Hello {{FIRST_NAME}},

Happy spring, friends; there is so much buzz in the financial news. Delayed budgets, more spending, higher rates, climbing inflation. Oil prices, carbon taxes. Are you sure you want to move? Maybe we should all stay put for just a little bit and get roommates? All this moving around is getting expensive. And inflation is getting a bit out of whack. 

It’s all a bit overwhelming. I felt confident that everything would be just fine at the beginning of March. Yes, we will see increases at the Bank of Canada, and yes, inflation is creeping up, the bond market is going berzerk, the fixed rates are increasing as they should. I have said it a million times; ok, maybe not a million but often. Interest rates below 4% are a treat. We have lived in an ultra-low interest rate world for so long; it has become the norm. (2008) But is it normal? 

Nope, as I type, we are returning to the old norm quickly. I went to Cuba in the middle of March; it was so lovely to go away, get on a plane, and enjoy being with friends, the sun, and the sand and sangria. But, upon my return to Canada, I was hit with a one-two punch of reality. First, I came home with Covid. Second, Keri resigned. Both issues were not ideal, but the most startling is the pace at which the fixed rates are rising; every email I opened was a heads up at midnight…

I am not concerned about the rising rates; you can’t fret over something you cannot change; although it could be poor timing for some. Overall, rates are still historically low. Although I was surprised by how quickly they climbed while I was away. I had to get caught up very quickly. 

The next couple of years will continue to be uncertain and difficult for many as they built their family budget around the ultra-low rates. If you or someone you know is having trouble managing, please call me; I know people who can help if I can’t. 

I believe those who have a home should count themselves lucky; due to the pandemic, monitory policy, and the lack of housing inventory (which has been a problem for a long time), many Canadians will never know the joy of homeownership. And for many Canadians moving up the housing ladder will not be possible, but renovating to stay in the home will be more likely. 

The majority of us have never lived through a pandemic until now; we made it through, learned some lessons, and even gained some pounds. Wink. And, now we are almost on the other side, waiting to see how we financially manage as household, community, and country. 

The majority of us have never known what it’s like to leave a pandemic and enter a war. As the conflict in Ukraine rages on and we sit in the comfort of our homes waiting to see what happens next, inflation is sorrowing, causing interest rates to climb, but we still manage to be ok. 

We do not know if a wider war is in our future, but the next couple of years may make for some financially challenging times? Please be mindful of your spending. They say, “If you want to know the future, look at the past.”— Albert Einstein 

Our seniors, grandma, and grandpas have lived through a pandemic and two world wars, so there is hope for growth and hope on the other side of these global events. I guess what I am trying to say is life is a bit of a mess right now. Be kind to yourselves and one another. It will take some time to get through to the other side, but we can and will persevere even if interest rates are higher. Interest rates are important, but they are not the be-all. 

If you or someone you know has difficulty staying in their home, call me. I may be able to help.  

Walter Update

You may recall that Walter had an important vet visit last week. On Friday, March 25th, Walter went in to be neutered; everything went well. However, we returned to the vet on Monday as Walter was not doing okay. “Classic Walter,” as the ladies at the vet’s office like to say; they rushed Walter in for emergency surgery as he is 1-in 1000 that develops blood clots. However, after getting the royal treatment and various doggie drugs in his go-home bag, Walter is doing GREAT and learning to be lazy; this is no easy task. 

As we were together all day, I opted not to bug him further and took off the cone. He sports a pair of Calvin Kleins at night so he doesn’t lick the affected area. He’s doing well and should be running around the dog park again soon.

Rates

Hold on to your seats: 

Prime: 2.70% 

The next Bank of Canada meeting is April 13/2022

High Ratio Mortgages – default insured 

3 year: 3.09%

5 year:  3.54%

10 year: 3.84%

Prime – 1.10% = 1.60%

Conventional Mortgages – 20% down or greater 

3 year: 3.49%

5 year:  3.84%

10 year: 4.14%

Prime – .75% = 1.95%

Refinance Rate 

5 year:  3.84%

Prime – .65% = 2.05%

Rates are subject to change at anytime, these rates should be considered a guideline.