March 13, 2009
This weeks top stories include a statement from Flaherty that Canada will exit the recession before other countries while the International Monetary Fund agrees that we are in a better place than most counties. That contradicts more recent statements from both RBC and TD. Also, how some people are being shocked at the size of their mortgage penalties when it comes time to refinance.
Our Canadian Finance Minister Jim Flaherty stated on March 11th that the world’s eighth-largest economy may come out of recession before other countries. He will also state the imperative of the United States and the Europeans to fix their banking systems at the G-20 meeting this weekend while the Canadian economy succumbs to another hit, losing another 82 600 jobs in February alone.
While Finance Minister Jim Flaherty was optimistic about Canada seeing growth in the 3rd quarter of this year, the Toronto Dominion Bank has sharply downgraded its economic forecast for Canada and expects more than half a million jobs to disappear over the course of the downturn.
TD’s economists predict that Canada’s economy will shrink by 2.4 per cent this year and post a growth of only 1.3 per cent in 2010. This forecast suggests that the recession will be deeper and longer than predicted not only by Flaherty but by the Bank of Canada as well.
As interest rates fall to record lows, an abundance of people are looking to break their mortgage and negotiate lower rates. Majority of people are finding that it’s not as easy as they thought and in some cases won’t even save them a cent. What we’re finding is that penalties to break mortgages these days are more than just the average 3 month interest penalty. We are finding that banks and lenders have hefty penalties, in some cases, larger than $10 000 and the cost to refinance is eating up the savings available to them.
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