As our Canadian dollar approaches par with the American dollar, I'm thinking now may be a good time to take an extended holiday down south... but I am also feeling the tug of our ever-changing economical situation here in Canada, and can’t help wondering what this may mean for Canadian business as a whole.
Last year was anticipated to be a rough one and, truth be told, every aspect of our country was affected by the downward movement of our economy.
However, just as the horizon seems to be looking bright and nice in 2010, it is hard not to wonder what after-effects will ripple through our communities when the Canadian dollar hits par. It is expected that interest rates will rise, due to growing inflation.
Fast-Forward to July
Still, nothing happens overnight - so let's fast forward to July 2010, by which time...
- The Canadian dollar is at par with the American dollar
- Interest rates are rising
- Government lending guidelines have changed, requiring 10% down for all residential mortgages
- Twice as high down is now required for investment properties
- HST has arrived and the cost of everything you purchase has rose from gas to groceries and renovations
Optimistic Plan of Action
I have always thought of myself as an optimist and like to think that I still am. So for now, here is how I am going to deal with these changes:
- Plan my trip south
- Buy what I need for investments
- Educate my clients on their down payment options
- Coach and assist those struggling to find good news in all this
I hope that, despite all these upcoming changes, you too can see the light at the end of tunnel!
Cindy Haggerty is a broker at Century 21 Lanthorn Real Estate Ltd. Brokerage in Napanee, Ontario.