Wednesday, September 8, 2010


Good Afternoon,

With an unpredictable economy these past two years, I thought it timely to share with you again one of my very favourite stories. It is amazing how our attitude truly determines our outcome. Please see below for my Economic Update and How's Your Hot Dog Business Doing these Days?

As we move into Fall, I wish you a productive and successful September.

Economic Update

The Bank of Canada raised its key interest rate by a quarter of a percent today to 1.00% based on the expectation that the economic recovery in Canada will be slightly more gradual. That being said however the Bank also stated that consumption growth in Canada is expected to remain solid and business investment to rise strongly.
Pricing for fixed rate mortgages however has been creeping down in recent weeks with a 5 year fixed as low as 3.69%. The current prime-lending rate is set at 3%.
In other news, the words Housing Bubble has made its way to media recently and many are concerned. While housing prices will not appreciate at the same rate as in the past few years, the chances of having a 10-20% drop in our housing market is slim. Increasing wages, foreign purchasing up, immigration on the rise, stricter lending regulations and low interest rates, should equate to a more balanced market and elevate a housing bubble from occurring.
How's your hot dog business doing these days?
"A man sold hot dogs at the side of the road. He was proud of his hot dogs and made a good deal of money selling his hot dogs. Every day, he would put out his signs, go out and yell from his hot dog stand, "Come and get your hot dogs! The best hot dogs in town!" And people came from all over to eat his hot dogs. He would have lines of people all day long. He loved selling hot dogs and believed they were delicious, fresh, and the best. He talked to his patrons and was grateful for them. And they loved this man.

Anyway, the man saved enough money to send his son to college and one day, the son came home and asked his dad what he was doing during the day. The man said that he was still selling hot dogs and business was booming. The son looked at him and said, "Daddy, what's the matter with you? Don't you know we're in a recession? No one is going to buy hot dogs. I can’t believe you're wasting your time and money trying to sell hot dogs. You need to cut your losses and close that stand."

Well, the man believed his son; after all his son was educated, in college, and certainly knew more than he. The man became a bit despondent, but did not want to close his hot dog stand because people came to him every day. They depended on him for their hot dogs. He continued to go to his hot dog stand, but he no longer put out his signs nor yelled about his great hot dogs; he did not talk and laugh with his patrons as much. "We're in a recession," he thought, "What is there to laugh about?" Little by little, the patrons stopped coming and the man sold fewer and fewer hot dogs. Then no one came and he had to close his hot dog stand. He said, "Well, my son was right."

Attitude is often times more important than fact. The man did not know that the country was in a recession and, therefore, continued to behave in a way which generated a profitable business. Once his attitude changed; his behaviour changed and then his business changed.

If you know of anyone that would talk to me regarding the current rate changes please feel free to pass along my number, I'm here to help.

Your Friend in the Mortgage Business,
Jared Dreyer 604 649-5991

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