Bank of Montreal (BMO) – a big bank in Canada for all my non-Canadian readers – is hosting a cool contest asking people to share their personal home hunting stories. So, that got me thinking… I’ve now purchased and sold a home, and last year, bought our new home… so surely I have a few tips my fine reading friends might like to hear…

The obvious ones, like… I don’t know… finding something you (and if there is a partner) your partner LIKE should go without saying… but in case, I just said it!! Another is choosing the right location. A HUGE house in a neighbourhood you don’t know anything about, near no one you know, in a city you can’t even spell might lead to a regrettable decision later, so really spend some time thinking and loving the future neighbourhood your little home calls its own!

But, lets get down to business… this is a financial/money/economy based blog (What, wait?!?! Yes dear reader, you are reading a finance blog… tricked you!! See, you can care about the economy… or at the very least how you, Jessica Simpson and interest rates all have something in common… hint… $$!)… so lets talk about money and how it relates to buying your dream home!!

A MUCHO important step (I don’t know Spanish, so that’s all you’re getting… wait, is that Spanish?) is choosing a LENDER… or how you’re going to finance your home. There are pretty much two routes to go on this one, other than paying all cash… ah, wouldn’t that be fun! For those of us in reality, you’re either going with a major bank, or working with a mortgage broker that in turns sets you up with a major bank, or a smaller subsidiary of a big bank, or finally an independent lender. Choosing the lender, and the term of the mortgage is a really important step. You love the house… check. You know its not falling down, blowing over, or going to explode… check… You and the seller have agreed on a price… CHECK! Lastly… how the HECK are you going to pay for it… the “BIG CHEQUE” if you will… sort of a big part, no?

So understand, ask a million questions, and really understand your mortgage, wait, I already said “understand”… oh yeah, that’s because folks, its so dang important!!

Basic questions you should ask, or in the case you already own that home, questions you should KNOW the answers to. Here are my big 3:

How Well Do You Know Your Mortgage?

1. Fixed or Variable Rate. Fixed means you have one rate for the first set number of years. Variable, on the other hand moves (or floats) with the Bank of Canada rate (prime) – moreover, a rate set by your lender. This rate can change at anytime, and changes without your authorization. If you’ve ever applied for a mortgage you will see that your variable option is lower than the fixed rate. That’s the whole risk/reward.

2. Amortization Schedule. Amortization just means how many years this sucker, I mean, mortgage will be hanging over your head, and what does the payment schedule/plan look like. Back a few years ago, banks were giving out 40 year mortgages. No can’t do anymore. Typically people choose a mortgage in the range of 25 to 35 years, paying once a month (monthly), twice a month (bi-monthly), or every other week (bi-weekly). As with any debt, the longer the period, the more interest you end up paying. Understand that the longer your mortgage term, in the beginning almost your ENTIRE payment is going to just paying interest. Yes, super gross.

3. Open or Closed. Now here is one that people don’t often know or ask about. The big difference between open and closed mortgages is the freedom to pay off that mortgage with or without penalties. So, lets say you get a 30 year, closed, fixed rate mortgage. We know 30 years is the ENTIRE time period it will take to pay off your mortgage, if you don’t make any extra payments, and that no major changes to the mortgage take place. But what does that “closed” part mean? Well, closed means that you are making a promise to the bank that you will remain in that EXACT mortgage for a set period of time (typically 3, 4 or 5 years, then things will be renegotiated). Now, why would you do that? Well, giving the bank that promise, they say, ok, we’ll knock off a couple of points and give you a lower rate, because to them, that’s a guaranteed set of payments coming in each month. They then turn around and use that money for other things (no need to get into a lesson on how banks make money… another time, phew, right?). Essentially you are making a commitment with the bank to make NO changes to your housing situation for that set period. So what does “open” mean?
Well, open refers to the option that you can get out of that mortgage before that set time period (3, 4 or 5 years). Why would someone choose that option, an option that is more expensive than the “closed” option? Well, people that know they are going to move out of that house in a time shorter than those 3, 4 or 5 years, or people that plan to flip the property. Or those that aren’t sure, and don’t want to get dinged on an opportunity to move, but fear being locked into their mortgage. Or those that plan on paying off more of their mortgage that is “allowed” or better yet, paying off the whole kit and kaboodle early (yah, I just said that! I dare you to not say that later today!!) And just for info’s sake. If you choose a closed, fixed mortgage, and lets say it was for a 5 year period, at around 5% on a $400,000 mortgage… your break fee – the fee to get out of that closed mortgage – ends up being around $18-20,000. So, it’s a BIG fee that you need to consider.

That’s my advice to you today… if others have some helpful tips – we’re all happy to hear them!! There will be more articles upcoming on the topic of “your search for your perfect home… “ so if you have topics you’d like to discuss, please drop me an email!

Lastly, as already mentioned, BMO is having a cool contest The Great House Hunter Contest for BMO SmartSteps for Homeowners. The grand prize is 10,000 AIR MILES® reward miles – holy air miles! – and the first 250 entries get 100 AIR MILES reward miles simply for sharing their great house hunting story!!

Watch MissFortune.ca for our own little contest… check back soon for more details!!

Thanks lovelies!!

xo MF

PS – About The Great House Hunter Contest for BMO Smartsteps for Homeowners…

There is no purchase requirement to enter into The Great House Hunter Contest for BMO SmartSteps® for Homeowners (the “Contest”). The Contest is open to all legal residents of Canada (excluding Quebec) who (at the time of entry): (i) have reached the age of majority in their province/territory of residence; and (ii) have an AIR MILES®* Collector Card. To enter, send an email to House.Hunter@bmo.com that contains (among other things) a story that discusses your “house hunting” experience and one (1) optional photograph to accompany your story. Prizes: Eight (8) Finalist Prizes (1,500 AIR MILES reward miles each); one (1) Grand Prize (10,000 AIR MILES reward miles); and two hundred and fifty (250) Entry Prizes (100 AIR MILES reward miles). The approximate value of AIR MILES reward miles prize depends on the chosen method of redemption and available reward options at the time of redemption. Odds depend on the number, caliber and timing of eligible entries received. Skill-testing question required to be correctly answered to win. Full rules at: www.bmo.com/greathousehuntercontestrulesandregs

So, Google bought Motorola.  Yah, huge purchase… Like $12.5 billion huge. Oh the things I’d buy with $12.5 billion… 

Why would a web search company buy a phone company?  Well dear reader, I’m glad you asked…

They say Google was after the patents that Motorola owns and needed to make this deal to save its Android operating platform (operating system for the phone).  Nortel sold its patents earlier this year, but Google lost out, didn’t get them, and thus felt they had to do something.  

All cell phone manufacturers (makers of cellphones) are trying to stake out market share in the industry.  It’s less and less about the actual handset and more about the operating system and content. The move is quite strategic for Google.  If Google has Android on more phones, it can drive more search activity to its website, Google plus, and other apps… very complimentary business.  

A little history… Motorola really fell off the map after they couldn’t come up with a popular phone after the Razr.  Yah, the Razr… How long ago was that!!!  Lets just say I was living in Boston, not married, and certainly without child… Feels like forever ago!   So, back to Motorola… They split themselves into two companies (Google just bought the cell phone business).  Google did this to compete with Apple… 

What does this mean?  Well, now the inevitable question is… Who’s next?  Well, for starters, Microsoft is sitting there looking at RIM, and maybe Nokia.  Microsoft would be interested in a provider for the same reasons, to put there OS (operating system) on those phones.  Everyone has realized that phones aren’t just phones any more…. and everyone wants to do everything from there pocket.  

By the by… I wrote this article on my blackberry… Just saying. 

Apple is getting a little fiesty, bringing the smartphone battle right into RIM’s backyard, opening their first store in Waterloo, Ontario this past weekend.  As a side note, when are we going to stop calling them smartphones and just phones… The term is so awkward and really, irrelevant. Sorry, back to business…

RIM, or Research in Motion, or for those that still are like, who?, the Blackberry Guys, has their headquarters located in Waterloo, where thousands of locals work, and until recently, was free of any overt Apple shenanigans…

Well, that ended this weekend. A couple hundred people lined up for the store opening, a first in the area, with people traveling a couple hours to visit their closest Apple store.

The news isn’t earth shattering, its just another bump in the road for the struggling RIM. After missing estimates quarter after quarter, then, unfortunately in July, they announced they were cutting 2,000 globally located jobs in 2011. Yah, this year. RIM is in rough shape. And this comes on the heels of Apple becoming the world’s most valuable company…

Poor RIM. Maybe Microsoft will buy you, and save you from yourself…

In other news, Google just purchased Motorola – yah, sorta like the idea of Microsoft buying RIM… It could happen.

So, we know that Apple’s iPad 2 was a big success in the US a few weeks back. Well, tomorrow, the iPad 2 arrives in Canada, and to our surprise, Apple has even lowered the price (a bit) to compensate for the fact that our dollar is essentially kicking arse right now.

How Much?

So, for the longest time, all we knew were the US prices (no change from iPad 1), but we have now learned that were getting a $30 discount… So the breakdown is (listed in Canadian Dollars):

16GB WiFi – $519
32GB WiFi – $619
64GB WiFi – $719

16GB WiFi + 3G – $649
32GB WiFi + 3G – $749
64GB WiFi + 3G – $849

How to Get One?

Apple tells us that the iPad 2 will be available in specific retail stores at 5pm on March 25 (why 5pm, we don’t know). Now that doesn’t mean you can just show up at 5:30pm and pick up your device… Message boards across the web are saying that lineups are likely to mimic what we saw in the US… Maniacs there at 4, 5 or 6am… You crazy techies you!!

In any case, of course you will find the iPad 2 at Apple stores, Best But, Future Shop (and some other authorized Apple retailers). You can also order online through apple.ca, starting at 1am – but we have no idea the delivery timeline. One to three days, or 5 weeks as has been the case in the US.

Hype or Not?

To follow in typical hypetastic form, Apple will undoubtedly limit inventory, to create the shopping frenzy and the allure of the iPad going, so if you really want one, line up early… But rumour has it that the Apple stores will be holding back inventory for the launch weekend, and that the lucky ones will also be able to grab one on Saturday or Sunday morning.

Good luck shoppers, and to the rest of you… Happy almost weekend!!

Well hello again my sweet, sweet readers.

My apologies… this article is not that exciting, however, dang, its kinda important, so I felt if I didn’t write about this, well, we’d all be cheating ourselves (ugh, I’ll be quick!).

Canada’s Finance Minister, Jim Flaherty announced yesterday that there are new federal rules to help Canadians avoid too much debt, and getting into too much trouble!!!

So – what are the new rules – and why do you care?  Excellent question MF’ers, glad you asked!!  The questions posed by you are just wonderful… here it is:

1. They have reduced the maximum amortization (length of the whole mortgage) for loan to value ratios of more than 80% from 30 years to 35 years for government-backed insured mortgages.  That means, if you don’t have more than 20% down, and you need to get some insurance on your mortgage (in order to get said mortgage), like from the CMHC, you can only have a 30 year mortgage (not 35, or 40 years as was the case up until 2008).  This just means that your monthly payment will be a little more, ultimately helping you pay less interest over the life of your mortgage.  So, for those of you who often play on mortgage calculators (highly recommend!!), type in 30 years – not 35, ok?
2. Looking to refinance?  Canadians can only borrow up to 85% (down from 90%) of the value of your home.  Fair enough.
3. And those lines of credit, secured by your home… well, the Government has withdrawn from backing those credit lines.

Now, don’t start freaking out (a, because you don’t really understand or b, because you think this applies to your current home/situation, it doesn’t!)… if you don’t understand – ask questions: to us, your friends and family, your bank, heck, anyone!!  And do understand that for those that already have homes, mortgage backed credit lines, or refinancing that sits upwards of 85% – again, this does not impact deals already in place… nobody is pulling the rug out from under you!

Going forward though, these rules will apply, not for at least 60 days (that’s the rule set out by the industry for advance notice required for any policy changes), but this is all in an effort to help Canadians save more, and not become overextended with loads and loads of debt.

Carney (Bank of Canada Governor) is expected to announce whether interest rates will change today – we expect no change – but just wanted to let you know that little gem… I know, I know… such exciting gossip.

Ok – you’ve learned something… Off, play, be merry!

Here we go!!!

BREAKING NEWS my fellow canucks!

Target (Target Corp) just announced they have purchased most of the Canadian Zellers stores from Hudson’s Bay – for a total of $1.8 billion!  This is huge news!

Target has been talking about a Canadian expansion for quite some time now, but with this move, its actually official – Tar-Jay is on its way!!

Target will have 100 to 150 stores across the country, starting in 2013-2014, and rumour has it, for the locations they aren’t keen on, they may unload those stores to other retailers, including Wal-Mart. So, with that, Zellars is out, gone in the next couple years, and Target is moving north!

There are already a few locations in Canada (test stores if you will….), so its happening, the U.S. retail chain is here!

Gotta say – we’re excited!!

So, for the east coasters just getting their news, some of you may have missed this little nugget last night.  Starbucks Corp. has decided to literally switch things up, and have debuted a new logo, one that has completely removed the circle surrounding the Siren, that circle that has those famous two words: “Starbucks Coffee”.

Now, as you can imagine, the diehard Starbucks fans, the ones who really do love the logo of (evidently) yesteryear, launched a backlash against the company on Starbucks’ own website, as well as other major social sites, like Facebook and Twitter.

Why the change?

Well, 2011 is the 40^th anniversary of the brand, started in Seattle and reflects the next chapter “in our history.  Throughout the last four decades the Siren has been there through it all, now we’ve given her a small but meaningful update to ensure that the Starbucks brand continues to embrace our heritage and also ensure we remain relevant and poised for future growth” Howard Shultz, Starbucks’ president and CEO said via the company’s website.

We’ve told you here, via MF, that Starbucks is looking to introduce many changes in 2011, including looking into selling booze in the afternoon, coast to coast, as well as a hint by Shultz that we can expect more “evolution starting this Spring” but who the heck really knows what that could be!  In this case, the new logo will rollout in March.

For those familiar with logo controversy, you may recall the Gap debuting a new logo last year, to which the major Gap fanatics caused such an uproar and appeared to have such true disgust… for a logo… for the Gap… that they (the Gap) literally stopped what they were doing, and one short week later, scrapped the new logo, and went back to the original big blue box, with the white GAP written in bold white letters.

In any case, for those that have a feeling one way or another, let your little coffee voice be heard (or in my case, a yummy grande, skinny chai tea latte, yum!) and give Starbs your feedback, on their site, on the many Facebook sites online, or simply here in our comments section!  We don’t have our hate on for the new logo, but, we kinda like the one we’ve grown used to over the past few years, I mean, so we gotta ask – are they changing things, just for the sake of change and promotion or do they truly believe that the new logo is a clear representation of who they are as a company, and moreover speaks directly to you, the Starbucks drinker?  Only time will tell!

With everyone officially back to work, some of you (eek!) are reading a newspaper for the first time in a few days (or weeks!) and saw some of the headlines that have already captured the news early in 2011.

One of the biggy’s is the HUGE investment by Goldman Sachs in Facebook.  Huh?  Oh, didn’t catch that story?  No problemo my little cupcake, here’s the lowdown:

Facebook, over the years, has looked to investors to help pull money into the company to pay for development, staffing and simply for all efforts to take over the world.  In total, Facebook has raised in the neighbourhood of $1.3 billion – including this week’s $450 million from Goldman Sachs.

Facebook’s worth has increased (and increased, and increased!) over the past few years, and not surprisingly, is now worth the most we’ve ever seen, duh, right….  Well, way back in September (yeah, only about 4 months ago), Facebook was valued between $23 and $33 billion and just two months ago, in November, that number had increased to $41 billion.

So, Miss Fortune – where the F is Facebook sitting now?  Well that was a rather spicy way of asking, but I know, I wanted to know the same.

With that new little lump sum hitting Mr. Zuckerberg’s account (it doesn’t actually work that way, but oh my what if it did!!), what is Facebook worth TODAY??  Well, experts are saying given Goldman’s investment, Facebook is now valued at $50 billion.  Yeah.  Crazy.  By the way – y’all realize I’m talking about a website we visit now more often then Google, and pretty much just creep other’s photos, posts, wall conversations with other people (um, some of you need to invest a little time in learning about Facebook chat, or private messages fyi!)… this is not a hugely commercial site (like Amazon.com, that you know, sells… stuff!), its Facebook, timewaster.com, seriously.

In any case, Facebook has quite literally just hit the jackpot, and now needs to decide how to spend that money (I’m here to help at any time Facebook, anytime!).    Some experts predict they might cash out some employees (with investment stakes), or hire many, many more employees, or both!  Others say this is a sure fire sign that an IPO (going public, where we are all free to buy our own little chunk of the big blue F!) is on the horizon… an article on that coming asap, in the meantime… you’ve spent almost 7 minutes off Facebook reading this article – good lord child, get back to creeping!!!

So, this morning, as I woke up at 4am because I couldn’t sleep, gross yes, I decided to read all the papers online… some might think that would be even more gross…

I digress…

When my insomniatic-reading (made up word) reached the National Post, I read the following ever-so-thoughtful title in the Personal Finance section:

It’s easy: Just stop your spending

Now, I’m going to go along that this was a tongue and cheek way at saying – yeah, obviously if we need to get out of debt, we just need to stop spending so much – so ok, fine, the article’s title is ever so clever… But really – with my irritable pregnant brain going, I was bugged.  Real helpful NP!  I read the entire article, and it gave some advice, and summed up the debt situation in Canada (and the U.S.), but really, it was another article where they essentially tell you to stop spending.

Some of you might recall in the past few days, Mark Carney (wait for it… yup, you are bang on sister, the Bank of Canada’s governor… eek, I just called you “sister”, my apologies) sort of schooled us by telling Canadians, “give your heads a shake and stop taking on so much darn debt, and while you’re at it, start paying it down you dummies”… (read: not a direct quote).

But he’s right, and we’re off track.  We are spending, as a whole, more than we make, and that means we are sinking more and more in debt.

Well great, thanks Miss Fortune.  Its 10 days before Christmas and you’re asking me to curb my spending, or better yet, start paying off debt – HA!  You are out of touch…

No.  Well, eh….

No – I know, I know.  Yes, it’s the holidays, and yup, we’re all shopping like maniacs right now for everyone on our list… so the few tips I can provide for the next ten days – in an effort to help you spend a little less on your shopping are the following:

1. Before buying ANYTHING online, open up your bff Google and look for a promo code, discount code, or sign up for an email from the store.  Seriously – if you do this, in most cases you instantly receive a discount code (for online, or in-store) that you can immediately start using… do it… its just too easy.  Here is one to start you off – 30% off any one item at Chapters today and tomorrow (here!).
2. Cheap!!!  Be cheap!!!  We preach it on this site – shop at Forever21, H&M, heck even The Bay is having crazy sales, ties for $9.99 yesterday (down from $35) – I mean come on!  For example, today at The Bay, 25% off small kitchen, garment and personal care electrics (coffee makers, steamers and blowdryers, oh my!).  Honestly, pay attention and shop the sales – there are TONS of them already!
3. Check out the Deal of the Day craze – and buy upwards of 80-90% off – Redonk!  Sites like Groupon & LivingSocial just to start, but snoop around, each day there is a new deal to be had.  LivingSocial just had a crazy deal on Bikram Yoga in Toronto (over 90% off), so sign up for the once-daily email alert – today is some random Paintball in Toronto (on living social), so my apologies in advance for that one.
4. Do your best to pay cash/debit – as your VISA bill will rack up so quickly, you might not be able to pay off the whole balance at the end of the month (thus incurring the dreaded compound interest – eek! – for most of you, in the neighbourhood of 20%!).  So TRY to use debit/cash… I know though, it’s hard.
5. Really figure out WHAT you need, and identify each gift (and $$ range if possible) for each person on your list.  It will help you once in the store, and also, will curb you from buying the “wants” instead of those “needs”.
6. Pray for Christmas to come!  Then, the gift buying will be done!!

Happy (frugal) shopping my little muffins!

xo Miss Fortune!

When I feel a little careless, I go shopping in Club Monaco, Banana Republic, J. Crew, Aritzia (wait – this article isn’t about that, how about I just stop here).  When I’m feeling like I’m ready to be thrifty and feel really great about my purchases, I RUN to Forever21, H&M, Target, and Joe’s.  When I’m completely out of control, you can find me in Holts, Saks, Tiffany’s or locked in my house for fear of what I might do.

This story isn’t about my shopping problem, which evidently I may or may not have (don’t answer that), but about a store I used to really like, love actually, and how it has completely fallen off my fashion map, perhaps yours too, and seemingly might be falling off the proverbial map altogether.

We’re talking about Jacob.

For those sticklers, Boutique Jacob Inc, based out of Montreal, is heading down a dark road, one you may have noticed in recent years or months.  Personally, I’ve seen the quality diminish, prices soar (seriously, you’re Jacob, slow your role), and more black, white and brown than I’ve ever seen in one store (even more than Club Monaco!).

Jacob was just granted court protection from creditors “citing sizeable losses and blaming burgeoning competitors from international retailers.”  So what exactly does that mean?  Glad you so eagerly asked you little go getter you!!

Granting protection from creditors (people you owe money too, such as the clothing/fabric suppliers for Jacob) is close to bankruptcy… but please know, its NOT bankruptcy.  Having been granted protection allows Jacob time to restructure its debt payments, so effectively it’s a “restructuring”.  In my opinion, the big wigs at Jacob seemed to have missed the boat on the inexpensive-disposable clothing trend we’ve enjoyed the past few years, something I feel they could have totally jumped on, and maybe even owned 2-3 years ago.  They of course had Jacob Connexion, but it seemed confused itself, totally drab, and not really on trend, and now folded into the regular Jacob stores, another sign things weren’t great for the company.  So, what’s left is for those in charge to shuffle things around.   Perhaps get rid of some people, hire better execs with experience in this type of financial situation, and get Jacob turned around, quickly.  OR, they might look to be acquired by another company.  Who, you may ask, well, one of those rumored companies is Reitmans, Canada’s largest specialty apparel chain – I know, I had no idea either!

This has turned into a long article, but one I thought loads of you might/could/should find interesting… come on, its about fashion, a trend towards US stores moving up north (J.Crew is coming soon, Victoria Secret just arrived), the changing landscape of Canadian/US retailers and a little about business, and dang, its only the morning!

Now go – shop for the holidays, don’t make me feel like I’m the only one, and stay tuned for the next episode of Young and the Restless, opps, I mean, Fashion and the Retail Landscape… who knows, it might catch on!