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It's going to be a busy week in America when it comes to politics. And if you're covering - we have experts who can help with any of your questions or stories. Tom Smith - Professor in the Practice of Finance - Professor Smith is an expert in labor economics, entertainment and healthcare economics, as well as real estate and urban economies. David Schweidel - Professor of Marketing - Professor Schweidel has been closely researching the impact of AI in society, especially elections. He can speak on the impact AI is expected to have in this year’s elections. Professor Schweidel also has extensive work in election marketing. He researched negative campaign advertising and if a negative tone has a positive impact on election results. Ramnath Chellappa - Professor of Information Systems & Operations Management - Professor Chellappa is available to discuss the economics of information security and privacy. He can also discuss the economics and impact of AI. Raymond Hill - Professor Emeritus Hill is available to discuss any issues on the economy related to energy. If you are looking to arrange an interview - simply click any of the listed expert's icons to set up a time today or email Kim Speece for assistance.
It Works on TV - Do Property Rehabs Drive Up Prices in Surrounding Neighborhoods?
When a house is distressed, the negative impact tends to ricochet around its surrounding neighborhood. Distressed homes (e.g. foreclosures) can significantly bring down the value of other homes in the area, as these properties are often poorly maintained and then typically sold at discounted prices In the past, and particularly in the wake of the 2008 subprime crisis, federal and local governments sought to mitigate this negative effect by incentivizing the rehabilitation of distressed properties through programs like the Neighborhood Stabilization Program (NSP). Until now, there has been some skepticism as to whether or not these kinds of initiatives actually work. New research by Goizueta Foundation Term Associate Professor of Finance Gonzalo Maturana and Goizueta’s Assistant Professor of Finance Rohan Ganduri might change the narrative definitively. They have analyzed new data that shows that rehabilitation projects not only help to stabilize housing prices in affected neighborhoods but can also actually increase the value of neighboring properties by as much as four percentage points. Using highly robust, non-parametric statistical analysis methods, Maturana and Ganduri parsed more than 10 years of information on rehabilitated property transactions and real estate prices across the United States. The effect of renovating dilapidated or derelict houses in these areas pushes prices up between 2.3 and four percentage points in their surrounding blocks, they find. And that’s not all. While the average amount spent by authorities on these renovations comes in at roughly $36,000, their study estimates a societal welfare gain of $134,000 per rehabilitated property—almost four times the cost of the rehabilitation. These insights should provide interesting food for thought for the U.S. Congress and local governments, Maturana notes. After the housing crash in 2008, Congress allocated $6.9 billion in funding to the NSP to help stabilize communities affected by high vacancy and foreclosure rates, but the Department of Housing and Urban Development didn’t find any positive impact on local housing markets at the time. “Our findings suggest that rehabilitation projects do drive a positive uptick in prices that can help revitalize distressed neighborhoods,” says Maturana. “And they provide very timely support for policy interventions, such as President Biden’s infrastructure spending program which proposes an allocation of $20 billion to rehabilitate 500,000 single-family homes in low-income neighborhoods in the United States.” With the current economy facing some uncertain times - this is a topic that is important for everyone. And if you're a reporter looking to know more then let us help. Gonzalo Maturana is an associate professor of finance at the Goizueta Business School. He is an expert in the areas of corporate, household and real estate finance. Rohan Ganduri's research interests include banking, credit risk, real estate, household finance, and corporate finance. Both Gonzalo and Rohan are available to speak to media regarding this topic – simply click on either icon now to arrange an interview today.
Ask an #Expert - Is there any way to temper America's boiling housing market?
U.S. HOUSING PRICES STILL RISING ALONG WITH MORTGAGE RATES When mortgage rates rise, home prices tend to level off or decline because fewer people can afford to buy. Experts are counting on that adage to help cool the nation’s torrid housing market. But the latest analysis of the most overvalued markets shows prices still are climbing despite the increasing mortgage rates, which last week reached their highest level in more than three years. In all 100 markets surveyed by researchers at Florida Atlantic University and Florida International University, buyers continue to pay higher premiums – that’s the difference between where home prices should be based on historical trends and where they are now. Two months ago, Los Angeles, Provo, Utah and other metro areas in the Western part of the country developed “pricing crowns,” an indication that those housing markets could be slowing. But home values have since reaccelerated, prompting concern that a looming downturn in some areas could be worse than expected. “Eventually mortgage rates will slow down home prices, but it hasn’t happened so far,” said Ken H. Johnson, Ph.D., an economist in FAU’s College of Business. “We should not see rapid upticks in prices as mortgage rates rise. It’s that kind of exuberance that led to past housing downturns.” Boise, Idaho is the nation’s most overvalued housing market, as it has been since the researchers first released their rankings last summer. At the end of February, Boise buyers were paying an average price of $513,849, even though historical trends indicate the average price should be $291,389. That 76.34 percent premium is well ahead of No. 2 Austin, Texas (64.80 percent). The full rankings with interactive graphics can be found here. Charlotte, North Carolina entered the top 10 overvalued markets for the first time with a premium of 50.14 percent. February’s average home price in Charlotte was $353,106, although a history of past sales suggests that price should be $235,188. “Charlotte’s significant and rapidly growing premium is similar to other Southern metros that are all experiencing fast price appreciation,” said Eli Beracha, Ph.D., of FIU’s Hollo School of Real Estate. “The drivers of this appear to be large population increases in these areas combined with a significant shortage in housing inventory.” Each month, Johnson and Beracha rank the most overvalued housing markets of America’s 100 largest metros, similar to the popular S&P CoreLogic Case-Shiller home price index. Johnson and Beracha incorporate average or expected price changes and provide an estimate of how much a market’s housing stock is over- or undervalued, relative to its historic pricing. The data covers single-family homes, townhomes, condominiums and co-ops. Six Florida metros, led by Lakeland, all rank among the nation’s 25 most overvalued markets with premiums of more than 40 percent. The Miami metro, with a premium of nearly 25 percent, remains the least overvalued market in the Sunshine State. As the U.S. housing market cools, metros with strong population gains and shortages of homes for sale will fare best, although those markets will continue to struggle with affordability, the researchers predict. Metros with flat or falling populations and more available homes for sale could face price declines, making those areas more attainable for young families and first-time buyers. Johnson said consumers could be taking big risks if they jump into the U.S. housing market now. “We are near the peak of the current housing cycle, and you never want to buy near the top of the market,” he said. “Consumers need to pause if their main motivation is to buy because they fear prices will rise even higher. Prices are high now, but they always moderate back toward a long-term pricing trend. Perhaps staying where you are now and letting this irrational market settle would be one of the best decisions you could make.” Ken Johnson is the associate dean and professor in the College of Business at Florida Atlantic University. Ken is available to speak to media about this topic – simply click on his icon to arrange an interview and time.
Most in-demand jobs in British Columbia (B.C.) for newcomers
British Columbia is Canada’s third most populous province after Ontario and Quebec, with a large portion of its residents living in the Lower Mainland, which includes the coastal city of Vancouver and surrounding municipalities. The province attracts newcomers from all over the world with its cultural diversity, career opportunities, and enjoyable temperate climate. The government of British Columbia periodically invites newcomers with the skills and experience to meet the province’s growing labour requirements to work and settle in B.C. as Permanent Residents (PR) through the British Columbia Provincial Nominee Program (BC PNP). This article provides information on British Columbia’s job market, including key industries and in-demand occupations for newcomers in B.C., along with NOC codes and median wage estimates, so you can arrive prepared to kick-start your career in Canada. What are the top industries in British Columbia? Services industry: The services sector is the largest contributor to the province’s GDP and the biggest employer in British Columbia. Some key service industries include real estate, construction, banking and financial services, health care, entertainment, retail, education, and professional, scientific, and technical services. Manufacturing industry: Top manufacturing industries include aerospace, clean technology, life sciences, information and communication technology, and paper. Mining and natural gas industry: B.C. has more than 700 mining and mineral companies, and employs over 25,000 people in mining and natural gas extraction and processing. The province is rich in precious metals and non-metallic minerals. Agriculture, aquaculture, and food processing industry: A wide range of agricultural and seafood products support a varied food processing industry in the province. Forestry: B.C. is one of the world’s largest exporters of wood products and the industry employs over 55,000 people. Which cities have the most job opportunities in BC? Lower Mainland, including Vancouver, Surrey, Burnaby, and Richmond: The most populous area in all of B.C., the Lower Mainland region offers ample job opportunities in services, trade, technology, film and television, tourism, natural resources, and construction. Victoria: The capital city of Victoria has large industries centred around advanced technology, tourism, education, health, retail, construction, and agriculture. Abbotsford: Abbotsford is known for its large agribusiness industry. It also offers employment opportunities in technology and aerospace industries. Kelowna: Kelowna has a diverse economy with opportunities in agriculture, health care, manufacturing, tourism, and service industries. What jobs are in demand in British Columbia? Construction and engineering jobs in B.C. Construction managers (NOC 0711): To get a job as a construction manager, you may require a management degree and can expect to earn a median income of $41 CAD per hour. Civil, electrical, electronic, and mechanical engineers (NOC 2131, 2133, 2132): These in-demand jobs in B.C. pay between $36 CAD and $43 CAD per hour. However, you’ll need an engineering degree and a provincial licence to work as an engineer. Technology jobs in B.C. Information systems analysts and consultants (NOC 2171): IT analysts and consultants earn a median income of $36 CAD per hour. Computer programmers and interactive media developers (NOC 2174): As a programmer or developer, you can expect to make around $43 CAD per hour. Computer network technicians (NOC 2281): Technicians make a median income of $28.85 CAD per hour in B.C. Software engineers and designers (NOC 2173): Software engineering jobs in B.C. are highly paid, with a median hourly pay of $52 CAD. You’ll need an engineering degree to qualify. Business and administration jobs in B.C. Administrative officers and assistants (NOC 1221 and 1241): These roles typically pay between $23 CAD and $26 CAD per hour. Financial auditors and accountants (NOC 1111): For finance and accounting roles, you’ll need a graduate degree or diploma in relevant courses. Auditors earn an average salary of $28 CAD per hour in B.C. Accounting technicians and bookkeepers (NOC 1311): Bookkeepers are paid a median hourly wage of $24 CAD. Health care jobs in B.C. Specialist physicians, general practitioners and family physicians (NOC 3111, 3112): Most of the in-demand occupations in health care require a provincial licence. To practise as a physician in B.C., newcomers also need to take a qualifying examination. Physicians, depending on their specialization, make a median annual income between $164,237 CAD and $256,202 CAD in British Columbia. Registered nurses and psychiatric nurses (NOC 3012): Registered nurses earn a median income of $41 CAD per hour and require a provincial nursing licence. Licensed practical nurses (NOC 3233): This in-demand occupation pays a median wage of $29 CAD per hour. Medical sonographers (NOC 3216): Sonographers make between $35 CAD and $39 CAD per hour in B.C. Nurse aides, orderlies, and patient service associates (NOC 3413): Nurse aides and orderlies earn between $18 CAD and $25 CAD per hour, depending on their experience and seniority. Education and social services jobs in B.C. Social and community service workers (NOC 4212): These jobs pay around $21 CAD per hour in B.C. Educators for universities, colleges, vocational institutes, and early childhood education (NOC 4011, 4021, and 4214): University and college professors and lecturers require a provincial teaching credential to work in BC. The median hourly pay for these occupations is $43 CAD. Early childhood educators earn a median income of $19 CAD per hour. Sales and services jobs in B.C. Retail and wholesale trade managers (NOC 0621): Managers in trade earn a median hourly wage of $30 CAD in BC. Restaurant and food service managers (NOC 0631): The median hourly wage for these positions is $26 CAD. Corporate sales managers (NOC 0601): Managerial jobs in sales make an average of $31.25 CAD per hour. What is the minimum wage in British Columbia? As of June 1, 2021, the minimum wage in British Columbia is $15.20 CAD per hour. What is the unemployment rate in B.C.? In November 2021, the unemployment rate in British Columbia was 5.4 per cent. How do I move to British Columbia? In addition to the federal Express Entry program, the province also invites skilled immigrants to come to B.C. as permanent residents through the British Columbia Provincial Nominee Program (BC PNP). To work in B.C. temporarily, you’ll require a work permit. You’ll also have a better chance of finding a job if your skills match the province’s in-demand occupations. British Columbia is also home to some of the best universities in Canada, which welcome thousands of students each year. After graduating from your study program, you may be eligible for a Post-Graduation Work Permit and can gain valuable work experience that will make it easier for you to settle permanently in Canada. About Arrive Arrive is powered by RBC Ventures Inc, a subsidiary of Royal Bank of Canada. In collaboration with RBC, Arrive is dedicated to helping newcomers achieve their life, career, and financial goals in Canada. An important part of establishing your financial life in Canada is finding the right partner to invest in your financial success. RBC is the largest bank in Canada* and here to be your partner in all of your financial needs. RBC supports Arrive, and with a 150-year commitment to newcomer success in Canada, RBC goes the extra mile in support and funding to ensure that the Arrive newcomer platform is FREE to all. Working with RBC, Arrive can help you get your financial life in Canada started – right now. * Based on market capitalization
Most in-demand jobs in Ontario for newcomers
Ontario is one of the most popular provinces among newcomers. Its cultural diversity, economic prosperity, and ever-growing job market are just some of the reasons newcomers from across the world choose to settle in Ontario. The government of Ontario periodically invites newcomers with the skills and experience to meet the province’s growing labour requirements to work and settle in Ontario as Permanent Residents (PR) through the Ontario Immigrant Nominee Program. This article provides information on Ontario’s job market. This includes the top industries that contribute to its economy, the most in-demand occupations for newcomers in the region, NOC codes, and median wage estimates, so you can arrive prepared to kick-start your career in Canada. What are the top industries in Ontario? Services industry: The services sector is the largest contributor to the province’s economy and employs nearly 79 per cent of the people living in Ontario. Some of the key service industries include banking and financial services, professional, scientific and technical services, and arts and culture. Manufacturing industry: Ontario’s manufacturing industry is one of the biggest in North America. Some of the most prominent manufacturing industries are automotive, information and communication technologies, biotechnology, pharmaceuticals, and medical devices. Agriculture: Ontario’s farming sector contributes nearly 25 per cent of Canada’s farm revenue. Mining industry: In addition to being one of the world’s top 10 producers of nickel and platinum, Ontario is also rich in gold, silver, copper, zinc, cobalt, and non-metallic minerals. Southern Ontario also has a sizeable oil and gas industry. Forestry industry: The forestry industry in the province creates nearly 200,000 direct and indirect jobs. Which cities have the most job opportunities in Ontario? Toronto and the Greater Toronto Area (GTA): This is the most populous region in the province, and Toronto is the financial hub of Canada. Other large industries in Toronto and the GTA include technology, real estate, trade, and manufacturing. Ottawa: As the capital of Canada, Ottawa offers significant job opportunities in administration. It is also a major centre for the high technology and finance industries. Brantford: This city is a manufacturing hub and offers job opportunities in food and beverage manufacturing, advanced manufacturing, rubber and plastic production, and warehousing and distribution. In addition, Brantford also has a growing media and entertainment sector. Hamilton: Another manufacturing centre, Hamilton has a large job market in the food processing and agribusiness industry, as well as in advanced manufacturing. Waterloo: The Toronto-Waterloo region is often referred to as the ‘Silicon Valley of the North’ and presents significant opportunities in the technology sector. Which jobs are in demand in Ontario? Health care jobs in Ontario Managers in health care (NOC 0311): Managerial positions in health care typically require a degree in management and pay around $48.21 CAD per hour. • Registered nurses and psychiatric nurses (NOC 3012): You’ll need a nursing degree and a provincial nursing licence to qualify. The median hourly pay for registered nurses in Ontario is $36 CAD. • Medical laboratory technologists (NOC 3211): As a lab technologist in Ontario, you can earn a median income of $38 CAD per hour. • Opticians (NOC 3231): Opticians make between $27 CAD and $34 CAD in Ontario. • Licensed practical nurses (NOC 3233): Licensed nurses make a median hourly wage of $27 CAD. • Nurse aides, orderlies, home support workers, and patient service associates (NOC 3413, 4412): For these occupations, the hourly wage ranges between $17.50 CAD and $20 CAD. Service sector jobs in Ontario To qualify for service sector jobs, you’ll usually require at least an undergraduate or graduate degree from a university. Administrative services managers (NOC 0114): Managerial positions in administration typically pay a median salary of $41 CAD per hour. Banking, credit and other investment managers (NOC 0122): Managers in the finance sector earn a median income of $50 CAD per hour. You’ll usually need a degree in management or finance to qualify. Advertising, marketing, and public relations managers (NOC 0124): These roles require a degree in marketing or management and pay a median income of $40 CAD per hour. Business services managers (NOC 0125): These roles pay an average hourly salary of $43 CAD. Corporate sales managers (NOC 0601): Sales manager roles in Ontario can be fairly high paying, with a median hourly wage of $52 CAD per hour. Restaurant and food services managers (0631): Compared to other managerial positions, restaurant and food services managers have the lowest median wage at $19.23 CAD per hour. Construction managers and managers in transportation (NOC 0711, 0731): Employees in these roles earn a median hourly wage between $38 CAD and $40 CAD. Human resources professionals (NOC 1121): HR professionals make an average income of $35 CAD per hour. Professional occupations in business management consulting (NOC 1122): In Ontario, business consultants make a median hourly salary of $41 CAD. Mathematicians, statisticians, and actuaries (NOC 2161): As a mathematician, you can earn an average of $45 CAD per hour. However, you’ll need an advanced degree in mathematics, statistics, or a related subject. Technology sector jobs in Ontario To work as an engineer in Ontario, newcomers require a licence from the province in addition to an engineering degree. Engineering managers, computer and information systems managers (NOC 0211, 0213): Managerial level in-demand jobs in Ontario pay a median hourly wage between $52 CAD and $53 CAD. To qualify, you may require a degree in engineering, management, or both. Computer engineers (NOC 2147): As a computer engineer, you can earn a median income of $44 CAD per hour. Database analysts, software engineers and designers, computer programmers and interactive media developers (NOC 2172, 2173, 2174): These technology sector roles pay between $40 CAD and $46 CAD per hour in Ontario. While many such positions require an engineering degree, some roles may also be open to applicants with a degree in computer science. Web designers and developers (NOC 2175): Web designers in Ontario can earn a median hourly wage of $31 CAD. Manufacturing jobs in Ontario Manufacturing managers (NOC 0911): Managers in manufacturing make a median income of $43 CAD per hour in Ontario. Machine operators in the mining and processing, chemicals, plastics, woodworking, and food and beverage industries (NOC 9411, 9416, 9417, 9418, 9421, 9422, 9437, 9446, 9461): Machine operators and process control workers typically earn a median hourly wage between $15 CAD and $23 CAD, depending on the industry they are in. Assemblers, fabricators, inspectors, and testers in the electronics and mechanical industries (NOC 9523, 9526, 9536, 9537): The median hourly wage for these jobs is between $16 CAD and $22 CAD. Agriculture jobs in Ontario The median hourly wage for in-demand agriculture jobs is between $14.35 CAD and $20 CAD. General farm workers (NOC 8431) Nursery and greenhouse workers (NOC 8432) Harvesting labourers (NOC 8611) Industrial butchers, meat cutters, poultry workers (NOC 9462) What is the minimum wage in Ontario? The general minimum wage in Ontario as of October 1, 2021, is $14.35 CAD per hour. For student workers, the minimum wage is $13.50 per hour. What is the unemployment rate in Ontario? The unemployment rate in Ontario in September 2021 was 7.3 per cent. However, the province’s economy is still recovering from the impact of the COVID-19 pandemic and, with each quarter, the unemployment rate is inching back towards the pre-pandemic level of under six per cent. How can I move to Ontario? In addition to the federal Express Entry program, the province also invites permanent residents through the Ontario Immigrant Nominee Program. If you’re planning to work in Ontario temporarily, you may be able to qualify for a work permit if your skills align with the province’s in-demand occupations. Ontario also boasts of some of the best universities in Canada and, each year, thousands of students come to Canada on study permits, with the aim of receiving a world-class education and settling permanently in Canada. Original article located here, published by Arrive. About Arrive Arrive is powered by RBC Ventures Inc, a subsidiary of Royal Bank of Canada. In collaboration with RBC, Arrive is dedicated to helping newcomers achieve their life, career, and financial goals in Canada. An important part of establishing your financial life in Canada is finding the right partner to invest in your financial success. RBC is the largest bank in Canada* and here to be your partner in all of your financial needs. RBC supports Arrive, and with a 150-year commitment to newcomer success in Canada, RBC goes the extra mile in support and funding to ensure that the Arrive newcomer platform is FREE to all. Working with RBC, Arrive can help you get your financial life in Canada started – right now.
Indebted Chinese Real Estate Developer Could Become Systemic Risk
Recent speculation surrounding the property developer China Evergrande Group caused the S&P 500 to have its worst day since May. But what we should look out for is systemic risk, according to John Sedunov, PhD, associate professor of finance at Villanova University. Evergrande currently has the biggest debt out of all publicly traded real-estate management or development companies. “The big issue seems to be Evergrande’s ability to repay its debt. The bigger issue is a potential for systemic crises or contagion to unfold,” said Dr. Sedunov. Another possibility is that Beijing could allow Evergrande to default. “Evergrande is a large Chinese developer, and the Chinese government may allow it to fail. It owes a lot of money to financial institutions and other market participants,” says Dr. Sedunov. With these risks, assets were moved from stocks, oil and Bitcoin to much safer options. “What’s potentially at stake is a contagion event where institutions with large exposure to Evergrande experience distress or fail as a result of lost cash flows they are expecting from Evergrande. This scenario is exacerbated if the company is allowed to fail,” said Dr. Sedunov. Does this present any other future concerns? Per Dr. Sedunov, Evergrande’s collapse could also impact the housing market. “More at issue is also that the real estate sector in China looks to be quite overheated (and it may be here as well), and this could be a signal of a collapse in real estate values, which again can bleed back into the financial system,” he said.
Canadian finances 101: What you should know as a newcomer
Canada’s financial ecosystem is made up of banks, credit unions, trusts, and other financial and insurance companies and it is considered to be one of the most sound and safest in the world. According to the Global Competitiveness Report 2019, published by the World Economic Forum, Canada ranked 9th globally for its financial system, showcasing stability and reliability. As you plan your move, familiarizing yourself with the Canadian banking and financial landscape can help provide context to key tasks like opening bank accounts, building credit history, borrowing money, and filing taxes. In this article: Types of financial institutions in Canada Getting started with taxes: The Canada Revenue Agency (CRA) Canada: A credit-based economy Banking, investments, and money transfers What are the types of financial institutions in Canada? Financial institutions in Canada can be classified into three main categories: 1. Banking institutions These are places where you can deposit, withdraw and borrow money. Examples of such institutions include banks, online-only banks, credit unions, trust companies, mortgage companies, etc. Banks A bank is licensed to receive deposits and make loans. Most banks are managed by the national government. The five largest banks in Canada are often referred to as the “big five” in banking. They are: Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC). Sometimes, you may hear the term “big six,” including the National Bank of Canada – although, note that its operations are primarily focused in the provinces of Quebec and New Brunswick. Digital-only banks In addition to these banks, there are a few digital-only banks, such as Tangerine (a subsidiary of Scotiabank), Simplii Financial (a subsidiary of CIBC), and EQ Bank. They provide all services online only and do not have any physical branches. Credit unions A credit union is a smaller financial institution that is owned by its members, who are also typically account holders. They operate under provincial legislation and regulations and provide similar services as banks. The main difference between a credit union and a bank is their structure; credit unions are owned by anyone with money in the credit union. The operations are supervised by a democratically elected board of directors made up of local community members. Due to their scale of operations, note that credit unions may have fewer branches and ATMs than a big bank would. Tip: As a newcomer to Canada, you can choose any financial institution of your choice. However, it is helpful to know that the big five banks (like RBC) have newcomer banking packages that specifically cater to permanent residents and international students and are thus better positioned to assist you in your unique situation. Trust companies Trust companies are legal entities similar to banks that act as an agent (on behalf of a person or business) for the purpose of administration, management and the eventual transfer of assets to a party. Mortgage companies Money lending entities such as mortgage finance companies (MFCs) and mortgage investment corporations (MICs) provide real estate financing. MFCs are non-depository financial institutions that underwrite and administer mortgages sourced through brokers. Their lending is funded mainly through securitization or direct sales to third parties, primarily the big six banks. MICs and other private investors typically deal in uninsured, customized mortgage products that are not available through traditional channels. These products include non-prime loans, second mortgages and very short-term mortgages. Key financial authority: The Bank of Canada The Bank of Canada is the nation’s central bank. Its principal role is to promote the economic and financial welfare of Canada. The Bank influences the supply of money circulating in the economy, using its monetary policy framework to keep inflation low and stable. It promotes safe, sound and efficient financial systems, within Canada and internationally, and conducts transactions in financial markets in support of these objectives. Additionally, the Bank of Canada also designs, issues and distributes Canada’s bank notes and acts as the “fiscal agent” for the government of Canada, managing its public debt programs and foreign exchange reserves. It also sets the interest rates in Canada. 2. Insurance companies These are entities that sell insurance to cover the risk of loss in various situations, caused due to a variety of factors. They include homeowner or renter’s insurance, health insurance, car insurance, life insurance, and more. They compensate you for any loss that’s covered by your insurance policy. Once you purchase a specific type of insurance, you are required to make periodic payments, called premiums, to the insurance company to avail of the agreed-upon coverage. 3. Investment companies These are organizations that focus on investing, administering or managing funds or money on behalf of other persons. Examples of such companies are investment banks, hedge funds, underwriters, and brokerage firms. Note: There might be an overlap in the services provided by financial institutions. For instance, a leading bank like RBC offers banking services, mortgages, a wide variety of insurance options, investment solutions, and more. Tip: Beware of predatory lenders offering payday, instalment, and other types of loans with very high interest rates. These lenders often prey upon people who need cash quickly and who have run out of all other options. They usually have exorbitant interest rates, confusing and misleading representations, and a lack of transparency and documentation. Therefore, always double-check money lending claims that seem too good to be true. Note that payday loans are provincially regulated while instalment loans are unregulated. What this means is – while interest rates cannot exceed 60 per cent, lenders are effectively free to change terms and add fees and other charges almost at will. Getting started with taxes: The Canada Revenue Agency (CRA) The CRA administers tax laws for the Government of Canada and for most provinces and territories. It administers various social and economic benefit and incentive programs delivered through the tax system. The CRA website is the go-to place for everything related to your taxes: filing annual tax returns, checking receipt of Government benefits and subsidies, viewing tax documents, etc. Important: To register for CRA’s “My Account,” you must have filed a tax return for the current or a previous year. Download Arrive’s free tax guide for newcomers for insights on how to file your taxes and to make sure you’re prepared to manage the expectations that come with paying taxes in Canada. Note: Beware of a long-running CRA scam with callers posing as representatives of the CRA. The CRA will never use threatening language nor ask for information about your passport, health card, driver’s license, or demand immediate payment by Interac e-transfer, bitcoin, prepaid credit cards or gift cards from retailers such as iTunes, Amazon. Canada: A credit-based economy North American countries such as the U.S. and Canada are known to be credit-based economies. This essentially means that most people use their credit cards (instead of debit cards or using cash) to make purchases and then repay the entire amount owed either at the end of their credit card billing cycle or in installments. You will need to build your own credit history, since this is essential to many aspects of life in Canada. Once you receive your first credit card, start by making payments for small expenses such as phone bills or groceries, and be sure you pay the balance in full by the end of the billing cycle. Tip: Keep in mind that credit cards have limits and do not offer free money. They can carry very high-interest rates, so your balance should be managed and paid down promptly – this will help you maintain a good credit rating. A credit score is a way for financial institutions to measure your ability to repay loans. Some scenarios where you may be asked for a credit report are while renting accommodation, applying to certain jobs, and obtaining mortgages or other loans from the bank. Additional resources Download Arrive’s free Credit guide to learn more about credit cards, credit scores, and credit ratings in Canada. For tips on staying debt-free and building your credit history in Canada, read How to build a good credit score from scratch as a newcomer. Banking, investments, and money transfers in Canada Banking Like many other countries, in Canada, you can conduct all your banking and money transfer transactions by walking into a branch or online, through internet banking. See How to open a bank account in Canada as a newcomer to know the process of opening a newcomer account. The article will also provide tips and resources to help you learn more about credit and direct deposits. Investments There are many financial products available to save and invest your money in Canada. They can be broadly classified into savings accounts, registered savings plans and investment products. Depending on your goals and your appetite for risk, you can choose one or a combination of several of these. Read Savings and investments for newcomers in Canada for deeper insights into all available investment products. Money transfers For domestic peer-to-peer payments (think: sending money to a friend, relative, co-worker, or acquaintance in Canada), there are a couple of ways to send and receive money online: Interac and Paypal. Interac is a bank-based tool, while Paypal is a non-bank, third party service. Among these, Interac e-transfers are the most popular and widely used form of peer-to-peer payments in Canada. You can send money overseas through online or mobile banking, by telephone, by email, or in-person. Banks like RBC have a simplified, affordable, and convenient process for international money transfer through online banking. If you have the recipient’s banking information handy, all it takes is a few clicks! Some popular options for international remittances are: Banks Credit unions Money transfer operators like Western Union, MoneyGram, WorldRemit, etc. Peer-to-peer transfer providers such as Transferwise (now, Wise), CurrencyFair, Paypal, etc. Currency exchange businesses When sending money overseas, the Canadian federal government tracks large sums (over $10,000 CAD) through Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to prevent money-laundering, terrorism funding, and related crimes. Understanding financial products and regulatory agencies in Canada can make you feel overwhelmed. Start with the basics so you can build awareness and a strong foundation to manage your finances in Canada. Original article located here, published by Arrive.
Telecommuting Expert Predicts Permanent Changes to Work After the Pandemic
With the sudden shift to remote work brought about by the COVID-19 pandemic, many corporations have had to quickly assemble a patchwork of policies, procedures, and technologies. Timothy Golden, a professor in the Lally School of Management at Rensselaer Polytechnic Institute, foresees that many companies will adopt remote work on a permanent basis, and need to devote considerable attention and focus to systematically assessing the lessons they have learned. Golden is a leading expert in the field of telecommuting, telework, and the relationship between technology and managerial behavior. With more than 20 years of experience studying the impact of remote work on corporations and individuals, Golden’s insights about the future are rooted in a deep understanding of the history of remote work. In the wake of the pandemic, Golden envisions companies adding a Chief Remote Work Officer, who is responsible for maintaining the effectiveness of the company’s remote work program, to their C-Suite. This person will likely be a boundary spanner who garners resources and support from across silos in the company to ensure remote work remains effective in its long-term implementation. With the continuing importance of remote work, the Chief Remote Work Officer will need a seat at the executive table to ensure it receives the attention it needs. With remote work becoming even more firmly engrained in corporate cultures, Golden expects changes in the ways employees interact. With large numbers of employees continuing to work remotely, employees will expect support for this work mode in many forms — from promotion opportunities and performance metrics, to mentoring and technology support. Another implication of remote work going forward is that the demand for real estate will change, and companies will see real estate as platforms for collaborative work, rather than simply for work. With a significant permanent portion of the workforce likely to remain as remote workers, companies will be able to scale back their real estate yet also reallocate existing spaces to ones that are used for more collaborative interactions, rather than simply offices for individualized working. Golden is available to speak about these and other aspects of the future of remote work, as well as specific lessons he has learned through decades of studying this topic.
Want to save on home loans? Just talk to your peers!
For most of us, finance is complex. Yet making financial decisions is part of day-to-day life. Take mortgages. Around 60 percent of U.S. households have a home mortgage, but how many actually understand its real value? Calculating things like interest rate trade-offs or closing costs is not easy, and research finds that a majority of families make financial mistakes because they fail to understand benefits or savings that might be open to them in refinancing. There are ways to overcome this kind of “information friction”—the obstacles to understanding that make it hard for people to process complex financial ideas and concepts. One of these is education. Ensuring that people have direct access to clear information can help inform household decisions. That seems pretty basic. Another, perhaps less understood, mechanism is the “peer effect”—the way we learn from and are influenced by what our peers or colleagues say or do. A new paper published in the Review of Financial Studies by Gonzalo Maturana, associate professor of finance, takes a fresh look at how the peer effect can help households make better decisions about their mortgages. And he finds that work colleagues and associates can actually have a far greater positive impact on our financial outcomes than we might expect. Together with Jordan Nickerson from MIT’s Sloan School of Management, Maturana ran a large-scale study of a particular U.S. peer group: public school teachers employed by the state of Texas. Here’s what the study found: Where there was a lot of mortgage refinancing going on among teachers in a particular school, individuals were a stunning 20.7 percent more likely to refinance their own mortgage. In other words, they were far more disposed to investigate alternatives and take advantage of the better deals on offer. The peer effect was also a critical factor in their subsequent choice of mortgage lender. Maturana and Nickerson also found that the more savings a particular peer group was making in mortgage repayments, the more refinancing activity there was in that school or teacher network. It is clear. With financial decisions, the network effect can create a positive feedback loop, said Maturana. Household finance and mortgages are top of mind and play a part in most American families – and if you are a journalist looking to cover this topic – then let our experts help. Gonzalo Maturana is an Associate Professor of Finance at the Goizueta Business School. He is an expert in the areas of corporate, household and real estate finance. Gonzalo is available to speak to media regarding this topic – simply click on his icon now to arrange an interview today.
Canadian's Digital Behavioral Shifts in Relation to the The Coronavirus Pandemic
This article is part of a series of insights that reveal a Canadian perspective on the impact of the COVID-19 pandemic on consumer behavior and significant audience shifts across digital platforms. Things are moving fast. Following our last update regarding digital media consumption during the Coronavirus pandemic, this article will highlight some of the major category changes reflected as of the week March 16 - 22, 2020. Key Insights from Our Analysis Digital consumption continues to grow: the visits and minutes curve is not flattening Key content categories such as news, social media, and government are being driven by higher engagement: metrics include visits and duration More engagement with news sites: sites categorized as local, business/finance, and general news are main drivers Categories that focus on entertaining, kids, food, financial advice, and children’s education are also seeing growth: growth comes from increases in aggregate unique visitors, visits and minutes Automotive manufacturers, real estate, sports and travel entities have seen decreases: however, they are poised for major increases and a bounce back. Mobile platforms are driving growth: some differences between desktop and mobile engagement Canadian's total digital consumption continues to grow When we analyzed Canadian total digital media consumption to compare the percentage change between the week of March 16, 2020 and the first weeks of January 2020, February 2020, and March 2020, we found that overall digital engagement is not flattening. Even comparing the beginning of March against mid-March, we can see visitation, visits, and engagement continuing to grow. Looking at the total digital consumption trend over time, we can see growth in total minutes spent online while total visits have remained relatively flat. Media Consumption Growth by Category There are several content categories that we are seeing major growth in each of the time periods: These digital categories of news/information, social media, entertainment, government and games are showing continuous growth. The need for ongoing news and information updates, government information, flocking to social media to bring community together and message, and the need to be entertained with visitation and engagement on Entertainment and Games Entities. News and Information Category Insights To look at the news/information category a bit closer – it is amazing to see the category growth over the past few weeks of Canadians going to news entities to get updates. The hockey stick growth from the start of March 2020 is very evident. The news and information growth is being driven by local news, general news, and business/finance news. That being said – technology, politics, and weather are also seeing growth. Through these time periods, we are also seeing some other categories that are showing significant growth. Many of the categories are a result of many Canadians being home bound and isolated, and with families with kids having the kids at home. Platform Variance for Media Consumption One of the areas that we have been asked most about is whether we find any variances between desktop and mobile platforms. When reviewing the data, there is greater engagement with mobile platforms in the week of March 16 compared to other weeks. Amidst the global COVID-19 pandemic, we are seeing a significant increase in digital consumption amongst Canadian consumers. The data trends show Canadians are flocking online with significant growth in news entities, instant messaging, social media, government resources, entertainment, music destinations, video, and financial websites. What this means for marketers and advertisers is a significant opportunity to reach Canadians who are highly engaged and are looking for relevant and timely content. It comes down to delivering the right message, at the right time, in front of the right audience, in brand safe environments.
