Page 38 - Sports Energy News, Cornwall, Issue No 119

38 Issue #119 December 2022 www.sportsenergynews.com

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

hardship of high inflation. And they will interest rates, such as housing and spending
By Brian Johnston come to expect persistently high inflation, on big-ticket items.
Mortgage Specialist “But the effects of higher rates will take
which will require much higher interest rates
and, potentially, a severe recession to control time to spread through the economy,” he
RATES, RATES AND MORE RATES inflation,” he said, repeating comments he added. The Bank’s current forecast is for
For the second time in the month of made earlier in the month. economic growth to stall to “close to zero”
November, Bank of Canada Governor Tiff “If we do too much, we could slow the over the next few quarters.
Macklem said that interest rates need to rise economy more than needed. And we know The Bank has so far raised its overnight
further. that has harmful consequences for people’s target rate by 350 basis points this year, taking
In the face of still-high inflation and an ability to service their debts, for their jobs, it from a low of 0.25%, to 3.75% today.
economy that continues to be in excess and for their businesses.” But it needs to rise further yet, Macklem
demand, Macklem said the Bank of Canada is Macklem acknowledged that the impact of says. “Just how much will depend on the
trying to balance the risks of under- and over-tightening. higher rates is starting to weigh on growth, impact monetary policy has on demand,
“If we don’t do enough, Canadians will continue to endure the particularly the parts that are most sensitive to Continued on page 39

reassessment (2016), this does not mean your budget to determine your taxes. Yes, your
By Michael VanderMeer taxes will double as well. Taxes are based taxes will go up slightly like they do pretty
Real Estate Agent on two things - one being your homes’ value much every year, but you don’t have to panic
(assessed value), and the other is a mill rate as they will not double. According to one of
DON’T PANIC - YOUR PROPERTY TAX set by your municipality (Township or City). my contacts at MPAC the 2024 assessments
WILL NOT DOUBLE. The municipality sets a budget, and the mill will remain the same from the last assessment
I have been hearing that people are worried rate is determined by the total amount of period (2016) so most taxes will remain the
that their property taxes will be unaffordable assessments within that townships or cities same unless your municipality increases their
when the next reassessment from MPAC boundaries. Since the next assessments will be mill rates or you pulled building permits
occurs. about double of the last assessment, the mill for renovations, which could trigger a
Even though a lot of home values have doubled since the last rate should be adjusted to the municipalities reassessment.

your investments, rebalance your portfolio, and decision making in the year ahead.
Max Ming P.Eng. CFP ® change your asset allocation, or it could be Consider reviewing your emergency fund
Financial Planner
an opportunity to realize any capital gains or and ensure enough savings are accessible
losses. It is also a good time to revisit your to cover a few months’ living expenses, at
As we head into the holiday season, we’ve
taxable income for the year and start thinking a minimum.
put together a few financial tasks to think With rising interest rates, budgeting
about before the end of the year, that will about making the final contributions to your
registered accounts. (reduce spending, saving, paying off debt,
put you in place to achieve more success in etc..) will have a big part to play in the year
2023. December is also a good time to revisit
your spending and budgets for the past year. ahead. Regarding interest rates, if your
Starting with investments; even if you mortgage is coming for renewal soon you
are not planning to access any of your Having a couple’s money chat can let you
reflect on what expenses went to plan, what may want to look at the options available to
investments for a while, it is always good you and how it will impact on your budget
to revisit your portfolios. Depending on what happened to your exceeded your plan, and the discussion can before the time comes to renew.
holdings over the past year, it may be time to make changes to bring up ideas that lead to better budgeting
Lastly, review your plan to manage

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