member advantage S U M M E R • 2 0 0 4 We welcome your feedback and story ideas for the Member Advantage newsletter. Send or bring them to: Keeping College ROBLIN BRANCH Box 1023, 266 Main Street W. Roblin MB R0L 1P0 Within Reach Phone 937-2156 • Fax 937-2417 Monday – Thursday 9 am – 4:30 pm Friday 9 am – 5:30 pm Closed Saturday & Sunday A message from MemberCARE® Financial Services GENERAL MANAGER Dale Scott Between everyday expenses, mortgage and car payments, child care INGLIS BRANCH bills and trying to save for retirement, do you ever wonder where 116 Main Street N. you’ll get the money to send your child to college or university? Inglis MB R0J 0X0 Phone 564-2401 • Fax 564-2691 Post-secondary education is expensive, and costs are expected to keep rising. By the Monday – Thursday 9 am – 4:30 pm year 2015, the average costs at a Canadian university are projected to be over $67,000 Friday 9 am – 5:30 pm for four years of tuition and expenses. Closed 12 – 1 pm No matter how old your child is today, there are steps you can take to meet expected Closed Saturday & Sunday BRANCH MANAGER college costs. The sooner you start to save, the better off you’ll be when that first tuition Randy Kuz bill comes due. And if college days are near, there are still some strategies that will help — like last-minute saving, THE BOARD careful spending and wise borrowing. Richard Dereniwski PRESIDENT Bert Marshall VICE-PRESIDENT MemberCARE Financial Services, a Jean Addis SECRETARY personal financial planning, insur- Donald Boguski ance and investment service, also can Ronald Yakimishyn be of help. At no obligation or charge, Sonia Thaczuk Jackie Derhak — the MemberCARE Val Olson Ron Landry Financial Services Representative Brad Robin serving members of your credit union — can help you develop a personalized educa- tion funding program that’s tailored to your lifestyle and other financial planning goals. If you’re interested, Jackie can also help you sort through the variety of investment and MISSION STATEMENT insurance products available through the MemberCARE Financial Services program ROBLIN CREDIT UNION LIMITED — all of which complement traditional credit union products and services. provides innovative financial products and services, fosters For more information, contact the MemberCARE Financial a co-operative team effort, Services Representative to make an appointment: promotes sustainable economic development and manages a Toll-Free: 1 888 238 3941 or (204) 571 6066 profitable business to share with members and community. MemberCARE® Financial Services is a member company under Credential Financial Inc., offering financial planning, life insurance and investments to members of credit unions and their communities. MemberCARE® is a registered mark owned by Credit Union Central of Canada and is used under licence. Jackie Derhak Manitoba credit unions Manitoba Credit Unions celebrate successful 2003 472 492 System Growth 7.68 7.40 8.26 6.71 6.87 For Manitoba’s 57 credit 6.07 unions, 2003 was another year of high growth and strong member satisfaction. 2002 2003 2002 2003 2002 2003 2002 2003 MEMBERSHIPS LOANS DEPOSITS ASSETS Collectively, the province’s credit unions experienced significant (thousands) ($ billions) ($ billions) ($ billions) increases in membership, assets, deposits and lending activity. Over- all, the credit union system’s membership base grew by roughly 20,000 memberships, reaching 492,000 by the end of 2003. Assets grew by $860 million in 2003, bringing the combined total to $8.26 billion — 99 per cent of consumer members an 11 per cent increase over 2002. Deposits also increased by 11 per in Manitoba are either ‘satisfied’ or cent, closing the year at $7.68 billion. Lending activity was up by 10 per cent, reaching $6.71 billion. Perhaps the best news was the ‘very satisfied’ with their credit union increase in net income, which came in at $61.4 million, an increase of 28.5 per cent over the previous year and another record for Meanwhile, the results of a Canadian Federation of Independent Manitoba’s credit unions. Business banking survey from October 2003 showed that 98 per cent The key to all of this success is the satisfaction of credit union of small- and medium-sized business (SME) owners were ‘satisfied’ members. As in years past, Manitoba credit union members or ‘very satisfied’ with their credit unions. continue to express high levels of satisfaction with their credit Ninety-seven per cent of consumer members and 93 per cent of unions. Nowhere is this more evident than among consumer mem- SME members also said they would be ‘likely’ or ‘very likely’ to refer bers. In research conducted for Credit Union Central of Manitoba in others to their credit union. January 2004, 99 per cent of consumer members said they were Results like these show that Manitoba’s credit unions are con- either ‘satisfied’ or ‘very satisfied’ with their credit unions. tinuing to meet, and often exceeding, the needs of their members. Buck the trend: Get travel insurance for your summer vacation According to a recent Ipsos-Reid study, nearly two-thirds of With travel Canadians who traveled within Canada but outside of their home insurance in province within the last three years didn’t purchase travel insur- place, you’ll be ance. The study found that 65 per cent of Canadians traveled able to relax without insurance, assuming — often mistakenly — that their and rest easy provincial government or employee health plans would cover everything. All too often, unfortunately, that turns out not to be the case. of that travel insurance with you, along with the name and phone Expenses such as prescription drugs, air ambulance service, number of the insurance provider. You may also want to leave a X-rays and other costly procedures may not be covered by your copy of the details with a neighbour or close relative, just in case plan when you’re outside Manitoba — even if you’re still in you lose your copy. Canada. Therefore, if you’re planning a summer vacation this With travel insurance in place to cover any unforeseen ill- year, it’s probably a good idea to include purchasing travel nesses, you’ll be able to relax, rest easy and enjoy your summer insurance as part of your trip. It’s also a good idea to carry proof getaway. Tips on applying for loans Qualifying for a loan depends on a number of factors. Knowing what they are not only makes applying for a loan much easier, it also gives you an idea of whether you can expect your application to be accepted. Net Worth This is the difference between property tax (PIT). GDSR should not exceed what you owe and what you own: your 27 per cent of your gross monthly income assets (cash, car, house, cottage) minus your before deductions. Your Credit History This is a review of your liabilities (loans, mortgage, credit cards and past payment record; financial institutions 2. Total Debt Service Ratio (TDSR) is the unpaid bills). can obtain your credit rating from the Credit same as the GDSR, except that all of your debt Your Ability to Pay This is your salary and payments — including utilities, credit card Bureau. other sources of income compared to your balances and other loans — figure in the monthly commitments. A loans officer will If you don’t think you qualify, or if calculation. Divide your total monthly debt look at your situation two ways: payments (including rent or PIT) by your you are having credit problems, come 1. Gross Debt Service Ratio (GDSR) is the gross monthly income. The figure, your in and talk to our manager or loans portion of your gross monthly income that TDSR, should not exceed 37 per cent of your manager. Perhaps we can help you goes toward monthly rent or mortgage and monthly gross before deductions. find a solution. Avoid potential headaches by getting a pre-approved mortgage The real estate market in Manitoba is hotter than Therefore, if rates go up, you’re locked in at the lower ever right now and, like many others, you may be rate and, best of all, if rates go down you automati- preparing to buy a new home this summer. Buying cally get the lowest rate. a home should be an exciting and rewarding expe- A pre-approved mortgage also gives you a clear rience, not one to lose sleep over. With that in mind, indication of how much you can afford and it speeds one of the best things you can do to minimize the up the process once you find a house you’d like to frustration of buying a new house is to get a pre- purchase. Getting a pre-approval is also an ideal time approved mortgage. to discuss several key aspects of your mortgage. With so many houses on the market selling within days — if not You’ll be able to work out all of the important details like payment hours — of being listed, a pre-approval can mean the difference schedules (monthly, bi-weekly, etc.), the terms of the mortgage (open between getting and losing a house. A quick visit to your credit vs. closed, fixed rate vs. variable rate, etc.) and what your payments union is all you need to do to be pre-approved. A relatively painless will be. With those details ironed out, you’ll be free to focus your process, getting a pre-approved mortgage won’t cost you anything, energies on finding the home of your dreams. and it will allow you to shop for a home without worrying about To get a pre-approved mortgage, visit your credit union and speak fluctuations in interest rates. That’s because pre-approved mortgages to a representative today. lock in the interest rate for a set period (usually around 90 days). How are mortgage rates set? Mortgage rates often drop or increase without movement at the central banks. In fact, mortgage rates often lead the way, Whenever the U.S. Federal Reserve or Bank of Canada rates up or down, for the central bank rates. In that sense, mortgage come down, we hear from more members than usual about rates provide a more sensitive indicator of where interest rates our deposit and mortgage rates. are headed generally. While lower lending rates may sometimes coincide with Bond rates also generally dictate longer-term GIC rates. To lower central bank rates, the reality is that most mortgage rates ensure that we offer the best value to members on both sides of — particularly locked-in longer-term ones — are dictated the equation, we do our best to offer competitive GIC rates and primarily by rates in the bond markets, not the central banks’ charge competitive mortgage rates. The spread, or difference rates as many people believe. between the two rates, is used to recover operating expenses. What’s New at Roblin Credit Union Supporting Local Youth Each year, Roblin Credit Union is proud to support our local youth. RCU purchased the steers of Patrick Troxler of Roblin (pictured at left) and Autumn Jackson of Inglis. Dale Scott, General Manager, commends Patrick and Autumn along with all of the 4-H participants and encourages them to keep up the good work. Graham Stewart, of Inglis, is shown lending a hand to a Future 4-Her, Terinda Holopina. The future 4-Hers showed a lot of potential and we look forward to seeing them at next year’s show. Co-operative spirit spreading nationwide All across the country, Canadians continue to embrace the co-operative spirit and make credit unions their financial institutions of choice. As was the case provincially, the credit union system at the na- in just the last five years, the system’s assets have increased by tional level performed well in 2003, recording strong gains in $22.2 billion or 45 per cent. assets, loans, and deposits. Deposits were also up, increasing by 7.9 per cent to almost $65.4 According to statistics released by Credit Union Central of billion, while total loans were reported at over $58.2 Canada, affiliated credit unions and caisse populaires across billion, an increase of 10 per cent over 2002. Meanwhile, total Canada reported system assets of $72.1 billion as of the end of credit union membership stood at 4.65 million as of the end of last year, an increase of 8.6 per cent over 2002. That means that the year.