While this news does not affect us directly in North America, it does send a global signal and should serve as a wake up call for some. Read this breaking news....

The recent history of interest rate hikes

Australia's interest rate hike yesterday was said to be the first by a G20 country since the financial crisis began. When was the last rate jump, and by which country?

The last rate hike among the Group of 20 was in Indonesia, where the key rate was boosted by 0.25 percentage points to 9.5 per cent in early October, 2008.

The Indonesian central bank was trying to take a bite out of rising inflation, even though almost everyone else in the world was cutting rates to try to stem the burgeoning financial crisis.

The previous G20 upward move was at the European Central Bank, which had pushed up interest rates by a quarter of a point in July, 2008, to 4.25 per cent.

When was the last time the Bank of Canada raised rates?

You have to go all the way back to July 10, 2007, when the Bank of Canada boosted the benchmark overnight rate by 0.25 points to 4.5 per cent.

The next change was a quarter-point cut to 4.25 per cent in early December of 2007, and it has been all downward since then. There have been nine more cuts, taking the overnight rate to its current level of 0.25 per cent.

If anyone has an Inman subscription I would love to have the full text of the article emailed to me pls.

Here is the link to Inman News, but you do need a membership to view the entire thing:

Inman News

Here is a snippet of the article

Gaming the real estate market

Online Monopoly goes hyperlocal, uses Google Maps

By Erik Pisor, Tuesday, September 22, 2009.

Inman News

Negotiating purchase prices, selling assets, and collecting rent isn't just a part of real-world real estate -- these are key features of Hasbro's Monopoly CityStreets, a new online version of the classic Monopoly board game that incorporates Google Maps as its game board.

"It's definitely a way to learn about real estate cash flow and investment," said Nick Roman, a Realtor with Melbourne, Fla.-based Tropical Realty of Suntree.

On Sept. 9, the day the game launched, about 1.7 million people worldwide attempted to log on and play, which led to server delays and the eventual restarting of the game on Sept. 17, said Donetta Allen, Monopoly spokesperson.

Of those who logged on, a portion included real estate agents like Roman.

"If anything, I thought (the game) would generate a little real estate publicity," said Robert May, a Realtor with Lethbridge Mortgage and Real Estate Info in Alberta, Canada. "I'm surprised they didn't work in real estate advertising and do some geo-targeted marketing," May said.

Both Roman and May began playing on Sept. 9 and quickly exhausted their initial $3 million in Monopoly money to acquire streets within the cities they currently reside, as any street in the world can be purchased and built up with various properties.

While using Google maps as the Monopoly board brings a realistic aspect to the game, the price paid for a street is not.

According to Allen, the value of a street is determined by its length, as the longer a street is the more building potential it has.

For instance, Downing Street in the U.K., home to the prime minister, initially cost $231,000, while Pennsylvania Avenue, which joins the White House and the U.S. Capitol, cost $2 million.

"They're not differentiating between residential and commercial zones," May said, adding the value of a street is also determined by how many lanes it has.

"There are better Web sites they could have used (to determine street values), like a postal or ZIP code system," he continued. ...

Thats all I can read of the article without a subscription, so if anyone has one to Inman news, feel free to post the rest or forward me a copy please.

Just read this great article regarding Canadian credit cards and the rule changes that are coming into effect soon. While I agree that they do not go far enough, it is at least a step in the right direction. This great article was posted on the blog section of yourmoney.ca and was authored by Kerry Taylor. I am going to go back to the site and check out more of their stuff, but for now here is the original article and a link to it as well.

http://blog.yourmoney.ca/2009/10/new-credit-card-rules.html

Do the new credit card rules go far enough?

Paying off your credit card bill just got a little bit easier. Maybe.

On January 1, 2010 a series of new rules will take effect that force banks to clarify payment details on your credit card statement and provide a standard grace period to pay off your plastic.

Under these rules, credit card companies must also give you advance notice of interest rate increases, stop credit limit increases without your consent, and limit debt collection practices.

But you'll have to wait until next September before the biggest change kicks in, when banks must give you a mandatory minimum 21-day interest-free grace period on all new credit card purchases when the outstanding balance is paid in full.

Interest rates and fees still high

Critics of the credit card regulations say the changes do little to help consumers.

"Skyrocketing high interest rates and the growing number of superfluous fees are the biggest hindrances for consumers," said New Democrat MP and consumer protection critic Glenn Thibeault in a statement. "If the government wants to protect Canadian credit card users, it must go all the way and implement substantial regulations that would put a cap on interest rates and eliminate many of the excessive fees that consumers are being charged."

Thibeault proposes that capping credit card rates at five per cent above prime would help "Canadians who are stuck paying interest rates as high as 25%" and would provide better protection from gouging, giving real relief.

Your new statement

Expect your credit card statement to look different in the new year when lenders must add a summary box that describes all fees and shows you how long it would take to fully repay the balance if you only make a minimum payment every month.

For example, under the new rules a summary box may show that a $5,000 credit card balance at an 18% interest rate would take 11 years and two months to pay off if you only make minimum payments. The total interest paid is about $2,873 and the total tab is $7,873.

But you don't have to wait for these new changes to see how interest rates and minimum payments bust your budget. Check out this Credit Card Calculator to get the facts today and see how many years it will take to payoff your balance. Results may shock you.

For more information on the changes coming to your credit card, see the regulations in the Canada Gazette.

There's more to a mortgage than a low rate

by Talbot Boggs
Monday, September 28, 2009provided by

(Special) - Homeowners and buyers are in a rather enviable position these days. Interest rates are at historic lows and the cost of borrowing for a home is about as low as it can get.

That's great news. But it's not the only thing homeowners and purchasers need to think about their mortgage.

There are a number of other features to consider before signing up for a mortgage and what is probably the largest debt that most Canadians will ever take on in their lives.

"When it comes to choosing a mortgage, getting a good rate is just the tip of the iceberg," says Mary Gronkowski, regional sales director with Mortgage Intelligence Inc., a national mortgage brokerage company. "You have to be aware of all the other features that may lie below the surface. All features of a mortgage should fit a homebuyer's personal goals, both now and down the road."

One type of mortgage to consider is an assumable mortgage.

An assumable mortgage means it can be transferred to another borrower. It allows a purchaser to take on your mortgage's terms and payments as part of the sale of your home. With extremely low interest rates today, that could be a big selling feature to a potential buyer in the future.

Given the low rates today, many homeowners are thinking about refinancing their mortgage.

Whether you should refinance your mortgage in a period of low interest rates depends on how much it will cost you to break your existing mortgage compared to how much you will save in interest payments.

If you break an existing mortgage you will have to pay the greater of three month's interest or the interest rate differential (IRD).

An IRD is a penalty for early prepayment of all or part of a mortgage outside of its normal prepayment terms. Usually this is calculated as the difference between the existing rate and the rate for the term remaining, multiplied by the principal outstanding and the balance of the term.

For example, if you had a $100,000 mortgage at nine per cent interest rate with 24 months remaining and wanted to renegotiate your mortgage at 6.5 per cent for 24 months, your IRD would be $5,000 ($100,000 x 2.5% $2,500 x 2 years $5,000).

It may only make sense to refinance your mortgage if the interest rate savings over the remaining life of your mortgage exceed the value of the IRD.

Another strategy is to take a variable rate mortgage. If interest rates go down and you keep your mortgage payments the same, you will be paying off more of your principal with each payment and will pay down your mortgage faster.

Many borrowers are taking advantage of low interest rates by accelerating payments on their mortgages. Many lenders will allow you to double up payments periodically or make lump sum payments of up to 20 per cent of the principal once a year.

You should make sure you understand the size and frequency of payments your lender will allow before you sign up.

Some mortgage lenders will have an option to skip a payment without penalty, which may come in handy in today's economy.

Another option that many mortgages have is portability.

This allows you to transfer your existing mortgage over to a new property, another big advantage if you have a mortgage at current low rates.

Not all portability features are the same, however. Some lenders allow up to 120 days to transfer the mortgage while others allow for only a few days or a week.

"Choosing the right mortgage involves considering where you are now and where you may be three to five years from now," says Gronkowski. "Working with a professional can help you make sense of the many options available to you."

Thinking about selling your house?

Think you will save money by trying it on your own and without professional representation?

The desire to sell your own home comes from wanting to save money. Many people estimate how much their home is worth and then figure somewhere between 4 to 7% of that would be paid out in commissions to call up their neighborhood real estate pro. The thought of paying 5, 10, 15 thousand dollars to have someone sell the property for you sometimes seems excessive.

I agree, it is a substantial amount of money. However, there are some reasons that paying this commission can be the right decision.

1. Listed homes sell faster

-while there are no great sources for facts on for sale by owner properties, the reality is that the majority of them eventually give up or else eventually call in professional help, often after an average of 60 to 90 days. In the Lethbridge market, a properly priced home listed on MLS and marketed reasonably well, can expect an offer in less than 30 days.

2. More Money

-Listed homes almost always sell for more money than comparable for sale by owner properties. This is due to the fact that the home is exposed to more buyers and also to the best type of buyers. The best type of buyer is not the guy who lives down your block, it is someone who needs to buy asap, often a relocation or someone who has just sold their home. These people are working with a real estate professional 100% of the time. If you want to sell your house to a motivated buyer who will pay top dollar for the right home, you need to get it in front of these buyers. Listing it is the only way.

3. Advice, Knowledge, and Insurance

-I like to throw all 3 of those in the mix. A professional real estate person will know the value of your home in the current market, The should be aware of what you can do to the property and for marketing in order to achieve maximum selling price and to attract the best offers. Also, licensed real estate professionals carry insurance which helps to protect YOU should there be something unfortunate happen during the transaction. This insurance alone can often be well worth the value paid in commissions.

When I sell my own real estate, I use a real estate professional to help me, even though I could do it myself. I also pay top dollar commission and price my property to sell. My listing attracts both real estate professionals but also the best buyers in the marketplace. Keep in mind, any real estate person can list your home, but only the best real estate people can get you maximum dollar for your property in the least amount of time.

Call me anytime for no obligation conversation about your real estate needs. This is what I do! Let me show you how to maximize the dollars in your pocket by making smart real estate decisions.