# Oaken Financial



## Magboy (Feb 7, 2014)

Has anyone heard of Oaken Financial? Their website says they are a branch of Home Trust. Their published rates look a little better than what I can find elsewhere. I want to put some $ in a safe place for 120 days. Problem is that Oaken is not listed on the CDIC website, but Home Trust is. And Oaken website and application form state that they, Oaken, are covered under Home Trust.

Just a little worried going with such a new company. Any thoughts?

Thanks,
Mike


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## james4beach (Nov 15, 2012)

I tried phoning Home Trust yesterday (through a phone number on Home Trust's web site) and it sent me to Oaken.

I would be very cautious and totally verify the CDIC coverage before I do anything with Oaken


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## moose (Nov 19, 2013)

Oaken financial is a relatively new bank created from Home Capital Group (TSE:HCG) . I suspect they are not on the CDIC website yet as they are very new. Their goal was to offer savings vehicles to individuals who have mortgages with HCG I believe...


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## fatcat (Nov 11, 2009)

i bought gic's at home trust
and one day received a letter that said "we are now oaken"
this is just a name change and cdic coverage is in place as before
you can't take it away with a name change

it has been a good experience dealing with them and i would recommend them


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## james4beach (Nov 15, 2012)

Personally I have big hesitations about lending money (depositing or GIC) to a bank that entirely deals with mortgages, concentrated in Ontario. This is a very non-diverse financial business.

They're also highly dependent on securitization so if the asset backed securities market tanks again (as it did before), they may get wiped out.

I realize there may be CDIC coverage -- I didn't verify that -- but I still don't make a habit of lending to banks I'm concerned about.


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## james4beach (Nov 15, 2012)

By the way, someone had posted in another thread that while it's true that not many Canadian banks have collaped, there have actually been a pretty significant number of failures of mortgage trust companies. It appears to be quite high, a long term average near 1 failure per year.

That would be things like Home Capital / Oaken and Peoples Trust

That's why their interest rates are higher. They *are* higher risk.


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## christinad (Apr 30, 2013)

fatcat

Has hometrust always had good rates? I was also considering Outlook Financial but I like that Oaken is cdic insured. What i'm wondering is if Oaken is just offering good rates now that they've established themselves with a new name. I'd like to be able to buy gics at an institution long term and not have to shop around all the time. Also, I think it would be a pain to switch financial institutions all the time.

Thanks,

Christina


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## fatcat (Nov 11, 2009)

james4beach said:


> Personally I have big hesitations about lending money (depositing or GIC) to a bank that entirely deals with mortgages, concentrated in Ontario. This is a very non-diverse financial business.
> 
> They're also highly dependent on securitization so if the asset backed securities market tanks again (as it did before), they may get wiped out.
> 
> I realize there may be CDIC coverage -- I didn't verify that -- but I still don't make a habit of lending to banks I'm concerned about.


lord, everything leads to back in one long chain of paranoia with you james ... 

it's a cdic insured institution ... bank failures in canada are rare ... 

if it goes, the government *whose bonds you so assiduously recommend on a regular basis* will make the depositor whole ... 

it happened to me when i lived in the states .. i was made whole instantaneously and transparently ... 

canada will fall all over itself to do the same if oaken goes

the whole fffing point of cdic is to remove the need of depositors to read financial statements of banks with a fine tooth comb

you use the forum primarily not to exchange information but to endlessly hammer home a single point of view, one of the most extreme paranoia

your posts should actually come with a warning label or some such thing "careful, this guy will present the worst possible outcome"

and you don't even do decent research to back half of your points up

caution is one thing but you fart this needless paranoia endlessly ... it does get tiring james

sorry to be so blunt man but there it is


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## fatcat (Nov 11, 2009)

christinad said:


> fatcat
> 
> Has hometrust always had good rates? I was also considering Outlook Financial but I like that Oaken is cdic insured. What i'm wondering is if Oaken is just offering good rates now that they've established themselves with a new name. I'd like to be able to buy gics at an institution long term and not have to shop around all the time. Also, I think it would be a pain to switch financial institutions all the time.
> 
> ...


outlook is provincially guaranteed .. oaken is a cdic insured institution

all of these guys switch their rate strategy around, they offer fat rates, get the money they need and then the rates turtle

it IS a pain to switch financial institutions all the time, which is why the big banks offer such low rates, they make it easy NOT to shop around

you have to decide whether the time/return is worth it to you

here is a good source of gic rates in canada: http://www.cannex.com/canada/english/index.htm

i have used at least a half dozen and liked oaken/home trust very much

also, consider a GIC broker, they can be a great option for gic investors: http://gicdirect.com/


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## gibor365 (Apr 1, 2011)

Oaken again increased rates
• 1 Year GIC – 2.75% (previously 2.50%)
• 18 Month GIC – 3.00% (previously 2.75%)
• 2 Year GIC – 3.10% (previously 2.85%)
• 3 Year GIC – 3.15% ( previously 2.95%)
• 4 Year GIC – 3.20% (previously 3.05%)

In time as my 3% Simplii promo ends in 10 days... 2 years with 3.1% is really nice


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## birdman (Feb 12, 2013)

In my opinion its not as good as the 4% for 33 months which I got today from Coast Capital.


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## gibor365 (Apr 1, 2011)

frase said:


> In my opinion its not as good as the 4% for 33 months which I got today from Coast Capital.


It's not a GIC, but a term deposit.


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## birdman (Feb 12, 2013)

I believe GIC, TD(term deposit), and the like are interchangeable and it depends on the wording of the certificate. The agreement is actually referred to as a Certificate of deposit which reads in part as follows:
Term 1004 days
Int rate: 4% pr annum
Int pymt frequency: annually

It has a convertible feature at my option. There is a clause that it is callable but I have never heard of a F/I doing this and if they do they still must pay the stated rate up until its called which is not a big deal to me. If its called after 6, mos, one year, 2 years, I still get my 4% for the time held. Can't beat that.


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## birdman (Feb 12, 2013)

https://www.analystforum.com/forums/cfa-forums/cfa-general-discussion/9671845

The above confirms the interchangeability of the terms GIC and Term Deposit.


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## gibor365 (Apr 1, 2011)

Just curious how long do you have account with Coast Capital?
Also, I understand that this credit union, o they don't have CDIC, but CUDIC, right?


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## birdman (Feb 12, 2013)

Just opened an account with them for the specific purpose of this deposit. I spent a lifetime in the financial services industry with the first 18 yrs with a chartered bank in a senior branch management position. Spent the next 17 yrs in a senior position with a good sized credit union and retired as CEO 16 yrs ago. You are correct in that deposits are insured by CUDIC and you can read about the coverage on their website. Was quite impressed with the reception and service I received and I explained that I did my own investing and dealt at several different institutions including another BC credit union, a Manitoba credit union, and one of the big five banks and was not interested in transferring all my business to them and this was respectively received. It was so good that I may give them more business down the road. Did a brief check on their financials and they look ok but profitability seems a bit low but capital seems ok. Fairly rapid growth over the years but didn't notice anything derogatory. I don't really need another F/I but the rate was too good to pass up. As an aside and as I have suggested in other posts I don't ladder my GIC's/TD's/Cert of Dep., (or whatever one wishes to call them) but follow the interest rate curve and pick my spots. Generally, in an increasing rate scenario I stay short and usually around 18 mos-2 yrs and in a falling rate scenario invest for longer terms, usually 5 yrs. This has served me well but to each their own.


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## gibor365 (Apr 1, 2011)

> I don't ladder my GIC's/TD's/Cert of Dep., (or whatever one wishes to call them) but follow the interest rate curve and pick my spots. Generally, in an increasing rate scenario I stay short and usually around 18 mos-2 yrs and in a falling rate scenario invest for longer terms, usually 5 yrs. This has served me well but to each their own.


I have same approach .
How long it took to open account with them? and generally what was the process?


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## birdman (Feb 12, 2013)

Went to the branch in the morning and made an appointment to open the account and was fortunate to get one later that day. My wife and I attended and met the advisor and produced our ID, SIN, and that and some other info was input into the computer. Had to individually sign a few forms for account operation, credit report authorization, etc. Debit cards were produced on the spot for each of us, we cut them a good sized cheque, gave them 10.00 in cash for "shares", went to the ATM and deposited the 10.00. Had to set up "access codes" and a pin and then confidentially change the pin for access. Very nice individual and we had a couple of questions. We chatted a bit but I was never pressed for info on current banking relationships and was not pressed for further business but I told him beforehand that I had no intention of doing any other business at the time. He did ask if we owned our home. However, it did take and hour but actually was quite pleasant-nice guy. No service charges on the account we opened and free cheques.


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