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 growth in the economy is improving and recent higher CPI inflation should be only temporary, reflecting increased energy costs.  The Bank stated that it is remaining attentive to significant uncertainties weighing on its outlook. 

While the Canadian economy is showing signs of improving, with strong hiring and faster than expected growth in real GDP, the outlook remains clouded by uncertainty over trade and tax policy in the United States.  If economic growth and inflation evolve as the Bank currently projects,  the Bank would likely be contemplating raising its overnight rate some time in early 2018.  However, given that we have no more clarity now than at the time of the Bank's previous rate decision regarding changes to trade agreements or the stance of US fiscal policy, the Bank will remain sidelined until the path forward becomes more clear.

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

You don’t have to freeze in the winter or start reading by candlelight to
reduce your electricity bill. There are many simple ways to use less power
with little, if any, impact on your lifestyle.
A good place to start is with your electronics.
According to the David Suzuki Foundation, “Any gizmo that has a clock,
digital timer, remote control or standby mode is sucking energy when it's not
being used (it's called 'phantom electricity' — and it's scary how much of it
there is).” So keep them unplugged as much as possible. Also, unplug
charger cords for phone and computers when not in use. Even when not
connected to the device, they still suck power.
Another easy change to make involves your lights. Switching to compact
fluorescent (CFL) or LED light bulbs can save you a lot of energy. They’re
75% more efficient.
Finally, the old-fashioned method of insulating doors and windows can work
wonders for lowering your electricity bill. In fact, some particularly drafty
homes can lose up to 40% of their heat. Check for drafts regularly and
repair or replace insulation as needed.
None of these ideas will impact your day-to-day living. Yet, they could
potentially save you a bundle.

Imagine finding a home you love, making an offer, and then finding out there
are other competing offers on the table. Ouch.
If you’re looking for a property in a competitive market, it is likely that there
will be multiple offers. Even just one can create the risk that you’ll lose the
home. So how do you make sure your offer is enticing enough to win over
the seller? Here are some ideas:
• Don’t make a low-ball offer. If you do, it might be dismissed and you
probably won’t get another chance to bid — especially if the other
competing offers are near the listing price.
• Have a pre-arranged mortgage and include that with your offer. This
reassures the seller there won’t be any money issues. (Most lenders
will provide you with a pre-arranged mortgage certificate for this
purpose.)
• Go in with a price high enough that the seller will be interested, but
not so high as to be leaving money on the table. This is tricky and
requires a savvy knowledge of the current market.
• Have a REALTOR® present the offer on your behalf. A REALTOR®
will know how to do so professionally, and in a manner that gives you
the best chance of getting the home.
In a competitive situation, working with a REALTOR® who is an expert on
the local market — and a skilled negotiator — is crucial.

Looking for a REALTOR® like that? Call The Dion Ivans-Real Estate Team today!!

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 uncertainty in the global outlook, particularly with regard to policies in the United States, is undiminished. The Canadian economy is forecast to grow 2.1 per cent in both 2017 and 2018, implying the Canadian economy will return to full capacity in mid-2018.  On inflation, the Bank noted that it continued to be lower than expected but should return to it 2 per cent target in coming months.

Political uncertainty in the United States will likely govern the direction of both policy rates and long-term bond yields over the next year. The interest rate on 5-year government of Canada bonds has risen to its highest point in a year, which is adding upward pressure to mortgage rates offered by Canadian lenders.  While the Canadian economy is forecast to post steady growth in 2017, overall slack in the Canadian economy remains persistent.  Without a significant uptick in economic growth, inflation will likely continue to trend at or below the Bank's 2 per cent target.  That, along with lingering uncertainty, will keep the Bank sidelined through 2017 with a chance of lowering its target rate should current downside risks to the economy become realized.

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

For more information contact TheDion-Ivans Real Estate Team today!!