Canadian Personal Finance Blog

Bank of Canada Rate down 3/4% Will Banks do the Same?

Bank of Canada decided a 3/4 point drop was needed to help stimulate the economy. That means the overnight rate is now 1.5% which is it’s lowest since the early 1960’s, holy cow.

While Canada’s economy evolved largely as expected during the summer and early autumn, it is now entering a recession as a result of the weakness in global economic activity. The recent declines in terms of trade, real income growth, and confidence are prompting more cautious behaviour by households and businesses.

That spells it out clearly why we are getting these low rates, but as usual I warn my readers, this is not an excuse to get further in debt, it is an opportunity to get OUT of debt, if you have a variable rate credit facility. Continue your regular payments, and you now are paying more of your debt off!

The more interesting question will be how much of this cut the banks will pass on to consumers? Currently “prime” for TD is 4.00% , what will it be today? Should be interesting to check that one out.

I note also that their rate on their green visa card is 19.75%, hope no one is paying that rate.

Congratulations Jean Charest

Belated congratulations to Monsieur Charest for his Victory on Monday as well. Hope this means 4 years of relative peace and quiet on the Quebec political scene, but having grown up in Quebec, I know that will not be the case, it is NEVER dull in Quebec. I expect to see Mario Dumont appointed ambassador to France or something of the like (if the Tories hold onto power). As for Mme. Marois, good luck, remember all political parties in Quebec grow weary of their leaders (quickly), if they do not win.

Advent Financial Calendar Box Day 11

You open this box and it is a list with the following entries:

Television  $300
Jewelery    $3000
….

It is a home inventory of your valuables in case you are robbed, or your house burns down. There really is no excuse not to have a home inventory, and even better if you have serial numbers, model numbers and possibly a picture of each valuable item, because Insurance companies are going to ask for it, if there is a claim. 

And you can put your home inventory list in either your home safe, or in your safety deposit box.

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