The BOC overnight lending rate dictates the prime rate. Currently (August 2011) overnight lending is 1% and prime is set at 3%. You still get discounted rates for mortgages like Prime minus 0,75% or 2.25%. Every time overnight lending rate changes, prime rate and discounted variable rates changes. This also applies to your personal line of credit where you would get prime plus 3% or 6% and the like.

It is definite that it will increase in 3 years as this very low rate is allowing more debt to come into the household . By how much, that remains to be seen. An increase in prime rate reduces the affordability of homes. On the flip side, housing prices would normally go down when rates are high as affordability can become a challenge.

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Who thinks the bank of canada will increase interest rates? if so when and how much?

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Should monetary policy be made by an independent central bank? monetary policy has a lasting effect in canada, but members of the bank of canada's governing council are not held directly accountable to elected officials or to the public. the following questions address the costs and benefits of central bank independence. which of the following is an example of the time inconsistency of policy? a:the inflation rate equals 5% and the bank of canada announces that its target inflation rate is 2%, but the next day the bank of canada reduces the overnight rate. b: the government faces re-election and gets parliament to cut taxes before the campaign begins. c: the prime minister asks the bank of canada to lower the overnight rate, but the governor of the bank refuses for fear of inflation. d: the government lowers taxes and increases government purchases whenever economic indicators show an approaching recession.

Sounds like you're on to something. Hmmm. Let's think. Actually, the Central Bank is not so much an indepedent body as it is a tool for those wealthy enough to own a piece of it. Here in the United States, our central bank is called the Federal Reserve. Quite official sounding. You'd almost expect it to be a part of the Treasury Dept., or something. Especically when you consider that it has the sole right to print our currency, thereby gaining the ability to control the cost of the currency. You did know that the central bank always wants the right to print money so they can then sell it to the government with interest - didn't you ? Of course in the USA the people ARE the government. Or, so says our Constitution. Sounds good on paper, but in a practicle sense it justs gets in the way of good business. Besides, the people will be very happy to cough up the needed tax revenue whenever the next financial failure occurs. At least, as long as their leader is smart, handsome, charismatic, and has a sense of humor. Now that I think about it, you really did ask a loaded question. My goodness we could go on forever about how the founding fathers abhorred the central bank. Jefferson went so far as to write condemnations about how this practice was a scourge on Europe, and should never be allowed on American soil. Took 'til 1913 for those same Europeans to get an American Congress to pass a bill that would establish the Federal Reserve. A totally private entity, whose inception was based upon the need for an alternative to the existing system of governmental control of the currency, a need established by a falsified and fraudulent run on the banks in previous years. So you see, they can do whatever they want. Read some of the statements made by the Rothschild family members, and you will feel a chill. One of which went somethng like this: "Give me control of a nations currency, and I care not who makes the laws." Makes you wonder. Think about it. Put yourself in the position of one of these people that control a central bank. Most of them are related, either by birth or marriage, and work with each other on a daily, ongoing basis. You have exclusive power over the printing of your country's currency. You are a private citizen. You are not responsible to any governmental authority, nor can any government impose their will upon you. You are autonomous, untouchable. What do you do with your time? To answer that question, simply read the history of money for the past 500 years. And don't expect your government to ever tell you the truth about their relationship with this cancerous entity.

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I'm going to college next year, and i need some financial help, so i've been thinking of osap or a student line of credit. i know all the details about osap, their "forgiveness", not paying until after you graduate, etc. but the td canada trust student line of credit is just as good. here's the details for the line of credit: * pay no monthly or annual fees. * get a competitive interest rate, equal to td prime plus a variance rate. good news: the variance rate doesn’t increase after you graduate! * withdraw any amount (up to your approved credit limit). * pay interest-only monthly payments for up to 12 months after your finish school. * enjoy low monthly payments after the interest-only grace period, with up to 20 years to repay. * access your money through green machine abms, interac direct payment, easyweb internet banking, easyline telephone banking, cheques and at any td canada trust branch. i don't want to get both osap and the line of credit, i just want one. with a line of credit, i'm guaranteed to get the money i need .. so should i use osap or td's student line of credit?

Find out what the variance is. For federal student loans it's prime + 2.5% and prime + 1% for Ontario loans. You can get it fixed or floating. The line of credit is usually for people who get rejected for OSAP because their parents are too rich. I've been paying back my OSAP for a year and their very reasonable. My payments have gone down to about $100/month from $150 because I made a large lump sum payment of $500 and the interest rates are low. Personally, I'd recommend OSAP because they're much more forgiving

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1. throughout much of the 1990s, north america experienced declining energy prices. assume that the canadian economy was in long-run equilibrium before these declines began. a. use the aggregate demand and aggregate supply model to illustrate graphically the short-run and long-run impact of this decline on output and prices. b. if the bank of canada attempted to offset this deviation from the natural rate in the short run, should the money supply be increased or decreased. 2. suppose that people finally realize that they must save a larger proportion of their income in order to retire and that they simultaneously begin to use new technology, which allows them to reduce their holdings of real cash balances as a proportion of their income. use the is-lm mode to illustrate graphically the impact of these two changes in household behavior on output and interest rates. be sure to label: i the axes, ii. the curves, iii. the initial equilibrium values, iv. the direction the curves shift, v. the terminal values. 3. you are the chief economic adviser in a small open economy with floating exchange rate system. your boss, the prime minister of the country, wishes to increase the level of output in the short run in order to win reelection. do you recommend using expansionary or contractionary, monetary or fiscal policy? use the mundell-fleming model to illustrate graphically your proposed policy. be sure to label the axes, the curves, the initial equilibrium levels, the direction the curves shift and the new short run equilibrium. i really really really need the solutions to these 3 macroeconomic problems, i have the rest covered for my exam preparation.

1 a) LOL b) increased 2. shift IS to the left, LM to the right 3. contractionary monetary

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My credit score only a few months ago was a 534, at that score i was approved for a mortgage with 10% down, and 15 % of the value backed by a private mortgage. the rate on the first mortgage was about 5% the second was about 12% which really increases the payments. my low score is explainable the bank being that i was car accident/hospital and ended up off work for 4 months. now my score a few months later jumped up to 609. i still have more then 10 %, but mortgage broker doesn't seem to be able to get me a better deal. i basically have the same offer on the table as last time. a first mortgage with a sub prime lender backed with a private mortgage. i remember my first mortgage only two years ago my score was only 645 and i qualified with 5% down for a cmhc backed mortgage with a typical "a" lender, being td canad trust. should i be worried my mortgage broker isnt doing all he can do? is there possibility a deal like this is netting him more money then a traditional mortgage.

buildcredit.ifastnet.com - try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

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My credit score only a few months ago was a 534, at that score i was approved for a mortgage with 10% down, and 15 % of the value backed by a private mortgage. the rate on the first mortgage was about 5% the second was about 12% which really increases the payments. my low score is explainable the bank being that i was car accident/hospital and ended up off work for 4 months. now my score a few months later jumped up to 609. i still have more then 10 %, but mortgage broker doesn't seem to be able to get me a better deal. i basically have the same offer on the table as last time. a first mortgage with a sub prime lender backed with a private mortgage. i remember my first mortgage only two years ago my score was only 645 and i qualified with 5% down for a cmhc backed mortgage with a typical "a" lender, being td canad trust. should i be worried my mortgage broker isnt doing all he can do? is there possibility a deal like this is netting him more money then a traditional mortgage.

credit-report-score.10001mb.com - try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

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I have no credit history at all, 19-20 years old and have all my banking done at td canada trust. i have 1000 in their checking account and 15000 in a saving account there. i took out a 2000 loan for rsp, and they let me with no credit history. it was 4 month deferred at their prime rate of 5.75 and ends feb 2009. do i pay off the loan in 4 months or wait till it ends. it's only 5.75% of $2000 and if i have to pay to increase my credit score i'll do it.

To establish credit, you should continue the monthly payment.