After 26 years of being the spring event that kicked off the prime season for many businesses in our area, the local home and cottage show is returning this April.

Mandates and lockdowns prevented the annual Simcoe Spring Home and Cottage Show from being held for the last three years. After this hiatus, the spring show is returning to the Barnfield Point Recreation Centre in Orillia on April 22 and 23.

“The show has become a destination event for many in our community,” says show organizer Glenn Wagner. “Those considering a home renovation or addition, or looking for various home- and cottage-related services, have found a wealth of information at the show. It gives people a fantastic opportunity to talk face to face to the various businesses — and it gives the businesses an excellent two days of talking to their prime prospects. It’s a win-win all under one roof.”

While only January, over half of the booth space for the spring event has been sold. Wagner expects the remainder of the vendor space to go quickly now that the new year is upon us.

“We sell out every year and usually have a waiting list of firms wanting to exhibit. It will be interesting to see if this holds true in 2023. After several years with no event, I expect we will see a good deal of participation from businesses — and I expect attendance to be better than ever.”

Wagner also expressed excitement for the businesses that rely on the show being held.

“It has been a tough time for show organizers with no revenue stream for several years, but also those that rely on the show for income. The drapery and carpet rental firms; the sign companies that supply signage to those exhibiting; the facility owners that receive rent; the restaurants at the facilities — all have been really hurt by the lockdowns and mandates. I’m thrilled we can get this event going again for all concerned.”

The Simcoe Spring Home and Cottage Show will be on at Barnfield Point Recreation Centre Saturday, April 22 and Sunday, April 23 in Orillia.

Interested exhibitors can contact Glenn Wagner at 705-323-0124 or email glennwagner@rogers.com.

Most of us like where we live, but we might not love it. Have you fallen out of love with your home? No sweat! We have the tips to help you fall in love with your home, all over again!

Cleanse and Purge

Depending how long you have lived in your home, you have probably gathered up a number of items that you no longer need, want or use. One of the first steps to falling in love with your home again is purging your space of all that unnecessary stuff. This includes old clothes, furniture you hate and outdated accessories. Removing the old to make way for the new can have a huge effect on how you feel about your home!

Rearrange Your Rooms

Once you have purged all of the unwanted items around your home, you probably have a bit more space to work with! A great way to breathe new life into your space is by re-arranging your furniture! While not all rooms will have optimal space, you might be surprised if you just try and see how it would look with a different layout! Simply moving around your furniture will make your home feel revived, without any extra spend!

Consider a New Colour

If you’re looking for that little extra refresh, a new coat of paint is a great way to get the job done! Changing the tone of your room from darker to lighter, or warm to cool, can make the space feel brand new again! This year’s tones include purples and pink hues, matched with grey and white or pops of teal and blue for that extra 70s vibe!

Or Try a New Style

If you’ve always had a home with traditional cupboards or furniture, it might be time to mix it up! Swapping out a few old pieces for something new, perhaps with a modern twist, can revive any space. Consider starting small by swapping lamps or your coffee table and moving up to larger items like TV stands and bookshelves for that fulsome redo!

Enhance Your Lighting

Lighting has a big effect on mood, and it is the same for your home. Installing new light fixtures, adding or removing lamps, or even changing your bulbs from a bright white to warm or vice versa for a different environment. If you’re looking for that extra ambiance, try a lava lamp or a cute candle tray!

Retouch and Refinish

If you’re not interested in going all out on your home makeover, you don’t have to! There are still plenty of ways you can fall in love with your home again… such as with a little retouching and reviving! A great place to start is your kitchen cupboards, refinishing and painting your existing cabinets is easier than you may think!

Don’t Forget About the Exterior!

While we spend a lot of our time indoor our home, you don’t want to forget about the exterior! New and inviting front door lighting, a cute brick path and some new flowers can create a whole new world for you to enjoy. Consider also adding wicker furniture, an outdoor rug and hanging fairy lights or adding a water feature for that extra relaxation.

Not sure if you can afford updates to your home? Consider utilizing your home equity! Contact Mortgage Man DLC and we can tell you how.

Source: dominionlending.ca

Canadian Jobs Market Booms Despite Rate Hikes

Today’s Labour Force Survey (LFS) for January was much stronger than expected. This raises the question, how long the Bank of Canada’s rate pause will last. This report showed no evidence that the labour market is slowing in response to the vast and rapid runup in interest rates.

Employment surged by 150,000–ten times more than expected–and most of the gain was in full-time jobs. The employment rate has returned to pre-pandemic levels. Employment rates among people 55 to 64 have been on a solid upward trend since the summer of 2022, mirroring the rise in employment over that period observed among most demographic groups.

Immigration Remains a Vital Factor In Hiring

Canada’s population grew the fastest in over 50 years in the third quarter of 2022. This is mainly driven by an increase in non-permanent residents.

Non-permanent residents represent the majority of a larger group. This is including those who were not born in Canada and have never been landed immigrants. Non-permanent residents can hold various kinds of work, study, or residence permits. On a year-over-year basis, employment for those not born in Canada and who have never been a landed immigrant was up 13.3% (+79,000) in January, compared with growth in total employment of 2.8% (+536,000).

The average hourly wages rose 4.5% on a year-over-year basis in January. This is down from 4.8% in December. Although this is good news for the inflation outlook, it still remains much above the 2% target. Year-over-year wage growth reached 5.0% in June 2022 and peaked at 5.8% in November.

The unemployment rate remained near a record low. Which holds steady at 5.0% in January. This is close to record-low 4.9% in June and July last year.

Employment growth was most robust in wholesale and retail trade, healthcare, education, other services and construction.

Bottom Line

The Canadian jobs market is showing no signs of slowing. This has to make the Bank of Canada at least a bit nervous.

This is the last jobs report before the Bank of Canada meets again on March 8. The CPI data for January will be released on February 21 and will be the primary factor determining Bank action. If inflation continues to decline, as expected, the rate pause will hold. If not…

To get the best information tailored to you or if you have any additional questions, please give us a call or feel free to complete an online application!

705.326.8523 | mark@markgood.ca

Please Note: The source of this article is from SherryCooper.com/category/articles/

With many Canadians are experiencing strains caused by the increased cost of living and inflation. Claiming tax credits can help offset the financial burden by putting extra money back in your pocket.

Below, is some of the top credits and deductions that you may be able to claim on your income tax return to help you save money.

Top government tax credits and deductions for this tax season

Some tax credits are offered automatically and applied based on the information you provide in your tax returns. However, you must manually apply for other tax credits (such as the Canada Child Benefit or home office tax credit) when filing your returns.

1. The caregiver tax credit

If you’re caring for a spouse or family member suffering from a mental or physical impairment, you may be able to claim certain expenses with the Canada caregiver credit. To be eligible, you would have to be able to prove that you’re a caregiver for:

•  Either your or your spouse’s child or grandchild
•  Either your or your spouse’s parents, grandparents, siblings, aunt, uncle, niece, or nephew

The dependent must also have lived in Canada for the year you claimed the credit.

2. Home office tax credit (even if you’re an employee)

Working from home is more common than ever, but it also comes with expenses, such as:

•  Increased power usage
•  Increased internet data usage
•  Creating a dedicated office space in your home

Many of these additional expenses can be claimed as a tax credit. You can even claim certain office supplies.

3. Moving expenses tax deduction

Moving to another province or city can come with a host of expenses, such as:

•  Truck rental
•  Fuel
•  Renting storage units
•  Paying movers

Both employees and self-employed workers can qualify for this tax credit.

4. Capital loss tax deduction

The stock markets performed poorly in 2022, and many Canadians lost money on their investments. The good news is that you can claim these losses against your other capital gains for the year.

Capital loss tax credit can reduce your capital gains tax liability.

If you’ve reduced your capital gains tax liability to $0, you can save the unused capital loss tax credit and apply it to future years. (or up to three years prior).

To apply a capital loss to a previous year:

•  You need to file an amendment to your tax return for the year in which you incurred the capital loss.
•  You can only apply the capital loss to a year in which you had capital gains.
•  The capital loss will reduce the amount of capital gains you had in that year, potentially resulting in a lower tax liability.
•  To apply a capital loss to a future year:
•  There is no need take any action in the year you incur the capital loss.
• Capital loss can be used to offset capital gains in future years until the capital loss is fully used up.
•  You must claim the capital loss in the year you want to use it to offset capital gains.

5. GST/HST tax credit

The GST/HST sales tax credit is automatically paid to eligible Canadians on a quarterly basis (every three months). A person is eligible for this credit based on their income that was reported the previous tax year and is reassessed on an annual basis.

6. Canada child benefit (CCB)

The CCB is a monthly payment issued by the CRA to parents or guardians of children under 18 years old to help with the costs of raising children. The amount you’ll receive depends on your reported income, your living situation, and the number of dependent children you’re caring for.

The federal CCB payment may also be combined with provincial child tax credits as well, which can increase the amount you’re eligible to receive.

Bonus tip : if you’ve already used tax credits to reduce your income tax liability to $0, then you might be able to transfer a certain amount of your unused tax credits to your spouse or common law partner to help them reduce their taxes.

Government credits often go unclaimed

Canadians can file their income tax returns by paper or online using NETFILE-certified tax software. Some of these programs can help you figure out what tax credits you may be eligible for.

It may be a good idea to consider hiring an accountant to help you file, if you’re unsure which tax credits you may be eligible for.

Source: CTV News  https://www.ctvnews.ca/business/before-you-do-your-taxes-take-note-of-these-tax-credits-and-deductions-you-may-not-have-known-about-1.6264245?utm_campaign=manual&utm_medium=trueAnthem&utm_source=linkedin.

If you are in the market for a home or a new car, you are probably very familiar with your credit score. Lenders are one of the primary users of credit scores and it can have a huge impact on whether you get approved for a loan and just how much interest it is going to cost you. What isn’t well known about credit scores is where they come from, what makes them go up (or down!) and who else besides potential lenders uses them to make decisions? Your credit score is going to be with you for life, so why not take a couple of minutes to get the facts.

1. There are two credit-reporting agencies in Canada: Equifax and TransUnion. Your credit score may vary between the two. Lenders may check one or both agencies when you apply for credit.
2. Your credit score is actually derived from the data in your credit report — which can be had for free once per year from Equifax and TransUnion. Some banks, credit unions, and other financial services companies provide your credit score fo
3. r free as part of their services.
4. Credit scores range between 300 and 900 with the Canadian average being 650.
5. Your credit score is used for a lot more than just borrowing money; insurance companies, mobile phone providers, car leasing companies, landlords and employers may all require your credit score to make decisions.
6. Five factors affect your credit score: length of credit history, credit utilization or how much of your limit you have used, the mix/types of credit you hold, the frequency you apply for credit, your payment history.
7. Mistakes and omissions are not uncommon and is a good idea to check the details of your credit report. Both agencies have a process to report errors and get them corrected.
8. Credit scores of 700+ are considered “good” and offer a higher chance of loan approval, greater borrowing limits, and lower or “preferred” interest rates and insurance premiums.
9. Credit scores are continuously evaluated and adjusted. If you have “errored” in your past, the damage is not permanent! Your score can be raised/rebuilt by using credit responsibly (see #10).
10. Checking your credit score regularly is a good idea and will help detect errors, monitor improvements, and identify fraud. This is a “soft” enquiry and will not affect your score.
11. To increase your credit score: make payments on time, pay the full amount owing, use 35% or less of your available credit, hold a variety of credit types, apply for new credit sparingly.

Don’t make the mistake of ignoring your credit score. Even if you aren’t looking to borrow money anytime soon, there are a lot of reasons to keep an eye on it.

For powerful personal finance education and training with immediate results, check out the complimentary livestreams each week from Enriched Academy. View the schedule and sign up for upcoming sessions on their events page.

Blog Credit: DLC Marketing Team

Bank of Canada Will Not Be Happy With This Inflation Report

Not only did the headline CPI inflation rate stall at 6.9% last month, but the core CPI numbers remain stubbornly high. Food inflation–a highly visible component–edged down slightly. Still, prices for food purchased from stores (+11.0%) continued to increase faster year over year than the all-items CPI for the eleventh consecutive month. Bonds fell on the news, with Canada’s two-year yield rising to 3.877% at 8:43 a.m. Ottawa time, about 3.5 basis points (bps) higher than its level before the data release. The yield on 5-year Government of Canada bonds spiked temporarily on the release of these disappointing inflation data. This was in direct contrast to the US, which posted a better-than-expected inflation reading for October last week.

Less than two weeks after a stronger-than-expected jobs report, the inflation numbers continue to show the economy in overheated territory. Bank of Canada Governor Tiff Macklem has said that rates will need to continue to rise further while acknowledging the end of this tightening cycle is near.

Traders are pricing at least a 25 basis-point increase at the next policy decision on Dec. 7, with a 50-50 chance of a half percentage point hike. The central bank has increased borrowing costs by 3.5 percentage points since March, bringing the benchmark overnight lending rate to 3.75%.

A significant factor in the Bank’s decision process is the continued rise in wage inflation to a 5.6% annual pace in October. If inflation expectations remain robust, wage-price spiralling becomes a real threat.

Bottom Line

Price pressures might have peaked, but today’s data release will not be welcome news for the Bank of Canada. There is no evidence that core inflation is moderating despite the housing and consumer spending slowdown. The average of the Bank’s favourite measure of core inflation remains stuck at 5.3%. The central bank slowed reduced its rate hike at the October 26th meeting to 50 bps, and while some traders are betting the hike in December will be 25 bps, there is at least an even chance that the Governing Council will opt for an overnight policy target of 4.25%.

Inflation is still way above the Bank’s 2%-target level. Ultimately, it will take a higher peak interest rate to break the back of inflation. I expect the policy target to peak at about 4.5% in early 2023 and to remain at that level for an extended period despite triggering a mild recession in early 2023.

Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres
drsherrycooper@dominionlending.ca

The Governing Council of the Bank of Canada raised its target for the overnight policy rate by 75 basis points today to 3.25% and signalled that the policy rate would rise further. The Bank is also continuing its policy of quantitative tightening (QT), reducing its holdings of Government of Canada bonds, which puts additional upward pressure on longer-term interest rates.

While some Bay Street analysts believed this would be the last tightening move this cycle, the central bank’s press release has dissuaded them of this notion. There has been a misconception regarding the so-called neutral range for the overnight policy rate. With inflation at 2%, the Bank of Canada economists estimated some time ago that the neutral range for the policy rate was 2%-to-3%, leading some to believe that the Bank would only need to raise their policy target to just above 3%. However, the neutral range is considerably higher, with overall inflation at 7.6% and core inflation measures rising to 5.0%-to-5.5%. In other words, 3.25% is no longer sufficiently restrictive to temper domestic demand to levels consistent with the 2% inflation target.

As the Bank points out in today’s statement, though Q2 GDP growth in Canada was slower than expected at 3.3%, domestic demand indicators were robust – “consumption grew by about 9.5%, and business investment was up by close to 12%. With higher mortgage rates, the housing market is pulling back as anticipated, following unsustainable growth during the pandemic.”

Wage rates continue to rise, and labour markets are exceptionally tight, with job vacancies at record levels. We will know more on the labour front with the release of the August jobs report this Friday. But the Bank is concerned that rising inflation expectations risk embedding wage and price gains. To forestall this, the policy interest rate will need to rise further.

Traders are now betting that another 50-bps rate hike is likely when the Governing Council meets again on October 25th. There is another meeting this year on December 6th. I expect the policy rate to end the year at 4%.

Bottom Line

The implications of today’s Bank of Canada action are considerable for the housing market. The prime rate will now quickly rise to 5.45%, increasing the variable mortgage interest rate another 75 bps, which will likely take the qualifying rate to roughly 7%.

Fixed mortgage rates, tied to the 5-year government of Canada bond yield, will also rise, but not nearly as much. The 5-year yield has reversed some of its immediate post-announcement spike and remains at about 3.27% (see charts below). Expectations of an economic slowdown have muted the impact of higher short-term interest rates on longer-term bond yields. This inversion of the yield curve is consistent with the expectation of a mild recession next year. It is noteworthy that the Bank omitted the usual comment on a soft landing in the economy in today’s press release. Bank economists realize that the price paid for inflation control might well be at least a mild recession.

Another implication of today’s policy rate hike is the prospect of fixed-payment variable-rate mortgages taken at the meagre yields of 2021 and 2022, hitting their trigger rate. There is a good deal of uncertainty around how many these will be, as the terms vary from loan to loan, but it is another factor that will overhang the economy in the next year.

We maintain the view that the economy will slow considerably in the second half of this year and through much of 2023. The Bank of Canada will hold the target policy rate at its ultimate high point– at least one or two hikes away– through much of 2023, if not beyond. A return to 2% inflation will not occur until at least 2024, and (as Governor Macklem says) the Bank’s job is not finished until then.

This article is shared from Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres
drsherrycooper@dominionlending.ca

Please let me know if you have any questions,
Mark

A Super-Sized Rate Hike, Signalling More To Come

The Governing Council of the Bank of Canada raised its target for the overnight policy rate by a full percentage point to 2-1/2%. The Bank is also continuing its policy of quantitative tightening (QT), reducing its holdings of Government of Canada bonds, which puts additional upward pressure on longer-term interest rates.

In its press release this morning, the Bank said that “inflation in Canada is higher and more persistent than the Bank expected in its April Monetary Policy Report (MPR), and will likely remain around 8% in the next few months. While global factors such as the war in Ukraine and ongoing supply disruptions have been the biggest drivers, domestic price pressures from excess demand are becoming more prominent. More than half of the components that make up the CPI are now rising by more than 5%.”

The Bank is particularly concerned that inflation pressures will become entrenched. Consumer and business surveys have recently suggested that inflation expectations are rising and are expected to be higher for longer. Wage inflation has accelerated to 5.2% in the June Labour Force Survey. The unemployment rate has fallen to a record-low 4.9%, with job vacancy rates hitting a record high in Ontario and Alberta.

Central banks worldwide are aggressively hiking interest rates, and growth is slowing. “In the United States, high inflation and rising interest rates contribute to a slowdown in domestic demand. China’s economy is being held back by waves of restrictive measures to contain COVID-19 outbreaks. Oil prices remain high and volatile. The Bank expects global economic growth to slow to about 3½% this year and 2% in 2023 before strengthening to 3% in 2024.”

Further excess demand is evident in the Canadian economy. “With strong demand, businesses are passing on higher input and labour costs by raising prices. Consumption is robust, led by a rebound in spending on hard-to-distance services. Business investment is solid, and exports are being boosted by elevated commodity prices. The Bank estimates that GDP grew by about 4% in the second quarter. Growth is expected to slow to about 2% in the third quarter as consumption growth moderates and housing market activity pulls back following unsustainable strength during the pandemic.”

In the July Monetary Policy Report, released today, the Bank published its forecasts for Canada’s economy to grow by 3.5% in 2022–in line with consensus expectations–1.75% in 2023 and 2.5% in 2024. Some economists are already forecasting weaker growth next year, in line with a moderate recession. The Bank has not gone that far yet.

According to the Bank of Canada, “economic activity will slow as global growth moderates, and tighter monetary policy works its way through the economy. This, combined with the resolution of supply disruptions, will bring demand and supply back into balance and alleviate inflationary pressures. Global energy prices are also projected to decline. The July outlook has inflation starting to come back down later this year, easing to about 3% by the end of next year and returning to the 2% target by the end of 2024.”

Bottom Line
Today’s Bank of Canada reports confirmed that the Governing Council continues to judge that interest rates will need to rise further, and “the pace of increases will be guided by the Bank’s ongoing assessment of the economy and inflation.” Once again, the Bank asserted it is “resolute in its commitment to price stability and will continue to take action as required to achieve the 2% inflation target.”

At 2.5%, the policy rate is at the midpoint of its ‘neutral’ range. This is the level at which monetary policy is deemed to be neither expansionary nor restrictive. Governor Macklem said he expects the Bank to hike the target to 3% or slightly higher. Before today’s actions, markets had expected the yearend overnight rate at 3.5%.

Courtesy of Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres
drsherrycooper@dominionlending.ca