Finance

Scammed by rawcontentplatform: "BORROW WILL COST YOU MORE"

  • Wednesday, December 05, 2018
  • By Tatoru Yuki
  • 0 Comments

Platform: Glance.com

Scammer Details: Freelancer was requested to contact Robert Hart (a.k.a. rawcontentplatform on Skype) after being approached on Glance.com by a 'Steve Fowler'.

First Message:
Good Morning and thank you for finding time to reach out to us. We are looking for a writer for a duration of 6 months. We need someone with a pretty fast turnaround since we have clients requesting the articles on the go. Basically, the articles will be assigned and required back in a few hours. The extent of research is rather minimal so you can be sure that will not affect the quality in any way, even as we will demand strict adherence to the guidelines given, including the deadlines for each assignment. Our starting budget is USD 0.038 per word. Payments are made every fortnight and you get to choose your preferred payment method. The articles cover a wide range of topics; from home improvement, finance, news articles, product descriptions etc. I would like to know the niches you're not very confident in. Also, we are available for up to 22 hours a day so in case we have a deal, we will not consider time zones as so much of an issue but we would need to know where you are based and what your preferred working hours would be. Kindly reply to these questions and feel free to ask any you may have. If everything else is agreeable to you, I would like us to start today 1:00pm EST. We can handle one article and then proceed in earnest tomorrow.

*****

BORROW WILL COST YOU MORE


As we know, a change of policy rate has a big impact on the way people borrow. The influence of the decision made by the national bank affects the mortgages, private loans, and investment. 

More increases to come

Since the last year and a half, Bank of Canada has tripled its Policy Interest Rate, with an increase from 0.50% to 1.50%. The Board of the Canadian central bank explains the main reason for the growth is GDP being low compared to the previsions made. GDP Growth prevision has been lowered from 2.2% to 2.0% for 2018, and today’s forecast for 2019 is only 2.1%. The Bank Rate is correspondingly 1.75% and the deposit rate is 1.25%.

A major risk

Higher interest rates are a real threat for Canada’s economy through high proportion of consumers in debt. A vast majority of mortgage borrowers have secured their loans on fixed-rate, meaning the increase will severely affect the new borrowers after 2020, according to top prominent economists. But home-owners with variable-rate mortgages have seen their rates explode over the last year. The only seems to switch on a fixed-rate, as they seem to provide certainty and security over the term of the loan.

Protective regulation

As of January 1st, of this year, the Federal government has initiated a “stress test” in order to protect borrowers from bankruptcy. This means that qualified applicants must prove they can afford the MQR rate of at least 5.34%. This mortgage qualifying rate is used to “stress test” mortgage borrowers. As a matter of fact, we can notice that the number of mortgages fell by 3.4% in second quarter of 2018 compared to a year earlier, as stress test rules young buyers out. There is decrease of 18% in millennial borrowers (aged from 24 to 38). Young ones are struggling to come up with a 20% down payment and to pass such test.

Household debt creeps higher and higher

Credit market debt is at the highest, reaching 169.1% in second quarter. In other words, this means that Canadians owed $1.69 in credit market for each dollar of household disposable income. Canadian households owed just over $2 trillion in total. That number shows how indebted people are dependent on interest rates. The regulations requiring people to show they can service their debt at higher interest rates are a lifesaver in this case.

Support from population growth

Canada has one of the fastest growth rates of any of G8 nation. Expanding population has just surpassed 35 million, which represents a 1.2% increase over one year. Saskatoon and Regina are the two fastest growing metropolitan areas. A record of nearly 400,000 people moved to Canada due to international migration. This support to demand for housing, and increases economic potential, but then lead to higher inflation and therefore higher interest rates.

A new way to support growth?

Cannabis industry might have a boosting effect on economy due the very recent legalization of recreational drug in the country. Toronto Dominion Bank says it could add as much as $8 Billion to the country’s economy. And this should impact GDP in the final quarter of 2018, even if the bank admits that some of the cannabis related trade is already accounted in the economy. But we will have to stay put and follow the next events.

  • #
  • #

    • Share This Story

    You Might Also Like

    0 comments

    Did you buy this article? Please inform us about the scammer who got this article for you. If you know any other contact details of the scammer such as their other IDs, let us know!

    Follow me
    Socialize!