Insight

[nuTonomy beat Uber and Google to the punch, launching the world’s first self-driving taxi in Singapore in August. (IB Times)]

The weirdest taxi ride I’ve ever experience happened a few years ago on my birthday on one unusually warm winter night in Toronto.

The driver passed around a tambourine so passengers could accompany his (bad) singing as he rambled on about the local tourist attractions.

Unfortunately, the music distracted him from his primary responsibility and my companion, a visitor from a smaller city, nervously leaned over to whisper “Is this normal?” in my ear. “Absolutely not,” I replied, nervously watching the road as we lurched back and forth between the streetcar tracks and the other curb.

I wish I had a photo of that bizarrely-decorated car to show you, but that night I was more concerned with seeing my next birthday.

With that in mind, a self-driving taxi service pilot project in Singapore seems like an excellent idea.

The company, nuTonomy, beat Uber’s planned self-driving ride-hailing service in the U.S. by a few weeks. Many automakers, as well as Google, have been testing various applications of this technology with prototypes for years, but this company claims theirs is the first to be offered to the public.

But are we ready to give up control of our cars? It’s going to take time for drivers to fully understand and embrace the new technology, says Stephen Beatty, VP Corporate at Toyota. The Japanese automaker is developing new technology that will make cars safer, but their cars will still be autonomous, still equipped with steering wheels and brakes for the foreseeable future.  

Self-driving cars are coming soon for commercial use

Most automakers are investing big money in this technology, and they’re making big claims about the future.

Ford recently announced their intention to deliver a fully autonomous vehicle for ride-sharing in 2021 within geo-fenced areas, saying that these cars will operate without steering wheels, gas or brake pedals.

But the company is still making cars for drivers. “Even as autonomous vehicles become commercially available we believe people will continue to to buy and drive vehicles for a long time,” says Ford spokesperson Alan Hall in an email.

When can I buy one?

Not yet, and the timing depends on who you ask. “Honda’s goal is to introduce automated driving technologies around 2020,” says spokesperson Alen Sadeh.

The Japanese automaker currently offers a host of semi-autonomous features that most car companies also offer, such as lane departure warnings, adaptive cruise control, forward collision warning and collision mitigation braking systems.

Helping drivers, not replacing them

Toyota is also focusing on vehicle automation technologies that assist drivers without taking away control of the vehicle, says Beatty.

When introducing new technology, “there’s a very steep learning curve for drivers,” says Beatty. “The types of technology that we’re moving to next require an almost exponential leap in driver knowledge in how the systems operate, what they do, what to expect.”

“It’s not just about putting the technology in the marketplace, it’s also about having the necessary infrastructure to make the technology work properly, and to do the driver education that’s required to ensure that you don’t have unintended consequences.”

Testing Testing Testing

Most automakers have been testing new autonomous driving technology for years, and will roll it out carefully.

“Our fully autonomous vehicles will be defined as SAE Level 4-capable vehicles, which means fully autonomous driving will be available in a specific geographic area that has been mapped in 3D and has weather that is appropriate for optimal performance of the sensor technology, says Hall.

“That’s why the first application of our autonomous vehicles will be focused in ride-hailing or sharing in optimal areas,” he says, also noting that Ford is currently focusing on the North American market but is looking at other markets as well.

[Several of Uber’s self-driving Ford Fusions are seen in Pittsburgh, Pennsylvania. Four of these cars started answering customer pick-up requests on Sept. 14. (Quartz)]

Are drivers a hazard?

“There’s a debate going on in the industry right now about whether the driver gets in the way of safety,” says Beatty, who explained that Toyota is focusing on adding safety and convenience features that extending driver control without replacing the driver.

“A car stays on the road for 12 years or more these days… It’s going to be a very long time before you have an environment where fully-automated vehicles could become commonplace,” adding that as long as you have fully-automated vehicles interacting with semi-automated cars and vehicles that are fully driver-controlled, you’re going to have issues.

What is geo-fencing?

It’s an area on a map that has a virtual perimeter, which in this case would contain the self-driven cars to a safe area.

“These types of systems are going to work best in highly travelled, well-controlled traffic environments. The more you get into areas where you don’t have good satellite tracking, where there isn’t the amount of big data coming back from the roadway to identify any real-time changes in traffic flow, then the role of the driver will have to remain intact outside of those corridor routes or major cities,” says Beatty.

Are self-driving or autonomous cars being tested in Canada?

Not yet. “The ministry has received a lot of stakeholder interest, but has not yet received any formal applications to date,” says Bob Nichols, spokesperson for the Ontario Ministry of Transportation. “MTO has not received any applications to take part in the pilot to test automated vehicles on Ontario’s roads.”

Stratford, Ont. has volunteered, however, to be one of the first testing grounds for autonomous vehicles in Canada once they’re ready to hit the pavement. The Government of Ontario approved the use of self-driving vehicles under certain conditions, so it’s only a matter of time before testing can commence.

Will new infrastructure be required?

“The goal will be to add as little as possible, in an effort to reduce costs for government, while still ensuring a safe environment for all road users,” says Nichols.

He explains that currently traffic conditions are monitored with traffic light sensors and cameras, and traffic flow can be balanced as the sensors detect traffic. Automated vehicles will become the sensor, communicating directly with traffic signals.

“There is the potential for more intelligence to be added to traffic signals, that allows for wireless communication to vehicles and also the ability to dynamically adapt to real-time traffic volumes,” says Nichols.

Will new legislation be required?

So far, no. On January 1, 2016, Ontario launched a new pilot project to test automated vehicles under certain conditions, explained Nichols, who says that the pilot project will provide information that will inform future policy decisions, but the current laws are deemed to be sufficient.

“We’re living in a period where there’s a step-change in technology, it’s happening very rapidly and to expect that drivers can keep up with that… isn’t realistic,” says Beatty. “The industry and regulators both have a responsibility to ensure that we’re bringing the tech forward but we’re preparing the driving public, pedestrian and cyclists to understand what the technology can and can’t do.”

Beatty gives the example of a new headlight design that would aid drivers, but legislation hasn’t caught up yet and so they can’t be introduced the marketplace until the regulations catch up.

When I was getting cold feet after signing the purchase agreement for a home a few years ago, I confessed to my family that I was feeling sick about owing that much money.

“That feeling will go away as soon as you put the ‘For Sale’ sign on the lawn” was their reply. Gulp.

For most people, buying a first house or condo is exciting and a big leap into adulthood. But it doesn’t take long for the cold hard reality of mortgage payments, taxes and unexpected repairs to set in.

Mortgage rates have been low for years now — long enough for young buyers to think that rates below 3 per cent are normal, but historically speaking, they’re not. It’s enough to tempt buyers who should probably save a little more and build their credit rating before buying their first home, but the rush to get into the market can leave some buyers at the mercy of unscrupulous or even criminal agents.

There are a number of ways homeowners can become victims of real estate scams:

Fraud for Rate (or Fraud for Shelter)

To qualify a mortgage in Canada, you must have good credit to get the best rates; just because your neighbour got a hot deal doesn’t mean you will get the same best rate.

If you’ve been quoted higher-than-normal rates due to credit issues, you might be a prime target for an unscrupulous agent or broker who is willing to bend — or break — the rules.

“These are real people looking for homes, but they may not qualify for a good discounted rate that most customers are getting,” explains Dong Lee, President of Mortgage Architects, a brokerage firm. He explains that some buyers will borrow money for a down payment or falsify employment information in order to quality through traditional lenders to get discounted rates.

“It’s fraud, but some people just don’t see it that way,” says Lee.

Lee explains that his brokerage may turn a customer down for the lowest rate, but can qualify a prospective buyer for a higher rate which they may not like.

Debt Refinancing

Homeowners who run into trouble paying bills might consider a consolidation loan, which can be a good solution if it’s arranged through a reputable lender. However fraudsters may offer a loan with the agreement that they pay the bills and the homeowner transfers the title to them. When the “lender” fails to live up their end of the bargain, the duped homeowner can be left even further in debt and now facing overdue bills or a re-mortgaged house that they may lose.

If you’re unable to make your mortgage payments, your first call should be to your mortgage lender, says the Financial Consumer Agency of Canada. The government agency suggests that people considering a consolidation loan should use their lawyer if they are considering signing over the title of their property to someone else, and check with their local land registry to ensure that the home is in fact in their name.

Fraud for Profit

Homeowners can become victims of fraud without ever talking to the criminals who are essentially stealing their homes. There are two ways this type of fraud occurs, explains the Canadian Association of Accredited Mortgage Professionals. Some criminals forge documents transferring ownership of the home, and then apply to remortgage the home – leaving the real owner on the hook for the missing funds.

In the second scenario, to regain legal ownership of their own home the owner must prove to their lender that they had nothing to do with a fraudulent scheme where the criminals impersonate them, signed for a mortgage and then took off with the money.

Is illegal activity common?

When asked if he sees a lot of illegal activity in his business, Lee said no. “If real estate fraud will take place, then it’s likely an honest sales agent or mortgage broker will not be involved — that type of criminal activity only happens when each player in the transaction is involved in the scheme,” he explained. “It’s a very sophisticated scheme.”

What to watch for

• If you’re getting a mortgage with a traditional lender, there typically isn’t a fee for it.
  
• When someone involved in a real estate transaction urges you to provide false information to qualify for a mortgage, walk away. This is illegal.
  
• Keep your financial information private; be cautious you’re sharing with legitimate institutions.
  
• Check your credit report regularly, watch for any unusual activity.
  
• If you still get your bills in the mail, be alert if you stop receiving them, it’s a sign that someone has redirected your mail in an attempt to impersonate you.
  
• Consider title insurance, which can be protection against real estate fraud or errors. (Speak with a broker for detailed advice).
  
• Beware of “get rich quick” schemes, where you’re offered a too-high price for your home or deals that are too good to be true.
  

For more information, visit mortgageconsumer.org, the Ontario Bar Association, and Financial Services Commission of Ontario.

Trying to become a first-time homebuyer in the Greater Toronto Area’s red-hot real estate market has been one of the most challenging experiences of my life. My fiancée and I knew it wasn’t going to be easy, but we had no idea it would be quite this hard.

We’ve lost bidding wars time after time in heart-wrenching fashion and went through the emotional roller coaster that goes with potentially making the largest investment of our lives. It’s become clear to us that getting a house in this market requires a lot of patience and a bit of luck.

Before we started, we wanted to make sure we were doing everything responsibly. We paid off our debts and saved up for a down payment. We got pre-approved for a bank mortgage and set a budget based on what we could afford. We contacted a reputable realtor and decided on what would best suit our needs. We went in with open minds that were eager to learn and ready to act.

We quickly realized that if we liked a place, we weren’t going to be alone. Agents also took notice of this and began setting up offer presentation nights, which is an opportunity to round up all of the potential buyers to provide them with a chance to bid on their dream house. We never knew what others were offering and we never knew if our offer was good enough. We just knew that the more money we offered, the better our odds would be, but with more people involved, the less likely we were to win.

On one occasion, our realtor told us we were up against 16 other offers. Once we heard that, we figured the asking price would become more like the starting point. We considered ditching our budget just to get the place we saw ourselves in.

In a precarious move to make our offer look more appealing, we removed conditions such as financing and inspection, which are normally in place to protect potential buyers in case something goes awry. Much to our chagrin, we’ve been told these risky measures have become the new norm if we want to entice a seller to get a deal done in this competitive market.

We never really knew how close we were to accomplishing our goal until the process is over and done with and we’re dealt with the crushing reality of seeing our dreams slip away. In everyday life, the price you see is the price you pay. In the GTA’s real estate market, we really have no idea.

We don’t know if we’re offering too much or too little. We don’t know what others are offering. We don’t know if this will be a good investment down the road. We don’t know if the market will become out of reach for us if we wait. All we know is that we have to act decisively while understanding that not everything is in our control.

But at times, dealing with so many unknowns can fill even the most confident buyer with dread. We didn’t realize there would be so much uneasiness involved with each decision we made or didn’t make. We’re constantly reminded about how quickly prices are rising, yet we’re reading articles about overvaluation risks. One thing we know for sure is that this isn’t a decision that we can afford to make lightly.

While we’ve found it difficult to stay motivated after coming up short time and time again, we’re not willing to give up on our dreams so easily. We know that eventually, things will work out for us, we just don’t when it will happen.

Until then, we’ll see you at the next open house.

[Renting is increasingly becoming the best option for many seeking out a new home.]

Moshe Milevsky has noticed a change of attitude in the 20-somethings he teaches in his finance class at York University’s Schulich School of Business in Toronto.

“I have 90 students in the class and I was discussing home ownership. They view [it] as something unattainable. It’s almost as if they’ve sort of given up on that idea,” he says.

With semi-detached houses in Toronto averaging close to $800,000 and detached going for $1.2 million, it’s not surprising that young Torontonians might have trouble envisioning getting into the market at any level.

The sympathetic would include other wanna-be homeowners who have watched the affordable pockets of the Greater Toronto Area (GTA) close up as the city’s home prices have risen more than 15 per cent over the past year alone, and roughly doubled over the past decade.

Many opt for the commuter approach, buying in Pickering, Markham, Newmarket, or other ‘G’ areas of the GTA where you can still have a yard even if you don’t carry a stethoscope to work. And even condos are getting beyond the point of affordability, before factoring in the maintenance fees that can rise with little notice.

You could be forgiven for thinking the dream of middle-class home ownership in the 416 is dying fast.

Milevsky is one of many recommending the merits of a different route: renting for the long term.

“I encourage people to do it for as long as they possibly can,” he says.

Paying a landlord may not tick all the boxes on the picket-fence dream, but the rules are different in Toronto, even if you aren’t gunning for an estate on the Bridle Path.

“In certain areas of Toronto we’re seeing rents explode, because people are effectively priced out of the (housing) market,” says Greg Romundt, president of rental apartment developer Centurion Asset Management.

It’s why companies like Romundt’s are financing the building of purpose-built rental apartment buildings, something that was largely ignored during two decades of condo development in the city.

“The market is really not providing an alternative for people that want (to own) a house. The only choice they have is to move out of the city,” he says.

Of course, it’s possible the current run-up in home prices could hit a wall at some point and start to come down, which would change the math on ownership. But until that happens, would-be buyers are faced with some hard numbers.

For instance, the ratio of average home prices to household incomes in Toronto sits at around eight times the median household income in the city, up from 4.3 in 2001.

At the same time, the path to getting a home has gotten trickier. Banks that used to roll out the red carpet for anyone who could prove a modest income now take a more cautious approach to giving out mortgages. Under current rules, homebuyers have to come up with a down payment of at least 5 per cent on the first $500,000 and 10 per cent on the portion of the house above that. For a $500,000 home, which is an increasingly rare find in the city these days, that’s a $25,000 down payment.

For a Toronto-average $800,000 semi, it would work out to a $55,000 down payment, and a monthly mortgage payment of $3,155, assuming a rock-bottom interest rate of 2 per cent. Compare that with average Toronto rental prices of $2,230 for a two-bedroom apartment or $2,193 for a three-bedroom townhouse.

By not owning, you do miss out on the benefit of the appreciating value, but that also gets chipped away by other costs, such as property tax, utilities, regular maintenance costs, and the cost of renovations.

“There are implicit expenses that people don’t necessarily understand, whether it’s property taxes or maintenance or heating costs of property insurance,” says Milevsky.

And then of course there’s the big question of where prices are headed. The nightmare scenario is buying now, after 15 years of outsized increases, only to see the market turn.

“If prices start to decline you may not be able to renew your mortgage, you may have your home equity disappear,” he says.

And, if you decide to want to move, you can add on real estate commissions of probably 5 per cent, which means your mobility is limited.

With a rental, you have the flexibility to pick up and leave if you need to with little financial consequence.

Of course, there’s the old saying about rising tides lifting all boats, and there are signs that the silliness of the housing market is spilling over into rentals. Milevsky says he’s now hearing stories of renters bidding on apartments auction-style.

Legal fees, disbursements, discharging the current mortgage, capital gains taxes… selling a home often comes with an abundance of seemingly never-ending costs that can send your stress levels soaring, lighten up your wallet and often make you wonder why you thought selling was even a good idea in the first place. It’s no wonder more and more people are looking to save a few bucks when it comes to one of the most expensive costs—realtor fees.

With the advent of so many DIY property-selling sites in Canada, listing your own home has never been easier or cheaper. Sites like PropertyGuys, ComFree and ForSaleByOwner offer all-inclusive, flat-fee packages priced anywhere from $400-$800, and can include exposure on popular property-searching sites like Realtor.ca. These companies promise to help inexperienced owners price, promote and negotiate the sale of their homes, all while potentially saving tens of thousands of dollars in realtor fees.

Given the skyrocketing housing market (the MLS Home Price Index rose 14.7 per cent year-to-year last August) paying four-to-six percent in commission can seem like a hefty chunk of cash—money that could easily go into paying down the mortgage on your next property or to renovations. Sure, there have been success-stories from those using these self-service sites (look no further than the sites themselves for glowing reviews), but the high risks are a caveat worth considering.

“There are so many times we see a bad offer that doesn’t protect the seller’s interest,” says Sam McDadi, owner of Mississauga, Ont.-based Sam McDadi Real Estate Inc. “Obviously, the dollars are the tangible aspects of the offer but there are many other intangible aspects. A poorly written offer could leave a seller exposed to legal consequences.”

Just some of those legal consequences could include a buyer unexpectedly backing out at the last minute, financial repercussions from failing to provide a complete disclosure statement, or fallout from poorly worded clauses involving home inspection, financing or other such contingencies. Plus as a seller you’re also still on the hook for some realtor fees – 2.5 per cent – if your buyer is using a realtor.

Then there’s the issue of market knowledge and the question of how much to list your home for in the first place. Sellers often attach too much sentiment into the pricing and negotiation of the sale price, which can lead to overpricing and a house that sits on the market for far too long—something that can also impact top dollars. Or, perhaps a seller believes the key to a quick sale is to under-price the home, resulting in a loss that negates the savings they’ve achieved by foregoing a realtor in the first place.

“A seller might save a few thousand bucks, but realistically it could cost them much more. A realtor with a good track record can negotiate more favourable terms, price and conditions for you than you’ll likely be able to do on your own,” says Ariel Kormendy of The Kormendy Trott Team at Century 21. “This comes from experience of doing this on a regular basis but also having a pulse on the market, which changes daily. If you’re not up-to-speed and doing the right things to prepare your home, market it to the widest possible audience and skillfully negotiating with confidence, any potential savings are easily mitigated by this.”

Savings aside, security is another huge issue when it comes to listing your own property. Realtors have detailed systems that register and keep track of every single person who comes to your home, and their teams often exercise extreme caution when it comes to booking appointments—they’re rarely done directly through the potential buyer and his or her agent, but through an established booking system involving the brokerages.

“Security is a major factor nowadays. Burglaries, violent intentions and fraud artists are just some of the scary scenarios I’ve not only heard of but actually know of situations were private sellers have had it happen,” says realtor/broker Leo Latini of discount brokerage firm Min Com Solutions Realty Inc., which only takes a one per cent fee instead of the traditional 2.5 per cent. “Do you really know this stranger who calls you and walks through your door?”

If these concerns still aren’t enough to outweigh the perceived savings benefit, another interesting trend McDadi has seen over the years as more sellers attempt to navigate the market on their own is the idea that buyers are beginning to expect some of the DIY-savings to be passed along to them.

“Many buyers will offer the seller the price less commissions because they feel they would have otherwise paid it to a realtor,” he explains. “From a seller’s perspective it doesn’t make sense to give this up as the seller wants the savings accrued to themselves. They are investing their time and energy to the process of selling a home and they miss out on all of the value added services a realtor provides.”

Although on the surface it can appear as though a realtor simply shakes hands with one of their buddies, puts together some paperwork and the cash comes rolling in, there’s a lot more to it than that, as McDadi notes. Staging, professional photography and video, social media and exposure to a wide network of other realtors through multiple listings services are all included with a typical 2.5 per cent selling commission, which is usually negotiable.

“Sellers are often disillusioned by the process when they realize they need to show the property to buyers, deal with prospective buyers who don’t show up for appointments or are unqualified, hold open houses and negotiate an offer (which can be difficult when there is emotional attachment or unfamiliarity with the market),” McDadi notes. “Many times after two or three weeks, if not successful they turn to a realtor as they now realize the importance of having one in the process. In our practice we receive many calls from sellers who have tried to sell on their own to save fees but realized quickly it wasn’t the right step to take.”

By that point, a seller is actually paying more when you consider the fact that they’ve already paid all these DIY fees upfront. Add in other emerging market factors such as an increased number of international buyers here in Canada, ongoing bidding wars and the greater need for a pre-approval process in order to keep up with lightening demand all contribute to a marketplace that’s full of twists and turns.

“Bidding wars have changed everything and strategy is extremely important. Most people can’t or don’t want to try and navigate through all of that themselves,” Kormendy adds. “The DIY route can certainly be a good option for some people. Every home sells, the question is how long will it take to sell and how much will it sell for. Before making any decision, look at all avenues available, fully understand the work required and take a hard look at the potential net proceeds that you will walk away with in each scenario. It can be difficult to navigate in such a fast-paced and ever-changing market, so do your due diligence.” 

[NEW YORK, NY - SEPTEMBER 13:  Traders and financial professionals work on the floor of the New York Stock Exchange (NYSE) ahead of the closing bell, September 13, 2016 in New York City. The Dow Jones industrial average fell 258 points on Tuesday. (Photo by Drew Angerer/Getty Images)]

It’s like that unexpectedly chilly day in mid-September when you really know summer’s over.

For investors, what had been a good summer on the stock markets came crashing to a halt on Sept. 9 when stocks dove after comments from the U.S. Federal Reserve raised worries that U.S. interest rates might rise sooner than previously expected. The following Monday, Asian markets did the same.

Of course, with the U.S. election just weeks away, markets are as prone to overreaction as ever. But the coming U.S. rate hikes are just part of what some say is a turning point for several central banks, as Japan may be trying to push its long-term rates higher and there is uncertainty about how long the European Central Bank will keep pumping money into that economy through bond purchases.

In short, it’s looking like the days of insanely low interest rates may be coming to an end. And any kind of change like that tends to hit the market hard.

“Maybe a bit of an overreaction,” says Gavin Graham, chief strategy officer at INTEGRIS Pension Management Corp, of the recent market drop, which saw the U.S. S&P 500 plunge 2.3 per cent and the S&P/TSX composite index fall 18 per cent.

“But if the next (rate) move is up, which seems to be a reasonable forecast at the moment… you can understand why, because a lot of the things that have been riding it were the ones that were beneficiaries of this period of low interest rates.”

What this means for you

So what does this mean for the average Canadian?

On one level, not much, because the Bank of Canada is nowhere near ready to start raising interest rates. So that variable rate mortgage is still safe for a while.

But no economies exist in a bubble, and the Fed catching a cold does make us sneeze. Canadian stock and bond markets, for instance, often follow the lead of U.S. markets, rather than reacting to Canada-specific news.

So how does one prepare?

First off, it’s good to remember that higher rates have been in the offing ever since central banks cut rates to the bone in the wake of the 2008 financial crisis. Market pros will tell you that it’s frankly unnatural to go this long with such cheap money floating around, so seeing interest rates about to rise a bit is actually healthy.

But as with many healthy things, there will be some pain involved as things start to go back to normal.

For stock investors, the general truth is that rising rates are bad for stocks. This is because higher rates mean a higher cost of borrowing, which means companies have to pay more to finance expansion, while people have less money lying around to buy new houses, and iPads, and extra RRSPs.

But in the big picture, rising rates usually mean that growth has reached the point where inflation is being generated, so that’s good.

Re-evaluating your portfolio

If you feel the need to rebalance to prepare for the shifting rates, anyway, start by lightening your weighting in investments that may have had their best days in a low-rate environment, says Graham.

First of all, he says, don’t sell those bank stocks, as financial services are one of the few stock sectors that benefit from rising rates. As rates rise, banks can lend money at increasing margins, which is good for the bottom line. Rather, look to get out of equity investments that have specifically benefited from low rates.

“A lot of things that people have been buying instead of bonds like REITs (real estate investment trusts) and utilities and looking fairly expensive because rates have been very low,” he says.

“If you’ve already got some exposure there, maybe you want to take something off the top.”

Instead, reallocate into sectors that are more sensitive to economic activity, but have been undervalued. Graham recommends oil, which has been depressed by weak commodity prices.

That should give you some options on the Canadian front. But you may want to consider increasing your holdings of U.S. stocks, too.

That may seem counter-intuitive since it’s the U.S. central bank that’s itching to start pulling money off the table, but doing so will allow you to benefit from the potential gains of the U.S. dollar versus the loonie, as rising interest rates usually benefit the currency of the country where rates are rising.

“Be in U.S. dollars because the loonie’s strengthened quite a lot with the energy and commodities earlier this year, and is starting to come off,” says Graham.

“Companies that generate income in the states or that pay U.S. dollar dividends could be worthwhile to look at.”

In terms of bonds, rising rates is a kind of good news/bad news story. The good news is that rising central bank rates will push up bond yields, which have been anemic for years. The bad news is that the bonds you currently hold will fall in price, because they’ll be less appealing compared to newer, higher-yield debt.

So Graham recommends buying short-term bonds that will mature quickly, allowing you to then reinvest and benefit from the gradual rate increases.

Of course, all of this concern may represent just the latest in a number of false starts on the rate hike front.

And if economic growth isn’t the reason rates are going up, then markets could continue to be in trouble, says Barry Schwartz, chief investment officer at Baskin Wealth Management.

Just to make it interesting, you might want to consider a plan in case the rate hikes don’t come to pass.

“If you think they’re not going to raise rates you’d probably make more money betting against those U.S. financials, because I think that right now they are priced in for a rate hike,” says Schwartz.

It seems like just yesterday we were all being promised amazing new technology and the best phone yet with the release of the iPhone 6 and the iPhone 6 Plus. But like youth, technology is fleeting. And so here we are again, this time on the verge of complete iPhone 7 pandemonium. Anxious Mac-lovers are already plotting lineup survival at their local Apple stores so they can be among the first to get their hands on the new devices when it goes on sale September 16, effectively stashing away their old ones to gather techno-dust.

But it doesn’t have to be this way.

If you’re among those who are looking to upgrade your phone, here are just a few things you can do with your old device.

Transform it into an alarm clock

Naw, we’re not talking about just setting the “Clock” function every night. Download one of the many alarm clock apps out there, and personalize it depending on what kind of a sleeper you are. Need to know that the apocalypse is coming in order to wake up in the morning? There are now apps that won’t stop ringing until you take a picture of a predetermined object, walk around, flip the phone a certain way or scan your toothpaste barcode. Alternatively, if you’re feeling okay with your morning routine you may want to consider beefing it up with some personalized music, a progressive alarm or a voiceover reminding you of all the big things you have coming up that day. The possibilities are basically endless. Invest in a cool little stand or decorate the device to match your room, then prop it up on your night table to explore them all.

The universal remote

Technology is pretty crazy these days—at least, we think it is, given all the things you can now control from one little device. Think about it: you can turn on your TV, program your PVR, adjust the temperature, close your blinds and set some mood music all from your couch. If you’ve been looking to get rid of all those clunky remotes hanging around your coffee table, maybe now’s the time to sync everything up on your phone once and for all. You’ll be the Phil Dunphy of your neighbourhood in no time.

A voice recorder

If you’ve ever wanted to keep track of a conversation or pull a Louis Litt and send yourself or your assistant voice memos, here’s the perfect opportunity to put those dreams into practice. Audio Memos is a pretty cool (and free!) app that allows you to attach pictures, edit specific parts of your memo and share them fairly easily with anyone who may need access. Meanwhile, Voice Recorder (also free!) allows you to trim your recordings, skip backwards or forwards and even slow down the recording if you ever need to make a transcription.

Baby monitor

Got a new bundle of joy in the house and need to keep track of him or her? Why sink another couple hundred dollars into a baby monitor when you can just as easily transform your old phone into one? Plus, it takes up much less space in the diaper bag when you’re on the go. All you need to do is download an app on the old phone (Cloud Baby Monitor is about five bucks), plug it in to preserve battery life and then place it in the nursery or wherever your child happens to be. Sync it with the app on your new phone and presto! Watch that baby from anywhere—work, the gym or on the road (it should go without saying that someone still needs to be home, of course). For safety reasons, just be sure to verify all of the app’s privacy settings before putting it into practice and make sure your network has a strong password.

Surveillance camera

Maybe you don’t have a kid but you want to keep an eye on your house? No one would blame you—after all, you probably have a lot of technology and personal items in there that needs protecting. But instead of investing tons of money on a fancy security system, transform your old phone into a security cam instead. The Manything app is free and it allows you to access your video either on your new phone or online through its website.

A digital camera

Sure, sure… the new iPhone has a much better camera, but how often have you said there are way too many photos on your phone and not nearly enough space? If you dedicate the old phone to camera-only purposes you’ll free up loads of space for other cool things on your new phone. Plus there are tons of cool camera lenses out there you can invest in to really beef up the quality of your pics and videos. (And they cost a lot less than a whole new camera with accessories.)

Action Cam

Why purchase a GoPro when you can use your old camera to capture all of your crazy stunts instead? After all, if it gets damaged who cares—you’ve got a shiny new phone to play with. Strap it onto a helmet, buy a waterproof case and start snorkelling, walk beside a swimming pool… basically, do all the things you were afraid to do with your phone before you got a new one. You’ll feel like such a daredevil, you crazy kid, you.

A permanent cookbook

How many times have we found recipes that we’ve loved, and swore we’d print them out but never did? Or we did take the time to print them out, only to have them mould from the leftover butter that got on the corner of the page? If you like to spend a lot of time in the kitchen and constantly source recipes, consider transforming your old phone into a permanent cookbook. It’s less bulky than the books that would take up your counter space, and you can clean it a lot more easily with one little wipe. If you do go this route, keep us in mind the next time you’re cooking up a storm and save us some leftovers, pretty please.

A less clunky lamp

Who needs to buy an actual lamp when you could plug your old phone in and light up the room instead? Seriously, have you ever turned the flashlight function on in a dark room? It works. An iPhone is less bulky than your traditional lamp, which means it won’t take up unnecessary table or floor space. Plus there are plenty of cool accessories out there that can help transform your former phone into a new talking piece. That way, every time you flip it on you can invoke your inner “Anchorman” and quip “I love lamp.”

A vehicle tracker

Feeling particularly stalker-ish? Want to keep track of an ex, a friend, a spouse, child or friend? Or maybe you’re just feeling paranoid about your car getting stolen and want the reassurance that you can find it in a pinch. Whatever your jam, you can use your old iPhone as a vehicle tracker. All you need to do is download the “Find My Phone” app and then hide the device somewhere in the car (or in plain sight if you’d prefer). Presto! A vehicle tracker for all your tracking needs. (Editor’s Note: we’re not actually endorsing stalking here, just saying that it’s merely a possibility.)

Create your own museum

Maybe you’re the type of person who has upgraded your phone every single time a new one has been made available. Either you have a lot of money to burn, or you have a serious addiction to cool new things. No judgement, but if you love the phones that much, why not showcase that love with your own mini iPhone museum? Grab a shadowbox, a shelf, a giant picture frame or any other display-type piece and arrange the phones in order by release date. If you’re feeling particularly crafty you could even create little placards for each one. Hey, art is expensive—you might as well adorn your walls with the things that you truly love.

Fertilizer may not be the sexiest of topics, but a potential $30 billion merger can sure get pulses racing. That was the way it played out on the stock market about a week ago after Canadian fertilizer giants Potash Corp of Saskatchewan and Agrium Inc confirmed they were in talks for a megadeal that would create by far the largest potash producer in the world.

Shares of both companies soared on the news, with shareholders hoping the new behemoth would be able to successfully navigate an industry struggling with low prices and a global glut of potash, a key ingredient in fertilizer.

But megadeals always leave turbulence, and this one – if it actually happens – would be no exception, though maybe not as much as some people think.

While there are no real details to chew on – the companies have so far just confirmed they’re in talks – the combination would marry Potash Corp’s fertilizer production with Agrium’s own production, as well at its farm supply business.

The result would be a company far and away the global leader in potash, controlling nearly a quarter of the global market, as well about half of North American production. Adding Agrium’s retail arm to Potash Corp’s production would also cut costs by providing a more direct route from mine to crop.

But mergers are never as simple as mashing two companies together and changing the letterhead.

To start with, true ‘mergers of equals’ are rare. Usually one company ends up in the drivers’ seat. But it’s unclear at this point which one it would be.

Potash Corp is worth a bit more (valued around $15 billion to Agrium’s $13 billion), but Agrium has higher revenue, due to the damage done to Potash Corp’s bottom line by falling fertilizer prices.

Cost savings are always a goal in a merger, and analysts estimate anywhere from $150-$500 million in ‘synergies’ that could be wrung from the deal, much of it likely to do with head office job cuts.

“You don’t need two finance departments, you don’t need two investor relations, or two HR departments. It’s your normal kind of M&A synergies,” says Colin Isaac, an analyst at London-based Atlantic Equities.

But while some fear a merger could result in lower production and job cuts at some of the entity’s higher-cost mines, Isaac expects cuts to be limited, noting both companies have been through several rounds of cost cutting over the last few years.

“The fixed costs of the companies are fairly low,” he says.

Then of course, there are regulatory issues to think about, particularly when an already leading player takes an even bigger slice of an industry. Potash Corp was nearly acquired by Australian miner BHP Billiton in 2010 before the Canadian government stepped into kill the deal, so its been there before.

But as both companies this time around are Canadian, the federal government shouldn’t’ be an issue, and analysts think antitrust issues likely won’t be a major hurdle, since Agrium’s dominance is more on the retail side than potash production.

If anything, the deal talk may signify that both companies feel the industry is poised for a rebound, says Dan Sherman, a St. Louis-based analyst at Edward Jones.

“I think one of the reason this merger’s happening is that both companies believe that potash prices have bottomed,” he says.

“I think it’s going to be easier than a lot of mergers that have been proposed in the past.”

The first time that checking my credit score went to the top of my to-do list was at a grocery store as my debit card was declined and my face turned beet red.

Uh oh. There was more than enough in the account to cover the food intended for the family dinner at the cottage, so why did I have to enlist help to buy groceries?

A panicked call to the bank confirmed my fear: my card had been cancelled because it had been compromised (thanks for letting me know!). I was on vacation in another province, so their invitation to drop by my branch wasn’t helpful but at their suggestion I had a fraud alert put on my accounts with the two major credit reporting agencies in Canada.

TransUnion Canada and Equifax Canada maintain your credit report, which tracks how responsibly you use credit. This report is used by banks and lenders when you apply for a mortgage, as well as insurance companies, landlords and employers. You are also assigned a score, which affects your ability to get loans; a low score can mean higher mortgage rates and premiums for insurance coverage.

This number is important, and can mean the difference between getting a mortgage or not; it’s a big deal. 

Credit report vs. credit score

The credit agencies keep track of your credit history: how long you’ve had accounts, if you make minimum payments on time, if you pay your bills promptly and if you go over your credit card limit. Bankruptcies, liens and accounts closed for caused will all be listed too.

Your credit score is assigned based on your financial behaviour. The numbers range from a low of 300 to a perfect score of 900. A high score can save you a lot of money in the form of lower interest rates.

How to check your credit score

You can get your credit report (a.k.a. a “credit file disclosure” or a “consumer disclosure”) for free from Equifax and TransUnion by mail, or more quickly for a fee online. Unfortunately you have to pay to access your own credit score. Both reporting agencies charge $16.95 per month for this information.

Companies such as Mogo offer a free credit score with monthly updates, but you must sign up for an account and their Prepaid Visa card charges various fees for ATM withdrawals and account inactivity.

Soft check vs. Hard check

A soft credit check is when you check your own score, you’re pre-approved for a mortgage or a routine check by your insurance company; this doesn’t affect your credit score.

A hard check is done with your permission by a third party for a bank loan, mortgage or line of credit. This will affect your credit rating, and it’s a concern for lenders if you suddenly do more hard checks than usual. 

What can affect my credit score?

Not paying your bills on time. “Never ever miss a minimum payment, even if it’s $1,” says Chantel Chapman, Financial Fitness Coach and Credit Score Expert in an email exchange.

“Also, even if you pay your credit card off every month, set an imaginary limit and never borrow more than 70 percent of your actual limit,” she adds. “If the credit card company reports your utilization ratio the day before you pay off the entire balance and your card is maxed or close to it, your score could drop significantly.”

Chapman explains that 30 percent of your credit score is made up of your utilization ratio, but you can quickly turn this portion of your credit rating around if you fix the ratio, within 30 to 60 days.

How can a low credit score affect me?

A low score can haunt you for years. You can be declined for loans or forced to pay higher interest rates. Even employers can check credit ratings. “If an employer has two ideal candidates that matched up in every way but one had a very poor credit history, they may lean towards the one with a better score,” says Chapman, adding that utilities may require a deposit if you have a poor credit score.  

Do insurance companies check your credit?

“Yes, we use credit scores as a rating factor in homeowners’ insurance,” says Leonard Sharman, spokesperson for The Co-operators. “In fact, credit score is used as a rating factor in most homeowners’ insurance policies in Canada.”

He explained that credit scores have been demonstrated to be an accurate predictor of home insurance claims, and that there is a “link between credit scores and the frequency and severity of insurance claims,” and so they’re used to set rates along with other factors such s the age and construction of the home, location and claims history.

How can I build good credit?

It’s good to build up your credit score by using credit responsibly, says Scott Hannah, President & CEO of Credit Counselling Society in Canada. You don’t have to carry a balance, but make sure you pay at least the minimum payment every month as even a $10 delinquent payment can affect your rating and it can take years to reestablish good credit. He suggests that using over 50 percent of available credit can impact your credit rating.

How can I avoid fraud?

Hannah suggests having two cards, one with a higher limit and one lower that you use for online transactions or if you’re concerned it could be stolen. He also suggests choosing a PIN that’s not easy to guess and always shield your hand when entering it in stores so that if your card is compromised, you will have fewer issues being reimbursed by your lender.

How can fix a bad financial situation?

One option for getting out of a bad financial situation can be debt restructuring, says Pat White, Executive Director of Credit Counselling Canada. Negotiating with lenders with the help of a non-profit third party can negatively affect your credit rating, but once clients are in this position, it’s common that their credit score may already be poor, she says.

Know where you stand

Check your credit rating at least yearly to look for mistakes or even fraud. Whether you request your report by mail, pay a monthly fee to Equifax or TransUnion or use another source, managing your debt responsibly can pay off — literally.

Being an Olympian is expensive, but being a Paralympian can cost even more.

Just ask Kim Fawcett-Smith, the Canadian Forces Officer, paratriathlete and above-the-knee amputee had hoped to compete in the triathlon at the 2016 Paralympic Games in Rio, but she just couldn’t afford it.

Between club fees, ($4,000) coaching fees, ($6,000) equipment costs ($23,000 each for two specialized prosthetic legs and $30,000 for technology upgrades) an competition costs (upwards of $25,000 in travel and accommodation in a year) it just got to be too much.

“There are huge cost differences between able-bodied and disabled athletes. Disabled athletes need equipment – or pay the cost for their guides, in the case of visually impaired athletes – that able-bodied athletes do not need,” she says.

Fawcett-Smith also explained that often able-bodied athletes get privileges that athletes with disabilities don’t, like bringing their physiotherapists and doctors with them.

“Many sports only select the disabled athletes with the least disability because they are cheaper – for example, hand amputees,” says Fawcett-Smith.

But what about financial support? Can’t Canadian paralympic athletes get sponsors or the Canadian Paralympic Committee [CPC] to cover their costs?

Some can, but for most athletes, like Fawcett-Smith, it’s not that simple. There are a number of systemic factors in Canadian parasports that prevent equal access to funding and for her it starts with a key building block of Canada’s Sport Policy.

Unequal Access and a Focus on Youth

Fawcett-Smith has travelled the path of an elite athlete in two different worlds. First, as a figure skater in the nondisabled world and now as a paratriathlete in the parasports world and she’s finding that the financial support and opportunity just isn’t there in the same way for adapted athletes.

“I think Canada has done a disservice to disabled people accessing parasport in this country. The focus has been on children with congenital disability who can fit into the Long Term Athlete Development (LTAD) models. This completely excludes traumatic injuries.”

The Long-Term Athlete Development Model – a cornerstone of Canada’s Policy on Sport and the Disabled Persons Act referred to within it – is about building elite athletes, including athletes with disabilities, from the ground up, starting with when they’re children and just getting into sports. Many of the available funding sources, including the Canadian Paralympic Committee, support this model. This leaves athletes like Fawcett-Smith, who are over 30 and acquired their disabilities later in life, with unequal access.

“There are 4 million people with disabilities in Canada. 800,000 are children born with a disability. This leaves 3.2 million who are lost or forgotten still capable of performing elite level para-athletics,” she says.

A lot of those people were once considered too old for elite competition, but with more and more athletes competing at older ages, sport policy is starting to recognize that age is largely irrelevant – unless you’re an adapted athlete.

CPC policy actually only recruits between the ages of 19-35,” says Fawcett-Smith. “If you are outside this demographic, CPC does not want to look at you.” This is unfortunate because many wounded service men and women are over 35. Fawcett herself was exposed to parasports through Soldier On – a recovery program for ill and wounded service members.

“Losing my leg was hugely traumatic. But when I woke up, I had a decision to make. I either sat in a wheelchair and died a slow painful, sorrowful death, or I could try and stand up and walk again. Once I was able to walk, I wanted to learn to run…and I did. I never swam competitively either, but I learned to do that too,” says Fawcett-Smith. “I truly and earnestly believe in the power of sport. I am not so certain that I believe in the power of parasport.”

Sponsorship Opportunities are Limited

Papito Wilson still believes in the power of parasport, even while he finds himself at a crossroads in his athletic career.

The Cuban-Canadian who came to this country in 2001 competed for Canada in the Wheelchair Volleyball World Championships and represented Canada in rowing at the 2008 Paralympic Games in Beijing. His highest finish was a bronze medal at the 2006 World Rowing Championships in Eton, England. At first, there was some talk that he would try to make the rowing team for the 2016 Paralympic Games in Rio, but now he has fallen in love with a new sport – wheelchair tennis.

“I love sports. It doesn’t matter which one. One of my favourites is wheelchair basketball, but now I want to so something on my own. This is why I love wheelchair tennis, even though I don’t have much experience,” he says.

But changing your entire sport means new equipment, a new club to train at and new coaching – all of which costs money.

“Sometimes it’s hard to get money or sponsors. I’ve only gotten money once,” admits Wilson.

But he’s hopeful that’s one stat he can turn around. As of this writing he’s hoping to approach connections at Amway – the health and beauty product company that has sponsored athletes in the past uses multi-level marketing to promote its products – to help him with money for travelling and a tennis wheelchair.

When he was part of the Canadian adapted rowing team he had a full-time job, but received an extra $24,000 a year tax-free. He also received a lot of perks and benefits that went towards helping him train and compete.

“My membership at the rowing club, which was normally $600 a month, was only $56 a year. Plus, as a member of team Canada, I got free massages and physiotherapy. Though some of that changed when I switched sports. When I went into adapted canoeing and kayaking and we made the World Championships, we had to pay $2,000 just to get there, it was pretty painful,” says Wilson.

Sponsorship can be just as hit or miss. Fawcett-Smith has received access to sponsorship in the past, but she says that’s only because she served in Afghanistan and is a designated veteran.

“Sponsorship is limited for athletes with disabilities.  Major companies like Coke, Nike, etc. want Usain Bolt promoting their products and not the guy with cerebral palsy who may not look as “cool” as Usain in their shoes or drinking their soft drink. Lets be honest, unless you look and perform like Clara Hughes or Sydney Crosby, you are not going to find sponsors,” she says.

The Royal Bank of Canada, which often heralds itself as a “proud supporter of The Canadian Olympic Committee and Team Canada since 1947” in ads that run constantly during the Olympic Games, does not sponsor the Canadian Paralympic Committee and limits its support of Paralympic athletes to its RBC Olympians Program.

“RBC hires both Canadian Olympic and Para athletes [winter and summer] as community ambassadors who bring Olympic messages of excellence and leadership to Canadian communities. Athletes are provided with the opportunity to gain valuable skills that will help them prepare for life after sport, while also receiving much-needed funding to help them realize their Olympic and Paralympic dreams,” says Jackie Braden, senior manager of communications at RBC.

The athletes assist with communications, marketing, sponsorship, charitable and community investment programs while also working and maintaining their training and competition schedules. However, of the 52 athletes currently participating as of this article, only eight are Paralympians. We asked Braden why and didn’t receive a response.

“RBC can’t comment about the number of able-bodied athletes versus disabled because its the Canadian Paralympic Committee and the Canadian Olympic Committee [COC] that nominate the athletes for RBC funding, so they are responsible [for the unequal numbers.]”

RBC is also looking for the next Olympic athlete through their RBC Training Ground Program. With support from the COC and the Canadian Olympic Foundation, potential athletes (youth in their teens and 20s, which supports the long-term development model in Canada’s Sport Policy) are put through a series of workouts in front of national sports organizations and their results are measured against performance benchmarks. Those who meet or exceed them will have their Olympic dream funded by RBC to tune of $10,000 per athlete for each of the next three years.

“Para-athletes have different requirements for their sports and the specific combine-style workouts for RBC Training Ground would not support their benchmarks. The Canadian Paralympic Committee does hold similar events for para-athletes,” says Braden.

In recruiting, the CPC and COC only respond to the names put forward by the national sports organizations (NSOs) The NSOs get their funding from Sport Canada and include Triathlon Canada, Swim Canada and Golf Canada, among others. Thus far, Wheelchair Basketball Canada and Wheelchair Rugby Canada are the only NSOs solely for athletes with disabilities and usually only the best of those that come to the attention of an NSO receive sponsorship.

“Unless you are a ‘golden’ performer that your National Federation wants to promote/support, then its going to be really difficult.  Golden performers are those ‘one of’ athletes that come around once in a blue moon who jump into sport and win gold medals from day one. These are typically the least disabled athletes in their classification in that specific sport,” says Fawcett-Smith.

It Comes Down to Policy

So why are funding opportunities for athletes with disabilities so scarce when compared against non-disabled athletes even though they face more expenses? It comes down to how disabled athletes are regarded at a policy level. Read Canada’s Policy on Sport and you’ll find a lot of action words featuring clear objectives for goals that should be reached in the present tense and are well on their way to being achieved. The policy is backed by many practical, actionable and very specific plans for reaching those goals.

Read the Disabled Persons Act referred to within that policy and you’ll see much more vague terms like “We envision.” It’s very clear that the Disabled Persons Act is focused on research and further consultation, while the Policy on Sport focuses on concrete action.

“Disabled athletes are ensconced within an Act, but not policy relating to sport?  How come and why not?  The country’s policy & directional statements are for able bodied athletes only. Envisioning inclusion is not inclusion, period,” says Fawcett-Smith.

Canada knows it has to do better. An evaluation of the success of the Policy on Sport by the Interprovincial Sport and Recreation Council released in 2010 showed that while it has been largely successful when it comes to athletic performance and results, it is failing when it comes to participation in sports, especially among people with disabilities.

“There is a dearth of evidence on the participation of some under-represented groups. Information on participation levels of children and youth with a disability (under the age of 14) was collected in 2006, but no further data has been collected addressing the remainder of the population with a disability,” reads the report.

If you don’t even know clearly who among people with disabilities is even participating in sports, how can you properly support them to help them reach elite status?

“Maybe Canadian disabled athletes should get up off their butts and force the issue.  Demand policy change.  You can’t bitch about something when you are not doing something to bring about change,” says Fawcett-Smith.