Giuseppe Strazzeri

Applicant had good credit, Co-applicant had bad credit but great income.
Co-applicants income used but not on title.
Property Value $385,000.00
1st mortgage $308,000.00 @ 5.50 % representing 80% LTV
2nd mortgage $71,990.00 @ 13.50% representing 98.69% LTV

Bank of Canada lowers overnight rate target by 1/2 percentage point to 1/2 per cent

OTTAWA – The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of a percentage point to 1/2 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 3/4 per cent.

The outlook for the global economy has continued to deteriorate since the Bank's January Monetary Policy Report Update, with weaker-than-expected activity in major economies. The nature of the U.S. recession, with very weak auto and housing sectors, is particularly challenging for Canada.

Stabilization of the global financial system remains a precondition for the global and Canadian economic recoveries. The timely implementation of ambitious plans in some major countries to address toxic assets and recapitalize financial institutions will be critical in this regard.

National accounts data for the fourth quarter of 2008 and other indicators of aggregate demand point to a sharper decline in Canadian economic activity and a larger output gap through the first half of 2009 than projected in January. Potential delays in stabilizing the global financial system, along with larger-than-anticipated confidence and wealth effects on domestic demand, could mean that the output gap will not begin to close until early 2010. These factors imply a slightly lower profile for core inflation than was projected in the January MPRU.

The effects of the recent aggressive monetary and fiscal policy actions in Canada and other major economies will begin to be felt in the second half of this year and will build through 2010. Once the global financial system stabilizes and global growth recovers, the underlying strength of the Canadian economy and financial sector should ensure a more rapid recovery in Canada than in most other industrialized economies.

The Bank's decision to lower its policy rate by 50 basis points today brings th

NORTH AMERICAN & INTERNATIONAL ECONOMIC HIGHLIGHTS

Governments and central banks continue to fire from all directions. In the US, the fed funds rate is already at zero. But the Fed continues to ease in different ways. Mr. Bernanke is now targeting not the fed funds rate but rather private sector borrowing rates. By buying spread products, the Fed is trying to lower borrowing cost and stimulate borrowing activity. Bank loans and leases outstanding increased by $8 billion in the latest week, the first rise in four weeks, but are up just 1% from this time last year.

The Bank of Canada’s 50 basis points rate cut this week was not the last one for this cycle. Look for the Bank to cut by another 50 basis points come March. This move is already fully discounted by the market and will not have any significant impact on long-term rates. But even if the Fed and the Bank of Canada are successful in lowering borrowing rates, you still need to create conditions in which households will be willing to borrow. We know that there is some pent up demand for borrowing following the recent decline in US long-term mortgage rates (after the Fed actively purchased MBA securities), refinancing activity has tripled. But in order to insure a sustained rise in credit demand, we need a stronger level of economic activity, and that’s where governments enter the picture.

In the US, the Obama Administration will soon introduce an estimated $875 billion in fiscal stimulus and in Canada, we will see roughly $30 billion of new spending this year. A notable portion of this spending will go towards infrastructure. And from an economic perspective, this is important as the economic multiplier of infrastructure spending is significant. After all, when it comes to creating jobs and stimulating activity, infrastructure spending is a much more effective tool than tax cuts.
In the US, the impact of economic growth of infrastructure spending worth 1% of GDP is more than double the impact of tax cut

On June 18th, a monumental inaugural Gala at the Bradford Highlands Golf Club took place. Local business owners, Town Councillors, and celebrity
guest speakers were all in attendance. It marked the formal launch of the Bradford
Board of Trade, and the introduction of their bi-annual magazine, ‘The BBT Voice”.

http://www. town. bradfordwestgwillimbury. on. ca/ws_par/groups/public/@pub/@bwg/documents/web_content/wspar_009130. pdf