The Bank of Canada holds their key lending rate at 1% for the eleventh consecutive meeting. Banks therefore are expected to keep their prime rates at 3%.

The Bank of Canada announced:

• The global economy has deteriorated and uncertainty has increased. The recession in Europe is now expected to be deeper and longer than expected.
• Very favourable financing conditions are expected to buttress consumer spending and housing activities.
• The economy is expected to return to full capacity by the third quarter of 2013.

They are not expecting to increase their prime lending rate at this time.

 With rates staying low, we are continuing to recommend that clients stay in their variable rate mortgages. The date of the Bank of Canada’s next announcement is scheduled for March 8th, 2012.  

 If you would like to sign up for my rate watch please go to my website.

The Bank of Canada holds their key lending rate at 1% for the tenth consecutive meeting. Banks therefore are expected to keep their prime rates at 3%.
Uncertainty around the global economic outlook has increased. The recession in Europe is worse than they anticipated.

US growth was slightly more robust than anticipated however the European crisis is expected to weigh on US growth.

Canadian dollar is still strong and the weaker external outlook is expected to dampen GDP growth in Canada.

With rates staying low, we are continuing to recommend that clients stay in their variable rate mortgages. The date of the Bank of Canada’s next announcement is scheduled for January 17th, 2012.

The Bank of Canada holds their key lending rate at 1% for the eighth consecutive meeting. Banks therefore are expected to keep their prime rates at 3%.

The global economic outlook has deteriorated in recent weeks as several downside risks to the projection in the Banks July Monetary Policy Report (MPR) have been realized. The European sovereign debt crisis has intensified, a broad range of data has signalled slower global growth, and financial market volatility has increased sharply. Recent benchmark revisions show that the U.S. recession was deeper and its recovery has been shallower than previously reported. In combination with recent economic data, this implies that U.S. growth will be weaker than previously anticipated. The Bank expects that American household spending will be even more subdued in the face of high personal debt burdens, large declines in wealth and tough labour market conditions. Fiscal stimulus in the United States will also soon turn into material fiscal drag. Acute fiscal and financial strains in Europe have triggered a generalized retrenchment from risk-taking and could prompt more severe dislocations in global financial markets. Resolution of these strains will require additional significant initiatives by European authorities. Growth in emerging-market economies has been robust, although its rate and composition will be affected by weakness in major advanced economies. While commodity prices have declined owing to diminished global growth prospects, they remain relatively high. 
 

Largely due to temporary factors, Canadian economic growth stalled in the second quarter. The Bank continues to expect that growth will resume in the second half of this year, led by business investment and household expenditures, although lower wealth and incomes will likely moderate the pace of investment and consumption growth. The supply and price of credit to businesses and households remain very stimulative. However, financial conditions in Canada have tightened somewhat and could tighten further in the event that global financial conditions continue to deteriorate. Net exports are now expected to remain a major source of weakness, reflecting more modest global demand and ongoing competitiveness challenges, in particular the persistent strength of the Canadian dollar.

 Slower global economic momentum will dampen domestic resource utilization and inflationary pressures. The Bank expects total CPI inflation to continue to moderate as temporary factors, such as significantly higher food and energy prices, unwind. Core inflation is expected to remain well-contained as labour compensation growth stays modest, productivity recovers, and inflation expectations remain well-anchored.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. In light of slowing global economic momentum and heightened financial uncertainty, the need to withdraw monetary policy stimulus has diminished. The Bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the 2 per cent inflation target over the medium term.

With rates staying low, we are continuing to recommend that clients stay in their variable rate mortgages. The date of the Bank of Canada’s next announcement is scheduled for October 25th, 2011.

The Bank of Canada holds their key lending rate at 1% for the seventh consecutive meeting. Banks therefore are expected to keep their prime rates at 3%.

1. The global economic expansion is proceeding broadly as projected.
2. In Canada, the economic expansion is proceeding largely as expected. House hold spending remains solid and business investment robust.
3. Despite increased global risk aversion, financial conditions in Canada remain very stimulative and private credit growth is strong.
4. The Bank expects growth in Canada to re-accelerate in the second half of 2011.
5. Core inflation is now expected to remain around 2% and CPI inflation is expected to return to 2%. 

With rates staying low, we are continuing to recommend that clients stay in their variable rate mortgages. The date of the Bank of Canada’s next announcement is scheduled for September 7th, 2011.

I have a client who currently has a variable rate mortgage and his rate is prime+.3% which is 3.3% today. He has 3 years and 8 months left in his term with his current lender and a mortgage balance of $285,969.75. If he were to transfer his mortgage to another lender who is offering prime-.9%, 2.1% today he would save $7,402.20 on his mortgage over the next 3 years and 8 months that’s including the payout penalty. Here is the breakdown:

•  Savings in payments = $6430.80 
•  Saving in the decrease of  the mortgage balance at the end of the term= $3,310.40
•  The total savings are = $9,741.20
•  The payout penalty was $2339, so after the penalty the total savings were $7,402.20.  

As you can see the savings are substantial and in only 3 years and 8 months.

If you have the money to pay your penalty you can do a transfer and the new lender will pay for the legal fees and appraisal if needed. Some lenders can even tack on some of the penalty.

If you have any questions about this or if you would like to see if it’s worth it for you to transfer your mortgage please feel free to contact me for a free no obligation consultation 403-803-6625.

My website

The Bank of Canada holds their key lending rate at 1% for the sixth consecutive meeting. Banks therefore are expected to keep their prime rates at 3%.

The Bank of Canada’s key points:

1. In Canada, the economic expansion is proceeding largely as expected
2. Financial conditions remain very stimulative
3. With high commodity prices combined with persistent excess demand conditions in major emerging-market economies, are contributing to broader global inflationary pressures.
4. Bank expects that high energy prices and changes in provincial indirect taxes will keep the total CPI inflation above 3 per cent in the short term.

With rates staying low, we are continuing to recommend that clients stay in their variable rate mortgages. The date of the Bank of Canada’s next announcement is scheduled for July 19th, 2011.  

 To sign up for my rate watch please go to my website

http://www.mortgagebrokernews.ca/news/breaking-news/rbc-to-brokers-we-apologize/106543

Thank you RBC

The Bank of Canada holds their key lending rate at 1% for the fifth consecutive meeting. Banks therefore are expected to keep their prime rates at 3%.

The Bank of Canada’s key points:

1. Global recovery is becoming more firmly entrenched and expected to continue at a steady pace.
2. Growth is solidifying in the US.
3. European growth has strengthened.
4. The disasters that struck Japan will severely affect its economic activity in the first half of this year.
5. Despite the significant challenges that weigh on the global outlook, global financial conditions remain very stimulative and investors have become noticeably less risk averse.
6. Economic activity in Canada has been stronger than anticipated,.
7. Aggregate demand is rebalancing towards business investment and net exports, and away from government and household expenditures.
8. The bank expects that the economy will return to capacity in the middle of 2010.
9. The persistent strength of the Canadian dollar could create even greater headwinds for the Canadian economy.

 With rates staying low, we are continuing to recommend that clients stay in their variable rate mortgages. The date of the Bank of Canada’s next announcement is scheduled for May 31st, 2011.  

 To sign up for my rate watch please go to my website.

 By changing your monthly payment to bi-weekly accelerated you can save yourself a lot of money and time. Bi-weekly accelerated  payments will  take your monthly payment, cut it in half and pay it every 2 weeks. You have 26 bi-weekly payments every year, which equals one full months payment that goes straight towards your principal every year.

Let’s say you have a Mortgage amount of $100,000 and your interest rate is 4% over a 5 year term with a 25 year amortization. After 5 years of paying a total of 60 monthly payments your balance would be $87,053.92 and you would still have 20 years remaining. If you chose bi-weekly accelerated payments after 5 years your balance would be $84,116.57 and you would be paying less interest as your balance amount has decreased there for resulting in a shorter amortization. After the first 5 years you would pay an extra $2937.35 straight towards your principal balance.

By paying bi-weekly accelerated payments for the duration of your mortgage you would pay a 25 year mortgage off in 19 years and 7 months based on the numbers I used above.

Would you like to be mortgage free 5 years sooner?

My website

Here are some more details:

First-time home buyers’ tax credit

What is the first-time home buyers’ tax credit (HBTC)?

The HBTC is a non-refundable tax credit for certain homebuyers who acquire a qualifying home after January 27, 2009, that is – closing after this date.

How is the HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750. However, if the total of your non-refundable tax credits is more than your federal income tax, you will not receive a refund for the HBTC.

Who is eligible for the HBTC?

You will qualify for the HBTC if

• you or your spouse or common-law partner acquired a qualifying home; and
• you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.

If you are a person with a disability or are buying a home for a related person with a disability, you do not have to be a first-time home buyer to get the HBTC. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

For the purposes of the HBTC, a person with a disability is an individual who is eligible to claim a disability amount for the year in which the home is acquired, or would be eligible to claim a disability amount if we ignore that costs for attendant care or care in a nursing home were claimed as medical expenses on lines 330 or 331.

What is a qualifying home?

A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, as well as apartments in duplexes, triplexes, fourplexes, and apartment buildings all qualify. A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after it is acquired.

Important things to remember

The home must be registered in your or your spouse’s or common-law partner’s name in accordance with the applicable land registration system.

You do not have to submit documents supporting your purchase transaction with your income tax and benefit return. However, you have to make sure that this information is available if the Canada Revenue Agency asks for it.

Where can I get more information?

For more information, go to www.cra.gc.ca/hbtc or call us at 1-800-959-8281.