The Canadian Federal Budget 2024 has arrived, bringing a host of new policies, tax adjustments, and funding allocations aimed at addressing the nation’s economic opportunities and challenges. In this article, we break down the key elements of the budget to help you understand its implications, especially as they pertain to
The Canadian Federal Budget 2024 has arrived, bringing a host of new policies, tax adjustments, and funding allocations aimed at addressing the nation’s economic opportunities and challenges. In this article, we break down the key elements of the budget to help you understand its implications, especially as they pertain to Magenta investors.
Government policies can often be overwhelming, filled with complex details and a laundry list of exemptions and policies. It can be challenging at times to find what is and is not relevant to your day-to-day life. Our summary focuses on the most relevant points to make it easier for you to grasp what matters most to your financial decisions. Before making important financial decisions, use this article as a starting point to better understand the budget and to engage in informed discussions with your financial advisors.
To reduce the appeal of real estate as a class of speculative asset, the federal government will be increasing the capital gains tax on June 25th with a view toward driving down the cost of housing. To break this down further, whenever you sell an asset or investment for more than you paid for it, that difference is a capital gain. Conversely, when you sell an asset for less than you paid for it, this is a capital loss. These assets or investments could take the form of:
As an individual, the changes coming into effect on June 25th only apply if you stand to make more than $250,000 in a single year from capital gains (after taking into consideration capital losses)- up to that point, you will still pay the current capital gains tax of 50%. It is only for capital gains over $250,000 that the 66.67% rate comes into effect. On the other hand, all capital gains made by a corporation or trust will be taxed at the new rate of 66.67%.
You can take many steps to manage your finances when it relates to the 66.67% rate. For instance, income earned and funds withdrawn from a Tax-free Savings Account (TFSA) are not subject to the capital gains tax but do have strict annual contribution limits. Capital gains income placed in a Registered Retirement Savings Plan (RRSP) is not taxed until the funds are withdrawn, at which point they are taxed at your marginal tax rate. Your Magenta shares are both TFSA and RRSP eligible.
The federal government taxes based on your net capital gains, rather than your gross capital gains. Knowing when to sell an underperforming asset or investment for less than you paid for it (thus creating a capital loss) can be a great long-term strategy to keep your annual capital gains within a favourable tax bracket. This provided that the mitigation in potential additional taxes is greater than the immediate loss.
Capital gains related to the sale of qualified small business corporation shares or qualified farm or fishing property are considered tax-exempt up to a limit of one’s lifetime capital gains exemption (LCGE). As a Canadian, your LCGE will increase from $1,016,836 to $1.25 million on June 25th, alleviating capital gains taxation for those specific investment classes.
As a Canadian, your marginal effective tax rate (METR) is 14.5%, which is the lowest among all G7 counties. The international Organisation for Economic Co-operation and Development (OECD) calculates your METR. This calculation takes your federal and provincial income tax rates and combines them with the effective tax rate from government benefits, credits and tax deductions that are dependent on your income.
Canada’s inflation rate has decreased from 8.1% in June 2022 to 2.8% in February 2024. The introduction of the Canadian Entrepreneurs’ Incentive, offering a lower capital gains tax rate of 33.3% up to $2 million in lifetime capital gains from selling small business shares, positions Canada as an attractive destination for business growth and investment.
There have been many changes to the Canadian Mortgage Charter, namely:
This will allow younger Canadians and Muslim Canadians to participate in the housing market like never before- adding two untapped demographics of borrowers to Magenta’s diverse portfolio.
For more information on the federal budget, please visit the Government of Canada website.
For more information on investing in Magenta shares, please reach out to us.
The opinions and viewpoints presented in this document are exclusively those of the several writers and do not represent the perspectives of any associated individuals or organizations, including but not limited to the writers’ current or former employers. This article serves purely informational purposes, and the writers have made efforts to verify the accuracy of the information and analysis. The writers take full responsibility for any opinions, forecasts, or predictions made. They do not guarantee the precision or completeness of the document’s contents. This document does not offer professional or investment advice. The writers will not be liable for any consequences resulting from reliance on this piece. Readers should consult with a certified expert before making any financial decisions.
In today’s digital age, protecting your financial identity is vital. With the launch of our online broker and investor portals, we want to ensure you are following digital safety best practices around identity theft and financial fraud. Our Broker Portal is an integral part of our delivering fast, flexible, and
In today’s digital age, protecting your financial identity is vital. With the launch of our online broker and investor portals, we want to ensure you are following digital safety best practices around identity theft and financial fraud.
Our Broker Portal is an integral part of our delivering fast, flexible, and easy mortgage solutions for our brokers servicing the needs of alternative borrowers.
Our Investor Portal serves as a convenience feature for our investors never wavering on our commitment to personalized service.
Scroll down to learn more about how you can explore our customer portals while ensuring you are safe with your information.
Protecting your identity starts with securing your digital presence. Your online accounts, especially those related to financial services, are prime targets for cybercriminals. The security of these accounts heavily relies on the strength and secrecy of your passwords.
Passwords serve as keys to your digital life. They grant access to your email accounts, social media profiles, online banking services, and more. Therefore, the security of your passwords is directly tied to the security of your personal information.
Password protection is a critical aspect of online security. A strong, unique password is the first line of defence against unauthorized access to your accounts. Strong passwords keep your personal information confidential, protect your identity and ensure the security of your assets. Weak passwords are easily guessable and crackable, making them a soft target for cybercriminals. They can lead to unauthorized access to your accounts, identity theft, financial loss, and even damage to your reputation.
Click here to access the Broker Portal.
Click here to access the Investor Portal.
Disclaimer: The opinions and viewpoints presented in this document are exclusively those of the several writers and do not represent the perspectives of any associated individuals or organizations, including but not limited to the writer’s current or former employers. Efforts have been made to verify the accuracy of the information and analysis provided, but it is intended purely for informational purposes. The writers alone are responsible for any opinions, forecasts, or predictions made. No guarantees are made regarding the precision or completeness of this document’s contents. This document is not intended to offer professional or investment advice. The writers are not liable for any consequences resulting from reliance on this piece. It is advised that readers consult with a certified expert before making any financial decisions.
Magenta is celebrating its 30th anniversary. In this post, we are discussing our journey from 1994 to 2024 and the way forward. A New Way of Thinking About Mortgages A sunset between a boy and his father inspired a new way of thinking about mortgages. “I think they call it
Magenta is celebrating its 30th anniversary. In this post, we are discussing our journey from 1994 to 2024 and the way forward.
A sunset between a boy and his father inspired a new way of thinking about mortgages. “I think they call it Magenta,” the boy would later remark.
Magenta gained its very first shareholder in 1994.
Dreaming of a life defined by the possibility he could give his children, rather than a life defined by limitations, Gavin Marshall, Founder & CEO of Magenta, struck out on his own in 1998. It all began in the inaugural headquarters of the Marshall family basement.
Eight years into creating the Magenta he envisioned, Gavin said farewell to the basement and moved to an office in downtown Perth with his first employee. At that time, Magenta’s AUM (assets under management) was $4 million, and within a year of moving, its AUM doubled.
Magenta soon outgrew that first office in Code’s Mill (now a lovely wedding venue, we’re told), moving down to roomier 47 Gore Street East to accommodate a larger staff of 4. It was this tight-knit crew that weathered the 2008 recession with zero loan loss.
In March 2011, Magenta became registered as an Exempt Market Dealer. This allowed us to trade in exempt securities in Alberta, British Columbia, New Brunswick, and Ontario. Later that year, Magenta hit $100 million AUM.
By the fall of 2012, seeing a need for senior talent to help manage the burgeoning company, Magenta settled in a new office on Boyd Avenue in Kanata. The intention was to attract those unable to make the trek to Perth and increase Magenta’s access to their Ottawa-based broker and investor bases. In 2015, Magenta moved to the current, and far more conveniently located, Kanata office on Terry Fox Drive.
Two years later, Magenta hit $300 million AUM. What followed, in 2020, is known to many: The COVID-19 pandemic. It was a catalyst for transforming the company as we embraced remote work and recruited talent from across Ontario. By 2022, well over 45 employees strong, Magenta said farewell to Perth, sunsetting the Gore Street office. It formally transitioned its headquarters to its current First Canadian Place location in Toronto. Magenta also surpassed $500 million AUM in that Spring.
This past year Magenta spread its hue through industry events, blogs, and social media, celebrating Pantone’s Viva Magenta as colour of the year and acting as a key sponsor of CMP’s inaugural Women in Mortgages Summit in June.
Magenta has evolved over the years and solidified its purpose to connect people with opportunities to build a better tomorrow. In 2024, we mark 30 years and set our sights on living our purpose, saying thank you and giving back.
Magenta is successful because of the people it works with. The relationships we have with our customers, partners and employees are key to our growth.
Three decades of personalized service and reliable income for our investors allowed them to build for their tomorrows. They have been able to leave legacies behind through community involvement, while others have created generational wealth and opportunities for their loved ones. Whether they have come to Magenta directly, or they found us through an investment advisor, we thank them for their support throughout our journey.
A huge contributor to Magenta’s growth is our broker partners. We understand that a broker’s reputation with their client is the cornerstone of their business. Magenta always seeks to deliver exceptional service to our broker partners, offering flexible, easy and valuable mortgage products for the unique needs of alternative borrowers. We thank our broker network for their partnership over the last 30 years.
We officially became Great Place to Work certified in 2022. At Magenta, we foster a culture of innovation, inclusivity, and empowerment. Of course, this is not possible without the support of the Magenta Team and their dedication to helping our customers and partners build better tomorrows.
Magenta is a believer in the idea that progress is about more than just more – it’s about creating a more caring and just world. We know our lending areas intimately and we hope to give back to the areas that our customers and partners reside in. When we say ‘Your Tomorrow Matters’, that means everyone’s tomorrow matters. That’s why Magenta makes philanthropy a priority. We recently supported CHEO (Children’s Hospital of Eastern Ontario in Ottawa) and the Hospital for Sick Children in Toronto, through our broker network. Additionally, Gavin has been instrumental in Trent University’s Campaign for Momentous Change. On the environmental front, we partnered with Carbonzero to measure, manage, and mitigate our climate impact, and practice carbon offsetting to sponsor real and verified reductions in greenhouse gas emissions.
Magenta will continue to build upon its 30 years of helping our customers achieve a life defined by possibility. Our team is committed to making meaningful contributions and aspiring to do more for our customers and our community. Together, with our partners, we look forward to embarking on another 30+ years.
The month of December brings about the holiday season, which is marked by the celebration of numerous holidays around the world. These holidays are a time of joy, giving, celebration, family, and festivity. At Magenta, we have a lot to celebrate: Shining a light on women in mortgages; Viva Magenta
The month of December brings about the holiday season, which is marked by the celebration of numerous holidays around the world. These holidays are a time of joy, giving, celebration, family, and festivity. At Magenta, we have a lot to celebrate:
As we reflect on a prosperous year and look forward to the new year, we want to take a moment to wish you a Merry & Bright holiday season!
During the winter months when the days are at their shortest, people all around the world find solace in light. In countless traditions, gatherings, and joyous celebrations, light serves as a powerful symbol of hope, positivity, and warmth. Religious observances such as Diwali, Hanukkah, Christmas, and Kwanzaa use light to symbolize important virtues like goodness, divine energy, knowledge, and wisdom. For these celebrations, the use of light can also hold deeper significance such as the symbolization of historical events. To learn more about the history of light during the holiday season, please click here.
As daylight savings time comes to an end in Canada, we embrace the opportunity to brighten our homes with displays of light and invite people to gather together and be merry.
At Magenta, we wish you a Merry & Bright holiday season as the very words “merry” and “bright” perfectly capture the essence of this time of year. “Merry” signifies cheerfulness and liveliness, while “bright” symbolizes the abundant light that surrounds us all during the holidays.
Please note that Magenta’s offices will be closed at 5 PM on Friday, December 22 until Monday, January 1, 2024. Additionally, our Investor Relations team will be out of office starting December 25, 2023, to January 1, 2024. Our offices will reopen on Tuesday, January 2, 2024.
We’ll continue to conduct essential business functions during this time and will do our best to reply to any urgent requests. However, please note that our ability to help will be impacted by holiday closures at banks, law offices, and other related businesses.
If you have any questions about how a specific file could be affected, please call us at (613) 230- 5014 or email mortgages@magentacapital.ca.
If you need to change to a payment scheduled between December 29, 2023, and January 3, 2024, please let us know immediately. The deadline to make payment changes or deferrals is 4 pm on Thursday, December 21, 2023. Banks require three business days to stop or alter a payment, so we cannot accommodate requests made after this time.
If you have any questions about your upcoming payment, please call us at (613) 230-5014 or email mortgages@magentacapital.ca.
The Magenta team wishes you a merry holiday season and a bright new year. We’re grateful for your continued support and look forward to working with you in the years to come.
It’s National Financial Literacy Month (FLM), where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. Throughout November, the FCAC is discussing the ever-changing financial marketplace and the importance of checking up on financial health. At
It’s National Financial Literacy Month (FLM), where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. Throughout November, the FCAC is discussing the ever-changing financial marketplace and the importance of checking up on financial health.
At Magenta, our goal is to connect people with opportunities to build a better tomorrow. This month, we’re furthering our goal by supporting National Financial Literacy Month and sharing resources dedicated to helping Canadians:
For the final week of Financial Literacy Month, we’ll be discussing:
The best way to protect your financial rights is to understand what rights you have in the first place. Did you know that Canadian laws and regulations help ensure that financial consumers are protected, have access to basic banking services, and are treated fairly by financial institutions? These regulations include your right to:
Understanding these regulations is the first step to ensuring you can protect your financial rights when dealing with your financial institution(s).
When it comes to paying your mortgage, banks are also expected to help consumers who are experiencing financial difficulties due to exceptional circumstances. If you are struggling to pay your mortgage, it’s important that you contact your bank to learn about the relief measures that may be available to you, such as making a special payment arrangement, converting your interest rate, and mortgage deferral programs.
In November 2023, the Liberal government released the Fall Economic Statement (FES), which detailed an initiative it calls the Canadian Mortgage Charter. This charter builds upon the existing expectations related to how financial institutions treat their borrowers. To learn more, please click here: “The New Canadian Mortgage Charter Explained“.
As a Canadian borrower, you have rights when applying for a mortgage, making prepayments, renewing your mortgage, and more. Click here to explore these topics and learn more about your financial rights as a borrower.
When dealing with financial institutions, the FCAC has compiled a list of helpful resources designed to help you understand your financial rights and responsibilities. Below, please find a list of some of these resources:
Please visit the FCAC’s “Financial rights and responsibilities” page to explore more resources available to you regarding your financial rights.
Thank you for tuning in this month with Magenta as we’ve explored the weekly themes of Financial Literacy Month. To learn more about Financial Literacy Month and see additional resources provided by the FCAC, please click here.
It’s National Financial Literacy Month (FLM), where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. Throughout November, the FCAC is discussing the ever-changing financial marketplace and the importance of checking up on financial health. At
It’s National Financial Literacy Month (FLM), where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. Throughout November, the FCAC is discussing the ever-changing financial marketplace and the importance of checking up on financial health.
At Magenta, our goal is to connect people with opportunities to build a better tomorrow. This month, we’re furthering our goal by supporting National Financial Literacy Month and sharing resources dedicated to helping Canadians:
This week we’ll be talking about optimizing your financial health, managing your money to limit financial difficulties and improving your financial situation. Money worries are the biggest source of stress for Canadians: more than work, personal health, or even relationships. Canadians can avoid this stress by adopting a handful of financial strategies and sticking to them. It’s important to keep in mind that making a budget or consolidating your debt won’t solve all of your money problems overnight, just like getting that new gym membership won’t suddenly make you a marathon runner. Improvements to your financial health, like your physical health, are incremental, the sum total of thousands of little decisions you make every day to maintain your commitment to yourself and those you rely on.
Up for the challenge? Here are a few ways to get started:
Know the Difference Between Good and Bad Debt: Debt isn’t always bad. Sometimes, taking on debt in the present can help mitigate financial problems in the future, provided that that debt is being used to create value, or to produce wealth in the long term. Depending on your location, renovating your home- thereby increasing its resale value- could be a valid reason to take on debt. Taking on a student loan in order to acquire the necessary credentials to get a better-paying job is another example of a debt that could more than pay for itself in the long run.
Make a Budget to Manage Your Money: Simply keeping track of how much you earn, spend, and save can radically change your outlook on your finances. By clarifying your financial situation, you may find it easier to set limits on your spending and live within your means, as well as feel more inclined to be proactive in looking for ways to reduce or eliminate costs.
Set up an Emergency Fund: When you have money set aside for unexpected expenses, you can handle those expenses without having to go into debt or accept high-cost loans to make up the deficit.
Avoid Debt by Saving up for Your Financial Goals: When you not only identify but commit to paper (digital or otherwise) your financial goals, you may feel more accountable when it comes to whether or not you achieve them. It can be all too easy for financial aspirations to appear impossible or abstract: when you itemize your goals with specific dollar values and time frames, it becomes easier to see how far you’ve come, and how far you’ve left to go.
Did you get all the words right? Click here to see the Crossword Answer Key.
Tune in next week to learn more about our final topic: knowing your financial rights. To learn more about Financial Literacy Month and see additional resources provided by the FCAC, please click here.