Bank of Canada drops rate guidance, lowers growth forecast

For the first time in 18 months policymakers have dropped any reference to borrowing costs eventually rising and therefore adopting a neutral position and waiting to see which way the economic winds blow.

The benchmark lending rate, which has remained at a near-record low of 1% since September 2010 and which has been locked in by lower-for-longer inflation and weaker-than-forecast growth.

Those policymakers — now under the leadership of Stephen Poloz, who replaced Mark Carney in June —  kept their key rate as is, and where it will likely remain until mid- or late 2015.

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Former CMHC competitor petitions for mortage insurance fees to drop

Brian Bell, a former senior executive at one of Canada Mortgage and Housing Corp.’s competitors,  says it’s time for mortgage default insurance premiums to drop as much as 15% because the Crown corporation doesn’t have the same percentage of risky clients due to tighter loan regulations. A move he says will provide much needed relief to the first-time home buyer.

Click here to read more from the Financial Post. . . 

Year-end financial planning tips you can't afford to ignore

End of yet another year is fast approaching, there are some financial considerations to ponder and proactively look now to maximize future gain.

Here are some tips that you can't afford to ignore:

1. Top up your TFSA's.
2. Crystallize Capital Losses.
3. Make a Charitable Donation before Dec 31.
4. Prepay expenses eligible for tax credits.
5. Maximize the effectiveness of RESP's.
6. Age 71 this year? Convert RRSPs to an income option.

Click here to read more about the above tips.

Consumers turned around the housing market

We have been seeing some of the best mortgage rates in Canadian History.  Because of these low interest rates consumers have made the jump on home buying and in return seemed to have turned around the housing market.

The Ottawa-based Canadian Real Estate Association, which represents about 100 boards across the country, has once again upped its forecast for sales in 2013, citing low interest rates and a strong economy.

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Stated income just as good as T4

The banks may start taking a closer look at your finances if you are self-employed. Stated-income customers, or the self-employed who don’t come to their bank officer or mortgage broker with a government tax form with their income on it seem to be in cross-hairs. What has changed is the examination of that stated income. The banks want to see the cash flow going in and out of accounts, a net worth where you can track the history.

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