Yesterday the Bank of Canada governor gave a speech to the Halifax Chamber of Commerce. He said that even though core inflation started to come back from it’s all time highs, prices on food and other items are still at all time highs. As a result he said that we should expect further rate increases as more work needs to get done to further tame inflation.
What this means for you and me is that we will have increased borrowing costs until inflation finely comes under control. Those of us on variable interest rates will increases as will those with home equity line of credits. The main goal of all the rate increases is to get us to reduce our spending, thus lowering demand and then prices will start to come down.
The rampant need to travel post lockdown has been like gasoline on a fire which has further pushed inflation upward. Yes it sucked being stuck at home not being able to dip our toes in the sand some place sunny, however the resulting inflation from all the demand to travel, buy new vehicles and new homes has caused us to experience inflation that we have not seen in over 40 years. Whether we want to or not, it’s time to tighten our belts and pull back some of the discretionary spending before the overall economy spirals into a recession.
Today I am thankful for the daily motivational texts my buddy in Montreal sends me each day, that my girls will be home tomorrow for a week and for all the great conversations I am having as a result of my increased prospecting calls.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here