Bank of Canada maintains overnight rate
Yet again, the Bank of Canada has opted to keep the target for the overnight rate steady at ½ percent-meaning variable rate mortgages won't be moving any time soon.
The Bank attributed it's move (or lack thereof) to weaker-than-expected global economic growth and uncertainty surrounding China's transition to a slower growth path (which is putting downward pressure on energy prices). The US economy, on the other hand, is continuing to pick up steam-which is good news for Canadian exports.
Canada's economy has rebounded from the recession we were experiencing earlier this year. Non-resource sectors are benefiting from previous monetary policy actions and depreciation of the Canadian dollar, the Bank says. Households are continuing to spend at a moderate pace. Lower prices for oil and other commodities, however, are dampening business investments and exports in the resource sector.
It's these lower oil and commodity prices that are causing the Bank to revise its economic growth forecast for 2016 and 2017. Now, the Bank projects real GDP will grow by just 1% in 2015 before firming to about 2% in 2016 and 2.5% in 2017. The Bank is now saying the Canadian economy will return to full capacity by mid-2017.
If you have any questions about your variable rate mortgage-or even your fixed-rate mortgage-please don't hesitate to reach out to me. If you want to read the Bank of Canada's announcement in its entirety, you can read it here:
http://www.bankofcanada.ca/2015/10/fad-press-release-2015-10-21/
Wednesday, October 21, 2015
Wednesday, October 7, 2015
Will a Down Payment Make a Good Wedding Gift?
How many toasters does one couple need? The answer is probably one.
If you have a close friend or family member who is tying the knot, you
may be unsure what to get them. Nowadays, couples have been renting a
home together for a few years prior to getting married. They already
have toasters and other appliances so when it comes to setting up their
registry people are choosing a different path: a down payment for their
first home. Many families and cultures already do this, so don't worry.
It’s likely that you can’t pay for your friend’s dream house
altogether, but you can get them one step closer to home ownership. This
is called crowdsourcing or crowdfunding, and it’s becoming a less
costly way to get newlyweds into their first home faster than before.
Gifting a Down Payment:
If your friends haven’t registered anywhere and are thinking of it, talk to them about how crowdsourcing can help bring them closer to home ownership. Many wedding guests are eager to give monetary gifts, and there are many websites that can make it easy for them to accept digital gifts. Whether it’s a cheque or a payment made VIA website that gets deposited directly in to a savings account dedicated towards a down payment, this route is far more beneficial than your average gift of china and silverware.
For those getting hitched:
Sites like Hatch My House, Feather the Nest, and Down Payment Dreams make it easy for you to create your down payment registry. Most wedding gift down payment sites operate through PayPal and are fast and simple to set up. You can allow your guests to contribute any amount they’d like, or you can set a suggested amount for each guest.
It’s important to keep in mind that your older relatives may not be so keen or understand how to use the Internet to send you a wedding present, and some people simply like the idea of giving personal gifts. Either way, remain positive and appreciative of any and all gifts coming to you for your wedding!
There are fees involved with any crowdsourcing you will do but these fees are pretty standard (5-8% of what you raise), but this will still leave you with an ample down payment for your dream home. There are ways around them, like doing it the old fashioned way with cash, or by having a friend manage it with a special bank account.
The CMHC has restrictions that apply when you are gifted a down payment, but we can discuss what this means in more detail. For more information, Contact Andrea Meynell.
(Northwood Mortgage)
Gifting A __________________
Down Payment
Gifting a Down Payment:
If your friends haven’t registered anywhere and are thinking of it, talk to them about how crowdsourcing can help bring them closer to home ownership. Many wedding guests are eager to give monetary gifts, and there are many websites that can make it easy for them to accept digital gifts. Whether it’s a cheque or a payment made VIA website that gets deposited directly in to a savings account dedicated towards a down payment, this route is far more beneficial than your average gift of china and silverware.
For those getting hitched:
Sites like Hatch My House, Feather the Nest, and Down Payment Dreams make it easy for you to create your down payment registry. Most wedding gift down payment sites operate through PayPal and are fast and simple to set up. You can allow your guests to contribute any amount they’d like, or you can set a suggested amount for each guest.
It’s important to keep in mind that your older relatives may not be so keen or understand how to use the Internet to send you a wedding present, and some people simply like the idea of giving personal gifts. Either way, remain positive and appreciative of any and all gifts coming to you for your wedding!
There are fees involved with any crowdsourcing you will do but these fees are pretty standard (5-8% of what you raise), but this will still leave you with an ample down payment for your dream home. There are ways around them, like doing it the old fashioned way with cash, or by having a friend manage it with a special bank account.
The CMHC has restrictions that apply when you are gifted a down payment, but we can discuss what this means in more detail. For more information, Contact Andrea Meynell.
(Northwood Mortgage)
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