Bank of Canada Announcement - December 4, 2019

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 4, 2019, the Bank of Canada maintained their overnight rate which in essence means no change to your interest rate.  
 
It is good news that there is no increase; however, we are into the busiest and probably most expensive shopping season of the year. How are you taking care of your finances this Holiday Season? Black Friday and Cyber Monday have just finished off and maybe your wallet is feeling a little light, or you are just getting started on your holiday purchases and are struggling to stay within a budget.

Suggestions for a Financially Stress Free Holiday Season
Your financial wellness has a huge impact on your health especially when stress levels are a little higher than usual this time of year.  Let's make sure you have the tools you need to stay healthy and celebrate the holiday season in style while not breaking the bank! 

  • Set a budget! Set a budget! Set a budget! The number one tool to spend successfully at this time of year is to set a budget and stick to it. 
  • Consider taking that budget and donating a percentage of it to those less fortunate. Sometimes at this time of year we get so caught up in the consumerism of the season we forget the importance of giving back to others. If your total budget is $500 take maybe take $50 or 10% and give it back to a worthy cause. Getting your kids involved in this value can be great as well! 
  • Spend intentionally. Making your lists for everyone you want to buy gifts for and allocating your budget is a great way to make sure you aren't overspending. It is easy to wander around the mall (or Amazon) and all of a sudden, you've blown your budget!
  • Take time to plan your 2020 goals! A great thing about this time of year is not only reflecting on your goals but planning for next year. If you have plans for 2020, NOW is the time to write them down and make a plan to achieve them. Maybe that is buying a home, consolidating debt, growing your savings, whatever it is figure out your plan and how you are going to stay accountable to yourself. 

 
Don't forget if you have specific goals for 2020 or know someone who is hoping to get on the property ladder or save for retirement, we are happy to have a pro bono consultation with them.


Canadian Economy Update​ & Your Mortgage Rates
All things considered, the Bank will continue to monitor the extent of the adverse impact of trade conflicts against the sources of resilience in the Canadian economy such as housing and consumer spending.  Increases in the banks rate are definitely not on the short-term horizon for sure but instead a hint to possible downward adjustments if needed. Fixed rates have increased just a small amount since the last announcement and are around 2.69% to 3.09% for a five-year fixed term.
 
Based on the anticipation that the prime rate will still remain low BUT fixed term rates have stayed flat, I’d recommend that we chat – it might be worth switching to a fixed term if your current variable rate mortgage is higher than a fixed term.  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 January 22, 2020.


Supporting You and Those Around You
I wonder if I can ask a favour; this time of year can be really tough for many that are not as financially fortunate as us. No matter their situation; whether it is mountains of debt that they can’t get a handle on, low income or even unemployed, I can help. If you hear a colleague, friend or family member talk about going through a financially tough time would you mind letting them know I might be able to help.  I can assist homeowners by helping them access their equity to get them back on their financial feet and relieve some stress.  My expertise will help with budgeting, credit counselling or debt consolidation. If you would be so kind as to pass along my contact information on to anyone who might need a helping hand – I’ll provide a pro bono consultation to provide some great options on how I can help!
 

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