Zev Smith

Sometimes, the best move is to take a deep breath, keep faith, and let go. In moments of uncertainty, let life take you on a path of self-discovery. Embracing the unknown can lead to beautiful experiences. What new doors are you opening in your life? Whether it's a career shift, a new hobby, or a move to a place you've always dreamed of, embracing change can bring unexpected joys.

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It was a pleasure catching up with Allan Grego on the Moneris Just Good Business podcast. 🎙 It has been 2 years since we last spoke, and a lot has happened in that time, both in the contactless payments space, and at tiptap . ⌚ Have a listen as we catch up on all the things. 👇 #Fintech #ContactlessPayments #GivingBack #Charity #NonProfit

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Bottom Line Economists are divided on whether the Bank of Canada will cut by 25 or 50 basis points on December 11. The October inflation data, released on Tuesday, November 19, will become all the more critical. The numbers are expected to be good, meaning low, but not as low as the 1.6% y/y inflation rate posted for September, driven down by the marked fall in gasoline prices. Monetary policy remains overly restrictive as the 3.75% overnight policy rate remains well above the inflation rate. We expect the overnight rate to fall to 2.5% by April or June of next year. This should continue to boost housing activity, which picked up significantly in October. Full data for October housing nationwide will be released next week on Friday, November 15. All signals bode well for a sharp increase in housing activity by the spring, if not markedly sooner. 

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If you were renewing your mortgage in the next 90 days, would you fix at 5% or go with a 6.5% variable, hoping rates will continue to decline? With possibly 3 more rate cuts this year and overall inflation creeping closer to the 2% target it seems like a 4.5% rate is possible in 2025, but the additional costs @ 6.5% for the next 12 months just don't make sense. Agree or disagree?

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What you need to know about the Bank of Canada’s latest rate cut. Josh Nye, Canadian Fixed Income Strategist, shares three key takeaways.

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This week in Mortgage News: The Bank of Canada has recently lowered its key interest rate, sparking discussions about the potential for even larger cuts in the near future. This decision aims to address ongoing economic challenges and stimulate growth, leading to speculation about its impact on the housing market and broader economic stability. 🔑Three Key Takeaways🔑 🏘️Recent Rate Cut: The Bank of Canada has decreased its key interest rate, signaling a shift in monetary policy. 🏘️Potential for Further Cuts: Analysts are debating whether more significant rate reductions might follow to bolster economic growth. 🏘️Housing Market Impact: The lower rate could make mortgages more affordable, potentially influencing the housing market. If the Bank of Canada continues to cut rates significantly, how might this reshape your approach to investing in property or managing your mortgage? • • • Like ♥ this post if it resonates with you! 🔒Save it for later, and tag a friend if this can help them! 👯‍♀ • • Follow Erica Vincelli Mortgage Agent for more great mortgage tips!

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Tomorrow is Giving Tuesday! - Did you know that the need for Food Banks has increased by 25% in the last year, and that 43% of those users had never had to use a Food Bank before? In the GTA, 1 in 10 people need to use a Food Bank. - Did you also know that because of this record high demand, about 40% of food banks in the province have had to decrease the amount of food they provide, meaning more people are going to go hungry? - Another issue is that less people are able to give donations because of unemployment etc - I am one of them, as I used to be a monthly donor to the Daily Bread Food Bank, but have been out of work since June 4, 2024 and had to stop giving. Please consider donating to your local food bank and help people facing food insecurity. For organizations like The Daily Bread Food Bank, they will be matching donations tomorrow, meaning that your donation will provide TWICE the amount of food, and hope. #strongertogether #helponeanother #givingtuesday #foodinsecurity #feedontario #cp24 #dailybreadfoodbank

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🌟Bank of Canada Cuts Interest Rates: What’s Next?🌟 Today, the Bank of Canada made its third consecutive 25-bps rate cut, lowering the policy rate to 4.25%. As expected, the central bank continues to respond to signs of a gradually weakening economy and easing inflation pressures. Governor Macklem’s latest remarks reflect a clear pivot towards addressing downside risks to economic growth. Inflation, once the primary concern, is now receding to more normalized levels. In fact, core inflation (CPI trim and median) for Q3 is tracking close to the BoC’s target at 2.6%, a significant improvement from the highs of the pandemic era. But while inflationary pressure is easing, the economy is facing fresh challenges. GDP growth remains below potential, largely due to surging population numbers outpacing hiring demand. This dynamic has led to still-elevated wage growth, despite a slowdown in productivity. The bottom line: while rates remain at ‘restrictive’ levels, further cuts are on the horizon as the BoC navigates this shifting economic landscape. With growth forecasted to underperform in Q3, it’s reasonable to expect additional action from the central bank in October. The focus now is balancing economic stability with inflation targets. It will be interesting to see how these dynamics unfold over the next quarter. #Economy #Finance #BankofCanada #InterestRates #EconomicGrowth #Inflation #Leadership #CanadianEconomy #RiskManagement

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Picture this: A young couple, hand in hand, walking through a home, already mentally placing their furniture, deciding on paint colors, their excitement palpable. Now imagine them discovering that the home they've fallen for is just out of reach financially. It's a common story, and it's one I've seen unfold too often. Here's the inside scoop I share with all first-time buyers: Secure your pre-approval first. It's like having a VIP pass at a concert — doors open for you. Knowing what you can afford transforms you from a hopeful browser to a serious buyer with the power to make a solid offer. Think of pre-approval as your home-buying compass. It points you to the homes that are in your range, saving you from the heartache of falling for one that isn't. It's your financial mirror reflecting what's possible and what's a stretch. If you're ready to move from daydreaming to deal-making, let's talk about getting you pre-approved. It's a simple step that can save a world of heartbreak and pave the way to your new home.

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RESPs – beyond the basics & time to raise the maximum? The basic idea is to contribute $2,500 per year – i.e. “assisted contributions” – to receive a maximum $500 Canadian Education Savings Grant (CESG), which essentially gives you a 20% return right off the bat. The CESG max’s out at $7,200. As you can see from the attached picture, that brings your total contribution to $36,000. However, the max contribution that you can make is $50,000. Most people miss the $14,000 “unassisted contribution” that can be made at any time. It is most powerful to do right away to get the benefit of compounding – the first contribution (year of birth) would be $16,500 ($2,500 assisted + $14,000 unassisted). We’ve seen families make the full $50k maximum all in year 1 (you’d get $500 CESG). The choice is to forgo $6,700 in CESG (~13% of $50k; i.e. the opportunity cost) to make more money with compounding the full amount for longer. Although it is satisfying to have the gov’t help out. In fact, if you assume a straight-line return of 3% (or more) and run the two strategies above, the second one ($50k right away) is superior. If you’ve missed some years, you can only catch up one previous year at a time. For example, if you missed 2 years, you can make your 2023 contribution and 1 previous year – contribute $5,000 and receive $1,000 in grant. Next year you would do your 2024 contribution and receive another $1,000 to be fully caught up. CESG will only be paid until the year that child turns 17, so if you have many years to get caught up you might not be able to max the grant, but you can still contribute up to $50k. A less well-known fact is that your child isn’t restricted to Canadian institutions. So, if they want to go to school in the US, they can, and you can use their RESP to help fund it. Taxes: good news, there’s no tax on withdrawing your total contributions. Assuming your child goes to a qualifying post-secondary school, the investment returns (income, dividends, cap gains) plus the CESG amount are paid out – called Educational Assistance Payment (EAP) – as ordinary income but are taxed in the hands of the student. Since your little (or maybe not so little) scholar probably isn’t making much income while they are a student, the tax on the EAP will likely be small. The second part of the initial headline is whether it’s time to raise the maximum contribution from $50k to something greater. Education is a major family expense. Our experience is that tuition and living expenses cost about $10k per semester ($20k/yr.), making the total for a 4-year program about $80k. By 2040, that number is projected to rise with inflation to about $135k (https://lnkd.in/gRXjXN-N). We’re finding that RESP projections with a 5% rate of return expectation falls short by tens-of-thousands which will then eat into savings earmarked for other things…is it time to reassess the maximum and CESG?

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#DYK that giving compassion feels as good as receiving it. Researchers found that when we extend kindness, our bodies release oxytocin, the "feel-good" hormone. Learn more at https://lnkd.in/gxXcjUdB Join in from May 6 to 12, 2024 to explore how compassion connects us all. #MentalHealthWeek #CompassionConnects

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This week in mortgage news, we learned the Canadian government's new amortization rules aim to improve housing affordability by allowing first-time homebuyers to take out insured mortgages with extended 30-year amortization periods. However, the impact is expected to be limited due to restrictions that only apply to new builds under $1 million. 🔑 Three Key Takeaways 🔑 ➡️ Limited Impact: The new rules mainly benefit first-time buyers in less expensive markets, as most new builds in areas like the GTA and Vancouver exceed the price cap. ➡️ Increased Borrowing Power: While amortization extensions can slightly increase borrowing power, the overall impact on affordability is minimal, with only a 3-5% increase. ➡️ Market Conditions: Despite measures to enhance affordability, conditions remain challenging, with housing affordability still near historic lows in many parts of Canada. In your opinion, how do you think these changes will impact first-time homebuyers in your area?

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