Megann Willson's blog

The dreaded “R-word”. (And its friends, downturn, slowdown, and depression). All of these economic conditions will have an impact on your personal finances. But are the results totally out of your hands? It seems these days the economic news is generally bleak, and the pundits are full of doom and gloom. Most of us are not independently wealthy, with unlimited resources. So how can we keep our chins up and find a silver lining in this cloudy fiscal atmosphere?

The economy is really throwing everyone for a loop. We seem to be on the cusp of a Bank-induced recession (that’s when the Bank of Canada keeps raising its interest rate  to curb inflation, only to have the economy slow down as a result). Home prices are falling here in the GTA, and the interest rate your lender wants for your mortgage is going up. All of that is a little unnerving, especially if it is the first time you’ve seen it happen.

Recession. It's on everyone's mind. Is it your first one? Sadly, it won't be your last. Economic volatility is a fact of life, and recessions come...and go. Wikipedia says there were 11 recessions between 1945 and 2001 in the US. And this article from the Toronto Star documents a few of the recessionary periods here in Canada. 

October is one of my very favourite months, not just because I have an October birthday. (You knew I was a Libra because I’m so balanced, right?). But as the end of the year approaches, people tend to spend a lot of money. Heating bills are up. Gift-giving season is upon us. And eating, drinking, and entertaining tend to be on the rise as well. What all this adds up to, is that your debt ratios might look like Thanksgiving – or they might be scarier, like Halloween. Knowing your numbers can help you transition from the spooky to the sweet.

There’s a poem by Australian poet Erin Hanson that has the lines, “What if I fail?

It’s the last week of summer holidays for many of my clients – even though technically autumn doesn’t officially arrive until September 22^nd, the arrival of Labour Day and the return to school definitely signals that summer is winding down.

What do you think? Is this true? This isn’t a column about “lies, damned lies, and statistics” – or not exactly. It’s a cautionary tale that when we want something badly, we may engage in some magical thinking. Magical thinking, for example, that because we have heard the market is down, we’re going to be able to buy a house for a song. That the property we couldn’t afford last year, will suddenly be affordable this year. Or that there won’t be any more competition in the marketplace.

"I love it! Let's make an offer!"

As part of the offer process, there are several documents that must be executed, and numerous terms that you'll need to understand. This can be time-consuming in the heat of the moment, so let's review some of the key decisions and definitions that you'll need to understand so that what you believe you're asking for, is, in fact, what appears in your agreement of purchase and sale.