Household debt rising in Canada

Posted by & filed under Accounting Careers, Canadian Economy.

Description: One downside of the long period of low interest rates is that consumers have been piling on the household debt. With income growth in trouble, debt is growing faster than household income. Canadians now owe almost $1.70 per every $1 coming in. The Bank of Canada is concerned about the impact of these debt… Read more »

Going negative

Posted by & filed under Accounting Careers, Advanced Accounting, Canadian Economy, Uncategorized.

Description: Try this one on for size: you pay the bank for the privilege of holding your money. Sounds pretty strange doesn’t it? But with stagnant economic growth, central banks in several jurisdictions are crossing the boundary between low interest rates and negative rates – effectively charging¬† banks to place their funds with the central… Read more »

Shadow Flipping

Posted by & filed under Canadian Economy, Ethics.

Description: You may be familiar with the stories of sky-high prices on real estate in Vancouver. One of the forces behind the rise is a practice known as shadow-flipping. In a shadow-flip, an agent earns multiple commissions on the same property by arranging resales of the property before the closing date. As well, those in… Read more »

Tax rates: Who’s highest?

Posted by & filed under Canadian Economy, Personal Tax.

Description: This week the New Brunswick government released its budget for the coming fiscal year. And one budget item got first page attention on the front page of Canada’s national newspaper, the Globe and Mail. The Globe featured an article noting how New Brunswick’s budget promises a tax cut for the wealthiest citizens in order… Read more »

Debt loads troublesome

Posted by & filed under Canadian Economy, Financial Reporting and Analysis.

Description: The Parliamentary Budget Officer (PBO) is concerned. But this time it’s not about government forecasts. Rather, this week the PBO warned that Canadians debt to income level has reached a point not seen in over 25 years. House prices and other pressures are expected to raise those debt to income levels to close to… Read more »

Big year for auto sales

Posted by & filed under Canadian Economy.

Description: Both Canada and the United States saw record auto sales in 2015. A number of factors appear to have contributed to the big year, including low petroleum prices and low interest rates. Pent-up demand is another likely influence, a factor which may continue to play a role as Canadians are driving a record 10… Read more »

In debt at home

Posted by & filed under Accounting Careers, Canadian Economy.

Description: Almost 40% of Canadians owning homes have found themselves in some sort of cash flow crisis in the preceding year according to a recent Globe and Mail report. Increasing house prices might explain why Canadians are reaching out to relatives or loading up the credit card to get through a tough spot in paying… Read more »

Budget balancing

Posted by & filed under Canadian Economy, Canadian Government, Personal Tax.

Description: The federal government released its budget this week, with a planned surplus of over a billion dollars. One of the tax measures for Canadians was an increase in tax free savings account limit to $10,000 per year. There were also changes in the small business tax rate. Source: thestar.com Date:¬† April 21, 2015 Link:… Read more »