Anyone have an opinion on Home Trust? | General comparisons | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_TopicIcon
Anyone have an opinion on Home Trust?
February 23, 2013
8:26 am
kilarney
Member
Members
Forum Posts: 146
Member Since:
November 8, 2009
sp_UserOfflineSmall Offline

They may be looking to offer a place to park the money flying out of Ally? Some okay rates? Do they look safe?
http://hometrustdeposits.com/

February 23, 2013
12:01 pm
NorthernRaven
Moderator
Moderators
Forum Posts: 457
Member Since:
August 4, 2010
sp_UserOfflineSmall Offline

Just some notes, they don't seem to have a savings account, just GICs. Also, the one-year rate is 1.7%, but that's compounded annually. For monthly compounding (the way most daily interest HISAs effectively offer), the rate drops to 1.55%. You can get CDIC HISA rates of 1.9% (Peoples Trust), or up to 2% from the Manitoba CUs, and also better GIC rates (1-year seems to top out around 2.05%, but check who does what sort of compounding).

If you are going to the trouble of finding a new parking place anyway, Home Trust seems sort of "meh".

February 23, 2013
12:57 pm
kanaka
Member
Members
Forum Posts: 1232
Member Since:
December 23, 2011
sp_UserOfflineSmall Offline

NorthernRaven said

Just some notes, they don't seem to have a savings account, just GICs. Also, the one-year rate is 1.7%, but that's compounded annually. For monthly compounding (the way most daily interest HISAs effectively offer), the rate drops to 1.55%. You can get CDIC HISA rates of 1.9% (Peoples Trust), or up to 2% from the Manitoba CUs, and also better GIC rates (1-year seems to top out around 2.05%, but check who does what sort of compounding).

If you are going to the trouble of finding a new parking place anyway, Home Trust seems sort of "meh".

My theory is, over the years.....if a financial institution has the word TRUST in its name.....dont deal with them!

February 23, 2013
10:53 pm
Yatti420
Canada
Member
Members
Forum Posts: 393
Member Since:
July 10, 2011
sp_UserOfflineSmall Offline

I thought I'd add some interesting sightings.. Home Trust does indeed offer a diverse product offering it's just hard to find at first and not that convenient for the average person.. Maybe worth looking at if you have mortgage/lots cash etc..

Home Trust Fees
http://www.hometrust.ca/docume.....20Fees.pdf

Home Trust HISA - 1.40% Today Offering... (Nominee Held)
http://hometrust-hisa.com/

Home Trust HISA Info
http://hometrust-hisa.com/wp-c.....1-2013.pdf

FundSERV Code Class A: HOM100
Class F: HOM101
CDIC Eligible Yes, up to applicable limits (CDIC.ca)
Interest Calculated daily, paid monthly to the account as reinvested distribution
Interest Rate Current rate is available at hometrust-HISA.com
Plan Type Registered and non-registered plans, including Tax-Free Savings Accounts
Eligibility Canadian residents
Currency Canadian funds only
Minimum Initial
Investment
$1,000
Maximum Investment
per Account
$2,000,000
Account Type Nominee accounts only
Transactions Allowed only through FundSERV. Unlimited number
of deposits and withdrawals with T+1 settlement.
(Daily transaction closing time: 4:00 PM EST)
Settlement T+1 settlements (Daily transaction closing time: 4:00 PM EST)

Home Trust Rates
http://hometrustdeposits.com/rates/
http://www.hometrust.ca/deposi.....rates.aspx

Home Capital (Parent)
http://www.homecapital.com/
http://tmx.quotemedia.com/arti.....symbol=HCG (TSX:HCG)

HCG Q4/Annual - Feb 2013..

http://www.homecapital.com/qua.....b%2013.pdf

HCQ Fact Sheet
http://www.homecapital.com/pre.....4_2012.pdf

See ya sf-cool..

February 24, 2013
10:44 am
Doug
British Columbia, Canada
Member
Members
Forum Posts: 3577
Member Since:
December 12, 2009
sp_UserOfflineSmall Offline

Thanks for the links, Yatti.

I thought I'd correct something, though, the Home Trust HISA (apparently they do offer a high-interest savings account) is not a Mutual Fund offering as it is fully CDIC insured and that is something Mutual Funds are definitely not. I think you may have been confused by the "fundserv code", which is probably used by deposit brokers and financial advisors/self-directed brokerage services to offer this product directly to their clients, of which Home Trust likely deals with primarily.

Interesting they use a separate domain name for high-interest savings accounts versus their GIC/term deposit website - must be for search engine optimization reasons! With this news, and because I'm assuming they offer online access either through a broker/financial advisor and possibly directly, I'd encourage Home Trust (along with Implicity Financial) to be added to the comparison chart. In short, they're higher than ING or PCF so they should be. :)

Cheers,
Doug

February 24, 2013
11:21 am
NorthernRaven
Moderator
Moderators
Forum Posts: 457
Member Since:
August 4, 2010
sp_UserOfflineSmall Offline

The HomeTrust "HISA"s are not a "savings account" in the normal sense - they are what other offerers tend to refer to as "Investment Savings Accounts" (ISA). They are available only through investment dealers, brokerages, etc., and are mainly for holding cash within your account at those institutions. While they are actual CDIC-insured accounts, they can only be accessed by your dealer through FundSERV, and at self-directed brokerages you deal with them with the same interface as you would a mutual fund, thus the fund codes. There's no way to open or manipulate these accounts except through a dealer.

Most of the larger banks have similar products, in addition to their savings accounts. Home Trust doesn't (at least as yet) offer a savings account, and doesn't really belong on the chart.

February 24, 2013
2:09 pm
Doug
British Columbia, Canada
Member
Members
Forum Posts: 3577
Member Since:
December 12, 2009
sp_UserOfflineSmall Offline

You're quite right, NorthernRaven, and they are not held in your own name directly as they are held in the name of your broker/deposit broker/financial intermediary in trust for your name in what is called a "nominee account". They are also most definitely not mutual funds.

That said, I would still be supportive of adding the Home Trust HISAs to the comparison chart if there is interest (no pun intended). I certainly see there's value. We include PCF and ING Direct Canada accounts and they are roughly on par with the "Big 5" banks and have been for over a year and a half. ;)

I'd just recommend a new column that states "FIB" for "financial intermediary banking" and a link to a note in the footer that states what that means (see above).

Cheers,
Doug

February 24, 2013
3:29 pm
kilarney
Member
Members
Forum Posts: 146
Member Since:
November 8, 2009
sp_UserOfflineSmall Offline

I talked to a rep at hometrust and he said they will be gearing up to offer most services online before summer. He offered to mail an info kit to let me know when the full featured accounts would be available to sign up for. I hope they move forward so we have some more choice and competition as we are seeing the small fish being eaten up by the big fish in our banking pond..... Hope the go all the way!

February 25, 2013
8:29 am
Yatti420
Canada
Member
Members
Forum Posts: 393
Member Since:
July 10, 2011
sp_UserOfflineSmall Offline

I edited the original post.. So all money market funds and nominee cash accounts are cdic insured? For example Manulife offers a money market and isa account..

https://repsourcepublic.manulife.com/wps/wcm/connect/fa74448046a0a07ab649be1152a44cd6/inv_mmf_invsavingsfundsalesconcept.pdf?MOD=AJPERES&CACHEID=fa74448046a0a07ab649be1152a44cd6

It's hard to find an account or fund these days with decent returns.. There are so many of those cash nominee accounts however.. Might be worth a list on its own..

February 25, 2013
9:08 am
NorthernRaven
Moderator
Moderators
Forum Posts: 457
Member Since:
August 4, 2010
sp_UserOfflineSmall Offline

If it doesn't say CDIC, it isn't CDIC - lots of stuff may be held by your broker in nominee name (your stocks, too, in most cases). I don't think there's going to be much if anything like this that will pay anything near the top end of the HISA market, and again, these are not bank accounts and you have to establish an account with a broker or other financial advisor/dealer. They are really just a way to earn some interest on cash funds in your investment portfolio without taking it out. Also note if you see higher rates or two rates from what seem the same or similar funds, there are "A" and "F" class listings. The "A" class pays an additional 0.25% or so to the dealer ("Advisor"), and is usually that much lower than the "F" class. However, most discount brokerages will only provide the "A" versions, and lately some (like TD) have been dropping anyone else's except their own - not a big loss as they are all around 1.25% anyway.

February 25, 2013
10:35 am
Doug
British Columbia, Canada
Member
Members
Forum Posts: 3577
Member Since:
December 12, 2009
sp_UserOfflineSmall Offline

Yatti - "money market funds", while less volatile and while they try to maintain a constant Net Asset Value (NAV), there can be no assurances as such and they are mutual funds, which are not guaranteed by any deposit insurer.

While it's a nominee account, held through a broker, what determines the CDIC insurance is the product and if that product is held through an active CDIC member institution. CDIC eligible products (generally CAD savings accounts and GICs/term deposits with maturities less than 5 years) are insured even in a nominee account as they are "in trust for" you and trust deposits are insured separately since each nominee account the brokerage house holds is effectively in trust for a separate person. If you held more than one nominee account with the same brokerage house, then presumably standard CDIC deposit insurance maximums apply. :)

Cheers,
Doug

February 25, 2013
10:41 am
Doug
British Columbia, Canada
Member
Members
Forum Posts: 3577
Member Since:
December 12, 2009
sp_UserOfflineSmall Offline

Good suggestion on a separate chart for HISA accounts held as nominee accounts through a broker, Yatti. :)

In the Manulife case, it might be worth an enquiry to Manulife as what it appears to me is not an "investment savings account" but a "mutual fund" (i.e., an "investment savings fund") that invests solely in a CDIC insured demand deposit account but only the "investment savings fund" is held in trust for you. The deposit account would be held in the name of the "investment savings fund", which has management fees/commissions and my "hunch" is it would not be CDIC insured as it appears to be a mutual fund.

I would not invest in such a product because the low returns on the underlying investment (i.e., the deposit account) are so low already when you take off even 0.3% or 0.5% in commission, you're getting returns less than a high-interest savings account from, say, CIBC or RBC. The costs are just too high and you're likely losing the deposit insurance guarantee.

Cheers,
Doug

February 25, 2013
11:30 am
NorthernRaven
Moderator
Moderators
Forum Posts: 457
Member Since:
August 4, 2010
sp_UserOfflineSmall Offline

It depends on what Manulife product you are talking about - you have to be specific. MMF507 is probably the investment savings fund Doug was referring to - this is indeed a useless product currently, as it returns much less than a high-interest ISA.

Manulife's ISAs are separate products, codes MIP510, MIP610, MIP710, and MIP810. 510/710 are those "A" versions, 610/810 are the "F" versions that pay you the extra 0.25%. There are two types of each because they are offered both through Manulife Bank and Manulife Trust (the Trust flavours used to have s slightly higher rate).

Again, unless you have brokerage or advisor portfolio with cash you don't want to withdraw, there's no point in these, as you'll get better rates from the same institutions with a savings account, and unless Peter is branching into the portfolio side of things they don't really belong with the HISA stuff.

May 7, 2020
2:25 pm
Brimleychen
Member
Members
Forum Posts: 243
Member Since:
September 5, 2013
sp_UserOfflineSmall Offline

'Nobody knows': Home Capital loan-loss-provisions soar, bracing for unexpected
...
https://www.bnnbloomberg.ca/nobody-knows-home-capital-loan-loss-provisions-soar-bracing-for-unexpected-1.1432918

Please write your comments in the forum.