Well the Bank of Canada gave us our lumps yesterday, another rate increase of 50bps. It’s our medicine and we have to take it so we can start to win this war against inflation. The increase wasn’t as bad as many had expected, I don’t think that it was due to any outside political pressure but the fact that the inflation rate has been dropping. It is just not shrinking as quickly as the Bank needs it to as it is still quite the distance from the 2% target.
While it is true that many people survived the lock downs with much higher cash reserves and then went out and bought new homes and new cars and went on vacations. While so many did this it created a market frenzy and drove up prices on homes, back orders for vehicles and long lines at airports and passport offices. While much of this is now over, the results of all this activity which is prolonged inflation is still hanging with us.
The sooner that we can take our lumps and reduce our discretionary spending the faster the inflationary rate will return to normal. The truth is that spending money is so much easier than saving it, as we don’t get the same feeling when we are cutting back and saving as we do when we are putting the key in the door to our new home or driving off the lot with our new vehicle. However the satisfaction we will get when we all do our part will be worth it.
Today I am thankful for the run that was completed when I really didn’t want to do it today, lenders that go the extra mile so we can make things happen for clients and a little pain today for a long term gain.
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