Page 30 - Sports Energy News, Cornwall, Issue No 106

30 Issue #106 November 2021 www.sportsenergynews.com

Neighbourly Advice Fr om Our Local Pr ofessionals
Neighbourly Advice From Our Local Professionals

By Brian Johnston Canada, which reported record levels of $1.73 trillion, a 9.2% gain from the previous
Mortgage Specialist residential mortgage growth since the start of year. The strongest growth was seen in new
the year. mortgages, and primarily in the uninsured
Canada’s mortgage market grew at its fastest “In this unprecedented and unexpected mortgage segment, which was up 20%.
pace in over 10 years in the first half of 2021, economic context, mortgage credit in Canada The average loan amount also rose sharply,
according to new data released by the Canada did continue to grow,” Tania Bourassa-Ochoa, jumping 22% year-over-year to $358,000.
Mortgage and Housing Corporation (CMHC). Senior Specialist, Housing Research, at CMHC Among mortgage lenders, the biggest
CMHC attributed the strong growth to record- said during a webinar, “It not only continued to beneficiaries of this mortgage growth have
low interest rates and “pandemic-fueled demand grow, but accelerated…quite rapidly.” largely been chartered banks, which hold 78% of
for more space.” The findings are in line with As of June, residential mortgage debt stood at Continued on page 32
previous reports from Equifax and Statistics

instead of settling for something that does I thought would be my forever home. I
By Michael VanderMeer not meet all their current wants and needs am the extreme case as I am in real estate.
Real Estate Agent
but would otherwise make for a good but over my 33-year career I have seen
and comfortable home. Many also make some clients that have bought and sold 2
First Time Home Buyers’ Biggest Mistake the mistake of narrowing down to one or 3 times. Over the years I would say that
A lot of first-time buyers think that when location and missing out on great deals there is only a handful of people that I’ve
they are buying a home it is their forever in nearby locations. Your ideal location sold homes to that are still in their first
home and although this may be true in the today may not be the same as in a couple home.
odd case, most buyers outgrow their first of years from now, so you may want to
My advice to first time home buyers is
home or end up selling for reasons such as job, marriage, or broaden your search area within reason
to keep an open mind when buying your
divorce, for example. when buying for the first time.
first home. Keep resale value in mind as
This train of thought will occasionally make a buyer miss In the last 35 years I have personally it is a long road, and your first home will
out on good potential deals or end up purchasing money pits bought and sold 10 times - a few of which probably not be your last.

Consider this: inflation is running at 4%, then the real
Max Ming P.Eng. CFP ®
Financial Planner Most 3 to 5-year GICs from Canadian return is negative 2.5%. That means you
banks will ‘guarantee’ around 1% interest will continue to lose purchasing power
Inflation and Your Investments per year. Naturally, most GIC owners feel for as long as your investments return less
This month, the Bank of Canada said they are invested ‘risk-free’ as they are than the rate of inflation. Hardly a recipe
that inflation (the rise in general price guaranteed their capital back plus interest. for success.
level) has been running at a rate of close This is true in ‘nominal’ terms. However, The greatest long-term threat to
to 4% the last few months and they expect in ‘real’ terms, the investors are actually investors is not short-term market drops,
it to near 5% by the end of 2021, reaching exposing themselves to a significant but the risk of running out of ‘real’ money
levels that have not been seen since the amount of risk especially in 2021. due to inflation and longer life spans.
early 90’s. I remember reading an article earlier With interest rates at historic lows, we
I’m sure without even seeing these numbers, we can all agree this year, where an investor went into his concentrate on positioning our clients
that the impact has been felt in many aspects of our daily lives bank branch and they discussed various in the diversified portfolios they need to
this year - whether that be groceries, gas, or living costs. While products, and they were recommended a preserve purchasing power and outpace
we experience this change every day the true value of money is GIC for growing their money. Naturally, inflation. We always love to hear from
illusive, and many people often don’t realize the impact inflation he asked about the rate of return and the you, so please don’t hesitate to reach out
has on their savings or fixed income investments. bank replied, “1.5%.” The investor then with any questions or to discuss other
A good example is Guaranteed Investment Certificates asked about the rate of inflation and the financial topics.
(GICs). Traditionally, GICs have been marketed as “risk-free” bank answered, “Currently it is 2.5%”. Disclaimer: Equity Associates Inc.
investments. Today, we argue that they are actually quite the The investor then followed up the answer is a registered mutual fund dealer. The
opposite. to his question by saying, “So from my opinions expressed in this message are
When we think of money, we often think of it in ‘nominal’ and understanding, you are advising me to those of the writer. Individuals should
not ‘real’ terms. Another way to say this is we think of $1 as $1… lose my money?” always consult their financial advisor and
not as how much $1 can buy us. If a GIC generates 1.5% interest, and tax professional prior to investing.

With our 2021 “Just Homes Listing Program”, Homeowners will never pay more than

3 3/4%+ HST commission which includes full weekly local newspaper

Owned and Operated by M. Jean Cameron Real Estate Limited advertising until sold, internet promotion and even an open house program when needed.
Serving the Community since 1959
613-933-3283 The savings may not stop here. When we sell your home directly to a buyer
check us out on the web at: without another real estate brokerage involved in the sale, we further reduce our
www.soldsmart.ca
sandy@homesnet.ca commission to only 2% + HST
“Not intented to solicit properties already listed for sale”