November 19, 2008
Uncategorized
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Unless you have been in a hole for the past two months I am sure that you have heard about or seen the results of the current financial markets. People who are retired are losing large amounts of their retirement savings. People who bought a house within the last few years are seeing the equity that they built up evaporate into nothingness. There have been big layoffs in the financial sector and maybe the manufacturing sectors will follow. Even China and India are seeing their growth rates decline.
Is the sky falling? No.
Many people throughout the course of history have managed to weather storms as bad if not worse than this one. In fact, there are hundreds of examples of smart and thoughtful people making their dreams come true at times like these.
So what can you do during this time to protect yourself and prepare to build for the future?
- Start thinking about your finances. Spend less than what you make and save the rest.
- Read good books on entrepreneurs. There are thousands of books to choose from. I have my favourites and would be glad to share them with you but for now just start reading.
- And lastly start to dream. Dream vividly. Dream often. We take actions on the things that are important to us. If our dreams are important to us we have the ability to make all of them come true.
I write this because I truly believe that many people will use this “crisis” as an opportunity to see their dreams come true. I sincerely hope you are one of them.
October 21, 2008
Credit, Interest Rates, News
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According to the Globe and Mail the Central Bank of Canada has decided to drop their prime lending rate once again. This time by ¼ of a percentage point.
The last time they dropped the rate by ½ percent it took the big five chartered banks a little while to drop their key lending rate. Some banks even decided to hold back some of the rate cut.
So I will be keeping an eye out to find out how your lenders will react.
Please call if you have any questions.
http://www.reportonbusiness.com/servlet/story/RTGAM.20081021.wrates1021/BNStory/Business/home
October 8, 2008
Credit, Interest Rates
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“Should I fix my variable rate mortgage right now?” is a question that me and my collegues have been hearing quite a bit recently.
It is a good question. The finacial markets are in up heaval. Every time you turn on the radio or TV there is talk of recession. And people want to take some action to protect themselves.
This morning the Bank of Canada along with five other central banks reduced thier prime lending rates. Time will tell if this translates into banks reducing thier prime lending rates but it looks favourable.
If they do and you have a variable rate that is 0.6% below prime then your rate will go from 4.15% to 3.65%. Now lets compare that to a typical fixed rate right now of 5.8%. For every $100,000 you have borrowed right now by staying with the variable you will save $121 every month.
Economists are also suggesting that rates will continue to drop for the foreseeable future.
“The risk is that 50 basis points wasn’t enough, and that none of that will pass through to consumers and businesses as interbank funding pressures continue to worsen even after the rate cut,” said Derek Holt, vice-president of economics at Scotia Capital Inc. “This is not the last of the cuts, and both the Fed and the Bank of Canada could easily cut another 100 basis points.”
There may come a time where it will be prudent to fix your rate and you are welcome to do this at anytime but I would rather have that $121 in my pocket every month.
Call if you have any questions.
October 1, 2008
News
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This topic is not mortgage related but it is something that I believe a large number of my friends will be interested in.
The Canadian Government set up a Do Not Call Registry for telemarketers. It is now active and is really easy to get on. All you have to do is go to the following website: https://www.lnnte-dncl.gc.ca/index-eng . Once there follow the simple instructions and you will be put on the list.
This will not block all of the telemarketing calls you get but if it reduces the annoyances by 25-50% then that is a step in the right direction.
All the best,
Jason
September 19, 2008
Proving income, Rental, Small Business
No Comments
Over the past few months I have been getting a number of questions from people who are considering becoming landlords. One question that is asked pretty regularly is, “How much should I rent my house/condo for?”
My answer is always, “This is not my area of expertise but many people go to a great local website for Calgary and Edmonton called RentFaster.ca.”
It won’t tell you how much you can rent your place for but it can serve as a good way to find out how much comparable properties are renting for.
Check it out if you are considering getting a revenue property.
All the best.
Jason