Higher minimum down payment coming.. relax, it’s just political posturing.

Bill MorneauAs expected, and as I had predicted back on October 21st, the Federal govt made their first major announcement last week.  All new govts want to make a major announcement early… It shows they are doing something….So, here it is.

The new Federal Minister of Finance, Bill Morneau, broke the news on Friday.   A change to the minimum down payment rules.   That’s right, the minimum down payment to buy a house is going up…. well, sort of… Okay, that’s the headline … but now, keep reading for the real facts.   Here’s a link to The Star’s article by Susan Pigg quoting yours truly…. Read the rest of this entry »

Negative interest rates by the Bank of Canada… No, not likely.

stephen polozYou gotta love the media.  Yesterday, the Bank of Canada Governor gave a speech and announced a change in contingency plans should we fall into another financial crisis… like the US-made global recession in 2008.

But if you read the headlines, you would think the sky has fallen.  All I kept seeing were headlines claiming “Canada could see Negative interest rates.  Below zero interest rates.   Canada would consider negative interest rates…  ”   Wow, talk about misleading the public.

Okay, so here’s what he really said, and this is straight from the Bank of Canada website…I quote… “We don’t need unconventional policies now, and we don’t expect to use them. However, it’s prudent to be prepared for every eventuality,” Governor Poloz said in a speech today to the Empire Club of Canada.

He went on to say that he believes that our economy is on target to rebound for 2017.. and here’s another direct quote.  The Bank is forecasting increasing annual growth in 2016 and 2017, with the Canadian economy expected to reach full capacity around mid-2017.”

I think this is pretty clear.   The ‘worst case scenario’ plan has changed..  and the BOC govr expects our economy to rebound in the next 12 to 18 months.   Hope this helps to clarify the message.  Keeping it real.. and keeping it simple.

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

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