No Surprises

No surprises from the Bank of Canada this morning, they held their benchmark rate steady for the 25 consecutive month. The Bank was clear that over time the prime rate will have to increase however, that will not be for some time. There is continued concern over household debt in Canada and the Bank described our economic growth as "moderate". The U.S. economy is progressing gradually, the Bank stated, and noted that the recession in Europe is likely to continue. China is also experiencing slower than expected growth. News out of Ottawa is that the Federal Government is tiring of CMHC and wants to privatize it within 5 to 10 years. The idea is to reduce taxpayers exposure to the housing market. This is an interesting move considering the government's increased involvement in CMHC over the past years. While CMHC originally came into place to assist with providing housing for WWII veterans, the organization has grown to become the God of lending guidelines in Canada. Unless you have 20% equity in your home, your ability to gain financing on your home lies with CMHC's desire to insure your mortgage. This is a really exciting week because I am spending 2 days filming some new videos for my website. The scripts are written, the stars are cast and now it is time for action! Stay tuned for the preview! All the best, Jamie Moi, AMP Dominion Lending Centres - West Coast Mortgages Your mortgage consultant for life 604-534-6504 jamiemoi@jamiemoi.com