27 Jun

5 Tips to Stay Cool & Save This Summer.

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Posted by: Frank Fik

To maximize your enjoyment, we have some great tips for staying cool this summer AND saving money while you do:

1. Cook in the Great Outdoors

Summer is all about enjoying the sunshine, spending time with your friends and family, and relaxing in your own personal backyard oasis. We suggest the grill masters take their place for a few months of BBQ-fuelled meals. By avoiding cooking in the house, not only do you reduce the heat from the kitchen, you are also naturally relaxing in your extended outdoor living space.

2. Take Advantage of Fans

Instead of cranking the A/C (and your electricity bill), consider cooling down with portable fans. Not only are these great options if your home is not equipped with air conditioning, but they can help ease the stress on your unit when used together! Portable fans work by creating a breeze, helping to circulate the air and causing a wind-chill effect that hits your skin and helps keep you cool.

PRO TIP: For an extra blast of coolness, place a bowl of ice in front of the fan to create a refreshing mist of air!

3. Shut Out the Heat

We wait for summer all year but, as nice as it is to have that bright light streaming though, it can also increase the heat in your house and cause extra stress on your A/C unit and fans. On especially hot days, keeping the curtains drawn can help reduce the heat input and allow your home to stay cooler and more comfortable!

4. Maintain Your Air Filters

An often-overlooked aspect of home maintenance are air filters. With summer in full swing, we suggest you check the filters in your home. Dirty or jammed up filters slow airflow and make the system work harder, thereby reducing airflow and causing the heat to build up in your home. Plus, ignoring the maintenance on these can lead to expensive repairs down the road. Replacing your air filters every three months is ideal to keep dirt and dust out of your system and ensure they are working optimally.

5. Swap to Energy Efficient Lighting

You have probably heard some of the reasons why LED lights have become so popular, but did you know that they also produce 75 percent less heat than incandescent bulbs, and can help keep room temperature down? This cannot only help keep your home cooler during those toasty summer months, but it can also help reduce monthly bills!

Whether you implement one or all of these handy cool-down tips, we hope you have an amazing summer season filled with backyard memories and enjoy your home to the fullest!

 

Published by DLC Marketing Team

21 Jun

Fighting fear about fighting inflation

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Posted by: Frank Fik

The outsized interest rate hike by the American central bank, last week, is sending ripples through Canada’s housing market.

The U.S. Federal Reserve took the very rare step of boosting its trend-setting rate by 75 basis points at its June 15th setting.  Federal Reserve Chair Jerome Powell also set the stage for more, bigger-than-normal, increases in the future.

The U.S. increase follows a 50 basis point rate increase by the Bank of Canada on June 2nd.  Both central banks are engaged in a serious fight to bring inflation back to a 2% target.  Right now, inflation is nearly 7% in Canada, and almost 9% in the U.S.  This month’s hike by the Fed is fuelling speculation the BoC might also go for a three-quarter of-a-percentage point increase sometime this year.

None of this will do anything to relieve anxieties expressed by Canadian homeowners in a recent survey by Manulife.

The poll was conducted in April before this month’s rate hikes.  It suggests more than 20% of Canadians expect rising rates to have a negative effect on their mortgage, debt, and financial situation.  Fewer than half of those surveyed “feel prepared for rising rates.”

However, these fears may be the result of a lack of knowledge rather than any real risk.  The survey also reveals that nearly a third of respondents admit that they do not understand how inflation or interest rates work.  Many do not have a household budget or a written financial plan.

That suggests there are plenty of opportunities for brokers to provide sound information, so their clients can get on the path to secure home ownership and the financial benefits that can come with it.

Published by First National Financial LP

19 Jun

BC Real Estate Market Slows as Mortgage Rates Rise

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Posted by: Frank Fik

BRITISH COLUMBIA – The British Columbia Real Estate Association (BCREA) reports that a total of 8,214 residential unit sales were recorded by the Multiple Listing Service (MLS) in May 2022, a decrease of 35.1 per cent from May 2021.

The average MLS residential price in BC was $1 million, a 9.3 per cent increase from $915,392 recorded in May 2021. Total sales dollar volume was $8.2 billion, a 29.1 per cent decline from the same time last year.

“Canadian mortgage rates continue to climb,” said BCREA Chief Economist Brendon Ogmundson. “The average 5-year fixed mortgage rate reached 4.49 per cent in June. That is the highest mortgage rates have been since 2009.”

Provincial active listings were 4.4 per cent higher than this time last year, the first year-over-year increase in active listings since 2019. However, active listings still remain below what is typical for a balanced market, though current market conditions have a high degree of variation across regions and product types.

Year-to-date, BC residential sales dollar volume was down 14.5 per cent to $46.7 billion, compared with the same period in 2021. Residential unit sales were down 26.3 per cent to 43,921 units, while the average MLS® residential price was up 16 per cent to $1.06 million.

Published by Business Examiner

(post note…..one must remember that May 2021 recorded an all time high in sales – so keep this in mind when comparing data – Frank Fik)

14 Jun

Collateral damage in the inflation fight?

General

Posted by: Frank Fik

There is a growing sentiment among market watchers that the Bank of Canada’s current fight against inflation is putting home prices in the crosshairs.

In the release of the Bank’s annual Financial System Review, Governor Tiff Macklem mentioned a desire for “moderation” in the housing market several times.  But he made the Bank’s priority clear.

“The housing market, it’s an important part of the economy,” he said.  We are watching it closely, but our focus ultimately is on the whole economy and in getting inflation back to target.”

That has some analysts speculating that the central bank may be willing to let housing prices and the general economy take a hit in the effort to tame inflation

With interest rates on the rise, the housing market has already seen a downturn in sales and prices, especially in the hottest markets.  While a 10% reduction in prices would reverse several months of gains, it would not be devastating to long-term homeowners or the economy as a whole.  But some recent reports have predicted a 15% decline in prices.  That could be particularly hard on those who bought at the height of the pandemic market.

The central bank is also warning that those buyers could be facing a 30% increase in their mortgage payments when they renew in 5 years.  The Bank’s current projections put fixed rates at 4.5% in 2025-26 with variable rates at 4.4%.

Debt-strapped Canadian households could find themselves forced to cut other spending to service their mortgage.  Taking that money out of the broader economy could slow, or reverse, the on-going recovery.

Published by First National Financial LP

6 Jun

When Was Your Last Credit Check-Up?

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Posted by: Frank Fik

A few simple steps to healthy credit…

Just like you should have a physical every year to make sure you’re healthy, you should do the same for your credit report and score.

Don’t wait until you go to buy something and you are turned down. And don’t worry… chequing your own credit does not affect it. So, what should you be looking for?

MISTAKES

Make sure your personal information is correct and upto- date. Also check that your date of birth and any other identifying information is correct as well.

ERRORS

Even creditors make mistakes sometimes so carefully look over any negative information appearing on your credit that isn’t true. Creditors are required to change any errors that you find on your report.

HINT: Send a letter to the credit bureaus, as well, to let them know there was an error and send a copy to the credit agency who incorrectly reported to motivate them to take care of it in a timely manner.

OUTDATED INFORMATION

Credit agencies are required to remove certain information from your credit after a certain number of years. For example, if you got behind on your payments but then went back to your normal payment schedule, that late history is to be removed after 6-7 years. Don’t assume it will be. Be proactive and follow up to make sure it was done.

FRAUD

We all know someone who has had their identity stolen and nothing wrecks a credit score and report more than someone hijacking it. It doesn’t necessarily have to be a stranger either. Family and friends have been known to “borrow” someone’s credit. Be smart and make sure to protect your credit from the known and the unknown.

Why do errors matter?

Even minor errors like a misspelled name or a wrong address can keep you from getting a loan or even lower your credit score. Keep your credit as healthy as possible by checking it every year. Choose a day that will be easy to remember like your birthday or the day you file your taxes.

 

Published by DLC Marketing Team