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Each Office Independently Owned & Operated
Posted by: Mike Hattim
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Posted by: Mike Hattim
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Posted by: Mike Hattim
Is your mortgage coming up for renewal this year or in 2025?
Do you know about all the incredible options renewing your mortgage can afford you?
If not, I have all the details here on how to make the most of your renewal!
Get a Better Rate: Did you know that when you receive notice that your mortgage is coming up for renewal, it’s the best time to shop around for a more favorable interest rate? At renewal time, it’s easy to explore other lenders for a preferable interest rate without breaking your mortgage. With interest rates expected to start coming down next month, reaching out and exploring the market could potentially save you a significant amount of money!
Consolidate Debt: Renewal time is also an excellent opportunity to assess your existing debt and decide whether consolidating it into your mortgage is beneficial. Whether it’s holiday credit card debt, car loans, education loans, or other debts, consolidating your mortgage streamlines your payments into one, potentially at a lower interest rate compared to other sources.
Invest in Renovations: Do you have home improvement projects waiting to be tackled? Renewal time provides a great opportunity to tap into your home equity for renovations, whether it’s your dream kitchen, bathroom upgrades, or even investing in a vacation property. Utilizing your equity can bring your renovation dreams to life.
Adjust Your Mortgage Product: Not satisfied with your current mortgage product? Whether it’s fluctuations in variable rates or seeking a different payment or amortization schedule, renewal time allows you to switch things up. You can lock in a fixed rate for stability or opt for a variable rate if you anticipate changes in interest rates. Adjusting your mortgage product can align it better with your financial goals.
Summer is coming up and you don’t want to miss your chance to make the most of your yard! To help you enjoy your space this year, I have broken down some of the top yard appeal ideas with the biggest ROI giving you the most bang for your buck and can increase your home’s equity and curb appeal at the same time!
Posted by: Mike Hattim
Bank of Canada Governor Tiff Macklem faced a Senate committee hearing on Wednesday, defending the central bank’s approach to inflation and signalling that interest rate cuts might be further off than some Canadians might hope.
When asked by Senate Banking Committee chair Pamela Wallin why the Bank doesn’t simply raise the target to 3%, closer to current inflation levels after two years of rate hikes, Macklem fired back: “Why not 4%, why not 5%? If you’re going to change your target when it gets difficult, you don’t have a target.”
Macklem said the 2% benchmark has been a stable metric since 1995, helping guide Canada through various economic upheavals, including the recent COVID-19 pandemic and escalating geopolitical tensions.
“It’s what anchors expectations,” Macklem said. “I don’t think, on the fly, you want to throw the towel in because it’s tough.”
The governor also addressed the outlook on interest rates, noting the central bank’s cautious approach towards any potential cuts.
He reiterated the BoC needs sustained evidence that inflation will return to 2% before cutting rates from the current 5% level.
“We are getting closer,” he said. “We are seeing what we need to see, but we need to see it for longer to be confident that progress toward price stability will be sustained.”
Senators also questioned the role of monetary policy in creating a potential housing crisis as many mortgages come up for renewal at much higher interest rates.
Senior deputy governor Carolyn Rogers noted that while the news headlines raise alarm, data so far indicates that most Canadians are managing.
“About half the mortgages [in the category] have renewed,” she said, adding that despite higher rates, default rates remain historically low. Rogers did acknowledge greater stress within the rental market, suggesting that more vulnerability lies within that sector.
“The data is not telling us so far that we have a mortgage crisis, as the headlines would tell you,” Rogers said. “What banks are telling us is they are reaching out proactively to those borrowers, and most of them are preparing. We do see people holding more savings.”
Productivity emergency
Rogers warned senators the bank expects future economic shocks that could impact inflation from demographic shifts, geopolitics, consumption patterns, supply chains and commodity prices.
She said this is why she labelled Canada’s lagging productivity a “break-the-glass emergency” in a March speech.
While acknowledging the role of interest rates in influencing demand, both Macklem and Rogers stressed that monetary policy cannot solve supply-side problems in productivity.
“Interest rates and monetary policy do have a bearing on demand, not so much on supply — and policies that focus on supply (including productivity), that is going to be increasingly important going forward in Canada,” Macklem said.
Macklem added that boosting productivity requires a concerted effort from governments and the private sector. He also suggested that governments could improve their own productivity through investments in technology and skills training.
The session also touched on the federal government’s recent budget proposal to increase the capital gains inclusion rate for corporations and individuals, a policy change that has sparked debate among venture capital and private equity sectors.
Macklem and Rogers declined to comment on this fiscal measure, reiterating their focus on monetary policy rather than specific fiscal policies.
Source CMP
By Candyd Mendoza