Pennies in 2013?

 

The Government of Canada announced in the Economic Action Plan 2012 that it will remove the penny from Canada's coinage system. The Royal Canadian Mint will no longer dispense pennies beginning February 4, 2013. However, the penny will continue to be used in cash transactions indefinitely for businesses that choose to accept them

Cash transactions where the penny is not available for use should generally be rounded up or down to the nearest five-cent increment in a fair and transparent manner after

the calculation of the HST.

Non-cash payments such as cheques, gift certificates, credit and debit cards will not be subject to rounding.

CMHC Housing Forecast Weaker

 

CMHC Housing Forecast Weaker than Originally Thought


We all know there’s a softening going on right now in most Canadian housing markets. Homebuyers know it, home sellers know it, and now, CMHC knows it, too. While the Crown corporation has undoubtedly seen the softening going on for several months, now they’ve come out with a new forecast for the remainder of this year. And it’s not as optimistic as their last forecast was.

 

 

As you can see from the chart above, the numbers in most housing categories have gone down, albeit very slightly, from the previous forecast. Given the fact that most of these categories have to do with prices, it may or may not spell good news for the housing market, depending on your outlook.

• The number of existing homes to be sold this year, according to CMHC, will be about 465,600 – a drop of about 20,000 units from the organization’s forecast this past summer. While home sales being down doesn’t typically spell good news, this will bring demand down, which will also have an affect on prices (which is great!)
• Resale prices will drop by about $3,000 when sales for pre-existing homes fall to an average of $365,100.
• Average mortgages on new homes will also fall to about $370,500, about $6,800 lower than what was estimated. This could be very good news, as prices are simply too high right now and keeping too many out of the market.
• In 2013, CMHC predicts that up to 489,700 units will be sold; that’s up by about 2,100 from their earlier forecast.
• Housing starts for this year will be somewhere in the range of 210,800 to 216,600. That’s slightly higher than the previously forecasted range of 196,800 to 217,000. Next year that range is going to drop from 2012′s number though, as it’s expected to be only 177,300 to 209,900 starts.

Think this bodes bad news? It really all depends on your perspective. If you saw our housing market this past year as being a healthy one, yes, the results are probably a bit disappointing. But truthfully, the drop in numbers is going to help us all. As prices go down, more options are opened up and more people can get back out on the market (such as all those that have been patiently waiting for prices to drop.) It also means that there will be more competition on the market, but this time it could be among sellers trying to get buyers to their properties – which is great for anyone looking to buy!

And there’s also the fact that the housing market isn’t the be-all-end-all of Canada’s economy. Yes it does make up a large portion of it, but we do have other supporting factors we can rely on. Mathieu Laberge, deputy chief economist at CMHC, says, “A weaker outlook for global economic conditions and the waning of the effect of pre-sales from late 2010 and early 2011, which contributed to support multi-family starts this year, will bring moderation in housing starts next year.

He also says, “Nevertheless, employment growth and net migration will help support housing starts activity going forward.”


Kate10 November, 2012, 4:00 pm

Our Low-Interest Rate Environment

Our low-interest rate environment

Where are interest rates heading and when will they start to move? This has been the hot topic of conversation for the past two years and it looks as if it will continue until rates finally start moving and everyone can exhale and say, "yes, there, we knew it." Or consider this: Can we just accept that low-interest rates are now the norm, since we've been in this environment since 2010, instead of trying to second-guess what the Bank of Canada will do every month? In a recent report by CIBC's Chief Economist, Avery Shenfeld said maybe it is time for a new message. It's easy to forget that the housing market has been a vital component to the success of the Canadian economy during the past decade. In many respects, the industry has helped to stabilize a faltering economy. Consumer spending and confidence remains high - a large of part of that comes from allowing consumers to take advantage of low interest rates and to tap into their equity for either spending or investing purposes. Yes, the government in Canada has had to keep our economy afloat during the recent recession first, by injecting billions of dollars in spending into the economy and second, by instilling a degree of confidence in Canadians and investors by tweaking credit guidelines. However, at the end of the day, it still comes down to actions taken by every day Canadians who put their faith in their ability to repay loans, their ability to manage their household debt, and through consumer spending, that is pulling us through. We are very fortunate to have weathered the recession as well as we have. However many Canadians are still worried. They are worried about rising rates, they are worried about the possibility of decreasing home values, and they are worried about their ability to save for the future. Let's look at recent messages from Bank of Canada's Mark Carney. He delivered the message that consumers will pay more in the future for what they borrow today. The latest economic news is positive for a growing economy going into 2013, which will make it easier for Carney to raise the rates. However, recently Carney backtracked slightly and has hinted that rates are not likely to rise until later in 2013 and/or into 2014. He also said that he sees no "imminent" changes ahead, but that "over time, rates are more likely to go up than not." The latest Housing Market Outlook reports that although slight increases are expected in 2013, rates will remain low by historical standards. Inflation is another reason rates could rise. Canada's inflation rate is sitting at approximately 1.2% - the lowest level in more than two years. If this should start to rise past Carney's 2.5% benchmark then rates could rise. The retail sector is a good indicator about consumer confidence and the state of the economy. New research from Ernst and Young predicts that 2012 holiday retail sales in Canada are expected to increase by 3.5% over last year. It's clear that Canada's economy continues to expand and that we are operating on sound principals. According to Carney, Canada is no longer in the recovery stage but in the expansion phase. That is good news for all economic sectors. Will interest rates go up? They will, but likely not until late 2013 so as not to negate any of the positive effects of a growing and expanding economy.   About The Mortgage Group Canada Inc. TMG Canada is an innovative and progressive mortgage brokerage company. With mortgage professionals serving 9 provinces and 3 territories, TMG is national in its reach helping Canadians navigate their unique mortgage options with over 50 lenders. TMG has a network of more than 800 mortgage brokers and agents and has helped more than 200,000 Canadians arrange their mortgages in the past 20 years.

Are You Prepared For Higher Mortgage Rates?

 

 

Luckily you probably won't have to worry about that until 2013, which is fast approaching.

Have you got a plan ready for action?

The questions you could be asking yourself is:

 

How high can my mortgage payments become before it is a problem ?

How high can interest rates raise before I cannot afford my mortgage?

Should I get a mortgage now and lock in for 5 years before the rates raise?

When I renew my mortgage after the rates have been raised will I be okay with my new mortgage payments?

If housing prices fall and rates raise will I have enough equity in my home to renew with the different scenarios?

 

There are many different ways to plan for this uncertainty, which will create a great outcome.  You can not control the interest rates or the housing market.

But, you can control your personal debt, your personal expenses and to some degree your wage.

Do you need to get those credit cards paid off?

Do you need to stop eating out so often and saving money that way?

Do you need to look for a better paying job?

 

OR

Look into  getting locked in for a low 5 or 10 year term now?

That way you will have at least another 5 years of low mortgage payments that fits with your budget and lifestyle now.

 

Change is coming.

How will you deal with it?

 

Not very many people find household finances a lot of fun.

If you would like to go through the different scenarios, I am here to help and go through those scenarios with you.

You know what you are most comfortable with and I know how to get you those answers.

 

Plan For The Future

With a solid plan put into place now, this will save you lots of stress, time and money in the future.

 

This is a free service, no obligation. 

Call me and lets get the planning done now.

 

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

 

 

 

 

 

 

 

 

 

 

 

TMG Awards

We are proud to be honoured with CAAMP's Partner in Excellence Award. This award recognizes a company whose contributions will have a significant impact on the Canadian Mortgage Industry beyond the time of their incumbency. To be presented at the CAAMP's Conference in Vancouver.

 

 

 

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

The World's Thinnest House - Opens in Poland

How much space does one Really need?

That's the question facing anyone who decides to live in the world's thinnest house, which opened its door recently in Warsaw, Poland.
The house is definitely not for claustrophobes: at its widest point, it's five feet across. And in places, it's only three feet wide.
The structure is squeezed into an alleyway between a pre-Second World War house and a modern apartment block, and it was originally intended as an art installation.


Still, according to architect Jakub Szczesny, the house has everything a tenant needs.
"It contains all necessary amenities such as a micro-kitchen, mini-bathroom, sleeping cubicle and tiny work area, all accessible via ladders," he said.
The key to reducing the fear of a tight space? Plenty of light.
And by using a translucent material for the roof, Szczesny has ensured that the house receives lots of natural light during the day.

The extreme thinness of the house may seem like a gimmick, but there's some serious thinking behind it.
"Research shows we are approaching a social disaster because too little living space is built," Szczesny said. "You don't need that much space to live in, so it is worth considering building smaller scaled, cheaper housing."

And there's another level of symbolism at work in the placement of the building.
Israeli writer Etgar Keret will be the first person to live in the house, which was named Keret House in his honour.
Many members of Keret's family died during the Holocaust under Nazi Germany's occupation of Poland. The house was built at the point where one of the largest Jewish ghettos in occupied Europe was created.

Happy Canadian Thanksgiving

I have so many things to be thankful for, my family, my health and my clients, who give me such joy on a day to day basis, the stories they share, with me. The ups and downs of finding their dream home. How could anyone not love this job.
Thank you.
Happy Thanksgiving.
History of the Canadian Thanksgiving:



The origin of the first Thanksgiving in Canada goes back to the explorer Martin Frobisher who had been trying to find a northern passage to the Pacific Ocean. Frobisher's Thanksgiving celebration was not for harvest but was in thanks for surviving the long journey from England through the perils of storms and icebergs. In 1578, on his third and final voyage to these regions, Frobisher held a formal ceremony in Frobisher Bay in Baffin Island (present-day Nunavut) to give thanks to God and in a service ministered by the preacher Robert Wolfall they celebrated Communion — the first-ever service in these regions.  Years later, the tradition of a feast would continue as more settlers began to arrive in the Canadian colonies.

Oven roasted turkeyIn Canada

The origins of Canadian Thanksgiving are more closely connected to the traditions of Europe

For a few hundred years, Thanksgiving was celebrated in either late October or early November, before it was declared a national holiday in 1879. It was then, that November 6th was set aside as the official But then on January 31, 1957, Canadian Parliament announced that on the second Monday in October, Thanksgiving would be "a day of general thanksgiving to almighty God for the bountiful harvest with which Canada has been blessed." Thanksgiving was moved to the second Monday in October because after theRemembrance and Thanksgiving kept falling in the same week.
The 49th Parallel

Another reason for Canadian Thanksgiving arriving earlier than its American counterparioof remembering Pilgrims and settling in the New World, Canadians give thanks for a successful harvest. The harvest season falls earlier in Canada compared to the United States due to the simple fact that Canada is further north.

The history of Thanksgiving in Canada goes back to an English explorer, Martin Frobisher, who had been trying to find a northern passage to the Orient. He did not succeed but he did establish a settlement in Northern America. In the year 1578, he held a formal ceremony, in what is now called Newfoundland, to give thanks for surviving the long journey. This is considered the first Canadian Thanksgiving. Other settlers arrived and continued these ceremonies. He was later knighted and had an inlet of the Atlantic Ocean in northern Canada named after him - Frobisher Bay.

At the same time, French settlers, having crossed the ocean and arrived in Canada with explorer Samuel de Champlain, also held huge feasts of thanks. They even formed 'The Order of Good Cheer' and gladly shared their food with their Indian neighbours.

After the Seven Year's War ended in 1763, the citizens of Halifax held a special day of Thanksgiving.

During the American Revolution, Americans who remained loyal to England moved to Canada where they brought the customs and practices of the American Thanksgiving to Canada. There are many similarities between the two Thanksgivings such as the cornucopia and the pumpkin pie.

Eventually in 1879, Parliament declared November 6th a day of Thanksgiving and a national holiday. Over the years many dates were used for Thanksgiving, the most popular was the 3rd Monday in October. After World War I, both Armistice Day and Thanksgiving were celebrated on the Monday of the week in which November 11th occurred. Ten years later, in 1931, the two days became separate holidays and Armistice Day was renamed Remembrance Day.

Finally, on January 31st, 1957, Parliament proclaimed...

"A Day of General Thanksgiving to Almighty God for the bountiful harvest with which Canada has been blessed ... to be observed on the 2nd Monday in October.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

What's in a Title?

What is a Mortgage Professional?

A mortgage professional is a sub-broker. Since the name sub-broker doesn't sound so great, other names used by a sub-brokers are mortgage professional, consultant, agent, specialist and the list grows. We must pass an education program as well as an exam. We also must be licensed in our province.

We are governed by FICOM The Financial Institutions Commission which is a regulatory agency of the provincial Ministry of Finance.
FICOM is responsible for administering nine statutes that regulate the pension, financial services and real estate sectors in British Columbia. The primary focus of this regulation is to ensure that:

• Institutions and pension plans in these sectors remain solvent;
• Market conduct requirements for these sectors are respected;
• Unsuitable individuals do not participate in financial service markets; and
• Through the Credit Union Deposit Insurance Corporation (CUDIC), insure credit union deposits and non-equity shares.

To keep this explanation simple:  A mortgage broker is the company we work for. A mortgage broker over sees the sub-brokers. A mortgage broker in Canada has an overwhelming amount of paperwork, that is why there is more sub brokers then brokers.

Bank representatives are neither mortgage brokers or sub-brokers. They are trained by their bank that they work for.  They could not broker a mortgage as brokering means more than one.  They only sell what their Bank has. They are not unbiased.

A title can be complex to the public as well to the industry that we belong to.   

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com