BoC interest rate revealed!
The Central Bank raised its new target for the overnight rate to % Wednesday, citing a confident financial outlook and above-potential growth.
This despite softened inflation, which thebankCanadas economy has been robust, fuelled by household spending. As a result, a significant amount of economic slack has been absorbed. The very
The BoC estimates real GDP growth to moderate from 2.8% in 2017 to 2% in 2018 and 1.6% in 2019.
Governing Council judges that the current outlook warrants todays withdrawal of some of the monetary policy stimulus in the economy, the Bank said. Future adjustments to the target for the overnight rate will be guided by incoming data as they inform the Banks inflation outlook, keeping in mind continued uncertainty and financial system vulnerabilities.
judges to be temporary.strong
of the first quarter is expected to moderate over the balance of the year, but remain above potential, it said. Growth is broadening across industries and regions and therefore becoming more sustainable. As the adjustment to lower oil prices is largely complete, both the goods and services sectors are expanding.
Household spending will likely remain solid in the months ahead, supported by rising employment and wages, but its pace is expected to slow over the projection horizon, the Bank continued. At the same time, exports should make an increasing contribution to GDP growth. Business investment should also add to growth, a view supported by the most recent Business Outlook Survey.
The Bank also cited strengthening global economy and a US economy that is solidly growing as factors for raising its rate.
Europe is also experiencing above-potential growth.
However, geopolitical uncertainty and softened world oil prices remain concerns.
If you have any questions about how this can impact your variable rate mortgage or line of credit, contact me!
Stress Test Best Practices Tool Kit
With the new Office of the Superintendent of Financial Institutions stress test rules firmly in place since January, Canadian homebuyers have learned they need to arm themselves with practical information on how they can ensure they are stress-test ready.
The following is a guide and best practices tool kit for those about to embark on securing their new or next mortgage:
Make a financial plan
Any time a big purchase is at stake, laying out a financial plan is always the best first step to take. By creating a plan, home buyers can protect themselves from increased interest rates and ensure they are staying on budget.
Have a contingency fund
Without question and now more than ever, home buyers need to establish contingency funds. Its incredibly important to have funds set aside when unexpected costs such as property repairs arise. An established contingency fund also looks good to financial lenders.
Pay off debts and increase downpayment
The most important tool in the Best Practices Tool Kit is to pay off debts as quickly as possible and maximize your down payment. If you already have a mortgage, increase the frequency of payments by taking advantage of what the financial institution offers such as accelerated bi-weekly payments.
Broaden search parameters
Although you may have an ideal neighbourhood in mind, it is important to also consider broadening those search parameters. Often there are homes in other neighborhoods that could be a perfect choice if you are willing to commute a little longer.
Im here to help you
I can help you to navigate confusion surrounding the stress test. Ultimately, being stress test ready means being ready for future increases in rate so that you can afford your next home comfortably on your budget.
Preventing Falls on Stairs
Accessible housing refers to homes that are designed or modified to enable independent living for all residents, including seniors or persons with disabilities. Accessibility can be achieved through architectural design and also by integrating accessibility features, such as lowered light switches, grab bars, walk-in bathtubs, lowered shelves and cupboards, modified furniture or by installing electronic devices in the home.
Stairs in the home can be dangerous and can be a barrier to accessibility unless they are designed or modified to reduce the risk of falls. If residents have limited mobility, it may be necessary to install ramps, home elevators or stairlifts to make the home safe and accessible.
A high percentage of Canadians who visit hospitals after a fall on or from stairs or steps in their homes are seniors (men and women 65 years or older). When seniors fall, the consequences can be severe and long-lasting.
Most falls on stairs can be prevented. Prevention starts by keeping in mind that there are risks in using stairs. Good planning and simple strategies can help prevent falls and injuries.
Click here for more information https://www.cmhc-schl.gc.ca/odpub/pdf/63637.pdf?fr=1441901329905