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Bank of Canada Announcement

Good morning

 

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

 

At 10:00 am EST, Wednesday April 12, 2017, the Bank of Canada held it’s prime lending rate. So let’s not forget that this is a great time to take advantage of such historical low rates.  As the weather warms up you might be thinking of

Accessing the equity in your home for some renovations especially if you have noticed a significant increase in house values in your area based on the Spring market!

Moving this year (downsizing or upsizing) and need to understand your financing options

 

Taking advantage of the low interest rates and purchasing a cottage, rental property or somewhere for a family member to live in (for University, College or keeping aging family closer to you).

 

Let’s chat about your options – it is never too late, or early, to start planning especially as it has been proven that real estate is an amazing long term investment!   Chat to me about your options … I’d be happy to make those plans into realty.

To continue with the Bank of Canada news, here is an excerpt of the announcement and what they had to say about their decision:

 “Global economic growth is strengthening and becoming more broadly-based than the Bank had expected … although there is still considerable uncertainty about the outlook. In the US, some temporary factors weighed on economic activity in the first quarter but the drivers of growth remain solid. The US is close to full employment, unlike many other advanced economies, including Canada, where material slack remains. Global financial conditions remain accommodative.  

In Canada, recent data indicate that economic growth has been faster than was expected…  Growth was temporarily boosted by a resumption of spending in the oil and gas sector and the effects of the Canada Child Benefit on consumer spending. Residential investment has also been stronger than expected. Employment data have been robust, although gains in hours worked are still soft. Meanwhile, export growth has been uneven in the face of ongoing competitiveness challenges. Further, despite a recent uptick in sentiment, business investment remains well below what could be expected at this stage in the recovery. Accordingly, while the recent rebound in GDP is encouraging, it is too early to conclude that the economy is on a sustainable growth path.”

The Bank acknowledges the strength of recent data, some of which is temporary, and is mindful of the significant uncertainties weighing on the overall economic outlook; So it looks like it is still anticipated that prime rates won’t start increasing until well into 2017 but we are being given the heads up that they will start increasing eventually.  Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

 

Interest rates have changed slightly;

 

  1. Fixed rates have gone down a bit at 54% to 2.79%
  2. The discount on the variable rate has improved with as low as prime minus 0.65% to 0.70% so 05% to 2.00%. If your interest rate is higher than this on your variable it might be worth us revisiting to see if we can make some changes and save you unnecessary interest.

 

Also, remember that the prime rates and fixed term rates are impacted by two different sets of economic drivers and so increases in fixed rates doesn’t always mean the same increase in prime rates and vice versa.

 

Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I’d recommend that you remain with your current variable rate product as the interest is still lower than a fixed term rate right now.  However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. I’ll be in touch again for the next announcement on May 24, 2017.

 

I wonder if I can ask a favour; It is that time of year that many think about what they want to accomplish this year – if buying their first home is on the “wish list”, would you mind passing my contact information on to them.  With all the hot markets out there now, and changes to mortgage legislation, there is a lot of confusion especially amongst our first time home buyers and my specialty is walking them thru the steps with ease!  This is very much appreciated.

 

Yours truly,

Eva Neufeld
Mortgage Tailors
(780) 244-0505

 

 

 

 

 

Bank of Canada Maintained their Rate

Firstly, a very Happy New Year to you and your family – if one of your New Year’s Resolutions was to get back on track with your financial goals and wealth growth plans, now is a perfect time. This is the first of many announcements this year about interest rate changes that will impact a majority of your current and future debt – from mortgages and lines of credit to credit cards and personal loans. My New Year Resolution to you is to help ensure that the impact of interest rate changes to you is minimal – advising you on ways to have more of your hard earned cash stay in YOUR pockets and doesn’t line someone else’s – saving you thousdands in unnecessary interest along the way – imagine what you could do with an extra $5,000 or $6,000 this year?

You may have already heard the impact of recent mortgage legislation and qualifying changes has already impacted the borrowing power of many homebuyers and owners, and we have also seen fixed term rates rise slightly. Just today on of the default insurer’s, CMHC announced that they will be increasing their default mortgage insurance premiums effective March 1, 2017 – this typically only impacts those with less than 20% down payment. Now, more than ever, the benefits of receiving a pro bono consulation from your mortgage broker is key to ensuring you make the right decision on your biggest financial obligation while protecting your biggest asset – your income!

The communication is going to focus on what the Bank of Canada had to say today and how that impacts you – reach out to me for a pro bono consultation on what we can do now to meet your 2017 financial wealth and freedom goals and start to save you some unnecessary interest.

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to the Overnight Rate which in most cases impacts your Prime Rate.

At 10:00 am EST, Wednesday January 18, 2017, the Bank of Canada again maintained their overnight rate which means no change to your interest rate. This is great news to start the year off as you continue to benefit from low rates which for sure puts a smile on your face as the temperature outside is a little frosty.

Given the assumptions the bank made in its forecast, they are expecting an upward swing in economic growth in 2017 anticipating to reach full capacity by mid 2018. It is still anticipated that prime rates won’t start increasing until well into 2017 but we are being given the heads up that they will start increasing eventually. Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

Fixed rates have increased slightly since the last announcement, and are around 2.69% to 2.89% for a five year fixed term. Also, remember that the prime rates and fixed term rates are impacted by two different sets of economic drivers and so increases in fixed rates doesn’t always mean the same increase in prime rates and vice versa.

Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise. I’d recommend that you remain with your current variable rate product as the interest is still lower than a fixed rate right now. However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. I’ll be in touch again for the next announcement on March 1, 2017.

On closing, I wonder if I can ask a favour – you might know someone who is unfortunetly having a tough time right now with maybe too much debt or recent loss of income. There are many options to help using debt consolidation or access to some funds to get you thru the tough times using the equity in their home. I have found recently that my access to alternative funds with lenders that have very flexible qualifying guidelines, has been able to help many who are in transition and/or just need enough money to get them thru the tough time like finding a job, keeping above water and feeding their family in the meantime. Don’t hesitate to ask them to reach out to me – I can provide a pro bono consulation to get them thru this.

Your truly,

Eva Neufeld AMP
Verico Mortgage Tailors
(780) 244-0505
Email:  eva@mortgagetailors.com

 

Bank of Canada Announcement

Good morning ,

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate

. At 10:00 am EST, Wednesday April 13th, 2016, the Bank of Canada maintained their overnight rate which in essence means no change to the interest rate on your variable rate mortgage, line of credit and/or student loans. This is still good news for the amount of interest that you will pay, but we also have to recognize that it is a reflection of the slow economy.

As the weather warms up you might be thinking of some renovations, moving homeor taking advantage of the low interest rates and purchasing a cottage, rental property or somewhere for a family member to live in. Let’s chat about your options – it is never too late, or early, to start planning especially as it has been proven that real estate is an amazing long term investment! Chat to me about your options … I’d be happy to make those plans into realty.

To continue with the Bank of Canada news, here is an excerpt of the announcement and what they had to say about their decision today:

“After a slow start to 2016, the US economy is expected to regain momentum, but with a lower profile and a composition that is less favourable for Canadian exports. Financial conditions have improved, partly in response to expectations of more accommodative monetary policy in some major economies. Prices of oil and other commodities are off their earlier lows and slightly above levels assumed by the Bank in January, but remain well below historical averages. Nonetheless, the Bank expects deeper cuts to investment in Canada’s energy sector than were forecast in January. Meanwhile, the Canadian dollar has firmed, reflecting shifting expectations for monetary policy in Canada and the US, as well as recent increases in commodity prices. The Canadian economy’s complex structural adjustment to the oil price shock is ongoing and will
dampen growth throughout the Bank’s projection horizon. Still, it does appear that the positive forces at work in the economy are starting to outweigh those that are negative.

”The Bank of Canada is still concerned with the financial vulnerabilities as they continue to edge higher, in part due to regional shifts in activity associated with the structural adjustment underway in Canada’s economy. It is still anticipated that rates won’t start increasing until well into 2016 even early 2017. Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

Fixed rates have only fluctuated a little since the last announcement, and are around 2.64% to 2.84% for a five year fixed term.

Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I’d recommend that you remain with your current variable rate product as the interest is lower than a fixed term rate right now. However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. I’ll be in touch again for the next announcement on May 25th, 2016.

I wonder if I can ask a favour, you might know someone who is unfortunately having a tough time right now with maybe too much debt or recent loss of income.There are many options to help using debt consolidation or access to some funds to get thru the tough times using the equity in their home. I have found recently that many clients who have mortgage renewals are currently being offered rates much higher than we can acquire.  Please don’t sign your mortgage renewal, have them talk to me so I can save them some money.  Don’t hesitate to ask them to reach out to me – I can provide a pro bonus consultation.

. Yours truly,

Eva Neufeld AMP

 

Bank of Canada Annoucnement

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

At 10:00 am EST, Wednesday January 20, 2016, the Bank of Canada maintained their overnight rate which in essence means no change to the interest rate on your variable rate mortgage, line of credit and/or student loans. This was despite the pressure to consider dropping their rate in order to relieve the publics concerns with the current economic conditions.

For those that qualify and it makes good financial sense, now is the right time to borrow money – maybe for some renovations that would increase the value of your home or consolidating some debts that don’t seem to be going away anytime soon! So what about those that don’t qualify because of course we all know that banks give you money when you don’t need it! Read down below for some more information on how I can help. If you would like a pro bono financial check-up and consultation I’d be happy to help and continue to save you unnecessary interest along the way.

To continue with the Bank of Canada news, here is an excerpt of the announcement and what they had to say about their decision today:

“Inflation in Canada is evolving broadly as expected. Total CPI inflation remains near the bottom of the Bank’s target range as the disinflationary effects of economic slack and low consumer energy prices are only partially offset by the inflationary impact of the lower Canadian dollar on the prices of imported goods. The dynamics of the global economy are broadly as anticipated … with diverging economic prospects and shifting terms of trade. Prices for oil and other commodities have declined further and this represents a setback for the Canadian economy. GDP growth likely stalled in the fourth quarter of 2015, pulled down by temporary softness in the U.S. economy, weaker business investment and several other temporary factors. The protracted process of reorientation towards non-resource activity is underway, helped by stronger U.S. demand, the lower Canadian dollar, and accommodative monetary and financial conditions. National employment remains resilient despite job losses in the resource sector and household spending continues to expand.”

The Bank of Canada now expects the economy’s return to above-potential growth to be delayed until the second quarter of 2016 – therefore indicating rates won’t start increasing until well into 2016. Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

Fixed rates have increased just a little since the last announcement, and are around 2.69% to 2.99% for a five year fixed term.

Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I’d recommend that you remain with your current variable rate product as the interest is lower than a fixed term rate right now. However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. I’ll be in touch again for the next announcement on March 9, 2016.

I wonder if I can ask a favour – you might know someone who is unfortunately having a tough time right now with maybe too much debt or recent loss of income. There are many options to help using debt consolidation or access to some funds to get thru the tough times using the equity in their home. I have found recently that my access to alternative funds with lenders that have very flexible qualifying guidelines, has been able to help many who are in transition and/or just need enough money to get them thru a tough time like finding a new job, keeping above water and feeding their family in the meantime. Don’t hesitate to ask them to reach out to me – I can provide a pro bono consultation to get them thru this.

Yours truly,

Eva Neufeld

 

Bank of Canada Update

Good morning

 

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

 

At 10:00 am EST, Wednesday December 2nd, the Bank of Canada maintained their overnight rate which in essence means no change to the interest rate on your variable rate mortgage, line of credit and/or student loans. So if you or anyone you know just got a little carried away and have some high interest credit card debt that you can’t seem to pay off in full each month, now is a great time to chat about options with rates so low. Maybe you are planning a renovation project soon or purchasing a second home or rental property – chat to me about your options so we can work on how much unnecessary interest we can save you but also get you closer to that Mortgage Burning Party!   It’s never too late to start planning.

 

To continue with the Bank of Canada news, here is an excerpt of the announcement and what they had to say about their decision today:

Global economic growth is evolving essentially as the Bank had anticipated in its October Monetary Policy Report (MPR). The US economy continues to grow at a solid pace, although private domestic demand has proven slightly less robust than expected. Meanwhile, commodity prices have declined further. The ongoing terms-of-trade adjustments and shifting growth prospects across different regions are contributing to exchange rate movements.  In this context, policy divergence is expected to remain a prominent theme.

In Canada, the dynamics of growth have been broadly in line with the Bank’s MPR outlook. The economy continues to undergo a complex and lengthy adjustment to the decline in Canada’s terms of trade. This adjustment is being aided by the ongoing US recovery, a lower Canadian dollar and the Bank’s monetary policy easing this year. The resource sector is still contending with lower prices for commodities. In non-resource sectors, exports are picking up, particularly in exchange rate-sensitive categories. However, business investment continues to be weighed down by cuts in resource-sector spending. The labour market has been resilient at the national level, although with significant job losses in resource-producing regions. The Bank expects GDP growth to moderate in the fourth quarter of 2015 before moving to a rate above potential in 2016.  While bond yields are slightly higher, financial conditions remain accommodative in Canada.”

The Bank of Canada has also indicated that as the inflation profile is in line with their target range. Remember that they will start increasing rates when they feel it necessary – so don’t become complacent or increase your personal spending unnecessarily unless you know you can afford it. Even with this information, interest rates will likely not start to increase until well into 2016. Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

 

Fixed rates have increased just a little since the last announcement, and are around 2.64% to 2.89% for a five year fixed term.

 

Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I’d recommend that you remain with your current variable rate product as the interest is lower than a fixed term rate right now.  However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. I’ll be in touch again for the first announcement of 2016 on January 20, 2016.

 

I wonder if I can ask a favour, going with my theme of “Let the sun set and the leaves fall along with Canadian consumer debt with our help” if you hear a friend or family member talk about going thru a financially tough time – maybe I can help with some budgeting, credit counselling and debt consolidation options for them.  In either of these cases, would you mind passing my contact information on to them – this is very much appreciated.

 

 

Yours truly,

Eva Neufeld

 
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Posted by on December 2, 2015 in Uncategorized

 

Bank of Canada Update

Good morning

 

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

 

At 10:00 am EST, Wednesday October 21st, the Bank of Canada maintained their overnight rate which in essence means no change to the interest rate on your variable rate mortgage, line of credit and/or student loans.   So if you or anyone you know just got a little carried away and have some high interest credit card debt that you can’t seem to pay off in full each month, now is a great time to chat about options with rates so low. Maybe you are planning a renovation project soon or purchasing a second home or rental property – chat to me about your options so we can work on how much unnecessary interest we can save you but also get you closer to that Mortgage Burning Party!   It’s never too late to start planning.

 

To continue with the Bank of Canada news, here is an excerpt of the announcement and what they had to say about their decision today:

 

“Global economic growth has been a little weaker than expected this year, but the dynamics pointing to a pickup in 2016 and 2017 remain largely intact. Looking ahead to 2016 and 2017, the positive effects of cheaper energy and broadly accommodative financial conditions should become increasingly evident. In the US, the economy is expected to continue growing at a solid pace with particular strength in private domestic demand, which is important for Canadian exports. Canada’s economy has rebounded, as projected in July.  Household spending continues to underpin economic activity and is expected to grow at a moderate pace over the projection period. However, lower prices for oil and other commodities since the summer have further lowered Canada’s terms of trade and are dampening business investment and exports in the resource sector. This has led to a modest downward revision to the Bank’s growth forecast for 2016 and 2017.

 

The complex economic adjustments to the decline in Canada’s terms of trade will continue to play out over the projection horizon. The weaker profile for business investment suggests that, in the near term, growth in potential output is more likely to be in the lower part of the Bank’s range of estimates”

The Bank of Canada has also indicated that as the inflation profile is roughly balanced, the Canadian economy is expected to return to full capacity at around mid-2017.   Remember that they will start increasing rates when they feel it necessary – so don’t become complacent or increase your personal spending unnecessarily unless you know you can afford it. Even with this information, interest rates will likely not start to increase until well into 2016. Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

 

Fixed rates have increased just a little since the last announcement, and are around 2.64% to 2.89% for a five year fixed term.

 

Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I’d recommend that you remain with your current variable rate product as the interest is lower than a fixed term rate right now.  However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. The last announcement for 2015 on any change to the prime rate is December 2, 2015 at which time I’ll be in touch again.

 

I wonder if I can ask a favour, going with my theme of “Let the sun set and the leaves fall along with Canadian consumer debt with our help” if you hear a friend or family member talk about going thru a financially tough time – maybe I can help with some budgeting, credit counselling and debt consolidation options for them.  In either of these cases, would you mind passing my contact information on to them – this is very much appreciated.

 

 

Yours truly,

Eva Neufeld

 

6 ways to improve your Credit Score

 

Your credit score is a three-digit number that lenders use to predict your creditworthiness. Credit reporting companies calculate your score based on your payment history, how much you owe, how long you’ve had credit and how often you apply for new credit. If your score is lower than you’d like, here’s how to raise it:

  1. Check your credit report regularly. Request a copy of your report at least once a year from Equifax and/or Trans Union. Make sure your report agrees with your records. Correct any errors as soon as possible and watch for signs of identity theft.
  2. Make sure your credit limits appear. If your credit card limits aren’t listed, your cards are assumed to be maxed out, which damages your credit score. Ensure your limits are indicated, and stay well below them to maintain a higher score. Staying below 50% of your limit is best.
  3. Pay past due accounts. Delinquent accounts reduce your score more than anything else. Pay these accounts first.
  4. Pay new liens or charge-offs. These are your next priority. But once they’re older than 24 months, they’ve done all the damage they can do. In that case, move them to the bottom of your payment priority pile.
  5. Don’t close credit cards. Credit score software totals your available credit limits across all your cards. If you close an old card, suddenly you have a lower total limit which means your credit-to-debt ratio is higher. This drives down your score. Only close old cards if you have no self-control.
  6. Keep old credit cards active. The longer you’ve had an account open, the less likely you are to default on it, and the higher your credit score. But it’s not enough to simply keep old accounts open, you have to use the card, even if it’s only once every six months.

If you’d like to learn other proven ways to improve your credit score, talk to me today!

Eva Neufeld

(780) 244-0505