Toronto Loft Conversions

Toronto Loft Conversions

I know classic brick and beam lofts! From warehouses to factories to churches, Laurin will help you find your perfect new loft.

Modern Toronto Lofts

Modern Toronto Lofts

Not just converted lofts, I can help you find the latest cool and modern space. There are tons of new urban spaces across the city.

Unique Toronto Homes

Unique Toronto Homes

More than just lofts, I can also help you find that perfect house. From the latest architectural marvel to a piece of our Victorian past, the best and most creative spaces abound.

Condos in Toronto

Condos in Toronto

I started off selling mainly condos, helping first time buyers get a foothold in the Toronto real estate market. Now working with investors and helping empty nesters find that perfect luxury suite.

Toronto Real Estate

Toronto Real Estate

For all of your Toronto real estate needs, contact Laurin. I am dedicated to helping you find that perfect and unique new home to call your own.

 

Tag Archives: interest costs

What to do now that you know rates will stay on hold

Rob Carrick – Globe and Mail

[dropcap]W[/dropcap]rong, wrong and wrong.

Can I be any clearer about all the forecasts you read not too many months ago about rising interest rates?

Bank of Canada governor Mark Carney indicated Wednesday that rates will stay right where they are for quite a while as a result of global economic uncertainty. That means it’s time to strategize about your borrowing and investing. Here are six things to think about:

1) The big reprieve: Canadians owe too much – that’s a fact. Now, the Bank of Canada has indefinitely postponed the reckoning that will come when interest rates march higher. You can handle your debts now, but what happens when rates returns to levels that are closer to historical averages? Make it a priority to owe less when rates rise.

2) Variable-rate mortgages look good: The major banks’ prime rate is now 3% – apply a discount ranging from 0.45% to 0.70% and you get much cheaper interest costs than you would with a fully discounted five-year fixed rate of 3.45%. Sure, the prime rate will rise once the central bank starts to move again on rates. But in the meantime, you’ll be saving big time.

3) Unending hell for savers: Rates on high interest savings accounts and money market funds are stuck in low gear. It’s a complete drag, but you have to live with it. Do not take on more risk to get higher returns on money you cannot afford to lose.

4) Unending hell for conservative investors: Rates on guaranteed investment certificates and bonds are not directly affected by what the Bank of Canada does. But the central bank’s concern about the global economy signals a broader trend of low interest rates that will flow into bonds and GICs. Dividends paid by blue chip stocks are an alternative, but only if you can live with shares that fluctuate in price even as they reliably churn out quarterly cash. In non-registered accounts, those dividends will be taxed much more favourably than interest, by the way.

5) Lines of credit look good for smart borrowers: If you must borrow, a home-equity line of credit remains the best way. Expect to pay prime plus as much as half to a full percentage point. Mind the danger with credit lines, though. They are not a supplement to your paycheque to help you afford fun stuff. They’re for strategic borrowing to bridge a short period between the time you buy something and the time you can afford to pay it off in full.

6) Credit cards are a borrowing disaster: Card rates are unaffected by what the Bank of Canada does, so don’t waste your energy getting angry about 19% rates on unpaid balances. Get a credit line or a consumer loan and pay off your credit card balance as soon as possible.

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Contact Laurin Jeffrey for more information – 416-388-1960

Laurin Jeffrey is a Toronto Realtor with Century 21 Regal Realty. He did not
write these articles, he just reproduces them here for people who are
interested in Toronto real estate. He does not work for any builders.

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