The Bank of Canada opted to maintain its target for the overnight interest rate this morning at 1.25 per cent.  In the statement accompanying the decision, the Bank noted that although growth in the Canadian economy slowed more than expected in the fourth quarter of 2017, the economy is expected to operate at capacity going forward. The bank cited recent trade policy developments, mainly the threat of a trade war with the United States, as a significant risk to its outlook for growth and inflation.

The Canadian economy is at or very close to full-employment, meaning there is little room for Canadian firms to expand output without putting undue pressure on inflation. There are signs core inflation is already firming up. Two of the Bank’s three core inflation measures are closing in on the Bank’s 2 per cent target and all three measures have increased significantly in the past six months. Absent any unforeseen challenges to the Canadian economy, monetary policy will be biased in the direction of higher interest rates.  However, the Bank will likely hold off raising its overnight rate while it assesses the impact of tighter monetary policy over the past year, the impact of newly implemented B-20 guidelines on mortgage qualification rules, and heightened risk to Canadian exports from US trade policy.

“Copyright British Columbia Real Estate Association. Reprinted with permission.”

Watch any TV cooking show, and you’ll notice that a chef’s kitchen looks
quite a bit different than what you’d find in most homes. But, that doesn’t
mean you can’t have one just like it in your home! With a little remodeling,
and splurging on some new items, you too can have a kitchen worthy of
Gordon Ramsey, Jamie Oliver, or Rachel Ray.
Chefs love counter space. So, when remodeling, plan to create as much as
possible. If you have an existing island, for example, you can replace the
countertop with a larger one. Just adding eight inches in both directions will
make a big difference.
Most chefs have more than one oven. If that’s impractical for you, consider
buying a double-oven stove. Also, chefs prefer gas burners for quicker heatup
times and exacting control of cooking temperature.
One thing you’ll notice about chefs is they love stainless steel.
That’s because it’s easy-to-clean, hygienic and durable (assuming you take
care of it).
Finally, because chefs spend so much time in the kitchen, they want the
space to be attractive and comfortable. So, when remodeling, keep decor
in mind.
Even if you’re just an amateur chef, creating a chef-worthy kitchen will make
the foodie in you smile.

Sometimes the reason for putting your home on the market is crystal clear.
For example, you might have a job relocation and need to move. Or, you
might have decided to downsize because the kids have left the nest.
However, there are many other motivations to list your home that are not as
obvious, and yet are still good reasons to make a move. Here are just a few
examples...
• You’re bored with your home and are looking for a change.
• There’s something you’ve always wanted in a home that your current
property doesn’t have, such as a wooded backyard.
• You want to be closer to work, or to activities you enjoy, such as golf.
• You want to be closer to family.
• The neighbourhood is changing in a way that no longer fits the
lifestyle you want.
• There’s another neighbourhood you’ve always dreamed of living in.
• Your tastes have changed and you want to live in a different type of
home.
None of these reasons makes it an absolute necessity to list your property
and find a new home. Yet, they’re all worth considering, especially if moving
will make you and your family happier, and provide you with a more
desirable lifestyle.
Want to talk about the possibilities? Call today The Dion-Ivans Real Estate Team today!!

The Bank of Canada opted to raise the target for its overnight interest rate this morning 25 basis points  to 1.25 per cent.  In the statement accompanying the decision, the Bank cited recent strong economic data and rising inflation as motivations for the rate increase. The Bank expects growth in the Canadian economy to slow to 2.2 per cent in 2018 and 1.6 per cent in 2019 with consumption and new home construction contributing less to growth than in years past.  With the economy returning to full-capacity, inflation is forecast to remain at 2 per cent over the medium term.  The Bank also flagged risk to its outlook from ongoing NAFTA negotiations and noted it would remain cautious in considering future interest rate adjustments.

With the Canadian unemployment rate hitting a 40-year low and inflation ticking higher in recent months, the Canadian economy would seem to be operating at full capacity. That argues for a more hawkish approach to monetary policy in order to bring interest rates closer to what the Bank estimates would be neutral for the economy, that is, a level in which the economy is neither running too hot nor too cold.  While today's rate increase was widely anticipated, it did come earlier in the year than previously expected and likely signals further rate increases to come in 2018.  Canadian mortgage rates have already moved higher in anticipation of Bank of Canada tightening, which means a much tighter borrowing environment in 2018, particularly given newly implemented mortgage qualifying rules for low-ratio buyers.

“Copyright British Columbia Real Estate Association. Reprinted with permission.”

Have you ever considered renting out a room to a student or renovating
your basement into a self-contained rental apartment?
It’s a big decision. There are many pros and cons to consider.
On the pro side, renting can provide you with additional income. An extra
few hundred dollars a month can go a long way towards paying down your
mortgage or splurging on an exotic summer vacation.
Creating rentable living space in your home — for example, an “in-law suite”
featuring a kitchenette and bathroom — may also increase your property’s
market value.
On the con side, you’ll have more costs and responsibilities as a landlord.
For example, you might need to purchase extra insurance because basic
home insurance policies typically do not cover rental units, even if you’re
just renting out a room. You’ll also be responsible for dealing with repairs
sometimes in the middle of the night.
Also, if you’re not careful about the renter you choose, you might end up
with a “problem tenant”. For example, you could have a tenant who is
consistently late on rent payments or simply stops paying. That can be
stressful.
If you’re deciding whether or not to rent, be sure to check local laws and
regulations. Many jurisdictions have very strict rules regarding renting out
space in a residential property, and those rules change frequently. Make
sure you get the latest information.