ROB DION, BBA
LEE IVANS, BBA
Royal LePage Kelowna
1-1890 Cooper Road
Imagine this scenario...
You purchase a new home and move in. A few weeks later, you hear a
strange rumbling sound. It’s the furnace. It’s only a year old, yet it’s
sputtering like it’s twenty. You realize you’ll have to call in an HVAC
contractor to get it fixed.
You’re thinking, “Ouch! This is going to be expensive.”
Well, maybe not. You see, since that furnace is relatively new, it might be
covered by its original warranty — even for you, the new owner.
But a warranty is useless if you don’t know it exists.
Recent studies suggest that upwards of 50% of people pay to get items
fixed that were actually covered by a warranty. So, when purchasing a new
home, be sure to ask this simple question: “What warranties do you have for
items, materials or workmanship in this house?”
Warranties are common on new stoves, fridges, washers, dryers and other
big ticket appliances. Some such warranties are transferrable, which means
they are still in force when the items pass from one owner to another.
Even less expensive items, such as electronic thermostats and automatic
garage door openers, may be covered by a transferrable manufacturer’s
If the home you’re purchasing is relatively new (say, less than 10 years old),
the builder’s warranty may also still be in force. That can be handy if a
structural problem arises.
Even recent renovations, may have come with a labour and/or installation
warranty of some kind.
As you can see, warranties are everywhere! The more you’re aware of
them, the more you’ll save when something needs repair or replacement.
The Bank of Canada announced this morning that it is raising its target for the overnight rate by 25 basis points to 1 per cent. In the press release accompanying the decision, the Bank noted that recent economic data have been stronger than expected but growth is forecast to moderate in the second half of the year. On inflation, the Bank cited some excess capacity and temporary price shocks as factors keeping inflation below its 2 per cent target. Importantly, the Bank mentioned it will be paying particular attention to the evolution of the economy's potential growth rate (meaning the economy's estimated long-run growth rate) as well as to labour market conditions and the economy's sensitivity to higher interest rates.
The Bank has now removed the stimulus it injected into the Canadian economy in 2015 to offset the impact of falling oil prices. With the economy expanding at a 3.5 per cent rate over the past year, that stimulus is clearly no longer required. The Bank seems to be more concerned about the potential for higher future inflation due to an over-heated economy than on the actual very low inflation observed in recent months. That leaves the door open for further rate increases should economic growth remain robust.
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