National Bank, Canadian Chamber predict slower economic growth next year

December 20, 2006 Edition of Canadian Business Online:

MONTREAL (CP) – Canada will see “relatively modest” gross domestic product growth of 2.2 per cent in 2007 as the pace of world economic growth moderates and a slowdown in the United States acts as an anchor to expansion here, the National Bank (TSX:NA) predicted Wednesday in its quarterly outlook.

Rapid industrialization in Asia, where powerhouses China and India continue to gain steam, will ensure the continued expansion of the world economy, “albeit at a slower pace,” the bank said in a release.

An American slowdown already in progress “will spread in 2007 as American households become more focused on savings in the wake of the real estate sector’s nosedive,” National Bank said. “Although its fundamentals are among the most solid of all G7 nations, Canada will not be protected from the headwinds blowing south of the border in 2007, with a relatively modest 2.2 per cent growth in GDP predicted.”

Chief economist Clement Gignac said the bank believes a regional divide will continue between the hard-hit manufacturing centres of Central and Eastern Canada and the burgeoning Western provinces in 2007.

As natural resources continue to drive the Western economies, Ontario and Quebec will likely see economic growth under two per cent in the coming year.

The bank said it believes there are interest rate cuts on the horizon, with the “Bank of Canada’s key rate likely to total close to 100 basis points,” which is good news for Canadian households.
A drop in rates will likely produce a drop in the loonie, “which is expected to take a break from its climb of recent years and settle between 85 and 88 cents US before rising to trade on par with the greenback by the end of the decade.”

In another report Wednesday, the Canadian Chamber of Commerce said the economy will be hit by several speed bumps in the first two quarters in 2007, producing slower growth and slightly higher unemployment.

The business lobby group said Canada’s average annual real GDP growth will be 2.8 per cent this year, slowing to two per cent in the fourth quarter. Growth will average 2.4 per cent in 2007 because of the weaker American economy.

In its forecast, the Ottawa-based chamber predicts:

– The national unemployment rate will rise to 6.4 per cent in 2007 from 6.3 per cent this year.

Housing Affordabillity – RBC Economics

From Canadian Business Online on December 20th 2006:

Housing affordability down despite stable borrowing rates, says RBC EconomicsDecember 20, 2006 – 10:43 a.m.

TORONTO (CP) – Housing affordability diminished for the fourth straight quarter in Canada despite stable borrowing rates and a decline in utility costs but the cost to own a home will likely abate somewhat next year, RBC Economics said Wednesday.

House prices continued to climb across the country, the economics wing of Royal Bank (TSX:RY) said in releasing its quarterly Housing Affordability Index.

“Across Canada, housing affordability further eroded as rising house prices outpaced income growth in the third quarter of 2006,” assistant chief economist Derek Holt said in a release.

“However, affordability is likely to improve slightly next year as the lagged effects of fourth quarter mortgage rate declines, easing energy price pressures and a topping out of home price appreciation will have a positive impact for home buyers.”

The pace of the decline in housing affordability eased somewhat during the quarter almost everywhere except Alberta, though that province will likely see an improvement in affordability as well in 2007, Holt said.

According to the RBC index, which measures the proportion of pre-tax household income needed to service the costs of owning a home, condos remain the most affordable housing class, with an index of 28 per cent.

Standard townhouses were the next affordable class at 32 per cent, followed by a detached bungalow at 40.2 per cent. The standard two-storey home is still the least affordable housing type with an index reading of 45.8 per cent, the bank said. Both new home construction and resales are expected to soften in 2007 while the overall volume of home sales activity remains high and the majority of home equity gains seen in recent years should also be retained, the report said.

Press Release!


December 11, 2006

RealCash Bancorp is excited and happy to formally announce that they will be participating with Durham Region Real Estate Board as a Gold Level Advertiser! Karim Kanji, Manager of Client Services with RealCash says, “We see this as a natural step in our process to further enhance our reputation as a grassroots organization. We want to be where our clients are and the Durham region continues to grow by leaps and bounds. We hope to be able to offer our services to Durham real estate professionals as they continue to succeed and grow in their businesses!”

RealCash Bancorp Inc. is honored to be Canada’s favorite and most affordable source for cash-flow solutions and commission advances for real estate professionals. RealCash has fifteen years of experience in serving our Canadian clients. It is our policy to give the best in quality and service to our customers who can be assured that our commitment to excellence will be our priority in service.

As agents continue to succeed in their real estate business we hope that they will consider RealCash for their cash-flow solutions and commission advances.

A business relationship with RealCash gives AGENTS financial control and flexibility.


For years, agents have played “cat and mouse”. More often than not, they rushed to get listings, hurried to find the right buyer and then finally, waited for their commissions. Many times it takes months before those commission payments came in. RealCash eliminates this by creating consistent cash flow – the key to staying competitive and profitable!

Better control of cash flow allows sales representatives to manage their personal and professional lives more efficiently. As a business tool, clients use this service several times per year in order to level off their income stream and free up funds for advertising and marketing programs to help grow their business.

For more information on our company and our services please feel free to call Karim Kanji at 1.800.265.2694 416.444.7790 or visit us at and .

Thank you for your time and have a great day.

Karim Kanji
Manager – Client Services
RealCash Bancorp Inc.

Please visit us at and

This Just In……..

Discount Realtor Closes Door!

(Thanks to the Toronto Star for the above article.)

Wow! This is interesting news. Here is a history of Realtysellers recent woes as chronicled by REM Magazine:

Realtysellers Launches.

Realtysellers expand Lawsuit.

Realtysellers settles Lawsuit.

Realtysellers plans agressive Growth!

Realtysellers expands in Ontario!

Wow! Stay tuned to this BLOG for more details!


Karim Kanji
Client Services
RealCash Bancorp Inc.