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Canada’s Economic Action Plan Delivers Housing-Related Infrastructure Loan for the Township of Cramahe

Posted by Moishe Alexander
The Government of Canada announced today that the Township of Cramahe has been approved for an infrastructure loan as part of Canada’s Economic Action Plan.

The announcement was made by the Rick Norlock, Member of Parliament for Northumberland – Quinte West, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC).

The Township of Cramahe has been approved for more than $1.3 million in a low-cost loan from CMHC’s Municipal Infrastructure Lending Program (MILP) for the expansion of the existing wastewater treatment system in the community of Colborne.

“Our Government understands the importance of infrastructure in maintaining strong and prosperous communities,” said MP Norlock. “This program is opening the door for municipalities of all sizes to meet their housing-related infrastructure needs and create jobs. It’s good news not only for the Township of Cramahe and the Village of Colborne, but also for Ontario.”

Canada’s Economic Action Plan provides up to $2 billion in direct low-cost loans to municipalities, over two years, for housing-related infrastructure projects through the MILP. Municipal infrastructure loans are available to any municipality in Canada and will provide a new source of funds for municipalities to invest in housing-related infrastructure projects. These low-cost loans can also be used by municipalities to fund their contribution to cost-shared federal infrastructure programming.

“Receiving financing from CMHC for the Colborne Wastewater Treatment Plant upgrades is an extremely important part of the success and implementation of this project in that it provides an affordable option for the municipality to contribute our 1/3 of the $6.3 million dollar project,” stated Marc Coombs, Mayor of Cramahe Township. “The upgrades to the plant will ensure the future sustainability of the Township of Cramahe as a strong community, with a clean and healthy environment and a strong economy.”

Eligible projects include infrastructure related to housing services such as water, power generation and waste services, as well as local transportation infrastructure within and into residential areas, such as roads, sidewalks, lighting and green space.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

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Term Life Insurance Canada: The News in the Interest Rate World

Times have changed drastically in the world of home loans because of recent happenings. What’s up next for us now? Is there any way to guess if the rates will continue to improve?

Tight conditions in the mortgage world should normally mean lower rates, since banks would have to lower rates in order to attract customers with good credit ratings. But it sems that banks are actually raising rates, in the hope that will improve their revenue.

Under other circumstances, this would seem like a bad choice since the usual route to increased earnings is to lower prices. This shortsightedness is not limited to the home loan industry; credit card companies are doubling and even tripling their rates in reacton to defaults on the part of customers in this depressed economic environment.

It used to be that when the economy slowed down, banks would lower their interest rates and this would give an incentive to borrowers. But with the lending industry in turmoil, it seems like none of the old rules count.

So what is the solution for a potential homebuyer with the right credit score to borrow? Wait for this phase to pass and for rates to come down or grab a loan now, while there is still some credit around, or wait for the fallout from the recession?

Not only is there a current, there are many who even believe there is a depression coming, which will surely lead to deflation. Normally, deflation will in turn lead to lower interest rates, so this indicates a wait and see attitude is the best to take right now.

Some lenders are still actively seeking borrowers. Many small lenders never had the capital to delve into the giant home loan programs that many of the larger banks did. In this case, being small was an advantage, since many of them were insulated from the problems now haunting most of the credit industry.

A second good argument for waiting is that home prices continue to plummet, with predictions of futher price cuts of as much as 35%, even after the 20 to 25% decreases already seen. The Case-Schiller study published in November of 2008 reported year on year decreases of 17% nationally, with 25% in some areas. If the scenario is set not only for decreased rates, but also for lower home prices, it would seem wise to wait until more of the credit crisis fallout can be judged.

http://www.classic-realestate.com/term-life-insurance-canada-the-news-in-the-interest-rate-world.html

reviewed by Moishe Alexander, CFC canadian funding corp CEO