funds they invest in and will put you in one of those.

Not 'any good advisor' all advisors, they have to do this, it is regulated and a requirement, not only as an initial client, but periodically with retained clients.

scilly

we have a good one, that we trust .......... and he's quite happy with me


others almost run away!

scilly

I am pretty certain that the friend I mentioned before did not get the trusted advice she should have got from the bank advisor ...............

she does not easily understand financial things, and may well have been helped to fill out that form without knowing what she really needed.

The branch she goes to is the one where I have had all my problems with incompetent tellers.

Unfortunately, she is just a friend, and we are having to stand by now and watch her being controlled by the bank as to how much she can take out each month, and having very little money to spend.

She has to sell her apartment in an attempt to replace the money lost, but it has been on the market for about a year, mainly because the building needs some maintenance and buyers are unwilling to buy when "assessments" are pending.

Pulaski

Does Canada have anything like a 401k, which is a "retirement account" that might escape the issue of disability payments and savings accounts while simultaneously allowing penalty-free loans (temporary tax-free withdrawals) for the purpose of making a downpayment on a house?

SchnookoLoly

I don't know if the rules are the same in BC or if it's federally mandated... but I know that if neither person has owned a home anywhere worldwide in the past then they can withdraw money from their RRSP (Registered Retirement Savings Plan) tax-free to be used towards a down payment. We did this when we bought our house last year, took out a chunk (can't remember the amount offhand, there's a max) and used it towards the DP.

Ah, here we go, here's CRA's article on it. What is the Home Buyers' Plan?

Pulaski

That may be the only answer that fits the OP's needs then. (Doesn't foul up any disability payments that the OP and/or his wife receive.)

scrubbedexpat091

A Non-Redeemable RRSP is an exempt asset.

A Redeemable RRSP is not exempt.

They of course don't go into any real explanation on the matter.

RDSP is exempt, but we don't qualify for a disability tax credit from CRA which is required to have one. CRA has a stricter definition of disabled then BC does.

We are allowed to have up to 10,000 cash savings exempt.

Rate Tables: Assets - Ministry of Social Development and Social Innovation, Province of British Columbia

Assets and Exemptions - Social Development and Social Innovation

Pulaski

Redeemable for the limited purpose of a house downpayment as per SchnookoLoly?