In January, the Bank of Canada cut interest rates by one-quarter-percentage point. This led to a number of our offices reporting higher than usual activity over the last month.
So, will the Bank of Canada make an additional cut when they meet tomorrow?
Dr. Sherry Cooper - our very own Chief Economist - offers her insight in this first of many upcoming Youtube videos. Click the graphic above or HERE to watch!
An important piece of information about home purchasing ... Fill out one box on your tax forms and get a $750 tax rebate!!
The Economic Action Plan includes a First-Time Home Buyers’ Tax Credit (HBTC) to help?
The HBTC assists first-time home buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes, which are a particular burden for first-time home buyers, who must also save for a down payment.
When doing your taxes for 2014, check to see if the following criteria apply to you and make sure to make use of this credit:
You can claim an amount of $5,000 for the purchase of a qualifying home acquired in 2014, if both of the following apply:
-you or your spouse or common-law partner acquired a qualifying home; and
-you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).
This means that essentially you can decrease your declared income by $5,000 allowing for reduction in the amount of taxes you owe. The Home Buyers' Tax Credit, at current taxation rates (15%), works out to a rebate of $750 for all first-time buyers. After you buy your first home, the credit must be claimed within the year of purchase and it is non-refundable.
Canada’s big banks reduced their prime lending rates in the wake of the Bank of Canada’s unexpected move last week, but stopped short of matching the central bank’s quarter-percentage-point cut in a bid to protect profits.
Royal Bank of Canada was first to announce Tuesday that it would cut its rate by 0.15 percentage points to 2.85 per cent on Wednesday. Toronto-Dominion Bank, Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada and Bank of Nova Scotia swiftly followed suit with identical cuts.
CBC banks lower prime lending rates
The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent. This decision is in response to the recent sharp drop in oil prices, which will be negative for growth and underlying inflation in Canada.