When he took power in 2006, Stephen Harper inherited a thriving economy that was generating solid growth and more new jobs every year. Debt and taxes were falling faster than ever before. Annual surpluses were running at $13 billion per year. Our banking, housing and pension systems were secure.

Stretching forward five years, federal fiscal flexibility totaled $100 billion.

By 2008 – BEFORE the recession arrived – the Harper government had frittered those benefits away.

They needlessly hiked federal spending by three-time the rate of inflation. They recklessly ignored warning about housing and banking risks growing in the United States. They wiped-out all the contingency reserves and prudence factors that had been embedded in previous budgets as “fiscal shock absorbers” against nasty surprises. All of this – BEFORE the recession.

So when the downturn came, our country was already in deficit – quite unnecessarily. The recession made it worse, but the underlying problem was already there, after less than three years of Conservative rule.

it’s no comfort to say “we’re doing better than others”. That’s a mug’s game when those “others” are in decline. It doesn’t take much to look a little better against weak competition.

Claiming we’re the “least bad” doesn’t mean “we’re good”. It simply means this government has lowered Canadian standards. It means Mr. Harper is prepared to settle for much less than Canada once aspired to be.”

This article, as stated earlier came from a local politician. I won’t say who – as I don’t want to start any unnecessary feuding or political stand offs. I was simply intrigued by the article because it says out loud what many of us are afraid to say. That is, “this government has lowered Canadian Standards. It means Mr. Harper is prepared to settle for much less than Canada once aspired to be.”

I also like the part about how the government “ignored warnings about housing and banking risks growing in the United States.” Truth is truth – no matter who states it.

I have lost confidence in our current government. But as I said in my previous rants – I don’t think there is anything really that much better out there. I actually believe that our political parties act like nothing more than high school rivalries. They only care to beat each other at the election game – rather than actually doing what’s best for Canadian’s. We have lost our voice. How can we be heard??

I am open to suggestions!

Let me first take you on a little journey back in time…let’s go back to 2005. The New Conservative Party was in power and ready to make some changes that would have a GREAT BENEFIT to the future of Canadians. They gave us CHEAP and EASY Money with almost no end to our borrowing power. They gave us an eternity to pay it back too! UP TO 40 YEARS! Not to mention – they made it possible for Canadians to buy a home with NO MONEY DOWN (100% Financing)…and they would INSURE it! But wait – it get’s even better…they permitted that we could “STATE OUR INCOME!”…that means we could LIE to their faces…but they didn’t care. This was the dawning of NEW ECONOMIC GROWTH!

They paraded themselves through the streets as “advocates for Free Enterprise” – the FUTURE for Economic Privilege for All Canadians!

I was a little scared when this decision was made…I recall a conversation I had with a new client at that time and we both agreed it was like giving the keys to the family car to the neighbour’s irresponsible kid! Someone didn’t do the math.

In October of 2007 – they (our fearless leaders that is) realized their decision to provide access to this Cheap Money, and the eternity to pay it off, was quite premature and that maybe they (that too would be our fearless leaders) didn’t do enough research on it. They quickly made a Knee Jerk reaction and did away with the 40 year mortgage and the 100% Mortgage Financing…and they started asking for PROOF of our Earnings again.

Everyone got in an uproar. EVERYONE! Borrowers, Lenders, Realtor’s, Mortgage Broker’s, Lawyers, etc. At one point I think even our Neighbour’s irresponsible kid was in the uproar. Even with everyone feeling this “Blow” to the industry…somehow we adapted. Life went on.

Then, last April – the Fed’s stepped in again and this time they said we couldn’t borrower 95% of the value of our house…we could only borrow 90%! They also said we could only purchase up to 2 properties that they would insure…because too many people were buying Revenue and Rental properties under the old rules and that was just not fair for them to buy low and sell high! HOW DARE CANADIANS MAKE MONEY?!! SHAME ON YOU!

Guess what…just like in 2007 – Everyone got in an uproar. Yup – even the neighbour’s irresponsible kid. I hate that kid. But – just like before…we adapted and Life goes on.

Most recently the Fed’s stepped in again and said, “We Need To Get Tougher! We Have Done it Before…We’ll Do it Again – WE AREN’T AFRAID TO TIGHTEN THE RULES FURTHER!”. For those of you keeping score…this was in December 2010. Then in January, while I was away in sunny Orlando (I saw Mickey Mouse!) – our Fearless Leader’s did it again…they said that 35 Years is TOO LONG for Canadian’s to pay off their Mortgages, and said that 90% is TOO MUCH for Canadian’s to borrower against their homes…and also said that “Lines of Credit” are TOO RISKY to be insured.

They are now parading themselves through the streets for being Tough on the Mortgage Industry. They have effectively “marked their territory” as the Watch Dog on Consumer Spending and Borrowing…wait a minute. This must be one of those hidden camera TV shows…they can’t possibly expect us to believe that what just happened was a good thing…THEY WERE THE ONES THAT SET THE STAGE FOR THE INITIAL DISASTER!! They can’t rightfully take credit for cleaning up the mess they spear headed. Do they really think we are that Naive??

Apparently so! And can you guess what’s going to happen? Let me tell you. EVERYONE is going to be in an uproar again…even the neighbour’s irresponsible kid. But, like before, we will adapt – and Life will go on. Don’t worry – we’ll help you along the way.

…this is based on a REAL conversation I had while shopping for a few items at my local Sobey’s just the other day. In the end I politely dismissed myself and told them if they really wanted to know how I did it that I would be pleased to show them if they were interested in becoming a client! So far no calls!

But…the fact is, as of this morning I am STILL offering 3.59% (And Lower in some cases) for a 5 Year fixed Mortgage…while my competition is happy to hand out 3.69% and sever half of their earnings…we have decided to go a bit farther for your long term benefit! Call today! 877-75-FOCUS!

Tune in next time – hopefully I stay committed!
Cheers!

I have made mention on a number of occasions that this industry needs to be policed a lot better – and that we need to have stronger penalties for rogue brokers, realtors, and lawyers. I hope this is the wake up call that has been gone without for so long.
All in all, it’s a sad time for broker’s the whole country over – I am pleased however to announce that FOCUS Mortgage Solutions is Squeaky Clean. We stop fraud in it’s tracks.
We hold firmly that there is NO GREY AREA in the mortgage industry – that’s why our colours are black and white…we know other’s are exploiting loop holes – we have chosen to be better than that – we are setting the bench mark.
You can be confident when you choose a FOCUS Mortgage Solutions Agent – we really do have you as our focus – if we can’t get you a mortgage today, we work with you to help you get to the point where you can get a mortgage.

To stay current on Canada’s mortgage trends, I encourage you to visit www.canadianmortgagetrends.com often!

Cheers!
Jason Dornstauder AMP
FOCUS Mortgage Solutions Inc.

Today, once again, I have groundbreaking news – just for you! I am even going to give you an answer to another question – as a bonus (i am funny!)…that question is, “If they do go up – by how much?”

Who’s your buddy?

According to the National Post (you all know how much of a fan I am of this rag…but, some people still think that what they do is fact finding journalism…so here goes:)
“Governor Mark Carney made a ‘conditional’ promise to keep the benchmark interest rate at 0.25% through the end of June 2010. However, one way to keep to this expiry date and provide markets with a jolt would be an initial rate hike of 50 basis points on July 20, according to Bank of America Merrill Lynch economist Sheryl King.”

Now, don’t get your knickers in a twist. This is only 1 speculation about the proposed increase – I personally wouldn’t be surprised if they raised the Prime rate by .25% next week (I think the 21st or 22nd is their next meeting date). But that looks to be premature and the most likely date for an increase is June 1st. With everyone speculating, it’s like Prime Pop Corn…no one really knows when that kernel will actually pop!

To read the full article, you can visit the following link:

http://network.nationalpost.com/NP/blogs/tradingdesk/archive/2010/04/12/when-will-the-bank-of-canada-raise-interest-rates-and-by-how-much.aspx