The Federal Govt’s Home Renovation Tax Credit is coming to an end this month. According to Bloomberg.com. The tax credit was brought in last year as a way to help stimulate spending and create jobs. A family could claim up to $1,350 in tax credits per family for projects costing between $1,000 and $10,000….provided the renos take place before February 1st, 2010…..
There was some speculation that the Home Reno Tax Credit would be extended or even continue with some modifications. According to one conversation with an industry insider. If you’re looking at getting some renos done, it’s not too late to take advantage of this program.
The Bank of Canada meets Tuesday to set the overnight rate, which in turn affects the Bank Prime rate… and as expected, no one thinks they will raise rates… Great news for borrowers.. money remains cheap… Read the full report. Interesting little aside… the activity for mortgage underwriters has really picked up in the past 3 weeks… looks like borrowers are taking advantage of the low rates….
Hard to believe that we were or are in a recession when you hear reports like this one in the media. It’s easy to say that this market is interest rate driven…. there’s a lot of truth to that, but there must also be some level of consumer confidence… confidence in having a job, being able to pay the mortgage… We’ll have to watch and see how the Feds will view these numbers…
Remember, inflation will surely cause the government to raise rates.. up til now, no inflation concerns… Personally, I think it was partly driven by pent-up buyer demand…the market was much slower than normal in September, October and November… we’ll be watching and reporting…stay tuned..
Some fun to end the week….Burlington’s Mayor, Cam Jackson, wants the city to be included in the next version of Canadian Monopoly…. as it stands, Burlington is not in the top 65 cities and the Mayor doesn’t agree… I think I support his position… read more in the Toronto Star . If you want to vote, go to http://www.monopolyvote.ca and have your say….
Last year, variable rate mortgages were Prime plus 0.60%… a far cry from the Prime minus 0.90% that we saw 2 years ago. Today, one of our Lenders has just come out with a special promotion of Prime less 0.30%….wow! Prime is 2.25% less 0.30% gives us a rate of 1.95%…. gotta love it.