Page 44 - Sports Energy News, Cornwall, Issue No 113

44 Issue #113 June 2022 www.sportsenergynews.com

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The benchmark 5-year mortgage rate used in the affordability in the report. On average, it now takes borrowers who rely
By Brian Johnston metrics was up 28 basis points in the fourth quarter, marking solely on savings 75.2 months to save for that down payment
Mortgage Specialist the largest quarterly increase since 2017 when the Bank of (based on a 10% savings rate of the median pre-tax household
Canada raised the overnight rate twice in one quarter. income), up from 74 months in the previous quarter and well
“With investors now anticipating a more rapid increase in above the 40.4-month average since 2000. In the country’s
Rising Interest Rates Further Erode Housing Affordability policy rates, our benchmark rate has increased by another 30 most expensive markets, the timeframe is even more extreme.
Housing affordability has deteriorated in the country’s largest bps in the current quarter for a cumulative 100 bps since the For non-condo properties, it would take the average Toronto
urban markets for the fourth consecutive quarter, due to rising 2020 Q4 rate trough,” the report continued. “All else being homebuyer 28.3 years (up from 27.5 years last quarter) to
home prices and recent increases in fixed mortgage rates. equal, such an increase would have translated into a 10.7% save up a minimum down payment and 36 years for a buyer
On average, mortgage payments now require 48.6% of the decline in purchasing power.” in Vancouver (unchanged from the previous quarter). By
median income, up 2.1 points from the third quarter and up One mitigating factor has been borrowers’ shift towards variable comparison, here’s how long it would take to save a 10% down
7.8 points from a year ago, according to the National Bank rates in the second half of 2021—53% of new homebuyers, payment in other Canadian markets:
of Canada’s Housing Affordability Index. In Toronto and according to NBC. • Victoria: 358 months for single-family (up from 350.2 in Q3);
Vancouver, those percentages stand at 67.3% and 73.9%, “But this escape route is about to vanish in the coming months 53 months for condos (up from 50.4)
respectively. with the Bank of Canada policy rate on the rise,” the report • Montreal: 48 months for single-family (up from 46.8); 31
“Over the past year, affordability has worsened at the fastest added. months for condos (down from 31.5)
pace in more than 26 years,” authors Kyle Dahms and Alexandra Ducharme wrote. “While home Saving for a down payment is taking longer • Calgary: 37 months for single-family (up from 36.1 months);
16 months for condos (down from 16.7)
price growth had its fair share in contributing to declining affordability in Q4, the larger driver Once again, the length of time it takes to save for the minimum • Ottawa: 56 months for single-family (down from 57.3); 26
was rising mortgage interest rates.” down payment has continued to rise in all 10 markets covered months for condos (down from 26.5)
toilet paper and what comes out of your body. sytem’s life span, this is mostly due to care of the
By Michael VanderMeer The problem is some people are not educated bed. Some believe that your bed should be pumped
Real Estate Agent about septic systems. Some people with little or out yearly and others believe it should be pumped
no knowledge of septic systems drain grease, out every 3 - 5 years, depending on how many
chemicals, cigarette butts, and other items into people are in the household.
Country Homes - Increase The Life Of Your
their septics which can damage or plug it up. It’s The greatest thing since sliced bread for prolonging
Septic Bed things like this that can greatly reduce the life span your septic bed’s life is an effluent filter. This
ome of the septic beds out there are getting of a septic. is easily attached to your septic tank, and it
Spretty old. More and more we are seeing septic Maintaining your septic bed and not abusing it is prevents solids from leaching into and plugging
beds failing septic inspections. This, for the most the best way to prolong its life. I have seen beds up your system. It is not too expensive, it’s low
part, is due to neglect, misuse, and non-maintenance. over 50 years old still pass a septic inspection. maintenance, and it can add years of life to your
Most country people know that the only thing that goes into a septic is Although soil conditions can play a part in a bed.

Max Ming P.Eng. CFP ® your family in the position of being wiped out by one the same amount monthly (or whenever) into your
investment. Have a clear investment strategy and don’t own diversified portfolio of quality companies, your
Financial Planner
deviate from it when you need to rely on it the most. ‘timing’ becomes perfect.
Investing Principles to Remember Being humble is better than certain. Upon first thought Emotional Quotient (EQ) is more important than
Last month we saw an interesting piece by National it may seem odd with your money, but no one can Intelligence Quotient (IQ). Successfully long-term
Bank of Canada that caught our eye. As we are shelled predict what will happen in the future. When investing investing is just as much (if not more) a test of
with news headlines of economic uncertainty around in the markets, tread with humility, not certainty. character and emotion than an IQ test. It is proven
the world and the American economy flirts with a bear Dollar Cost Average (such as bi-weekly deposits) time and again that there is a huge variance between
market (referenced as a decline of 20%), it is a good instead of trying to time the market. As history has investment performance and investor performance;
time to revisit some traits that make a sound long-term shown, investors can be their own worst enemies. No meaning that investment returns over time have tended
investor. The article brought a few good points to light one can predict the future (or the emotional reaction of to be dramatically higher than what most investors
that we’ve expanded on below. humans) so trying to time the market (sell high, buy actually earn. This is generally due to emotional
Simple is better than complex. Simplicity allows you to understand what you do low) has never paid off over the long term. In fact, it reactions to external events. Given the chance, we
(and own) which increases the odds of staying invested in the long run, especially often results in inconsistent behavior which often will educate our clients on the importance of following a
when markets are difficult. Don’t put your life savings into an investment that impact your wealth negatively. When you abandon sound investment philosophy to limit the impact of
could go to the moon; have a diversified, rebalanced portfolio which never puts any effort of trying to time the market, and just invest emotions.

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