According to many of Canada’s top economists, higher interest rates – and debt servicing costs – may be just around the corner. Exactly when rates will rise is unclear and depends on who you talk to.

In its latest Financial System Review, The Bank of Canada judges that vulnerability of Canadian households to adverse wealth and income shocks has grown in recent years. “At present, Canadian household finances appear quite healthy,” Governor Mark Carney says, but it is the responsibility of households now to ensure that in the future, when the recovery takes hold and extraordinary measures are unwound, they can still service their debts.”

The Bank of Canada still maintains it will hold the line on rates until July of this year, and many analysts believe rates may start to rise in the fall of 2010, with some expecting a full three percentage point hike by the end of 2011. Here’s a summary of a few of the forecasts for where interest rates are headed over the next year and a half:

TD Canada Trust Quarterly Economic Forecast

Walking distance to Michäelle Jean French Immersion School in Richmond Hill!

Absolutely exceptional 4-bedroom home on huge pie-shaped lot, located in one of the most desirable areas of Richmond Hill. Pampered with perfection, this elegant 7 year old home has all the warmth and comfort you would expect from Aspen Ridge builder. It is loaded with many upgrades and extras you won’t find available in other homes on the market. Close proximity to Richmond Green Sports Centre & Parks.

Features

• 9ft ceiling & crown molding on the main floor
• Smartly designed kitchen has abundance of kitchen cabinets, granite countertop & stainless steel appliances
• 3 full bathrooms on the second floor
• Pot-lights in kitchen & family room
• Pot-lights on front of the home & porch
• Extra insulation in attic & garage
• Beautiful main floor laundry room
• Professionally manicured landscaping
• Stunning interlocking stone patio.

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Beautiful bungalow near Richmond Hill GO Train Station

Secluded & quiet, but close to all amenities including famous Bayview High School (IB Program). Big living room with huge windows & enough space for grand piano makes perfect spot for entertaining. Bright eat-in kitchen with walk-out to patio overlooking fully fenced backyard.

Features

• Professionally finished basement
• Hardwood under carpet in living room
• Very functional floor plan

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Royal LePage welcomes you to The Hemispheres 2 condominium building at 131 Torresdale Avenue

Maintenance fee includes ALL utilities & cable. Close to TTC and all other amenities.

Take a Peek Inside

Toronto Real Estate Facts

Spring home buying frenzy continued in June. Buyers and sellers reached deals on 10,955 properties, which is 27% more compared to the same period last year. The average price for MLS sales was $403,972, up by two per cent compared to last year.

It is very unusual what is happening on the market and even the oldest agents in my office haven’t seen anything like this. All of the sudden we are seeing multiple offers, but it is hard to believe recession is coming to an end. I think that sellers were afraid to list so we have a shortage of supply. If that’s the case market will soon become balanced.

If you are a home buyer who missed Toronto Real Estate market bottom while waiting for recession to push home prices further down, then you should check out my article Where to get good deals now?

To establish your property’s assessed value, Municipal Property Assessment Corporation (MPAC) analyzes property sales in your community and applies the Current Value Assessment (CVA) method, which is used by most assessment jurisdictions in Canada and throughout the world.

In addition to sales, MPAC looks at the key features of every property and may consider up to 200 factors when assessing the value of a residential property. Five major factors that account for 85% of the value are:

It was only a matter of time before Canada Mortgage Rates, which have plunged by almost 50% in the last year, turned higher. The days of ridiculously cheap mortgage rates appear to be over. Now they're just cheap. Here's the latest media roundup:

How high will mortgage rates go?

Recent increases in mortgage rates and bond yields have many home owners wondering how high rates will go, how soon, and what they should do to save the most money. They ask: Should I stick with a low variable interest rate? Or switch to a fixed rate?

Have you missed the great Canadian mortgage sale?

With interest rates hovering near dramatic lows, many Canadian home owners have been taking advantage of rock-bottom mortgage rates to break their existing contracts and refinance at a lower rate. But mortgage rates rose quickly and dramatically last week, leading some to wonder if they have missed the sweetest mortgage recession sale in recent history.

Royal LePage Your Community Realty & Jasmina Zivkovic welcome you to 10 Post Oak Drive

Beautiful 3 bedroom Townhouse located in a very desirable Richmond Hill neighbourhood, steps away from Yonge Street and Viva transit:

• Large windows provide much sunlight and great view of Toronto skyline.
• Built by Sierra, featuring
  1. Gleaming Hardwood floors
  2. 9 foot ceilings on the main floor
  3. Marble fireplace
  4. Family size breakfast area with Walk-out to balcony
  5. Direct access garage.
• Low Maintenance Fee of only $168.58 per month!

For a full list of amenities check out my other listing "Quality Home in Superb Richmond Hill School District" in the same condo complex.

Take a Peek Inside

If you are one of the buyers who was waiting for home prices to come down more, than you have missed the housing market bottom in the GTA. But don't worry, you can still find great deals in the areas & home types that depreciated more during this downturn.

Toronto neighbourhoods to look at

A beautiful, well-maintained yard is a source of pleasure and relaxation for everyone. A little planning can help reduce carbon dioxide levels, promote environmental sustainability and can even save you a little money. Here are a few Eco-smart gardening tips to transform your garden and yard into an environment that is both beautiful and eco-friendly:

De-fuel

According to Statistics Canada, using a standard gas mower for one hour causes the same amount of pollution as driving a new car 550 km. For a greener alternative, try using push reel or electric mowers and cordless trimmers. These non-gasoline powered solutions help eliminate harmful emissions, are quieter, and can save you anywhere between $55-550 in annual fuel costs. This analysis is based on data from Environment Canada.

The Federal Budget 2009 recognizes economic importance of housing to stimulate the economy introduces several incentives to get Canadians spending by buying a first time home, or renovating the one they are already in. New Canada's Economic Action Plan includes:

1. Home Buyers’ Plan Withdrawal Limit Increase
2. First-Time Home Buyers’ Tax Credit
3. ecoENERGY Retrofit Homes Grant
4. The Home Renovation Tax Credit