Closed	Quick Close Specials
First Mortgages   Second Mortgages Also Available	6 month	3.75%
	1 year	2.75%	2.65%
	2 Year	2.85%	2.95%
	3 Year	3.34%
	4 Year	3.54%
	5 Year	3.89%	3.69%
	7 Year	5.10%
	10 Year	5.20%
	Variable	2.35%	3.05% (open)
	Prime @ 2.25%

 

The Canadian Real Estate Association reported that over 50,000 homes were sold through MLS in July. That's almost 20% more than in July 2008 and just slightly below the peak of May 2007.
 
What's behind this dramatic turnaround are near record-low interest rates, the perception that the worst of the economic downturn is over, and house prices that are starting to rise. People who've gone through this recession without losing their jobs see that houses are a lot more affordable than they were in the recent past. And since prices are rising-and interest rates could follow-they're deciding to buy today.
 
However, as prices and mortgage rates increase further, it may be difficult to keep Canada's real estate rally going. The big backlog of buyers who were waiting for the right moment to get into the market will soon be depleted. And housing inventories are declining, which means prices may rise even more and reduce demand.
 
The other downward tug on the market is the coming harmonized sales tax in BC and Ontario, which could see houses priced over $400,000 being subject to more tax.
 
As a result of all these factors, look for the market to slow to more sustainable-but still healthy-levels over the next few months.

Fifty years ago, British writer C. Northcote Parkinson stated that most people retire poor because no matter how much they earn, they spend the entire amount and a little more besides. This is known as Parkinson's Law, and it's still true today. Even though they may be earning WAY more than they did at their first job, most people use every cent of their income to maintain their lifestyle. No matter how much they make, there never seems to be enough, resulting in ever-growing debt, sleepless nights and financial frustration.

The only way to start accumulating wealth is to break Parkinson's Law. How? By making sure your expenses increase more slowly than your earnings, then investing what's left over.
 
Here's how to start. Draw up a budget of all your monthly expenses. Examine every item and question it as if you were analyzing somebody else's spending. Look for ways to cut back. Aim for a 10% reduction in your living costs over the next three months. Better yet, find ways to increase your income while reducing your expenses.
 
Once you've achieved that, resolve to save and invest 50% of any increase in earnings you receive. This still leaves you the other 50% to play with. If you do this for the rest of your career, regularly investing in revenue properties or similar investments, according to Parkinson, you'll retire rich!

Sincerely,