Page 32 - Sports Energy News, Cornwall, Issue No 127

32 Issue #127 August 2023 www.sportsenergynews.com

Neighbourly Advice From Our Local Professionals
Neighbourly
Advice Fr
ofessionals
Local Pr
om Our
Prime rate, which is used to price debt for variable-rate mortgage holders,
By Brian Johnston variable-rate mortgages and personal who currently make up about a third of
Mortgage Specialist
and home equity lines of credit the mortgage market.
(HELOCs,) generally takes its cue from
Variable-rate borrowers face latest movements of the Bank of Canada‘s A 70% rise in interest costs in one year
test as prime rate rises to 7.20% Since the Bank of Canada started
overnight target rate, which the Bank
Variable-rate mortgage borrowers, increased by 25 basis points on mid- hiking rates last March, variable-
who have already seen their interest July. rate borrowers have seen their
costs rise by more than 70% over the monthly interest cost skyrocket by
Each quarter-point (0.25%) increase
past year, were hit with yet another approximately 70%.
hike last week as prime rate reached a translates into roughly $13 per month
for every $100,000 worth of mortgage Continued on page 33
22-year high of 7.20%.

rising, and property taxes going through control them. You see all kinds of real
By Michael VanderMeer
Real Estate Agent the roof - most of these come from estate information (or disinformation)
people talking or posting on the internet. on the internet and although some of this
I recently came across a post where information may be true, not all of it is. If
ASK A REALTOR FOR REAL someone posted that it was Realtors that you really want to know what is going on
MARKET FACTS caused rents to skyrocket, and although in the market, and other things that could
I hear all sorts of rumours going around we do advise people on market rents from affect your home/property ownership,
about the market falling, interest rates time to time, we do not set the rents nor talk to a Realtor to get the facts straight.

grandparents) retirement. Life expectancy This is a long time and something that we
Max Ming P.Eng. CFP ® has taken huge steps forward in the last need to be aware of.
Financial Planner
fifty years and continues to do so. Most If we assume even a 3% inflation, the
people’s key financial challenge when
HOW LONG DO I PLAN FOR? cost of living would basically double in
As advisors we talk to our clients a lot managing their retirement income and twenty-five years. This means that what
investments is not a temporary loss of
about why they need to think long-term. costs you $100 today will cost $200, (or
This includes emphasizing the need to principal, but the slow and steady erosion more), later in retirement. Make sure you
be more concerned with having a plan of purchasing power over what could be have a plan to increase your income as
many decades of retirement.
to generate an income (that will keep up much as your living expenses go up in
For instance, take a non-smoking couple retirement. This remains an essential part
with inflation over decades,) rather than with any short-term who retires at 62 years of age. Stats tell us of our portfolio construction.
fluctuations in the financial markets.
that they will have a joint life expectancy Disclaimer: Equity Associates Inc. is registered as a Mutual Fund
At the core of most of our plans is How Long Do I Plan For? We of nearly 30 years (meaning the second Dealer & an EMD Dealer in selected provinces. The opinions expressed
in this communication are those of the writer and do not necessarily
need to remind you that you aren’t planning for your parents (or person would pass at 92 years of age). reflect those of Equity Associates Inc.

With our 2023 “Just Homes Listing Program”, Homeowners will never pay more than

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

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Serving the Community since 1959
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sandy@homesnet.ca commission to only 2% + HST
“Not intented to solicit properties already listed for sale”