Our House

6 >> OUR HOUSE FALL 2017 Dominion LenDing Centres W e knew it wouldn't last forever. For years, the borrowing rate hadn't been touched by the Bank of Canada and stayed at historic lows. that was until July. As expected, the BoC raised its key overnight rate by a quarter percentage point (25 basis points), bringing it to 0.75 per cent. in september, the BoC was at it again, raising the rate another quarter point. this change was brought on in part due to the strong economy. BoC officials have suggested the bank must begin to hike rates. As i write this, there's speculation of another rate hike before the end of the year. Beyond the speculation, there is worry around how the increases will affect homeowners and how many would be drowned by it. now, i think a little bit of perspective is needed. no one likes it when their monthly expenses go up. For many Canadians, even small increases to their budget can be a hardship. it can mean less discretionary spending in the economy, and for some, hard choices between essentials. Any increase to the borrowing rate needs to be considered seriously. However, rates, even with another couple of increases, remain near historic lows. i can still remember growing up in the early 1980s and hearing about mortgage rates in the double digits. We aren't even close to that scenario, folks. A quarter-point interest rate hike represents a $13-a-month increase for every $100,000 on a mortgage. Depending on the estimates, the average size of a mortgage in Canada is close to $200,000. obviously in some areas like toronto and Vancouver, it's quite a bit more. some people are going to have to cut back and make tough decisions. But on average, a quarter-point increase means an extra $26 a month. i'd like to think Canadians are better prepared for these types of events than some of the politicians and pundits give them credit for. Again, no one likes to see their expenses rise, but this is the biggest investment of our lives, and like good Canadians we'll get by and make it work. it's time to talk turkey, literally. As the year comes to a close, the social calendar can get pretty busy. First up is thanksgiving, followed by Christmas and the holiday season. i know i have so much to be thankful for and to celebrate with my family this year. most of the year we get caught up in our busy lives, but this is the perfect time to slow down a little and share some moments with the people that mean the most to us. so whatever you celebrate and whomever you celebrate it with, happy holidays! No ReasoN to Worry CoNNECt Check out or blog at dominionlending.ca/news for all the latest mortgage and home news Gary Mauris PresiDent Dominion LenDing Centres FroM tHE DEsK oF prEsiDENt Gary Mauris CoUrtesY oF DLC, istoCK EDITOR michael mcCullough ART DIRECTOR edwin Pabellon COnTRIbUTIng wRITERS David Cooke, Dr. sherry Cooper, Jeremy Deutsch, mandy gill, gord Hamilton, geoff Lee, marc shendale, Danielle Wiebe ExECUTIvE CREATIvE DIRECTOR rick thibert PRODUCTIOn MAnAgER Kristina Borys IMAgIng TECHnICIAn mandy Lau dominionlending.ca PRESIDEnT AnD CO-FOUnDER gary mauris DLC DIRECTOR AnD CO-FOUnDER Chris Kayat vICE-PRESIDEnT OF OPERATIOnS, PR & COMMUnICATIOnS Dave teixeira DIRECTOR OF EvEnTS & SPOnSORSHIPS Lauren smith CREATIvE DIRECTOR Lisa Amor CHIEF ECOnOMIST sherry Cooper STAFF wRITER Jeremy Deutsch For advertising please contact Dave teixeira at 1-888-806-8080 or dave@dlc.ca Your comments are welcome. Please write to Dominion Lending Centres 2215 Coquitlam Ave, Port Coquitlam, BC V3B 1J6 Phone: 1-888-806-8080 Our House magazine is published quarterly by Dominion Lending Centres. no part of this magazine may be reproduced without written permission of the Dominion Lending Centres. Address changes: Jeremy@dlc.ca Canadian Publications mail Product sales Agreement no. 40065475. mortgAge + HomeoWners mAgAZine FA L L 2 01 7

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