BC Retains AAA Credit Rating

British Columbia will retain its AAA rating despite the defeat of the harmonized sales tax, says credit rating agency Standard & Poor's.

An AAA rating reflects "extremely strong capacity to meet financial commitments," according to S&P's website.

Regarding its decision to continue the top-level rating for B.C., the agency said the province has the solid revenue and expenditure flexibility necessary to meet its deficit targets and a moderate tax-supported debt burden.

But it said B.C. faces new challenges - the loss in revenue; the initial administrative costs of transitioning back to a PST-plus-GST tax system; plus the likelihood of having to repay $1.6 billion in HST transitional funding from the federal government.

B.C. Finance Minister Kevin Falcon welcomed S&P's statement. "I believe this is a reflection of the fiscally conservative approach we have taken over the past decade," he said in a press release. "During this time of global economic uncertainty, our credit rating is more important than ever and we will continue to manage taxpayer dollars responsibly while we focus on strengthening our economy and creating jobs."

medha@vancouversun.com

The more you make the more you pay???

I just read this and had to share it:

"In the Bank of Canada study I referenced earlier they cite: “The results indicate that high-income borrowers pay more for their mortgages, as do loyal consumers, consumers who search less, and those that value large branch networks”."

We have to be reminded that without mortgage brokers, and the competition we bring to the big banks, we all as mortgage consumers would be paying far higher interest rates.

The banks are in business to make money and that's the bottom line. In the end more times than not they will try to fill their pocket books with your money. Where as me, the Mortgage Broker, who works for you, will do the opposite and try to keep your pocket filled with your own money.

Day in and day out I hear stories from people who are at their branch and they feel the branch is not doing a good enough job, especially when it comes to rate. They talk to me, find out that I can usually do a better job not only on rate but on overall product, then they go back to the bank and the bank matches them and they call me back and say 'thanks for your help, the bank matched you and I'm staying with them.' WHAT ARE YOU THINKING!?!?

Why would you go back to them when they've clearly tried to charge you more and have clearly shown that you are just another potential sucker? And most importantly, what product did they suck you in to? Read my other posts on my blog about products and why the best rate is not always the cheapest for you.

Anyways, I could go on and on about this, however, I wont bore you!