Why you should stay the course with your investments, even if markets are moving.

Thanks to Jackie - investment specialist

If you're investing for your retirement, or saving for some other future goal, you're doing the right thing ... you're paying yourself first and setting this money aside to meet your long-term objectives.

But as time goes on... as your life changes and your priorities shift, you may be tempted to give up the good savings and investing habits you've developed.

My advice to you is to develop a plan and stick with it. By having a plan and continuing to invest regularly, you would be surprised at how you will meet your goals over time.

Are you concerned about the markets going up and down? That's fair - a lot of people have that concern. But my advice is the same - stick with it. Because a good way to handle the everyday ups and downs of the market is to stay the course and follow your plan.

It's never good to "chase" the market because you may find you are buying high and selling low instead of the other way around. Staying invested over time is one of the best ways to get a better overall return.

Imagine if you're on a road trip, and you hit a bit of traffic on the highway. You're not going to abandon the trip just because you've hit a tough spot - you'll never get to your destination! And if you try to test out which route may be faster and you go searching for side roads, chances are you'll end up falling further behind schedule.

It's the same with investing. Like traffic, it's difficult to predict what's going to happen next. Studies have shown that many investors lose money when they try to predict where the market will go.

Invest regularly, and stay focused on your investment objectives. If your objectives have changed, or if you're comfort with risk is different from when you started investing, it's easy to do a review of your investments and make sure you're still happy with where your money is being invested. It's good to review and rebalance every year - as your life changes.

Don't give up on saving and investing for the future - you'll be in a much better position down the road if you stay in the market.

Investment advice is provided by Royal Mutual Funds Inc. Royal Mutual Funds Inc., RBC Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada, The Royal Trust Company and Phillips, Hager & North Investment Management Ltd. are separate corporate entities which are affiliated. Royal Mutual Funds Inc. is licensed as a financial services firm in the province of Quebec.

Visit the RBC Advice Centre for more information.

Credit Rating Basics

Thanks to Gurnek - Credit Specialist

A credit bureau score is used by banks, or other companies - like cable providers, insurance companies or landlords - to determine how risky it is to do business with you. It gives them a picture of how well you manage your money because it's based on information pulled from all the lenders you do business with.

The better the credit score, the more attractive you are as a client. And this means you're more likely to qualify for that loan or mortgage you're applying for, or even to get a preferred rate or package from a cell phone company.

So how does it work exactly? Well the first time you borrow money, a credit rating report is created. They are maintained by credit reporting agencies and include whether you've paid your bills on time, whether you've missed payments, and what your outstanding debt is. Over time, this data will form a pattern of how well you pay - or don't pay - your debt. Information that appears on your credit rating is kept for 7 years.

This is why it is important that you pay all of your bills on time, even the ones that seem small and insignificant. And even if it is just the minimum payment. Regularly staying on top of your bills reflects a good pattern of behaviour.

If you often - or even sometimes - miss bill payments, this can negatively impact your credit score. And a lower score means you're less likely to qualify for financing down the road. If this is a concern, consider setting up automatic transfers on payday so you don't let a payment slip by.

Your credit score is your score. It is good to know what your current score is. You can request a copy of your credit report from either of the two agencies in Canada - Equifax or TransUnion. It's actually a good idea to review your credit report once in a while, in case of any errors or fraudulent activity.

If you keep on top of your credit information, and maintain good credit habits, you'll benefit in the long run.

For more information visit the RBC Advice Centre.

Buying a home - What can you afford?

It's a Personal Decision

While you may qualify for a certain mortgage amount, you should also consider how it will impact your lifestyle and other things that are important to you.

Will you be able to maintain your current lifestyle with the mortgage payments you're considering. Are there changes to your current spending that you can make to be able afford that new home?

Be Honest
Be honest in deciding what you can afford! Small minor changes to your lifestyle are likely doable - however major changes really need to be considered.

Look hard at your current lifestyle - how much do you spend on going out to dinner, movies, travel, etc. You may decide to eat at home more often, watch movies at home instead of going out; whatever your change, you need to assess how drastic is this change in your lifestyle. Will you be satisfied with the changes you've made? A dramatic change in your lifestyle would not be recommended or may not necessarily happen. You still need to lead your life!

Future Considerations Too!
It is also important to think ahead. Where will you be in a few years - kids, new job, etc. How this will affect your future cash flow? Future changes to consider:

The impact of family changes will affect cash flow and your ability to meet your monthly financial obligations. For example, the birth of a child can mean less income coming in due to maternity leave, increased expenses with new clothes, furniture for the baby's room, strollers, car seats, etc.

Look at your employment situation - will you be getting a salary increase soon? Is your spouse/partner going back to work? You may then want to look at stretching yourself now, for the added flexibility later - getting into that home you really want now.

Some additional thoughts - if you have never owned a home before think about the additional costs associated with owning a home that will impact your cash flow:

Utilities - heat, hydro, internet, etc.
New fencing, deck
New furniture, window coverings
Shovels, rakes, etc.

Think About Balance
So you will need to decide. Is the starter home right for you? Something that will allow you to be a home owner now, understanding that in a few years as your family grows and changes, you may need a larger home. Or do you want to stretch and get that dream home now - and potentially never have to move again.

You'll be living with this decision beyond today so you need to think about balance. Remember you want to be able to sleep at night knowing you can make your payments!

Visit the RBC Advice Centre for more information.

How can you pay off your mortgage faster?

Thanks to Leanne, Branch Manager for this article.

Being mortgage free is a dream of many Canadians. Here at RBC we have many flexible payment options to help make that dream a reality.

For instance, if you come into a lump sum amount of money or you get a raise, or your finances change at all, we could help you change your mortgage payments in order to pay that mortgage off even faster.

One of the simplest options is to actually do a double up payment. One double up payment can actually save you tens of thousands of dollars of interest over the course of your mortgage. So that's one payment out of your entire year.

The double up option allows you to increase your monthly or bi-weekly payments. From your original amount you can add on $100 up to the exact amount of your bi-weekly or monthly payment. For example, if your bi-weekly payment is $1,000 you can increase that payment by an additional $100 to $1,000. Those additional funds going right to your principal reducing your overall amortization period.

Another option available is to put 10% down yearly as a lump sum payment directly to your principal. This lump sum is 10% of your initial value of your mortgage.

So for example, if you had a $200,000 mortgage, you have the ability to put a $20,000 lump sum directly to your principal every single year. Therefore you're putting that 10% right to your principal payment and reducing those overall mortgage costs.

Visit the RBC Advice Centre for more information.

Buying versus leasing a car - What's right for you?

Thanks to Kathleen - Credit Specialist

When you're getting a new vehicle, you've got lots of decisions to make. Compact or Sedan? Standard or Automatic? Are heated seats really worth the extra money? And then comes probably the biggest decision of all - are you going to lease or buy?

While many people have opinions on this topic, there really is no right answer. Both options have benefits that appeal differently to different people. To know what works best for you, you just have to figure out how you will use your vehicle and look at how each option stands up to your needs.

When you lease, you make monthly payments in exchange for the exclusive use and possession of a vehicle instead of actually buying one. So this is a great option if you want to drive a new vehicle every few years.

However, it is very important that you become aware of the conditions that come with leasing. For example, there is often a maximum number of kilometres you can drive in a year, the vehicle must be regularly serviced according to the terms and conditions of the lease and there are penalties if you break the lease before the end of the term.

When you buy a vehicle, you usually get financing from a bank, so you're still making monthly payments. Car loans range from 1 to 7 years so that monthly amount can really vary to fit your budget.

You also have the flexibility to pay it off faster. And once your loan is paid, you'll have a fully-owned vehicle. The best part is, those monthly payments will stop, freeing up cash for other things.

The decision really comes down to how you'll use your vehicle and what you can afford. Will you want to upgrade every few years, or will you have your vehicle for 5 years or longer?

How much will you be driving it? And finally, for the vehicle you're looking at, how do the lease payments and potential surrender charges compare to a monthly loan payment?

Once you know what you want - and need - out of your vehicle, deciding whether to lease or buy is easier. Then, you can move on to your next decision. Like, do you go for metallic black or classic white...? Or maybe fire engine red is more your style?


Visit the RBC Advice Centre for more information.

Know what you can afford before you start shopping for a car

Thanks to Maria - Credit Specialist

So you're getting a new car. Congratulations! It's one of the most exciting purchases you can make. And whether this is your first car, or your tenth, everyone has different ideas on what you should get. Between the advice from your friends and family, ads in the newspaper, and the research you're doing on your own, choosing what you want to buy can also be overwhelming.

It's also really easy to get caught up in the latest car models, new features and dealership offers. So if you don't want to end up with a car you can't afford, it's important that you keep your feet on the ground and do some up-front planning.

One way to do this is to get pre-qualified for your car loan before you even start looking. Knowing your total loan amount is the best way to keep you from shopping outside of your price range. And, you can stay focused when a salesperson starts proposing cutting-edge options, extra warranties or service packages.

Many car dealers also promote low interest rates as a way to get you in the door. Instead of looking at payments and rates, first - ask how much it costs to purchase the car for cash, because it may be cheaper for you to pay cash and to arrange financing elsewhere. If you're presented with a low lease payment, make sure you're aware of all of the conditions that come along with leasing a vehicle.

Buying a car is an exciting time. So before you set your heart on something, make sure it's within your reach. When you can balance what you want, with what you can afford, you'll avoid either disappointing or over-extending yourself financially. You'll come across as a serious, confident buyer when you step into any dealership.

Visit the RBC Advice Centre for more information

Understand the energy efficient solutions for your home renovation

Thanks to Mark Salerno, Sustainable Housing Expert, CMHC

Now when you're looking at energy efficiency, there's really a sequence that you want to undertake. The first thing really that we recommend is looking at air-tightness, so sealing those cracks and reducing the amount of heat that can escape through the walls and in around the windows. Once you've done that and that's really the low-hanging fruit, then you start to look at other options like adding insulation. There there's a little more expense and you also maybe need to bring in someone who can help you to add that insulation. The attic may be simple but it's more difficult if you're adding it to walls.

Then once you've done that you've really reduced your need for heating and in fact for cooling. Then you can start to look at mechanical system retrofits, like a furnace or a new boiler. But again, only once you've reduced the need for heating, so then if you do replace that furnace, you're getting one that's optimally sized for your home and it's not oversized.

Then once you've done that you can actually start to look at other creative options like tapping into the sun's energy through solar heating or photovoltaic panels. You don't simply put a solar panel in 'cause it's sexy and doing it off to start. But you really do targeted retrofits.

And at the end of the day you'll have a much more intelligent approach to renovating your home and achieving your energy saving objectives.

Visit the RBC Advice Centre for more information.

Debt consolidation may help you regain control of your finances

Thanks to Tara, Branch Manager for this article!

Many of us have debt in a number of different places. There's credit cards, store cards, car loans and lines of credit... And because each one has a different due date, minimum payment, and interest rate, it doesn't take long to feel like your debt is a little beyond your control.

Plus, you might find that while you're always making payments, your debt isn't actually going down. If you're feeling like your level of debt isn't where you want it to be, and you're committed to paying it down, a debt consolidation loan can be a great way to take back the control you're missing.

A debt consolidation loan allows you to combine different debts into one loan. So instead of making multiple payments, you're now just making one. Does this sound easier than what you're doing now? Well, it is.

A consolidation loan lets you easily manage your debt, and you're not just paying interest, you're also paying down the principal - this can put you on the path to eliminate it altogether.

How? Well to start, with your debt being in one place, you can easily keep track of your repayment progress and you're likely to reduce your overall interest costs.

Loan terms usually range from 1 to 5 years, so you can choose what works best for you. It's easy to customize your loan payments and your frequency to monthly or more often, so you can balance your ongoing cash flow needs with your goal of becoming debt free.

It's important to think about a consolidation loan as a replacement for your existing debt. So if you're serious about paying it down, a consolidation loan can be a great way to regain control of your money.

Visit the RBC Advice Centre for more information.

How to conserve water at home

by Lorraine Gauthier - President, The Now House™ Project

Water requires electricity to actually pump it into our homes. So not only are we, you know, increasing overall use of electricity by virtue of using a lot of water, we're using a resource that around the world is scarce in many places. We just happen to be rich in water. But it makes sense for Canadians to look at conserving water as well.

First of all, simple aerators, the kind of things that reduce the flow on your kitchen taps or your bathroom taps. I mean, those are pretty important, and they really help to reduce water use and, of course, dual-flush toilets, that kind of thing. They use a lot less wear in the tank and therefore dramatically reduce your water use. The other ways are looking at rain barrels so you're actually capturing water from rain from your roof, and then you can reuse it to water your garden, water your flowers, that kind of thing.

If you're thinking of changing your water heater, one of the things you may want to look at is a tankless water heater. What that does is provide hot water when you need it, and in place of that big tank that normally sits in our basement heating water all day long, either using up gas or using electricity, a tankless water heater only uses energy when you need the hot water.

Find out more at the RBC Advice Centre.

How an energy audit can help you prioritize your renovations

by Mark Salerno - Sustainable Housing Expert, CMHC

There are many reasons and motivations for undertaking a renovation. It could be to maintain and repair. You may be retrofitting major components like a roof or a furnace.

No matter what your motivation, though, there's always an opportunity to actually improve the energy efficiency of your home.

Now if you plan to do that, the first thing you should do is get an energy audit. It's always a good recommendation to be on site with the auditor as they're walking through the house, you're able to see in real time what the options and opportunities are for retrofitting your home, what's going to get you the best bang for the buck, or maybe which ones are easier to do, and therefore you'll have a good sense of how you should set your priorities when you do go in fact undertake those renovations.

You're also at that time going to learn from your auditor what the associated rebates are, and that will obviously help you in making that decision.

But don't be concerned that you don't, you know, gather everything or learn everything there because they do provide a very useful report to you that sets out exactly how efficient your home is, but also it sets out a whole list of opportunities for you, and then�in terms of retrofits.

Now when you look at those options, they may be as simple as enhancing the air-tightness of your home. Sealing cracks. It may be adding insulation or replacing a furnace. Regardless, there are many benefits that can accrue from these various efforts. Certainly reducing operating costs, improving the indoor air quality of your home, enhancing the durability of your home, and also doing your part for the environment.

The only way that you can benefit from the available government rebates and incentives is by undertaking that energy audit. So it really needs to be a definite priority if you're planning energy efficient renovations.

Find out more at the RBC Advice Centre.

Which mortgage interest rate is best for you? Fixed, variable or a combination?

by Jennifer - Branch Manager

When it comes to mortgage interest rates, it's not always easy to know what to do. Rates are currently at, or near, historic lows - so what does that mean? Do you choose a fixed rate mortgage or variable rate mortgage? To figure it out, it's good to understand the benefits of both.

With a fixed rate, your interest rate will not increase during the term you have selected. But remember, you won't be able to take advantage of any decline in rates that may occur until the end of your fixed rate term.

A variable rate mortgage fluctuates with the prime rate. The advantage of a variable rate is that it is usually one of the lowest mortgage rates offered - meaning you may save money now and if the Prime Rate falls. Keep in mind though that, if prime rate rises then your interest rate will also rise -which could increase your interest costs over the life of your mortgage and lengthen the amortization of your mortgage.

Some good news - in most circumstances you can lock your variable rate mortgage into a fixed rate mortgage at any time within your mortgage term.

Still can't decide? Fixed? Variable?

A third option is the RBC Homeline Plan® - a home equity product which allows you to choose both fixed and variable rates. Similar to diversifying your investment portfolio, you can benefit in any interest rate environment. When interest rates are on the rise, the fixed rate portion of your plan will provide savings and stability. When interest rates are decreasing, the variable interest rate portion of your mortgage will decrease, saving you interest. And the percentage that you split between fixed and variable is up to you.

Talk with one of our mortgage specialists today to discuss the benefits of fixed, variable or how the RBC Homeline Plan can help you benefit in any interest rate environment.

Find out more at the RBC Advice Centre.

What to consider when deciding to rent or to buy a home

by Rohan - Account Manager

Purchasing a home is a big decision, and it is important to take the time to understand if you are ready to make the move from renting to buying your home. It is a personal decision and there are many factors to consider that are unique to you. Owning a home will most likely be the biggest investment in your lifetime.

The earlier you can re-direct your rent payments into a mortgage payment the faster you will start building equity in your home. Equity is the difference between the value of your home and the amount you owe on your home, and as you pay down your mortgage, or the housing market changes, your equity has the opportunity to grow.

But this doesn't mean that home ownership is the right fit for everyone. If your move is short term, or you are not sure yet of where you want to live it may be worthwhile to continue to rent. Owning a home is a long term commitment.

On our website we have a rent or buy tool that you may want to take a look at to understand what your current rent payment would equate to in a mortgage amount. For example:

If you are currently paying $1000 a month in rent, based on today's 5 year interest rate, amortizing the full amount of your mortgage over 25 years, and making a 10% down payment, this could equate to a house valued at close to $200,000.

It is important to keep in mind as a homeowner there are extra costs you need to account and budget for which may include: property taxes, property maintenance costs, utilities, and condo fees.

Weigh the pros and cons and determine when you are personally ready to make the move from renting to buying. If you are ready, or need help to determine if now is the right time for you, contact one of our RBC Mobile Mortgage Specialists to help you work through the numbers.

Find out more at the RBC Advice Centre.

Top 5 ways to manage your money electronically

While we rely on the mail for many things, the timely and effective management of our money doesn’t have to be on that list. That’s because Online and Mobile banking can allow you stay on top of your money at any time.

Here are 5 ways to easily manage your money electronically.

1. Sign up for electronic statements – with eStatements, you get the same information as your paper statement but you can view it immediately and at any time. Your statements are also archived, so you can go back and check transactions or statement amounts whenever you need to.
2. Pay – and receive - your bills online – Through online or mobile banking services, you can pay your bills easily and in minutes. You just need to set up your ‘payees’ (which include most utilities, taxes and other banks or creditors) in your online banking profile. Set up future dated or ongoing payments; or pay multiple bills at once to save time and stay ahead of the game.
   You can sign up to receive and pay many of your bills online too… a very handy service during a postal strike!
   Remember, regardless of a postal strike or delay, your bill payments are due by the original deadline provided by your biller. If you’re not paying or receiving bills online right now, check with the companies you deal with to confirm your balance owing and next payment date.
3. Arrange for direct deposit and pre-authorized payments– If you’re receiving regular benefit cheques such as Canada Pension Plan or Old Age Security, direct deposit is the fastest (and most reliable) way to get your money. It’s also the quickest way to get your tax refund from the Canada Revenue Agency.
   With pre-authorized payments, you allow a biller to withdraw your monthly payments directly from your chequing or credit card account. This is one way to ensure you never miss a payment.
4. Send money electronically – Need to pay back a friend who covered dinner last night? Or pay your cleaning lady or dog walker? With Interac* e-Transfers, you can send money to anyone in Canada with an email address and access to online banking. The recipient gets the money the same day, and the money comes out of your account immediately.
5. Check your balances and account activity anytime– When you bank online or through your mobile device, you can check your account balances, monitor your account activity and view transactions at any time. Investment and credit card transactions are typically available the next business day.

By staying connected online, you can easily manage your money whenever and wherever is best for you. You also have a more timely view of your accounts and transactions, which can mean you’re more aware and up to date when it comes to your money.

For more information visit the RBC Advice Centre.

The Key Benefits of Consolidating Your Debt

Lower monthly payments

When you consolidate your debts, you may find yourself paying a lower overall interest rate than the combined rates on all your debts. You could also extend your term to reduce your monthly payments even further. Remember, even if you do extend your term, you can always pay more than the minimum monthly payment at any time.

Save on credit card interest

Include your outstanding credit card balances in your debt consolidation and you could reduce your interest rate quite substantially, depending on the rates charged by your cards.

Leverage the equity in your home to save even more

Using the equity in your home to secure your consolidated debt will typically mean an even lower interest rate. With the appreciation in home values over the last few years, this option could make sense for many people.

One monthly payment

Consolidating your debt can greatly simplify your financial life.

Have your debt in one place

Centralizing your debt at one financial institution will save you time in your day to day banking. RBC offers a selection of borrowing options along with 24 hours 7 days a week access through on-line and telephone banking to view and transact as needed.

For more information visit the RBC Advice Centre.

Top 10 Home Renovations and Their Payback

1. Bathroom (75-100%)
2. Kitchen (75-100%)
3. Interior Painting
   (50-100%)
4. Exterior Painting
   (50-100%)
5. Roof Shingle Replacement
   (50-80%)
6. Furnace/Heating System
   (50-80%)
7. Basement Renovation
   (50-75%)
8. Recreation Room Addition
   (50-75%)
9. Installing a Fireplace
   (50-75%)
10. Flooring (50-75%)

Title Insurance

What is "Title?"

"Title" is a word lawyers use to describe the right of ownership to land. When you purchase a home, title is transferred to you, the new home owner.

What is Title Insurance

Title insurance is an insurance policy that protects you, the home owner, against challenges to the ownership of your home or from problems related to the title to your home. The policy provides coverage against losses due to title defects, even if the defects existed before you purchased your home. A title defect is a problem with the title which prevents free and clear ownership. There are many types of defects such as rights of way, encroachments (from neighbouring properties), unpaid liens, etc.

Title insurance policies protect you for as long as you own the property. It protects against a number of risks that a solicitor's opinion on title may not cover. These risks include:

• Fraud and forgery, including someone taking your title through fraud or forgery
• Encroachments that would be disclosed by a new survey (for example, a neighbour's deck being partly on your land)
• Easements (the right acquired for access to or over another person's property for a specific purpose, such as for a driveway or public utilities. This is referred to as "servitude" in the Province of Quebec) over the property that would be disclosed by a new survey
• Zoning non-compliance (i.e. where the property use does not meet the local municipal by-laws)
• Someone other than the home owner having interest (i.e. a previous owner of the property not being discharged from title)

Title insurance is generally purchased when you buy your home or when you refinance it, although it can be purchased any time after you buy your home. You will only make one premium payment when you first buy the insurance. A title insurer can tell you how to purchase the policy.

How Do I Know if I Need Title Insurance?

If you are purchasing or refinancing your home, you should discuss title insurance with your lawyer/notary to see if a title insurance policy is right for you. Your lawyer/notary can arrange the purchase of a home owner's policy.

For more information visit the RBC Mortgage Centre.

A look at how insulation and air sealing your home could save you money

Thanks to Lorraine Gauthier - President, The Now House Project

You know, we can't do everything at once, because you can't afford usually to do all of the changes you might like to make to your home. So it's really important to take a first step, and the very first step people should make is looking at insulation and air sealing their home,

Often we think that maybe windows are a good place to start to reduce our energy use, and windows are a good place, if in fact you've done some other things.

You're really looking at what we call the envelope of the home. So if you imagine all the things that are basically making up the outside of the home: the roof, the exterior walls, your foundation walls, even your foundation floor, these are all very important. And then after that, you worry about the windows.

You want to, you know, get out the weather stripping or get someone in to help you with changing or improving the level of insulation you may have in your attic or your exterior walls.

Look at your basement possibly. You can insulate a basement from the inside, or you can insulate the basement from the outside, just really depending on what you're trying to do.

The best thing about insulating your home is basically the result that you get. So your home will be more comfortable. It will be warmer in winter and cooler in summer. You will spend less money, obviously, because you'll reduce the amount of gas or electricity you need, and it's much better for the environment.

For more information visit the RBC Advice Centre.

Top 5 money tips for travellers

If you’re travelling outside of Canada, you need to have reliable access to your money. Here are 5 easy ways to save time, save money, and help make for a smooth and enjoyable trip.

1. Bring some local currency - When you arrive at your destination, there’s already enough to do. So it’s a great idea to exchange your money at the bank before you leave (give yourself a few extra days should they need to order it in). Having some cash on hand to pay for things like taxis or tips means you can start your vacation right away instead of spending the first hours of your trip searching for a foreign exchange office.
2. Have a cash alternative - While travelling, you’ll want to be able to access larger amounts of money for major purchases or hotel costs. Credit cards are accepted just about anywhere and are much more secure than cash, so they are the perfect travel companion. To avoid potential processing delays while you’re away, be sure to let your bank know that you’ll be travelling. American Express‡ Travellers Cheques are another safe alternative to cash as they’re easy to replace if lost or stolen.
3. Pick a 4-digit PIN - Most foreign ATMs and merchant terminals only accept 4-digit PINs. In order to access your money without difficulty while away, set or re-set your credit and debit card PIN to a 4-digit code.
4. Stay connected online - Just about anywhere you travel, you can easily get to a computer or access your mobile phone. And if you bank online, you can manage your money from wherever you might be. So whether you need to pay your bills during an extended trip, or transfer funds to free up some cash, staying connected while abroad is not only a good idea, it’s secure and convenient too.
5. Spend your coins - Foreign coins are not accepted for exchange once you’re back home (but they are perfect for snacks and souvenirs at the airport). Instead of breaking a bill for any last-minute purchases, try to use up your coins. You’ll save your paper currency… and lighten your load as you travel home!
   
   
   Read more at the RBC Advice Centre.

Setting up an Emergency Fund

Setting up an Emergency Fund can help you be financially prepared for the unexpected

We've all been there: The car breaks down, just when you need it the most, or the fridge has decided to just stop working. You can't put off these expenses, but chances are, you weren't expecting them.

Instead of being in a jam, or having to go into debt to cover your costs, it's a good idea to set up an Emergency Fund - some savings to cover life's unexpected events.

So how much should you save for a rainy day? Well, most financial experts recommend that you have about three months' salary in your emergency fund. If you don't currently have one, or find it difficult to save money, the key is to start small.

Now, putting money aside for one month's worth of expenses, let alone three, could take some time. But if you set your goal to put even a little money aside each month, you'll have a much better chance of reaching it.

RBC can help you get started, by setting up automatic transfers between your RBC bank accounts, through our "Save-matic Program".

When emergencies happen, and they will happen, it's important to have an emergency fund in place so you have access to the funds you need, quickly.

To figure out how much you should be setting aside, check out the Emergency Fund tool and help yourself be prepared.

Visit the RBC Advice Centre for more great information!

Mortgage or life insurance? What's right for you?

Getting the right combination of insurance coverage is important to protect your family - and you want to do that without being over-insured. Something you should think about is whether your family would have the financial support they need to stay in their current home if something were to happen to you.

So, when it comes to protecting your family home there are a couple of options, mortgage insurance or life insurance.

Mortgage insurance pays down the balance of your mortgage if something should happen to you. As a mortgage is typically the biggest financial debt for a family, this can ease a significant financial burden for your surviving spouse.

Life insurance is different. It provides a lump-sum payment to your beneficiaries if something should happen to you. You determine the amount of life insurance you will need when you purchase your life insurance policy.

How that lump-sum payment is used is entirely up to you. Some people choose to use it against their mortgage and any other debts. Some choose to use it to replace the income that is no longer there, while continuing to pay off the mortgage on their own.

Mortgage insurance, life insurance or a combination of both can certainly provide financial support to help keep your family home.

Finding the right combination of insurance coverage to match your financial goals, without being over-insured may seem challenging, that's why we suggest consulting a licensed insurance advisor. They can help you understand the right type of insurance and the amount of coverage you need, plus answer any questions you may have.

Read more at the RBC Advice Centre.

Protect yourself from rising mortgage rates. Stress-proof your mortgage!

by Nadine - Branch Manager

With interest rates at near or record setting lows, buying a home for as much as you qualify for may be very tempting, but it may have some risk. It is important to keep in mind that although interest rates are low now, there may be an increase in interest rates when your mortgage comes up for renewal.

Let's take a look at an example. If you have a $200,000 mortgage and have a 5 year fixed rate of 4% and you amortize your mortgage over 25 years - your monthly payment would be approximately $1052. If in 5 years the same 5 year fixed rate is offered at 6% your payment based on the remaining 20 years amortization would be approx $1425 and if interest rates were as high as 7% your payment would be $1538 per month.

Be honest in deciding what you can afford and whether a future rate change will allow you to maintain your current lifestyle. While small changes to your budget may be easily absorbed by an expected increase in your wages or some simple cost cutting, a larger change needs to be considered especially if you are planning to increase the size of your family or to take on other financial obligations.

Owning a home is a great way to grow your net worth. However, make sure you consider the possible impact of having to renew your mortgage at a higher interest rate at the end of your term.

Take a look at our online Mortgage Payment Calculator, which allows you to input any fixed or variable interest rate to determine how interest rates impact mortgage payments.

RBC is committed to helping our clients make the right choices to meet their needs. Talk to an RBC Mortgage Specialist to review your options when looking to purchase a new home or refinance an existing one.

Read more at the RBC Mortgage Advice Centre.