Home Economics: Focusing on earnings during market turmoil; Pitfalls of usage-based auto insurance

Keep calm and focus on earnings during market turmoil: Jackson

Regardless if you’ve taken experts advice and properly diversified your portfolio, you’re likely feeling the pinch from the current downturn in markets. Personal Finance Columnist Dale Jackson thinks investors should take this time to review earnings expectations, re-evaluate the companies they currently own and gauge whether they should increase their holdings – but only if they have the cash to do so. He takes a closer look at how certain financial metrics can help determine which battered stocks could be buying opportunities.

Want to cut your auto insurance bill? Try usage-based insurance

Auto insurers have been touting pay-as-you-go and usage-based programs as a way to lower your car insurance bill. While there are advantages, especially for younger drivers, there are also some drawbacks. Consumers are also skeptical about data privacy issues and how accurate these types of programs really are.

Falling home prices, higher borrowing rates hitting divorcing couples particularly hard

Divorce is never easy on a family. Aside from the emotional and mental toll it can take, it also comes with a financial burden. Falling home prices and higher borrowing costs present even more challenges for divorcing couples who are looking to sell the matrimonial home or secure financing to buy out the other’s equity. A divorce lawyer and real estate professional weigh in on the struggles couples face and the options available to them when splitting up.

Nearly one in four Canadians may need to sell their home amid rate increases: Survey

A Manulife survey found nearly one in four homeowners would have to sell their home if interest rates keep rising amid tough affordability conditions. The survey, conducted in mid-April, also found that over one in five Canadians expect rising interest rates to have a “significant negative impact” on their overall mortgage, debt and financial situation. Economists expect the Bank of Canada to keep raising interest rates to as high as 2.75 per cent by the end of the year.

The Feds lean on existing programs to help consumers deal with inflation.

Finance Minister Chrystia Freeland unveiled a plan to help Canadians deal with the surging cost of living. However, no new programs were announced. Instead, the government is turning to spending programs such as the increase in Old Age Security and a one-time payment for those struggling with housing costs that were announced in previous budget documents.

Keeping mortgage payments in check in the face of higher rates

As interest rates rise, homeowners might be in for sticker shock when it comes time to renew their mortgages. Some experts told The Canadian Press that one way to keep a lid on mortgage payments could be to extend your amortization periodalthough they warn the downside of that is you’ll end up paying more in interest over the length of your mortgage.

TIP JAR

$17.6 trillion

– Household net worth hit $17.6 trillion in the first quarter of 2021, according to Statistics Canadaan increase of 2.6 per cent from the year before.

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