The Bank of Canada announced this morning that it is holding the target for its overnight rate at 0.5 per cent. In the press release accompanying the decision, the Bank noted that inflation is broadly in line with the Bank's projection, though intense retail competition is pushing inflation temporarily lower.  The Bank also noted that the tightening of mortgage regulations implemented in the Fall of 2016 have yet to have a substantial cooling effect on markets but it does expect those measures will contribute to a more sustainable debt profile for Canadian households. 

Although the Canadian economy has expanded well above the Bank's estimate of potential growth for three consecutive quarters, including a first quarter that is tracking at close to 4.5 per cent growth in real GDP, the Bank is not optimistic that the economy will sustain that level of growth for much longer.  Moreover,  despite faster growth, a significant amount of slack remains in the economy and there is therefore very little pressure on inflation. Without a signal that inflation is going to push higher, the Bank will remain sidelined at least until early 2018 when it expects remaining slack in the economy will be eliminated.

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

When you suffer damage to, (or the loss of), your home or its contents, you
expect your insurance company to help you out. And, most do a good job of
doing just that.
Still, it’s a good idea to review your policy with your insurance advisor and
find out what’s covered and what isn’t. You don’t want to discover that your
policy will not cover the cost of repairing the damage caused by a flood in
your laundry room.
Pay particular attention to coverage in the case of water damage. Some
insurance policies don’t cover floods and sewer backup unless an additional
rider is purchased.
Also, check liability limits. Ask your advisor to recommend an appropriate
level. Finally, make sure you know exactly how much your home is insured
for. Are you covered for the full replacement cost? Are you comfortable with
that coverage or the actual cash value?
Having the right insurance gives you peace-of-mind and is an important part
of enjoying your home.
Keep in mind that experts advise you to review your insurance with your
advisor. Ask lots of questions. Make sure you understand your coverage
fully.
By the way, if you’re looking for an insurance advisor, I’m well-connected in
the local “home” industry. I may be able to give you a couple of names of
good, reputable professionals. Give us a call.

Imagine finding the perfect home, only to discover there is serious interest
from at least a dozen other buyers. It’s like scrambling for the last piece of
cake at a buffet!
Fortunately, there are things you can do to help get the home you want,
even in a highly competitive market. Here are just a few ideas:
• Only view a few ideal properties at a time. If you see too many, and
thus spread yourself too thin, you risk homes slipping through your
fingers.
• Be realistic about price. Focus on finding a great home that you can
afford, rather than trying to find a bargain.
• Consider homes that need some work. They get less interest than
perfectly staged properties, yet can turn out to be a dream home.
• Be prepared to make an offer with as few conditions as possible. An
offer conditional on passing inspection is usually fine, but in a
competitive situation, offers with other conditions will likely be turned
down flat.
• Make your decisions quickly. If there are likely to be other interested
buyers, you want to get your offer in early.
• Make the right offer. To win the deal, you want your offer to be as
enticing as possible to the seller — especially when it comes to price.
Yes, it can be tough finding an ideal home in a hot market, but I can help.
Give us a call and I’ll show you how!!

The Bank of Canada announced this morning that it is holding the target for its overnight rate at 0.5 per cent. In the press release accompanying the decision, the Bank noted that economic growth has been faster than previously expected, boosted by what the Bank sees as temporary spending from the oil and gas recovery and a boost to consumer spending by the Canada Child Benefit. However, export growth remains challenged and business investment is low. Therefore, the Bank judges that it is too early to conclude that the economy has turned a corner.  In addition, CPI inflation is trending below its 2 per cent target while the Bank's three new measures of core inflation continue to drift lower. 

That downward trending inflation, along with uncertainty in United States policy,  seems to be the main barriers keeping the Bank from raising its benchmark overnight rate. While there is some remaining slack in the economy, as measured by the output gap, the Canadian economy has been growing well above the Bank's estimate of potential growth (1.5 per cent) for three consecutive quarters including a first quarter 2017  in which available data points to above 4 per cent growth.  In addition to strong GDP numbers, the economy is adding jobs at a rate of 35,000 per month over the past six months, the highest level of job growth since 2010. Should this momentum continue, it is likely we will begin to see a more hawkish Bank of Canada in the second half of the year and a first rate increase in early 2018. 

“Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information.