Canada – The Best Place on Earth

Is Canada Going To Be A Future Global Business Centre?

I have been contemplating writing about Canada’s being the best country on earth for a while. However, due to the volume of the good things about Canada to mention, I have been putting it off because I would have to write a book if I wanted to cover everything. Finally, instead of writing by myself, I took a short cut and gathered some of the rankings done by well-known and reputable organizations. Here is how it stands:

According to OECD’s Better Life Index, Canada ranks high in all measures of well being and Life in Canada Is Better Than Most Other Industrialized Countries.

According to The Economist Intelligent Unit’s Global Liveability Report, 3-4 Canadian cities are always in the top ten and Vancouver is usually always the world’s most liveable city.

According to Mercer 2010 Quality of Living Survey, several Canadian cities are always on the top and top five North American cities are Canadian – no cities from the U.S. can be found in the top 25.

According to the UN Human Development Index, which measures quality of life in countries around the world, Canada is one of the world’s best places to live and is always in the top ten.

According to The Heritage Foundations’ 2011 Index of Economic Freedom, Canada is the 6^th freest country in the world.

According to the Vision of Humanity’s 2011 Global Peace Index, Canada is the 8^th most peaceful country in the world.

According to The World Economic Forum’s Global Competitiveness Report 2010-2011, Canada is in the top ten.

According to Transparency International’s Corruption Perceptions Index 2010, Canada is one of the least corrupt nations on earth.

These are only a few to mention. Any way you look at Canada, using any reports or indexes, it is in the top ten consistently year after year. A point worth mentioning is that you will not find our big brother in the south in the top in most of these rankings. Canada is a multi-racial, multi-cultural, and multi-linguistic country. Canada’s diversified backgrounds and cultures make it more unique than any other country on earth. Canada is the first country in the world to declare itself a multicultural country and in 1982 Canada added multiculturalism to its constitution. Canada recognizes, values, and protects its citizens’ diversity and human rights and treats each individual with respect, equality, and dignity. Canada is like nowhere else on earth and this is because Canada is the best country in the world.

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Statistics Canada reports that inflation in Canada reached three year high of 3.3 percent in April, a full one per cent up from the month before. This increase exceeds the Bank of Canada’s target range of 1 to 3 per cent. The main elements that contributed to this inflation are energy, gasoline prices and food costs. Energy rose 17.1 per cent, gas price rose 26.4 per cent (6 per cent over the month), and food rose 3.3 per cent in the year. As the inflation news seems to remain in the spotlight, many consumers wondering whether they should be worried these inflation numbers.

Not so fast. Although the inflation is at 3.3 per cent, core inflation remained tame at 1.6 per cent. Core inflation excludes eight volatile items such as fuel, vegetables, mortgage cost, and so on. To make things brighter, core inflation actually fell to 1.6 per cent from 1.7 per cent; and also, 3.3 per cent inflation rate was lower than 3.4 per cent forecast by analysts.

Bank of Canada predicts that the energy costs would keep the inflation above 3 per cent in the short term. However, it should return to central bank’s 2 per cent target range by mid 2012. Paris-based OECD (Organization for Economic Co-operation and Development) recently recommended that Canada should increase its interest rate by 25 basis points within the next quarter. It is expected that

Bank of Canada will start raising interest rate starting July 2011.

So, coming back to our question, should you be worried about Canada’s inflation? Consider the following facts:

• Unemployment rate is at 7.6 per cent
• 58,000 new jobs were created
• Upgraded growth forecast for 2011 from 2.4 per cent to 2.9 per cent
• Federal government is on track to balance its budget by 2014/2015

The way things are now, there is no need to worry.

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What To Know When hiring A Home Inspector

When you are buying a home, it is extremely important that you hire a home inspector. A good home inspector will ensure that you are not given any surprises when you move into your new home, and a bad home inspector can cost you thousands in things you never knew you would have to repair or replace in your home.

First things first, the realtor will probably give you a home inspector and you can use them, but do not rely on them. They probably are associated with the realty agency somehow, are being paid through them somehow and are not likely to stop a home sale. Always get a second opinion.

When you are looking at hiring a home inspector, make sure you ask them open-ended questions about their experience and training. You want them to explain their experience, rather than just answering yes or no to your questions. Your inspect needs to have training in construction and maintenance because that will give them a proper background for what you need. An inspector who also knows, or is, a structural engineer is also very important.

When you are interviewing the home inspector, find out what they will inspect and what they will not. If the inspector only looks at the interior of the house, rather than the roof and the outside as well, then you should not hire them.

Most inspectors should be able to provide you with a report template, or a sample report, which you can use to see what they are going to look on, how much detail goes into it and whether or not they will provide a lot of information in the report.

It goes without saying, but you need to get references for your home inspection. A lack of references means you could end up getting a bad home inspector. Once you have the references, call the people on the list and ask them about their experience with the home inspector and how satisfied they were. Talk to individuals who had a home inspection a year or more ago because some problems may not show up right away when a person buys a home. Mold is a good example of this.

Ask the home inspector what the policy is for mistakes or omissions that they make. No home inspector can catch everything, so you want a home inspector who can admit to mistakes and have something in place to remedy any problems that surface down the road. This will protect you in case something is found that the home inspector did not tell you about.

Lastly, find out if the home inspector is a member of any association. When a home inspector is a member of a home inspector’s association, they will be held accountable by the standards of that association. It also gives you an avenue for complaint if something goes wrong with the inspection, or the home inspector.

Home inspections are great, if you get one that is qualified.

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According to a new report released by the Canadian Real Estate Association, home sales in 2011 could be better than previously thought thanks to a growing amount of consumer confidence that will help take the negativity away from the increase in interest rates that is expected later this year.

According to the forecast released by the Canadian Real Estate Association, there will be an estimated 439,900 on existing homes. While this is better than what was expected in 2011, it is 1.6 per cent down from 2010. The CREA had anticipated a nine percent drop between 2010 and 2011, which probably won’t happen now.

The association is also looking into pricing and they have reasons to be happy as well. The average price of a home in 2011 is expected to be $343,300, which is 1.3 per cent higher than it was in 2010. Originally, the CREA had thought home prices were going to fall by 1.3 per cent from 2010 to 2011.

January sales figures have not been released but there have been several good reports on building permits and housing starts, which tell just how well the housing market will do. New home construction in Canada increased to 170,400 in January, up from 169,000 in December. However, this does mean that the country is on pace to have roughly 10 per cent fewer housing starts as compared with 2010.

One of the biggest worries for the real estate industry coming up is not only the increase in interest rates, probably coming in June or so, but the change in rules for mortgages that go into effect in March. These rules will make it more difficult for people to buy a home in an effort to prevent those who cannot afford a home from buying one.

Once that happens, the housing market may suddenly slow down drastically and the optimistic numbers for 2011 that have been produced may instead reverse course.

If the housing market this year is like last year’s, then we will see a strong first quarter but things will drop off in the second quarter because of changing rules.

While the CREA thinks the housing market will not do as bad as though, the Bank of Canada is forecasting that the housing market will be a minor net negative for the economy, creating a downside risk.

Also in housing news, this past week the Royal Bank, TD and CIBC raised their five-year closed mortgage rate by .25 percentage points to 5.44 per cent.

As for 2012, the CREA believes that home sales will go up to 453,300, which will that year on par for the 10-year average in home sales.

So, all that can be done now is to sit back and see what happens in the housing market as 2011 moves forward and the new housing rules come into place. If you want to get a home though, now is the time because once the new housing rules come into place, you may not be able to get that home of your dreams.

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In mid-January, Finance Minister Jim Flaherty announced new mortgage rules that would be put in place to help stop rising debt levels among Canadians, and to keep another mortgage meltdown from occurring.

These rules, three of them in total, are another measure the government has put in place to tighten the rules for people getting mortgages. In 2010, stronger rules were put in place, and this adds to that.

The first new rule was that the maximum amortization period would be reduced from 35 years to 30 years for all government-backed insured mortgages with loan-to-value ratios of more than 80 per cent.

This is important because many citizens get mortgages for longer periods of time to save on monthly payments but in doing so they end up paying more in interest. For example, if a home is sold for $200,000 on a 35 year mortgage with five percent down, the average monthly payment is going to be $950. However, shorten the mortgage to 30 years and those payments go up to $1100. Yes, it is more money per month, but with five less years being paid on the mortgage, the interest savings would be in the thousands.

The second new rule is that the maximum amount that a Canadian resident can borrow to refinance their mortgage will go down from 90 per cent to 85 per cent of the value of their homes. This means that if your home is worth $750,000, you can borrow $637,500 now, when you could have borrowed $675,000 in the past.

This is being done because the number of home-equity lines of credit have surged in Canada, going at twice the pace of mortgages over the past 10 years. Currently, these lines of credit account for 12 per cent of overall household debt within Canada.

The third new rule is that the government will withdraw government insurance backing on lines of credit that are secured by homes.

Currently, Canada has a mortgage default rate of roughly one per cent which is quite low, but the government wants to make sure that the number does not rise to the extremely high levels that are being seen in Europe and in the United States.

For those that want to get in on a 35 year mortgage though, you still have time. The changes will not take effect in the real estate industry for 60 days, which gives enough time to make the policy changes needed by mortgage companies and banks.

In the next federal budget, there may also be steps taken to tighten mortgage credit further to ensure that Canadians do not fall deeper into debt. Currently, debt levels are at their highest levels in history with many Canadians owing more than what they make each year.

So, if you want to get a mortgage before the new rules come into place, now would be the time to get it done. You only have until the middle of April to get mortgages for 35 years, or a new line of credit on your home refinancing.

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Canada Tax Deadlines 2010 – 2011

March 1, 2011	RRSP Contribution Deadline For The 2010 Tax Year
April 30, 2011	Personal Income Tax Filing Deadline For The 2010 Tax Year If you have a balance owing, you need to pay it on or before April 30, 2011
June 15, 2011	Self-Employed Income Tax Filing Deadline For The 2010 Tax Year If you have a balance owing, you need to pay it on or before April 30, 2011
September 30, 2011	Last Day To NETFILE Your 2010 Tax Return
September 30, 2011	Last Day To EFILE Your 2010 Tax Return

Source: Canada Revenue Agency

New CPP Rules

The Canada Pension Plan is going through some major changes in 2011, in an effort to make it fairer to those who collect pensions or are about to collect pensions. These changes may have a large impact on  you if you are
collecting or going to collect CPP, so here is some information to help you understand these new policies.

Changes To The Contribution Rules

As of right now, employees who are under the retirement age of 65, who are working while receiving their pension cannot contribute to their own pension. Under the new changes, you will have to make payments to your CPP, even while you are collecting your CPP. You will receive an additional benefit gradually increasing your CPP pension if you do this. If you are over the age of 65 while working, you currently cannot contribute to your CPP. However, under the new rules, employees can choose to make CPP contributions, which will then make it a requirement that your employer also put money into your CPP.

Changes To The Drop-Out Provision

There will also be a change to the general low earnings drop-out portion of the CPP. The CPP allows for certain years of low and no earnings because it uses a career average plan. At this time, 15 per cent of your potential career earnings are being disregarded under this method. This can be good because that 15 per cent is the lowest amount you earned over your working life, and by removing it you earn more on your CPP. Under the new changes, that will be moved to 16 per cent in 2012, with a maximum of 7.5 years being dropped. In 2014 that will again increase to 17 per cent allowing for a maximum of eight years to be dropped.

Stop Working And Work Cessation Test Will No Longer Be required

In order to qualify for CPP right now, you need to stop working or reduce your income and  pass the work cessation test. This test states that an employee must not earn  more than a certain amount within the month that the CPP starts to be paid, as well as the month before. This amount is currently set at $900, but with the new
rules, this test will be removed from the CPP guidelines.

Changes To The Early and Late Pension Adjustment Rates

There will also be changes to the pension adjustment rates for both early and late retirement. At this time, if you begin collecting before the age of 65, the pension is reduced by .5 per cent per each month before your 65th birthday. So, if you retire 10 months before your 65th birthday, you lose five per cent off your pension. Likewise, if you start your pension after the age of 65, you collect a .5 per cent increase on your pension per each month after your 65th birthday to a maximum of the age of 70. Under the new rules, the .5 per cent reduction will be increased to .6 per cent and the .5 per cent increase will be increased to .7 per cent.

For More Information, Please visit Service Canada CPP Website.

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Go west young man was often heard at the turn of the century for people wanting to find their fortune in the young country of Canada. Well, during the greatest recession since The Great Depression, the West is the place to be. According to a new Provincial Trends Report from Scotia Economics, the west is going to be the leader in Canada for the economic strength of the country in 2011, and that is also going to continue for many years.

The reason for this is simple. The west comprises British Columbia, Alberta, Saskatchewan and Manitoba, while the east is Ontario, Quebec and the Maritimes. The east sits over the eastern coast of the United States and the biggest economic centre of the USA. Therefore, the east is more interconnected with the United States economy, especially with manufacturing. With the implementation of Buy American in the United States, as well as the intense recession in the country, the east is suffering because the United States is suffering.

However, the west is doing much better. British Columbia is benefiting from trade with China, Alberta and Saskatchewan have oil and energy, while Manitoba has natural resources that are in high demand.

The province that will lead the country is of no surprise, it is Alberta, with a growth of 3.5 per cent, while Saskatchewan will follow behind at 3.3 per cent. This is not what Ontario and Quebec can expect to see. Both will have less than two per cent growth in 2011 and beyond, a big turnaround from when those two provinces were the economic engines of the country.

The oil sands are helping Alberta stay strong, even with the backlash against them. Oil is also one reason why a historic have-not province is now playing with the big boys out west. While the east is not expected to do well, Newfoundland and Labrador is expected to do extremely well, with a growth of 3.1 percent. The reason for this is the oil and gas off the coast of the province, as well as its very rich deposits of iron and nickel.

Canada as a whole will benefit from the west and Newfoundland because they will help keep the Canadian economy moving along and offset the issues being experienced in the east and central Canada, including the over-priced loonie and less trade with the United States.

Ontario and Quebec will be below two per cent in growth, as was stated, but the Maritimes should see about two per cent growth in 2011, with the Maritimes being hit less than the rest of the country. Other growth projections for provinces not already mentioned dare 2.5 per cent for Manitoba and 2.8 per cent for British Columbia.

All in all, thanks to the strong economy of the west, Canada will do okay in the next few years, even as the United States continues to struggle through a difficult economic time called The Great Recession.

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What To Expect From Your Lawyer When Buying A Condo?

What Does A Condo Lawyer Do?
When you are buying a condo, you need to have a lawyer because they will help you get through all the complicated parts of the condo purchasing process, helping you make sure you get exactly what you want when you buy a home.

The lawyer is going to talk to you about several things that will be of interest to you, many of which you may not know about. Knowing these things will help ensure you get what you want out of your purchase.

HST is something that many people do not understand, nor like. It is also something to consider when you are buying a condo. There is an HST Rebate that is meant to give you money back on large purchases like a house, but if you don’t know how to file for this rebate, you could lose out big time. A condo lawyer can help you get the rebate, which will help you pay for that new condo of yours.

The contract can be very complicated and you may feel as though it is written in a different language. A condo lawyer is going to be able to go over that contract with you and give you help in understanding what is being said in the contract. One of the biggest mistakes that people make when they are buying a house or a condo is they just buy the condo and sign the contract without reading it. However, did you know about things like caps? Just like a salary cap in the NHL, a cap on fees keeps you from paying too much. Cap costs have gone up by nine times in ten years, but if you just sign a condo contract without having a lawyer look at it first, you could end up paying as much as $10,000 more than what you needed to, just in closing cap costs like gas hook ups.

There are going to be several fees associated with your purchase and developers love these fees because it is essentially free money for them. As a result, if you don’t read the condo contract properly, you could end up paying thousands in useless and unwanted fees. A condo lawyer knows what developers try to do and they know how to keep you from paying for fees. Everything from purchase fees to fees on utility hookups are going to be charged, and you don’t want that to happen. Have the lawyer look over the contract carefully because the savings you get from not paying too much for your condo will offset the amount you pay for a lawyer immensely.

Here are a few things you can expect from a lawyer:

- Explain, prepare and register all related legal documents, such as purchase contract, title, HST rebate etc.
- Scrutinize that there are no liens, easements, covenants, unpaid taxes, unpaid utilities etc against the condo.
- Arrange title insurance protection, review all the closing papers you need to sign, and ensure your registered
ownership does not make you liable for more than what you have accepted.
-  Explain and advice you on your rights, obligations and protect your interests in case of a dispute.
- Assist you to close the transaction through province’s electronic registration system.

Before you hire a condo lawyer, you should talk with friends and families to find out any lawyers they have used and whether or not you should need one. You can also talk to your realtor but it is better to get a lawyer who is not affiliated with a realty agency. Finding a good condo lawyer will ensure you do not pay too much and you get exactly what you paid for.

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Canada Pension Plan or CPP

Old Age Security pension or OAS

As we get older in Canada, there are many things in place to ensure that you have money after you retire. The Canada Pension Plan, which you pay into, will help pay those bills, as will Old Age Security, which is taxable. However, if you are a low-income pensioner, with very little or even no income, then you can look at supplementing the Old Age Security you receive through the Guaranteed Income Supplement (GIS). GIS is non-taxable and the amount you receive will depend on how much you make, whether or not you are married and the age of your spouse.

Currently, the maximum you can receive through the GIS program is $597.53 per month, and this is if you have no other source of income. If you and your spouse both collect from the GIS program, then you can each receive a maximum of $392.01.

Since your annual income changes each year, and since the GIS program is based on your income, you need to renew your GIS every single year.

Most seniors can easily renew their GIS automatically by filing their income tax return by April 30. If a tax return is not filed because there is no income, then you can request a renewal application to be sent to you. Once you do this, you will receive a letter in July that explains to you the new amount of your monthly payment.

In order to qualify for the GIS, you need to be first eligible for the Old Age Security pension, meaning you need to be over 65 years of age, a Canadian citizen, and have lived in Canada for the past 10 years.

Currently, the Old Age Security Act provides a GIS earning exemption of $3,500, up from $500 in 2007. This means that a single pensioner who earns $3,500 or more, will be entitled to keep an additional $1,500 in their annual GIS benefits.

If you get married, separate from your spouse, or your spouse dies, then you must contact the GIS program to let them know about the change. If you separate due to reasons beyond your control, like your spouse is put in a nursing home, then you can both be considered a single person and that will give you a larger monthly payment.

Since the GIS program is based on income, what counts as income then? Here is a quick rundown:

1. Canada Pension\Quebec Pension Plan
2. Private pension income
3. Foreign pension income
4. RRSPs cashed during the year.
5. Employment insurance
6. Interest on savings
7. Capital gains and dividends
8. Rental property income
9. Employment income

If you want to get an application for the program, you need to contact 1.800.277.9914

The GIS program can help you get a little extra money to live on each year, making being in your retirement and golden years that much easier for you. All you need to do is apply and start receiving your benefits from the government.

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