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Issue No. 7                        "Representing Your Best Interests!!" July 7, 2009
Interest Rates Going Down??

Bond Spreads Increasing!!

 As we've seen the spreads on the bond yields increase,currently at 2.07 (normal yield spread level is 1.70-1.80)  the question of "when are rates coming down?" is being whispered in the financial circles!

Summer 2008 and on, when volumes were low, volumes for the banks were also low. During the Spring Market,  the race for obtaining 2009 market share was on! Profitability was taking a back seat to market share and we saw very competitive rates from the banks. They were treating a mortgage as a loss leader to get that client in the door. Some also had extra deposit money from RRSP season to lend out.
Now into the third quarter of 2009, profitability is again top of their minds. Remember year end for the banks is October 31 and they only have 4 months left to hit their revenue targets.
Therefore, we are now seeing banks hanging onto this higher spread for as long as they can....there may be some movement soon, but banks are ensuring bond prices stay consistent before they make a move.
If rates changes are imminent, we will be the first to report that info!
Rod Minnes
Managing Broker

Rates as of July 7, 2009
Fixed Rate Mortgages    
6 month convertible            4.60%
1 year open                           6.55%
1 year closed                        2.75%
2 year closed                        3.05%
3 year closed                        3.65%
4 year closed                        4.09%
5 year closed                        4.39% 
7 year closed                        5.80%        

Variable Rate Mortgages    
5 year closed - Prime* +.40%
5 year open   - Prime* + .80%

Home Equity Line Of Credit

Please call for product availability and rates.

Information from sources deemed to be reliable. Product availability and borrower qualification apply.
*Prime = 2.25%
Rod Minnes
Global West Mortgages
Tax break applies to cottage too!!!!
Timing is right for recreational renovations. You've just bought a recreation property and the house could use some serious updating, or perhaps the family cabin that has been serving you well for many years is starting to show its age.
Whether it is the former or the latter circumstance you find yourself in, it might be time for some renovations, and the timing couldn't be better, thanks to the Canadian Government's Home Renovation Tax Credit.
Although it has received a lot of publicity, many people don't realize that the credit can also apply to improvements you make to a vacation home, cabin or cottage.
As long as your recreational property is reserved for personal use and not rented out, it is eligible.
The 15 per cent non-refundable tax credit is available on expenditures of more than $1,000 and up to a maximum of $10,000.
The maximum is per family, not per property, so the $10,000 can be shared between your primary residence and vacation property if you choose. The maximum available tax credit would be $1,350, which is 15 per cent of $9,000, since the first $1,000 is not eligible.
To qualify for the HRTC, the improvements you make to your property must be of an enduring nature! Some examples of eligible improvements, which can be found on Canada Revenue Agency's website (, include renovating a kitchen, bathroom or basement, new carpet or hardwood floors, septic systems, wells, adding deck or permanent hot tub or installing solar panels.
Examples of ineligible expenses include things such as purchasing new furniture or appliances, cleaning carpets, lawn care, or buying new curtains and drapes.
The expenses related to a project can include materials, permits, labour and professional services, fixtures and rentals.
The HRTC program covers projects that began, or were entered into contract for, after Jan. 24, and that are completed and paid for before Feb. 1, 2010. People should keep all the receipts for a project and then report the total on their 2009 personal tax return.
A new line will be added to the T1 General Tax Forms and the amount will appear on Schedule 1 as a non-refundable tax credit.
More information is available at Canada Revenue Agency's website.