5 Expenses That Will Consume 50% of Your Lifetime Earnings

Ever wonder where all of your money goes? below are the top 5 expenses for North Americans that will consume at least 50% of your income.
1. home
2. vehicle
3. kids
4. Education
5. retirement

Click here to read the full article from Forbes for some helpful hints and guidelines to keep this in check.

Variable Rate May No Longer Win

Over the past 50 years consumers have saved money by choosing a variable rate mortgage, as long as they hold onto that variable rate over their term. Variable rate is still a lower option, but with the pending increase in the prime rate of another 1/4% in September and fixed rates close to historic lows, more Canadians may be favoring the fixed rates.

Fixed or variable, this seems to always be the question. One answer is if you are currently in a variable rate mortgage and are comfortable with your financial situation and don't need to fix your mortgage payments, you may want to ride it out. Click here to see the complete article form the Financial Post

Bank of Canada Raises rate by .25%

The bank of Canada announced today that it is again raising the overnight rate by 1/4% today (bringing the bank prime rate to 2.75%). This rate increase was expected by most annalists and the major banks. The overall Canadian economic recovery pace has slowed down slightly from what was originally expected.

The Bank expects the economic recovery in Canada to be more gradual than it had projected
Inflation in Canada has been broadly in line with the Bank's April projection. While the Bank now expects the economy to return to full capacity at the end of 2011, two quarters later than had been anticipated in April, the underlying dynamics for inflation are little changed. Both total CPI and core inflation are expected to remain near 2 per cent throughout the projection period, which should keep the interest hikes at a manageable level.

HST how does it work?

HST comes into effect for every one who resides in British Columbia tomorrow. What does that mean to have average person living in BC? How much is it going to increase your cost of living each year and what is going to be taxed differently. Click here for the New HST website to help you figure it out.

Fixed or Variable Rates? Why not both?

when getting a new mortgage or if you are renewing our current mortgage, the big question is do you go with a variable (floating rate) or take the security of a fixed rate. In recent years a number of lenders will allow you to have both mortgages, under the umbrella of one mortgage. In laymen terms they are called combination or hybrid mortgages, where the lenders will allow you to take advantage of the very low variable rate for a potion of your mortgage and put the rest in a secure fixed rate. This gives you the best of both worlds. When using a mortgage broker you will always get the wholesale rates as well as the right advice to determine if this type of mortgage is best for you. Please click here for the complete article form National Post.

Bank of Canada Raises rate by .25%

After more than a year at a record low level, Bank of Canada Governor Mark Carney raised the benchmark interest rate for the first time since 2007 by one-quarter percentage point to 0.5 per cent(banks prime rate to 2.5%). This is the first time since 2007 that that rate has increased and the Bank of Canada is the first in the Group of Seven to do so since the financial crisis and recession began in 2008.

In a statement Carney emphasized that the increase should not be interpreted as just the first of more to come. "This decision still leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the significant excess supply in Canada, the strength of domestic spending and the uneven global recovery,'' the central bank said. ``Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments.''

Click here to read the BOC press release.

BOC expected to raise rates June 1st

Higher than expected inflation, strong retail sales and the fact that Canada is leading the economic recovery are just some of the reasons we may see a rate hike when the Bank of Canada meets June 1st. Domestically speaking all signs point to a rate increase of probably .25%. The record low interest rate is of .25% is too low considering our economic position the past few months, and was kept there this past year as an emergency action to stimulate consumer spending.

To read the full story click here