Work Life Canada

It is no secret that the five largest chartered Canadian banks dominate the market and have 149 years of history behind them. Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of Commerce are a few of these banks and it is no wonder that they carry a dominant market share. This traditional banking experience works well for a lot of Canadians, providing the safety and security that comes with these long term financial institutions.

However, new digital technologies are bringing about changes in many aspects of our lives, and banking is no exception. Neo Financial is a Canadian fintech startup attempting to compete with the big chartered banks with innovative financial products. These cutting-edge products use technology and valuable customer data to create an easy, convenient, and unique banking experience tailored to the needs of modern consumers.

Neo Financial is offering their “Neo Account” which is much more than your traditional current or savings account. It offers no monthly fees, no overdraft fees, no transaction fees, and no other hidden costs. You will only ever be charged an ABS-regulated 1.5% handling fee for returned or non-sufficient funds. Their state-of-the-art mobile application allows customers complete control and visibility over their finances. The Neo credit cards account features real-time, easy-to-read spending reports, adding the advantage of giving users better control of their budget. Live chat customer service is also at customers’ disposal right through the application.

Neo Financial is launching a new product – their ID verification feature. New customers will be able to link their driver’s license, passport, or provincial identification to their account. Verified customers will be able to make secure mobile payments with their smartphone as well as purchases online, on any desktop or laptop. The other traditional banks in Canada have similar ID verification technology, but Neo Financial offers a much faster and secure signup.

In addition, Neo Financial’s Debit Access Card will provide customers with access to cash from any ATM. They can make MasterCard payments and transfers to other Neo Financial customers as well as third-party financial services Sending or receiving money is just as easy as a tap and is straightforward and accepted by most merchants. Plus, payments made using the Neo Financial debit card are insured up to $100,000.

Neo Financial’s savings account also provides customers with an incomparable benefits; great interest rates, no minimum balance requirement, no limits on deposits, and a real time budget control. Spoiling yourself with small luxuries every now and then could be rewarding, but financial discipline is also important. The savings accelerator feature optimizes customers’ savings by automatically transferring available cash into customers’ savings balance.

Overall, it is clear that the big banks still dominate the majority of Canadians’ banking experience, but Neo Financial is making a compelling argument against traditional banks with these innovative financial products. We all have different needs and Neo Financial is providing customers with a flexible, secure, and easy-to-use platform that meets these needs. There is no doubt that they will continue to offer unique offerings that challenge the traditional banks in the future.

One of the most important financial decisions an adult will ever have to make in their lifetime is that of obtaining a mortgage. With the fluctuations in the market and, for Canadians, with the recent changes in the Bank of Canada’s interest rate, mortgage payments can suddenly increase in size as new interest rates exceed those conditions that when first bought the loan. Dealing with these larger payments can be an intimidating prospect for those who are spending the majority of their income on their monthly mortgage payments. Thankfully, there are some options available for those homeowners dealing with increasing mortgage payments in Canada.

Taking on additional part time or seasonal employment can be a first solution to help funding mortgage payments and this will enable you to keep afloat during these trying times. Sometimes it may be impossible to do so, due to ineligibility and lack of job opportunities. Other forms of creative solutions may include also looking into payday loans depending on your financial situation.

It is always advantageous to take a look at any amortization period of the mortgage and try and examine whether it is feasible to lower the amount of money you are paying monthly. Refinancing your loan is a process of renegotiating the specifics of your loan agreement to get either lower rates or payments, if the agreement still fits the budget. This should be done carefully as some lenders will have caveats that allowing you to keep the same mortgage term or extending out the amortization period which may mean you pay more in total payments in the long haul.

When renegotiating the terms of your mortgage, one should investigate creative ways of adding to the down payment with other forms of financial resources. This can be secured with gift money from parents, payroll advance loans, POS discounts, etc. All these solutions can provide the necessary buffer for more favourable repayment terms you can afford and manage.

Take caution on the trade-offs of the increased payment size as it will likely lead to heavy lifestyle changes from your end from having to cut back on unnecessary costs. So instead of travelling twice a year, consider just taking that one dream vacation that can be an efficient solution. Therefore, one should review the personal budget and stick to basics such as paying off unnecessary debts such as credit card debts and only buy what’s necessary.

In these times across Canada, it’s important to get with family and financial experts about potential solutions available if the size of a mortgage repayment suddenly increases due to higher interest rates. Certainly, there are always available options to explore, such as changing the agreement term of loan action plans whereby you can decrease the monthly or increase it, or renegotiate the terms of the loan with your lender. Whichever solution is adopted, the key component is to understand how much of a repayment fee you can actually afford and ensure you stick to it under all circumstances.