Agent Blogs

Bond rates have fallen approximately 10 basis points from its high a week ago for 2012.  Lender's have been pulling back their specials over the past few days. We expect most of the new rates to happen today. Five year money is expected to be in the 3.49% range. We still have 10 year funds at 3.89% which is extremely attractive.

The Ontario Budget came out on Tuesday, and below is an excellent summary from TD Bank. This budget will effect all of us in some way. Recommend reading it. The Federal Budget presented and more austerity measures are expected.

If you have a variable rate of any more than prime +.75 or a fixed rate of 4.0% or more, we should explore the merits of refinancing to a lower rate.
Contact us for a free, no obligation review. Spending a few minutes could save you thousands of dollars.

Bank prime is at 3.00%
The next meeting of the Bank of Canada is on April 17th, 2012.
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Highlights of the Federal Budget
• The federal government expects to record a $24.9 billion deficit in fiscal year 2011-12, a sizeable $6 billion improvement from the Fall Update estimate. The better news stems from upgraded economic assumptions, higher-than-budgeted revenues, and program spending coming in well below target.

• The theme in the budget was two-pronged. The government reiterated the need, and its commitment, to return to budgetary surplus by 2015-16, the timetable laid out in the Fall Update. The budget also placed an increasing emphasis on economic prosperity and fiscal prudence over the long term, when population ageing will constrain the national economic outlook.

• Expenditure restraint will be heavily relied upon to erase the budgetary shortfall by 2015-16; we learned today the broad-brush strokes of how the spending profile will be achieved: cuts were made to nearly every public sector departmental portfolio; a reduction in the size of the federal civil service by 19,200 (or 4.8%) over three years; cancelling the distribution of the penny this fall; and adopting a lower spending profile for infrastructure and capital investment.

• With this modest fiscal wiggle room, there were a few new initiatives announced in the budget. Employment Insurance premium increases will be capped at five cents (instead of ten cents) per annum until the 2016-17. The hiring credit for small businesses who hire new workers was also extended. Funds will also be allocated to spur growth in start-ups.

• In the face of the demographic crunch to come and the modest economic growth in store, today’s budget lays out a blueprint for a long run Canada’s Economic Action Plan, with a range of incentives to promote investment, exports and innovation. However, it also requires that young Canadians will need to wait until they are age 67 before they become entitled to Old Age Security. Implementation will be done gradually starting in 2023, with the increase to eligibility to age 67 completed in 2029.

-Cory Kline

P.S. If you, your family, or co-workers require guidance on current market trends, please call us, we are always available to help.