Maple House

1. Introduction

When I first came to Canada in 1986, one of the things I needed to do was to buy a used car. I visited a car dealership, where a very friendly salesman showed me a few cars. I was attracted to a red Escort, but it had a sticker price a few thousand dollars more than the money I had. The salesman could tell I liked the car, but I told him I couldn't afford it now. I was pleasantly surprised when he said: "We can arrange financing for you." Really? I thought. I couldn't believe he could lend me money to buy a used car. But it was true. I sat down, and told him about the job offer I had, the salary, etc. After waiting a few minutes for the salesman to make phone calls, I was approved of a loan. So now the money was no longer a problem. But I was still hesitating, partly because things were happening too fast for me to digest. The salesman said: "How much are you willing to pay for it? Make me an offer." My eyes lit up. What? I can make an offer? I thought buying a car was like buying something in a department store---You pay what the price label says. Wow! This man is really nice to me. He lends me money, and he asks me to knock down the price of the car. Gladly, and not sure what was a reasonable amount to knock off, I offered a price $300 less than the sticker price. Within minutes, the deal was approved. I was very appreciative of the salesman whom I thought was very helpful. What a nice guy! And what a good deal! I saved $300, and bought a car I would never have thought I could afford right now. I happily drove the car home. The salesman was happy, too.

Months later, I realized that when anyone shops for a car at a dealership, the price is expected to be negotiable. That means I did not really save $300. I probably overspend a couple hundred dollars. Years later, I realized that I overpaid on the car loan with a close to 20% interest rate. I could have just walked into a bank and got a loan with an interest rate just a little more than 10%.

I am sure this is not the only example where proper knowledge would have helped me. I am sure many immigrants to this country have had countless situations where they did not get the best scenario for themselves, simply because lack of knowledge. Knowledge saves money and hassle. Knowledge is powerful.

A friend called me, and complained about the place he moved in just a few weeks ago. He was new in Toronto, and did not know what the summer would be like in Toronto. Now he found it unbearable, because there was no air condition in his apartment. He also did not like his roommates and neighbours. I suggested him to move, because there was no point for him to stay in a place that made him unhappy. But he said he would stay there for a while, because he had told his family and friends his new address, and if he moved, he would not be able to receive mail from them. Not true, I told him. All he had to do was to go to the post office, and pay a small fee to file an address change so that all the mail would be forwarded to the new address. He took my advice, and moved quickly. He was more careful in finding the new place. I did not hear him complaining about it.

Another immigrant friend congratulated me on my new Canadian born baby, and commented how lucky Canadian babies are, because the government gives them Child Tax Benefit. I pointed out that he could apply for Child Tax Benefit for his young boy as well, contrary to his assumption that since his boy was not born in Canada, he could not apply for it. It was good that he had been in Canada for only six months, because the Child Tax Benefit is retroactive for up to eleven months from the date of application. If he had waited more than eleven months to find out that he could apply for Child Tax Benefit, he would miss tax free Child Tax Benefit money he is entitled to.