MiloAnderson.com

Bank of Canada maintains overnight rate target at 1 per cent

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

As anticipated in the January Monetary Policy Report (MPR), the global economic recovery is becoming more firmly entrenched and is expected to continue at a steady pace.  In the United States, growth is solidifying, although consolidation of household and ultimately government balance sheets will limit the pace of the expansion.  European growth has strengthened, despite ongoing sovereign debt and banking challenges in the periphery.  The disasters that struck Japan in March will severely affect its economic activity in the first half of this year and create short-term disruptions to supply chains in advanced economies.  Robust demand from emerging-market economies is driving the underlying strength in commodity prices, which is being further reinforced by supply shocks arising from recent geopolitical events. These price increases, combined with persistent excess demand conditions in major emerging-market economies, are contributing to the emergence of broader global inflationary pressures.  Despite the significant challenges that weigh on the global outlook, global financial conditions remain very stimulative and investors have become noticeably less risk averse. 

Although recent economic activity in Canada has been stronger than the Bank had anticipated, the profile is largely consistent with the underlying dynamics outlined in the January MPR.  Aggregate demand is rebalancing toward business investment and net exports, and away from government and household expenditures. As in January, the Bank expects business investment to continue to rise rapidly and the growth of consumer spending to evolve broadly in line with that of personal disposable income, although higher terms of trade and wealth are likely to support a slightly stronger profile for household expenditures than previously projected.  In contrast, the improvement in net exports is expected to be further restrained by ongoing competitiveness challenges, which have been reinforced by the recent strength of the Canadian dollar.

Overall, the Bank projects that the economy will expand by 2.9 per cent in 2011 and 2.6 per cent in 2012. Growth in 2013 is expected to equal that of potential output, at 2.1 per cent. The Bank expects that the economy will return to capacity in the middle of 2012, two quarters earlier than had been projected in the January MPR.

While underlying inflation is subdued, a number of temporary factors will boost total CPI inflation to around 3 per cent in the second quarter of 2011 before total CPI inflation converges to the 2 per cent target by the middle of 2012. This short-term volatility reflects the impact of recent sharp increases in energy prices and the ongoing boost from changes in provincial indirect taxes. Core inflation has fallen further in recent months, in part due to temporary factors. It is expected to rise gradually to 2 per cent by the middle of 2012 as excess supply in the economy is slowly absorbed, labour compensation growth stays modest, productivity recovers and inflation expectations remain well-anchored.

The persistent strength of the Canadian dollar could create even greater headwinds for the Canadian economy, putting additional downward pressure on inflation through weaker-than-expected net exports and larger declines in import prices.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in an environment of material excess supply in Canada. Any further reduction in monetary policy stimulus would need to be carefully considered. 

The City of Calgary has launched an online interactive 3D house, an E-house, to help citizens determine what permits and requirments are needed when doing home improvements.

“The ehouse brings all our residential related information into one place,” says Stan Schwartzenberger, director with Development & Building Approvals.

“The house has hot spots for specific information. If you are looking for particular information on, say, basement development, you would click on that hot spot and it would bring you to the information you require prior to starting your improvement project.”

The ehouse also links to PDFs and other brochures that includes all one needs to know when doing home improvements. For example, when building a wood deck, it includes the Wood Deck brochure, application requirements for when building either in a developed or developing area, and the contact phone number for the planning services support centre.

 

I’ve just posted CREB’s March Report on the current Real Estate Market. The summary graph is on page 10 of the report.

  

RE/MAX First-Time Buyers Report: CALGARY

 

RE/MAX First-Time Buyers Report: WESTERN CANADA

 

Top 10 Realtors at my RE/MAX office for 2010

 

Happy St. Patrick’s Day!

HomeRun Properties is currently running a promotion where, you could experience March 17th firsthand in Ireland!

ReMax Market Share – 2011

 

Home Prices to Stay Stable

 

Calgary Consumer Choice Award

 

An affordable way to become mortgage free sooner.  
 Some lenders suggest increasing payment frequency from monthly to bi-weekly to help pay off yourmortgage faster. But as your local mortgage expert, I have a better suggestion. While paying more often may save you a little money over the life of a 35 year mortgage, it usually only saves you pennies during the first 5 year term!What I recommend instead is accelerated bi-weekly payments. Like bi-weekly, you’re making 26 payments per year. But with accelerated bi-weekly, you increase the amount of your bi-weekly payments to the same amount they’d be if you were paying semi-monthly.The extra cost per month is minimal, but the savings are HUGE!For example, based on a $300,000 mortgage at 4.99% with a 35 year amortization, the accelerated bi-weekly payment option would save you $8,624.17 after the first 5 year term.(courtesy of Stu Pocock of CMAC Mortgages) 

 

Watch a video of some very interesting possibilities for homes of the future…

 


 

Check out my USA Property Investment page for a current Arizon Pocket Guide

 

Energy demand to triple by 2050

 

What’s Affecting Your Credit Score?

 

Bank of Canada maintains overnight rate target at 1 per cent

OTTAWA –The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The global economic recovery is proceeding at a somewhat faster pace than the Bank had anticipated, although risks remain elevated. Private domestic demand in the United States has picked up and will be reinforced by recently announced monetary and fiscal stimulus. European growth has also been slightly stronger than anticipated. Ongoing challenges associated with sovereign and bank balance sheets will limit the pace of the European recovery and are a significant source of uncertainty to the global outlook. In response to overheating, some emerging markets have begun to implement more restrictive policy measures. Their effectiveness will influence the path of commodity prices, which have increased significantly since the October Monetary Policy Report (MPR), largely reflecting stronger global growth.  

The recovery in Canada is proceeding broadly as anticipated, with a period of more modest growth and the beginning of the expected rebalancing of demand. The contribution of government spending is expected to wind down this year, consistent with announced fiscal plans. Stretched household balance sheets are expected to restrain the pace of consumption growth and residential investment. In contrast, business investment will likely continue to rebound strongly, owing to stimulative financial conditions and competitive imperatives. Net exports are projected to contribute more to growth going forward, supported by stronger U.S. activity and global demand for commodities. However, the cumulative effects of the persistent strength in the Canadian dollar and Canada’s poor relative productivity performance are restraining this recovery in net exports and contributing to a widening of Canada’s current account deficit to a 20-year high.  

Overall, the Bank projects the economy will expand by 2.4 per cent in 2011 and 2.8 per cent in 2012 – a slightly firmer profile than had been anticipated in the October MPR. With a little more excess supply in the near term, the Bank continues to expect that the economy will return to full capacity by the end of 2012.

Underlying pressures affecting prices remain subdued, reflecting the considerable slack in the Canadian economy. Core inflation is projected to edge gradually up to 2 per cent by the end of 2012, as excess supply in the economy is slowly absorbed. Inflation expectations remain well-anchored.  Total CPI inflation is being boosted temporarily by the effects of provincial indirect taxes, but is expected to converge to the 2 per cent target by the end of 2012.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in an environment of significant excess supply in Canada. Any further reduction in monetary policy stimulus would need to be carefully considered. 

An Update on the Airport Tunnel

The Harper Government Takes Prudent Action to Support the Long-Term Stability of Canada’s Housing Market

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Christian Paradis, Minister of Natural Resources, today announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market and support hard-working Canadian families saving through home ownership. 

“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.” 

“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.” 

The new measures: 

  • Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.
  • Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.
  • Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets. 

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011. 

I’ve just posted CREB’s December Report on the current Real Estate Market. The summary graph is on page 10 of the report.

  

Arizona Market Summary for the Beginning of 2011  

  

Wishing Everyone a Very Merry Christmas!!!

 

Bank of Canada maintains overnight rate target at 1 per cent

OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.  

The global economic recovery is proceeding largely as expected, although risks have increased. As anticipated, private domestic demand in the United States is picking up slowly, while growth in emerging-market economies has begun to ease to a more sustainable, but still robust, pace. In Europe, recent data have been consistent with a modest recovery. At the same time, there is an increased risk that sovereign debt concerns in several countries could trigger renewed strains in global financial markets.  

The recovery in Canada is proceeding at a moderate pace, although economic activity in the second half of 2010 appears slightly weaker than the Bank projected in its October Monetary Policy Report. In the third quarter, household spending was stronger than the Bank had anticipated and growth in business investment was robust. However, net exports were weaker than projected and continued to exert a significant drag on growth. This underlines a previously-identified risk that a combination of disappointing productivity performance and persistent strength in the Canadian dollar could dampen the expected recovery of net exports.  

Inflation dynamics in Canada have been broadly in line with the Bank’s expectations and the underlying pressures affecting prices remain largely unchanged.  

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in an environment of significant excess supply in Canada. Any further reduction in monetary policy stimulus would need to be carefully considered.   

I’ve just posted CREB’s November Report on the current Real Estate Market. The summary graph is on page 10 of the report.

   

RBC predicts stability in housing market

   

I’ve just posted CREB’s October Report on the current Real Estate Market. The summary graph is on page 10 of the report.

   

Please go to my Community Information page under Resources to review the full East Village Development Plan.

  

 

Happy Halloween!!!

  

    

Harley Davidson Update 

The Harley Davidson opportunity for me has now passed, but I want to send out a very heartfelt thank you to each and every one of you who took the time out of your busy schedules to vote for me during the competition.  It was a tremendous opportunity that I will cherish for a long time to come and what I learned from a business perspective has been invaluable to my future goals. Although I did not win the Harley Davidson motorcycle itself, I had a fantastic weekend with the Senior Executives at Deeley Harley Davidson and picked up a bunch of Harley Davidson swag that I can enjoy on my current motorcycle. Feel free to log in to www.profitride.com to check out the pictures they posted of parts of our ride. A wet and rainy weekend, but great fun had by all.  

   

Thanks again for your continued support in these crazy ventures I seem to get myself into. The support of family, friends, colleagues, clients and others has been overwhelming and I am sincerely grateful to each and every one of you. As you see some guy in leather zooming by you on a motorcycle, it might just be me!   

Take care and thank you!!  

Milo  

 
 
 
 

   

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 

 

 

Don James (Chairman & CEO), Malcolm Hunter (President & COO), and Me

Don James (Chairman & CEO), Malcolm Hunter (President & COO), and Me

My New Listing in Harvest Hills

  

  

Bank of Canada maintains overnight rate target at 1 per cent

OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.  

The global economic recovery is entering a new phase. In advanced economies, temporary factors supporting growth in 2010 – such as the inventory cycle and pent-up demand – have largely run their course and fiscal stimulus will shift to fiscal consolidation over the projection horizon. While the Bank expects that private demand in advanced economies will become sufficiently entrenched to sustain the recovery, the combination of difficult labour market dynamics and ongoing deleveraging in many advanced economies is expected to moderate the pace of growth relative to prior expectations. These factors will contribute to a weaker-than-projected recovery in the United States in particular. Growth in emerging-market economies is expected to ease to a more sustainable pace as fiscal and monetary policies are tightened. Heightened tensions in currency markets and related risks associated with global imbalances could result in a more protracted and difficult global recovery.  

The economic outlook for Canada has changed. The Bank expects the economic recovery to be more gradual than it had projected in its July Monetary Policy Report, with growth of 3.0 per cent in 2010, 2.3 per cent in 2011, and 2.6 per cent in 2012. This more modest growth profile reflects a more gradual global recovery and a more subdued profile for household spending. With housing activity declining markedly as anticipated and household debt considerations becoming more important, the Bank expects household expenditures to decelerate to a pace closer to the rate of income growth over the projection horizon. Overall, the composition of demand in Canada is expected to shift away from government and household expenditures towards business investment and net exports. The strength of net exports will be sensitive to currency movements, the expected recovery in productivity growth, and the prospects for external demand.  

Inflation in Canada has been slightly below the Bank’s July projection. The recent moderation in core inflation is consistent with the persistence of significant excess supply and a deceleration in the growth of unit labour costs. The Bank judges that the output gap is slightly larger and that the economy will return to full capacity by the end of 2012 rather than the beginning of that year, as had been anticipated in July. The inflation outlook has been revised down and both total CPI and core inflation are now expected to converge to 2 per cent by the end of 2012, as excess supply in the economy is gradually absorbed and inflation expectations remain well-anchored.  

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in an environment of significant excess supply in Canada.    

At this time of transition in the global recovery, with a weaker U.S. outlook, constraints beginning to moderate growth in emerging-market economies, and domestic considerations that are expected to slow consumption and housing activity in Canada, any further reduction in monetary policy stimulus would need to be carefully considered.  

Information note:  

A full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 20 October 2010. The next scheduled date for announcing the overnight rate target is 7 December 2010.  

   

  

Always good to hire a reliable and responsible contractor…..check out this story… 

http://www.cbc.ca/canada/calgary/story/2010/10/13/calgary-fire-house-explosion-northwest-gas.html  

At least he was smart enough to move quickly and get everyone away…

   

When people decide to buy a home, the monthly payment is a crucial factor. That’s why one of the most important questions that potential buyers consider is: How much home can I afford?
Affordability is a combination of home price, interest rate, and down payment. And with rates at historic lows, homebuyers have the opportunity to get more for their money… but if rates go up even a little bit they could miss out. Here’s a simple formula that drives that point home. In simple terms, every 1% increase in mortgage rates decreases the buying power of an individual by 10% in home price. This means that if you qualify for a home priced at $200,000 today and mortgage rates increase 1%, the amount you could qualify for would be reduced to approximately $180,000 to maintain the same payment.
If you could benefit from moving to a new home, don’t let this time pass you by. By making a move now before home prices or rates increase, homebuyers can get more for their money and still get the payment they’re comfortable with. And for those people who are thinking about refinancing, today’s situation provides you with the opportunity to reduce your house payment.
However, before you take the plunge on refinancing your mortgage, think about how long you plan to stay in your home and how much the refinance is going to cost. If you’re not careful, refinancing could actually end up costing more than it saves!
Remember, refinancing a mortgage is a labor-intensive process. It may involve loan officers, underwriters, servicing people, appraisers, legal services–and they all charge a fee. Let’s say you can refinance at a 1% lower rate, which decreases your monthly payment by $100. But let’s also assume your closing costs on the refinance are $3,000, which means it’ll take 30 months to cover your costs. That’s why it’s important to know how long you plan to live there. If you end up moving in a couple of years, you’ll actually lose money unless you are able to “port” your mortgage. Knowing the right mortgage options for YOUR needs is critical to any refinance decision.
Of course, if you have excellent credit and a pristine payment history, you may be able to cut the refinance costs dramatically, which makes the decision easy, right? Not always! Refinancing still costs the bank the same amount of money, so chances are they may be burying their fees somewhere in the deal–likely in the form of a higher interest rate!

Source: CMAC Weekly 

   

 

Here is a clip of Dave, Olivia and Malcolm in Niagara Falls:

    

 

Voting has been extended a week to October 15th!

Please go to www.profitride.com  every 24hrs to vote for me – Thank you!

     

Find out how much of your salary would go to covering you home costs in each provice. An Article on: The most expensive provinces to own a home

      

     

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Me with Harley Davidson Executives

Voting is only open up until Friday (October 8th). Once you’ve voted, you will receive a confirmation email with a link that needs to be activated before it will be counted.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

Vote for your favourite rider to ENTER FOR A CHANCE TO WIN an official Harley-Davidson® leather jacket . VOTE NOW!      

Experience being an Archaeologist in the Caribbean!

       

A video of good friend of mine at Manpower, Byrne Luft, reviewing the Employment Outlook in Canada.

       

Bank of Canada increases overnight rate target to 1 per cent

OTTAWA -The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.      

The global economic recovery is proceeding but remains uneven, balancing strong activity in emerging market economies with weak growth in some advanced economies. In the United States, the recovery in private demand is being held back by high unemployment and recent indicators suggest a more muted recovery in the near term.      

Economic activity in Canada was slightly softer in the second quarter than the Bank had expected, although consumption and investment have evolved largely as anticipated.  Going forward, consumption growth is expected to remain solid and business investment to rise strongly. Both are being supported by accommodative credit conditions, which have eased in recent weeks mainly owing to sharp declines in global bond yields.      

The Bank now expects the economic recovery in Canada to be slightly more gradual than it had projected in its July Monetary Policy Report (MPR), largely reflecting a weaker profile for U.S. activity. Inflation in Canada has been broadly in line with the Bank’s expectations and its dynamics are essentially unchanged.      

Against this backdrop, the Bank decided to increase its target for the overnight rate to 1 per cent. As a result of monetary policy measures taken since April, financial conditions in Canada have tightened modestly but remain exceptionally stimulative. This is consistent with achieving the 2 per cent inflation target in an environment of significant excess supply in Canada.      

Any further reduction in monetary policy stimulus would need to be carefully considered in light of the unusual uncertainty surrounding the outlook.      

Information note:
The next scheduled date for announcing the overnight rate target is 19 October 2010. A full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 20 October 2010.      

The “Hawk Family” put a halt to the mail-delivery in the Community of Bayview

       

      

 

Here’s a shocking example of why it’s REALLY important to use a Realtor.

     

“Sometimes simple questions I can ask a builder can really make a huge difference to your new home….check out this example….I asked about widening the entire house 2’ so that they could maximize the lot….the 2400 sq ft house jumped to 2600 sq ft for a total cost of less than $20,000 and the garage widened 2’ for only $2500.  For $22,500 the house became far more saleable when they choose to do that”  A good realtor can offer you this assistance, be it completing an addition or building a new home….always take a realtor with you, as a buyer there is no cost to use our services…the service is paid for by the builder/seller.”

      

 

Check out – Where to Buy: Top 10 Cities

       

Motorcycle Ride for Dad

      

Happy Canada Day!

      

      

      

      

      

      

      

Welcome friends and clients to the new MILOanderson.com and CalgaryRealtor.tv.

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