MHC Mortgage Services Inc

I always find it amazing when the big guns come out with data that they find shocking.  GDP cooled in April for the first time in the past number of months.  Experts suggest that the expiry of housing incentives, new taxes, and overall lack of spending money have been the catalysts for this slowdown.  Wow, this doesnt seem like rocket science.  You have the mortgage insurers changing all the rules to further hinder purchasing a home, you drop all the incentives to buy, the canadian dollar flies to parity, there is an introduction of a new way to calculate consumption tax in two large producing provinces and these guys find it shocking that GDP falied to go up in April.  Who needs the stats when you work directly with consumers everyday?  I see them coming in all the time.  People like you and me who 2 years ago, didnt have a worry in the world and now? They are scrambling to pay the mortgage.  One half has since lost an income, the credit card bills are at 19% interest and the costs of living in the real world have skyrocketed.  I am dumbfounded about where the money goes every day, and can relate to these consumers and the challenges that are in front of them.   These are the times which consumers need experts that care.  I really think the best way for stats can to collect their data is to walk up and down the streets of canada and speak to real people.  They may get some crazy opinion, but the delivery and the feel will be truly telling…

Well I guess the old adage is true, the only things certain in life are death and taxes.  In Ontario and BC, the new harmonized sales tax will actually hit both of those on the head.  Funeral arrangements will be going up in cost as of July 1st.  Every article I read, the viewpoint differs on whether this tax is good or bad for the common person.   Some say our overall costs will go down, but when I read that daily items are going to be taxed an additional 8%, I am troubled to see the good in this for someone that consumes, goes out, plays some golf, has a drink or too, and overall tries to get ahead in life.  And then, you have companies that try and operate nationally and now they have to endure two books.  Mr. Company, did you repair your shoes in BC or Ontario??  That will be an interesting debate…If we are one country, can we not come to some agreement on a harmonized tax?   Shouldn’t there be some harmony in harmonization?  I really believe that consumption tax is the best form of tax (if there has to be one)…kind of like death by school bus (if you have to go, might as well go quick).  The issue is that no matter how much we are taxed, we seem to continually read about the misappropriation of those hard earned tax dollars.  We should really consider mandating government to be run like all companies have to run…accountable!  Enjoy…

Economic growth slowing after fast start to recovery, Bank of Canada says Carney is cautioning markets not to be so sure Canada’s central bank will raise its key interest rates in a matter of weeks.

• TSX +26.31
• DOW +9.37
• Dollar -.08c to 100.00cUS
• Oil +$.02 to $83.70US per barrel.
• Gold +$5.90 to $1,142.30 USD per ounce
• Canadian 5 yr bond yields -.04 to 3.16. The spread (based on the NEW MERIX 5 yr rate published rate of 4.64%) is centred in the comfort zone at 1.48

http://www.financialpost.com/markets/market-data/money-yields-can_us.html?tmp=yields-can_us

The rate of return on your bond, can be read through a yield curve, If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. Currently lenders are looking for a spread between 1.35 and 1.60.