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TagStephen Poloz

Posted Mortgage News

You heard it here first!… Rule of thumb for choosing Variable over Fixed.

First For the past few years, the Bank of Canada has warned us about the imminent interest rate hikes.   Reminds me of the boy that cried wolf.    “Interest rates are going up…  soon!…  real soon…. really, really soon!!”   But last week, the new Bank of Canada Governor, Stephen Poloz, surprised many experts when he said rates would remain low for quite a while.

This announcement prompted many advisors to jump on the Variable Rate bandwagon and start recommending Variable rate over Fixed rate.   I agree…  Variable rate is the obvious choice for most of us today.   But I also noticed a familiar rule of thumb being quoted in the media.   So I wanted to set the record straight. Continue reading “You heard it here first!… Rule of thumb for choosing Variable over Fixed.”

Posted Bank News

Poloz in, Carney out as Bank of Canada Governor…3 major changes in less than a year!! Anyone else find this strange??!.

Poloz, Carney, Flaherty Stephen Poloz was announced as Mark Carney’s replacement as the new Bank of Canada Governor.  The announcement was a surprise for many… Most thought the Deputy Governor, Tiff Macklem, would have been a more likely candidate.  But Jim Flaherty, Minister of Finance, chose Poloz…. probably because he shares the same vision as Flaherty…  tighter lending rules, higher rates.. etc..

But this article isn’t about why Poloz is in, and Macklem is out.   I want to bring something else to your attention.   Did you know that we have had 3 major changes in less than 6 months?   Mark Carney is leaving Canada to head the Bank of England.   Then, within 6 months, the head of OSFI, Julie Dickson, announced she will be leaving in 2014.   And now Karen Kinsley, CEO of CMHC, has announced she is stepping down.  I’ll add in a fourth.. Robert P. Kelly has come in as Chairperson of CMHC… You’ll need to read this to understand why this is relevant.

These are major changes folks.  OSFI, CMHC and the Bank of Canada Governor.   3 major players that run and regulate Canada’s Financial and Banking sectors.  Has anyone asked why  they are all leaving now? Continue reading “Poloz in, Carney out as Bank of Canada Governor…3 major changes in less than a year!! Anyone else find this strange??!.”