Did you know? The Canada Revenue Agency (CRA) has created a single Web page where businesses can access all available online options for managing their tax information.

Toronto, Ontario, February 20, 2012 … The Honourable Gail Shea, Minister of National Revenue, accompanied by Costas Menegakis, Member of Parliament for Richmond Hill, today visited the Royal Ontario Museum to promote the children's arts tax credit, a new non-refundable credit passed in the 2011 federal budget.

Highlights:

• Home sales were down 4.5% from December to January.
• Actual (not seasonally adjusted) activity came in 4.0% above levels in January 2011, and stood even with the 5 and 10 year averages for January sales.
• The number of newly listed homes edged down 1.4% from December to January.
• With sales down by more than new listings, the national market shifted further into balanced territory.
• The national average home price was up less than 2% year-over-year in January, ranking it among the smallest increases of the past year.

Sales activity recorded through the MLS® Systems of real estate Boards and Associations in Canada fell 4.5 per cent from December 2011 to January 2012. This marks the first monthly decline in national activity since August 2011 and the biggest monthly decline since July 2010. The monthly decline reversed a string of monthly increases over the closing months of last year, and returned national activity to where it stood at the end of the third quarter of 2011.

“The national housing market is stabilizing and remains well balanced,” said Gary Morse, CREA’s President. “That said, forecasts for economic and job growth going forward vary widely for different parts of the country, suggesting a possible continuation of a softening trend in some markets, as well as the potential that demand will pick up based on strong fundamentals in others. All real estate is local, so talk to your local REALTOR® to understand how price trends in your neighbourhood are shaping up.”

Activity was down in over half of all local markets in January from the previous month. Led by declines in Greater Toronto and Montréal, demand also softened in a number of other major urban centres including the Fraser Valley, Calgary, Edmonton, Winnipeg, Ottawa, and Greater Vancouver.

Actual (not seasonally adjusted) national sales activity was up four per cent from year-ago levels in January, the smallest year-over-year increase since last May. As was the case in a number of months last year, actual sales in January 2012 stood close to the five and ten year average for the month.

The number of newly listed homes edged down 1.4 per cent on a month-over-month basis in January following a 2.9 per cent increase in December. The monthly decline in new supply reflects a drop in new listings in a number of Canada’s largest urban centres, which offset a jump in new listings in Vancouver.

Sales fell in January shifting the national market back towards the mid-point of balanced territory and reversing the recent trend which had seen the market becoming tighter over the final four months of 2011. The national sales-to-new listings ratio, a measure of market balance, stood at 53.8 per cent in January, down from 55.5 per cent in December and 55.4 per cent in November.

Based on a sales-to-new listings ratio of between 40 to 60 per cent, 60 per cent of local markets were balanced in January. Compared to December, there were fewer buyers’ and sellers’ markets, and a greater number of balanced markets.

The number of months of inventory stood at six months at the end of January on a national basis, up from 5.7 months in December 2011 and returning it to where it stood in October 2011. The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is another measure of the balance between housing supply and demand.

The actual (not seasonally adjusted) national average price for homes sold in January 2012 was $348,178, representing an increase of 1.2 per cent from its year-ago level. This ranks among the smallest increases since late 2010.

On a seasonally adjusted basis, the national average home price rose 1.6 per cent on a month-over-month basis, marking a rebound from a decline of similar magnitude in December. This pattern mirrors the one playing out in the newly-launched MLS® Home Price Index (HPI), published on February 6.

“Year-over-year comparisons in the national average price are expected to become volatile and may turn negative, reflecting average price developments in the first half of 2011 in Vancouver,” said Gregory Klump, CREA’s Chief Economist. “At that time, high-end home sales in Vancouver’s priciest neighbourhoods surged to all-time record levels, which skewed the national average price upward considerably. A replay of this phenomenon is not expected this year. As a result, comparisons for national average price to year-ago levels over the coming months will reflect an upwardly skewed base effect. For this reason, year-over-year comparisons should be kept in perspective. Developments in the MLS® HPI will provide important guidance on price trends, since it is not affected by the problem of compositional shifts in the mix of sales activity.”

The MLS® HPI also takes into account the contributions toward the price of a home made by a broad range of quantitative and qualitative housing features, allowing it to track Canadian home price trends better than any other measure.

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differential between geographic areas.

Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 100,000 REALTORS® working through more than 100 real estate Boards and Associations.

Further information can be found at http://www.crea.ca/public/news_stats/media.htm.

Ottawa, Ontario, February 10, 2012… The Canada Revenue Agency (CRA) will revoke the charitable registration of Escarpment Biosphere Foundation Inc., a Toronto area charity. The notice of revocation will be published in the Canada Gazette with an effective date of February 11, 2012.

Depending on how they are used, your credit cards can help – or hurt – your chances of being approved for a mortgage.

How can they hurt you?

Everyone already knows that late payments or defaults on an account will negatively impact your credit. That’s pretty obvious, right? Well that’s not what I want to talk to you about. Rather, let’s talk about some of the lesser-known reasons they can hurt you.

1. Applying for new cards right before a mortgage

Every time you apply for credit, a so called “hard” credit inquiry (credit check) is performed. These are saved on your credit report for a period of time – in Canada an inquiry is typically purged 3 years from the date it was made.

So why should you care about having inquiries on your file? Because they affect your credit score!

That means you don’t want to make a hobby out of randomly applying for credit cards, especially in the months before your mortgage application. Even though the inquiry remains on your file for up to 3 years, it has the greatest influence on your score during the first 6 months (and as they become older, their impact diminishes).

2. Using too much of your credit limit

What percentage of your card’s limit do you use? That’s important to consider, because it affects your credit score; using too much of your available credit will hurt you.

Since the credit scoring formulas are secret, no one can say precisely how much is too much. But the consensus is that it’s best to never use more than 20% or 30% of your limit. So for example, if you had a Visa card with a $10,000 limit, that would mean never using more than $2,000 or $3,000.

Even if you pay your credit card bills in full every month, you still should pay attention to this. Why? Because creditors will usually report the amount reflected on your monthly statement when it closes (that means, before you pay it).

So if you plan on applying for a mortgage soon, don’t use your credit cards too heavily.

3. Letting your cards sit dormant

Many people have several credit cards they’ve collected over the years, but they only use one of them on a regular basis.

If an account remains dormant for a long period of time, the creditor may stop reporting it on a monthly basis to the credit agencies. Furthermore, it is suspected that the scoring formula counts inactive accounts differently than active accounts.

For these reasons, it’s always a good idea to “dust off” your unused accounts at least once every 3 or 4 months. By simply making a purchase (even it’s something inexpensive, like a cup of coffee) it will keep the accounts active.

How can they help you?

The good news is that if you manage your credit cards the right way, they can be extremely useful in helping you get a mortgage. Here are a few reasons why.

1. Credit diversity is important

To achieve a high credit score, you will need to have a mix of accounts. That means you can’t have only loans or only credit cards on your report. Instead, banks like to see a diverse mix of accounts. This demonstrates to them that you know how to manage different types of credit.

The types of accounts fall under 2 categories:

• Installment Loans: Basically any type of loan will fall under this category. Car loans, student loans, mortgages, etc.
• Revolving Credit: This is a type of account that doesn’t have a fixed number of payments. For the most part, the only thing in this category is credit cards.

To achieve the best credit scores, you should have accounts which fall under both of these categories.

2. When paid in full there is no interest

One of the best things about credit cards is that they allow you expand the number of credit accounts you have, without having to pay interest (assuming you pay your cards in full and on-time). Contrast that to a loan, in which you will always be charged interest.

For this reason – when managed responsibly – credit cards are perhaps the most convenient route to achieve a higher credit score.

3. There are credit cards to rebuild credit

With bad credit you can’t get approved for a loan or mortgage, but you can get approved for a credit card.

If your credit score isn’t good enough to get approved for unsecured lending, then you should consider getting a secured credit card.

With these types of cards, you put up a security deposit which becomes your line of credit. For example, if you put up a $1,000 deposit, you would have a $1,000 credit limit. Best of all since you are basically guaranteeing the risk, you can usually get approved for these cards no matter how bad your credit history may be.

Mortgages Canada has compiled a ranking of the best credit cards to help you rebuild your credit: Go here to learn about secured credit cards.

If your credit isn’t good enough to get approved for a mortgage or other unsecured line of credit right now, then the above link is your best bet. It will show you how to open a secured account so you can begin building your credit and start preparing for a mortgage down the road.

About The Author: Michael Dolen works in the banking industry. You can find him analyzing the best credit cards (for U.S. residents only) on CreditCardForum, which is a company he started four years ago. He also maintains a ranking of credit cards to rebuild credit but all of them are for U.S. residents (his site does not feature any credit card offers for Canadians).

What is happening in the mortgage and housing industry?

This question is pivotal to our understanding of mortgages in 2012 as it determines the overall health of the mortgage and housing markets and whether a property purchase now will be a god investment. In 2006-2007 we are all well aware that the US housing bubble burst, creating a hue downturn in the global and US domestic economy. Canada as a result experienced its own dip resulting in the housing market falling by around 15%. However, by 2009 prices here again on the rise and we have recovered considerably. In terms of the housing industry generally, sales have remained high in most quarters though some areas sales are still lower than prior to 2007. This should be cause for celebration but some market analysts are warning that our increasing prices could cause a bubble burst in much the same way as the stats. The average price rise between 2000 and 2011 has been 7%. The price rise that caused the US property markets to crash was 10% a year between 2000 and 2006. This means that continued price rises could cause a sharp contraction in the markets.

However, the good news is that the Canadian government have already started taking steps to mitigate this potential scenario by introducing new legislation to underwrite the mortgage lending industry. This should provide an added level of security and prevent a downturn but some critics are still claiming that this may still lead to a downturn albeit less severe than was experienced in the US.

So is now a good time to buy?

Well at the moment the jury seems to be out on what will happen to the markets as a whole. Canada operates much more conservative mortgage and property policies which should help us avoid most of the problems that may arise. However, there is a chance that the market will fall – though probably not very severely. This could bring prices down by 3-8% in the coming years making mortgages tricky. However, it seems equally likely that the market will continue to rise but at a slightly diminished pace – meaning that prices will go up. At the end of the day it seems that at least for the time being it is uncertain how good 2012 will be for buying property. If you decide you’d like to buy though make sure you secure a low mortgage rate and use a mortgage calculator to ensure that you can meet payments and accurately predict your total payments and interest on a yearly basis. This way you can protect yourself against slight economic shifts and secure a good deal regardless of the economic situation.

Children under the age of 6 years are generally the easiest to move. Sure, they might be the most difficult to move on the actual day, but in the long run they will be the least affected. Being so young they have a limited capacity to understand the changes involved. Even still, it is important to help them make the transition with the following tips.

• Explain the move to them clearly and simply. Photos of the new house, prominent areas in the community and their new school will help to facilitate this. You can even go one step further and use their toys to act out the situation. Just make sure you give them the opportunity to ask you questions.
• When you pack your child’s toys in boxes, make sure you tell them why you are packing them. Young children might be worried that you are taking the toys away or throwing them out so it is extremely important to explain to them what you are doing. If you can, get them involved and let them help you pack.
• If your new home is vacant before the day of the big move, it’s a great idea to take the kids for a visit. And make sure you make each visit a positive one. Take their favourite toys, spoil them with candy and ice-cream and play a fun game with them. Creating some great memories and getting them familiar with their new home before they move into it will help improve their transition.
• When moving into a new house a lot of people take it as a welcome opportunity to redecorate with new furniture. If this is your plan, we would recommend that you hold off on getting rid of your child’s furniture straight away. The old furniture might just provide the sense of comfort they need to adjust quickly in the new house. It is also a good idea to take this one step further and arrange furniture in the new room in a similar way to what it originally was.
• Just because they are young, doesn’t mean they don’t get stressed so try not to plan any other big events around the time of the move. This may mean putting off toilet training or keeping your child in a crib a little longer.
• Save yourself the added stress and ask someone to care for your child on the day of the move. That way you can get the job done swiftly.

Moving is never easy for anyone, but with these tips we are sure that your toddler or preschooler will be adjusted in no time at all. And keep in mind that change affects people, including kids, differently so give them some time and just get on with the task at hand like organising the removalists and updating the contents insurance.

Open Plan

An open plan kit home makes a great area for your family to be together and to entertain.  If you have made the big tree change it is nice to share your new lifestyle with your city friends and have a great home to entertain them in.  An open plan style kit home will also mean that you home is light and airy inside and with larger windows you can create the feeling of bringing the outside, (the garden outside your windows), into your home.

Kitchen

Choose a kit home that has the kitchen as the feature room of your house.  It is not uncommon in most houses, but particularly so in a country home, that the kitchen is the one room in the house that everyone all converges.  When visitors pop over it is often the back door they come through and the kitchen that is the room they will sit in and chat, have cups of tea and enjoy some freshly baked scones.  It is most often the room that families spend the majority of their time.

Make sure that your kitchen is functional, with the stove and oven, the sink and the fridge positioned within easy access of each other.  Having plenty of bench space is also a bonus as well as adequate storage space.  Don’t underestimate how useful it is having lots of cupboards.  Don’t forget you can have overhead cupboards as well which will make better use of you total space.

Patio area

Having an outdoor area to entertain your friends is perfect for a rural property.  Some designs of kit homes that are available will accommodate a patio area, particularly a floor plan built in a horse shoe shape.

Veranda

Many traditional country homes have verandas there are plenty of old rural properties with the traditional colonial home with the wide veranda all the way around the house.  The Queenslander is also a traditional Australian style of home that has a veranda running all the way around the house.  As well as given these houses their distinct country-look the verandas were included to help keep the homes cooler inside.  To help reduce your reliance on your air conditioning system and give your kit home that traditional country look, choose a design with a veranda.

Ottawa, Ontario, January 20, 2012. . . The Canada Revenue Agency (CRA) will revoke the charitable registration of Hope Church of God Deliverance Ministries, a Toronto area charity. The notice of revocation has been published in the Canada Gazette with an effective date of January 21, 2012.

Ottawa, Ontario, January 20, 2012. . . The Canada Revenue Agency (CRA) will revoke the charitable registration of Word of Christ Ministry, a Toronto area charity. The notice of revocation has been published in the Canada Gazette with an effective date of January 21, 2012.

The Honourable Gail Shea, Minister of National Revenue, accompanied by Bob Zimmer, Member of Parliament for Prince George – Peace River and Dick Harris, Member of Parliament for Cariboo – Prince George, today visited the Pineview Firehall in Prince George to promote a new non-refundable tax credit for volunteer firefighters.

Kamloops, British Columbia, January 19, 2012 … The Honourable Gail Shea, Minister of National Revenue, accompanied by Cathy McLeod, Parliamentary Secretary to the Minister of National Revenue and Member of Parliament for Kamloops – Thompson – Cariboo, today visited the Kamloops Academy of Dance to promote the children's arts tax credit, a new non-refundable credit passed in the 2011 federal budget.

Vancouver, British Columbia, January 18, 2012… The Honourable Gail Shea, Minister of National Revenue, today visited the University of British Columbia 4-H Community Club to promote the children's arts tax credit, a new non-refundable credit passed in the 2011 federal budget.

While recognizing that the outlook for the global economy had deteriorated and that uncertainty had increased since it released its October Monetary Policy Report (MPR), the Bank also made those same observations at its previous meeting on December 6^th.

Economic growth in Canada had more momentum in the second half of 2011 than the Bank projected in its October MPR, but it expects the pace going forward to slow by more modest than previously expected, due largely to factors outside Canadian borders. This reiterates statements made in December 2011. On the upside, the Bank said that “very favourable financing conditions are expected to buttress consumer spending and housing activity.”

The Bank releases its updated forecast for Canadian economic growth. It now estimates that the economy grew by 2.4 per cent in 2011 compared to the initial estimate of 2.1 per cent, owing to the better than expected end to the year.

The Bank projects growth of 2.0 per cent in 2012 compared to 1.9 per cent in the October MPR, and 2.8 per cent in 2013, down slightly from the previous 2013 forecast of 2.9 per cent, with the big picture being that past and current growth estimates have been revised upward at the expense of future economic growth.

“The Bank said it expects the pace of growth going forward to moderate by more than initially thought, but the forecast for growth this year has actually been raised slightly,” said CREA Chief Economist Gregory Klump. “That reflects a weaker than previously expected growth profile for the first half of 2012, followed by an acceleration in the second half of the year.”

“The Bank reiterated that its outlook remains subject to downside risks from the sovereign debt issue in Europe. Recent credit-rating downgrades to much of the euro zone point to potential contagion by way of a drop in financial market liquidity,” he added. “The bottom line is that the Bank rate is not going to be going up anytime soon, and we may see rates lowered should downside risks materialize.”

The Bank noted that “while the economy appears to be operating with less slack than previously assumed, it is only anticipated to return to full capacity by the third quarter of 2013, one quarter earlier than was expected in October.” Overall, inflation expectations remain “well-anchored.”

A number of financial institutions have recently dropped their five-year lending rates to a record low of 2.99 per cent. This is down considerably from the advertised five-year rate of 5.29 per cent when the Bank last met on December 6^th, 2011.

The Bank will make its next scheduled rate announcement on March 8^th, 2012.

http://creastats.crea.ca/natl/interest_rate_trends.htm