• As 2016 arrives I hope everyone prospers during the year. At Robert Floris’s mortgage office in Hamilton we will continue to write with the Canadian consumer in mind with a flavor for our local city’s trends.

    You see I enjoy writing as if the roles were reversed. What do I mean? As you may be aware I am not a big fan of the big banks. They are there to serve up the shareholders. They know all the rules of the game. I am proud to have helped level the so called game for hundreds of our clients and save thousands of dollars. Today I will start with the economy and how it affects our favorite subject “interest rates”.

    Let’s be blunt, our Canadian economy is in terrible shape. One big contributor is Canada’s energy sector which is in crisis. Oil prices have greatly affected our nations’ income. Consider this:
    • Canada is the 5th largest oil producing country. Crude oil represents 18% of Canada’s exports.
    • Oil is Canada’s biggest export
    • Oil revenues are supposed to fall 22%
    • Oil is expected to have a 2.1 billion loss
    • Alberta usually accounts for 16% of Canada’s GDP
    • Alberta has already lost approximately 70,000 jobs
    • Billions of oil projects have been cancelled
    • Hamilton’s steel production of pipe has come to a halt.

    There are many other reasons why the economy is weak but let’s just state that oil’s repercussions will slowly spread to other areas of the economy. What is the silver lining, interest rates and most specifically mortgage rates will remain low. Do not be surprised if the rates fall to zero on Canada’s overnight rate.

    If your mortgage is maturing or if you’re considering buying a home, your rate should still be at the lowest levels for 2016.

    Enjoy a great year!

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