Elegant Lorne Park and Churchll Meadows Homes for Sale, Fine Homes in 905, Mortgage Rates

BANK'S KEY RATE CUT TO RECORD LOW

This article is compliments of Kristian Harris, Monster Mortgages. This is great news and worthy of staying in tune with what is going on. There will be more news to follow, but I would like to share this article in its entirety with you:

OTTAWA — The Bank of Canada has chopped its key interest rate by another half percentage point to its lowest level ever, and warned that the Canadian economy will contract by 1.2 per cent this year.

The central bank's target for the overnight lending rate now stands at 1 per cent – lower than in 1958, when the most-watched policy rate was 1.12 per cent.

“The outlook for the global economy has deteriorated since the bank's December interest rate announcement, with the intensifying financial crisis spilling over into real economic activity,” the bank said in its gloomiest statement yet.

In separate announcements, Toronto-Dominion Bank and Bank of Montreal responded by announcing they have cut their prime lending rates by 50 basis points to 3 per cent. BMO said it is cutting key mortgage rates by 30 to 50 basis points.

Last fall, the bank had counted on the Canadian economy growing by 0.6 per cent this year. But since then, it has recognized that Canada is in recession, and now says the economy will shrink by 1.2 per cent in 2009, as the country succumbs to sagging global demand, lower energy prices and a collapse of confidence around the world.

“Canadian exports are down sharply, and domestic demand is shrinking as a result of declines in real income, household wealth, and consumer and business confidence,” the bank said.

Already down in overnight trading, the Canadian dollar fell further after the bank's announcement, and was down 0.84 cents U.S. to 78.90 cents just after 9 a.m. ET.

Since slack is building up in Canada 's economy and housing prices are coming down modestly, inflationary pressure should also ease, the bank explained.

Total inflation will likely fall below zero for much of 2009 because of lower energy prices. And even core inflation, which excludes energy and other volatile items, will drop to about 1.1 per cent at the end of this year, the bank said.

But the central bank sees a remarkably strong recovery in 2010, with the Canadian economy growing 3.8 per cent next year and inflation edging back up to hit the bank's two per cent target in early 2011.

In order for the recovery to take hold, the global financial system has to stabilize, the bank said, but added that that process has begun, “There are signs that these extraordinary measures [by governments and central banks] are starting to gain traction, although it will take some time for financial conditions to normalize,” the statement said.

Plus, the global economy should start to benefit from “considerable” monetary and fiscal stimulus, the bank said.

Canadian banks have come under criticism for failing to pass on to customers the full amount of recent previous rate cuts by the Bank of Canada.

Canada 's recovery should also be bolstered by the past depreciation of the Canadian dollar, the statement added.

The bank did not promise any further interest rates to follow. Instead, the bank pointed out that it had already reduced its key rate by three and a half percentage points since December 2007, and added that it would keep an eye on how the economy and markets develop, and decide accordingly what it should do with rates.

“Guided by Canada 's inflation-targeting framework, the bank will continue to monitor carefully economic and financial developments in judging to what extent further monetary stimulus will be required,” it said.

Economists have warned that central banks need to be prepared to quickly reverse their aggressive interest rate cuts of the past year as soon as they see signs of recovery. Otherwise, there is so much monetary and fiscal stimulus floating around that today's disinflation could easily turn into an inflation problem when economies begin to grow again.

Economists have also been on the lookout for alternative forms of boosting the economy, aside from interest rates, with the U.S. Federal Reserve's key rate already hovering around zero, and the Bank of Canada at its lowest level too.

While Bank of Canada Governor Mark Carney has said previously that he is examining his options, there was no suggestion in Tuesday's statement that any non-conventional measure is imminent.

Still, with the federal budget just a week away, the government is expected to introduce several easing mechanisms, as well as a huge stimulus program to help ease the bite of the recession.

The Bank of Canada will issue a more complete economic outlook on Thursday.

Contact Betty Bartusevicius for further information of this article at
905 828 3434 or directly at 416 427 1875

Re/Max Realty Specialists Inc., Brokerage

Contact me by email; http://www.bettybart.com/AgentProfile/contactme.cfm

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Elegant Lorne Park and Churchill Meadows Homes for Sale, Fine Homes in 905, Mississauga

Every week in the Toronto Star, I get ideas regarding my profession -- Real Estate. I always give credit to these writers who start the process of reminding everyone of what is going on in this field. Because it changes every day, it keeps us alert and we get to pass on important information. There are times when I give the same opinion to the few great clients that I have, and then I like to share and enhance these ideas.

Many of you may have read the same article so here goes --

The homes of tomorrow will be "smart", smaller and more space and energy-efficient. They will be wireless and run by computers. They will come equipped with kitchens with top-of-the line amenities for those of us who like to cocoon. Our get-togethers with friends and family tend to be pot luck dinners, movie nights at home (most of us have a decent television and sound system) -- these have become very popular. We also tend to invest in our homes and finish the basements, not only to increase the value of our investment but it also adds living space. Our children tend to congregate at one home or another.


The big issues for buyers, and it is starting already, is location,location,location -- where the home is located in relation to public transit and how energy-efficient it is. Homes may be hard-wired to computers that will run everything from the lights to the appliances. Also, instead of wires, it will be wireless systems which we are starting to experience already.

Homes of the future will have a spare, modern feel. The prediction is that - gone will be the Mediterranean or California feel two-story, and multi-roofline French Chateau look. Homes will also be smaller but because of their efficient design, will work like much larger spaces. Take for example homes now - if you view new homes that have at least a 9 foot ceiling and then walk into an older home with a regular 8 foot ceiling, all of a sudden you feel that the space is cramped. the home with at least the 9 foot ceiling may also be smaller in square feet, whereas the older home may be bigger but seem smaler. The older home will also have more walls making it seem smaller than a new open concept home. The homes of the future, being smaller, may also be more affordable.

Certain finishes in homes are timeless and it is predicted that they will remain so -- hardwood floors and granite. Stainless Steel appliances are very popular now but it remains to be seen how well their popularity will hold up. This will depend on prices for these appliances. Refrigerators also come with finishes the same color as the cabinets and then you try to match the rest of the appliances to the the cabinets.

It used to be a very expensive upgrade to have patio doors put in -- the ones that are floor to ceiling. Well, it no longer in considered an upgrade. The doors look great, by the way. The same way that these doors were expensive upgrades, so were granite, stainless steel apliances and 9 foot ceilings, but no longer.

The days of being able to offer just the basics in a home are over. The buyers want all the bells and whistles - be it a new home from the builder or a resale home. Buyers want all these upgrades without having to pay for it.

Just consider countertops - first-time buyers are asking for granite, soapstone and Corian. These buyers have not yet learned that you do not need life-time countertops such as these. When you buy a home, you will want to update the kitchen and the simplest way to do this is to replace the countertop. There is a product made in Caesar stone. This is a material that is manufactured from concrete and stone pieces. It is seamless, smooth and sanitary. It is also less intrusive to the environment because you don't have to mine it.

Flooring -- engineered hardwood, which is a solid wood veneer over composite, is steadily gaining in popularity. It is being used more often now because it is environmentally friendly and less expensive. Cork and bamboo flooring are also makng an appearance because the natural materials are gast growing and readily available.

There is so much information out there regarding design and materials. Buyers are very in tune with what they want. When you're looking to spend around $500,000 and up for a home in an area that you truly love, you are looking to make sure the house feels like a home. After all, it is one of the biggest investments that you will make.

Some buyers are looking for buil-in appliances and updated kitchen cabinets that can be easily refaced or repainted a few years down the road. they are looking for finishes that are easily changeable for improvement. We are looking for materials that will not be going into landfills.

There is so much information. We are becoming more and more environmentally friendly. There is a lot of testing done regarding outside materials. Brick will always be popular but more materials are being tested to see how they withstand the different seasons. With these pilot projects, more materials will be available to the builders and renovators.

Finding all this information is readily available. We are becoming a technical society. I would like to credit some of the opinions of this article to Gail Swanson, Patrick O'Hanlon, and Christene DeGasperis.

Contact Betty Bartusevicius for your own private viewing of any property of interest or to discuss the sale of your existing house at 905.828.3434 or directly at 416.427.1875.

Re/Max Realty Specialists Inc., Brokerage

Contact me by email: http://www.bettybart.com/AgentProfile/contactme.cfm

I can help you save time and money by shopping smarter:
http://www.bettybart.com/createnewclientuserid/whyregister.cfm

There is no time like the present to begin your investigations into a property purchase or sale that will lead to sound decision-making.

Experience is not expensive; it is Priceless.