Market Update - October 2018
As we ease into fall having enjoyed a good run of sunshine and blue
skies, I have noticed an upturn in mortgage applications during the
month of October. It will be interesting to see if the real estate stats
bear out my observations when they are published at the beginning of
Rate wise, Bank of Canada (BoC) is going to announce its rate decision
this coming Wednesday. Most economists are predicting that a 0.25%
rate hike is likely although September’s inflation rate is lower than in
August. Overall the Canadian economy is strong according to the most
recent stats. We will likely continue to see gradual rate increases until
either there is an overwhelming concern of a slowdown of the
economy or the BoC feels it has normalized the rate enough to
weather future financial storms.
The Speculation and Vacancy Tax was introduced by the Provincial
Government last week. If approved It will be payable by owners with
vacant or underutilized residential property on Dec 31 of each taxation
year in designated areas. For example a vacation home owned by a
Canadian Resident with an assessed value of $300,000 would be liable
for a potential additional tax of $1,500 per year. Different rates apply
based on your residency status and you can click here for more details.
Enjoy the rest of October and Happy Halloween!
Owner, Verico Smartymortgage
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