The Bank of Canada is keeping its key interest rate unchanged as it releases a downgraded 2019 growth forecast. 

The central bank also appears to be in no hurry to move the interest rate any time soon because, unlike recent statements, the announcement today removed all mentions of a need for future increases.

The bank says the economy was operating close to full tilt for most of 2017 and 2018 before a sudden deceleration in the final months of last year, which was largely caused by a drop in oil prices and unexpectedly weak numbers for investment and exports.

In new projections today, the bank is predicting growth of real gross domestic product of 1.2% for 2019, down from its January forecast of 1.7%.

The next scheduled date for announcing the overnight rate target is May 29, 2019. 

Please let me know if you have any questions.

CITY OF VANCOUVER EMPTY HOMES TAX

• Applies to the property (not the owner) and applies only to properties located in Vancouver (Properties in the University Endowment Lands are not included).  
• Properties deemed to be empty will be subject to a tax of 1% of the property's 2018 assessed taxable value. 
• Does not apply to homes which are principle residences or tenanted for 6 months of the year (however, it's very difficult to terminate a 6 month term lease, unless the tenant agrees to leave).
• Must submit a declaration of the property will be deemed vacant and will be subject to tax and a $250 penalty for late filing.  Only one owner needs to file a declaration.  
• Can submit a notice of Complaint up to 34 days after you receive a Supplementary Vacancy Tax Notice disallowing your Empty Homes Tax Declaration.  After thatt you are out of luck - even if the property was exempt from the tax!

SPECULATION AND VACANCY TAX

• TAX applies to the owners, not the property.
• Applies to residential properties in designated taxable regions of BC. 

Designated Taxable Regions include:  The Capital Regional District Metro Vancouver Regional District (excuding Bowen Island and the Village of Lions bay but including UBC and University Endowment Lands, Abbotsford, Mission, Chilliwack, Kelowna, Nanaimo and Lantzville).  

• All owners must complete a declaration to claim any relevant exemptions by March 31, 2019. 
• payment is due by July 2, 2019 if tax is payable. 
• 144,000 people missed the deadline this year, so the government is backing off on penalizing them for now.  

IF YOU DON'T COMPLETE YOUR DECLARATION LETTER, YOU WILL BE CHARGED TAX AT THE MINIMUM TAX RATE OF 2%

• Application of the Act:  applies retroactively to the 2018 calendar year.  Retroactive legislation is always considered a poor choice, because it doesn't allow people to properly plan their affairs.  
• Highest Tax Rate for foreign entities and satellite families:  2% of the assessed value. 
• Lowest Tax Rate - Canadian Citizens, permanent residents and residents of B.C.:  tax rate of 0.5%

2018 CALENDAR YEAR - applicable tax rate is 0.5% for every owner regardless of residency status (assuming that they file a declaration).  

Common Exemptions:  Principle Residence, Tenanted Property, Year of Acquisition Exemption, Rental restriction by-laws (2018 and 2019 years only - after that you have to move in, rent it, sell it or pay the tax). 

GOODS AND SERVICES TAX (GST)

• GST does NOT apply to pre-owned (used) residential homes;  GST is applicable on properties that are newly built or have been substantially renovated (90% or more).  
• New housing rebate is available:  equals to 36% of the GST and the rebate is up to $6300 for homes with a purchase price of $350,000 or less.  Rebate is available if the home is priced between $350,000 and $450,000. Over $450,000 no rebate is available. 
• GST is 5% of the purhcase price and is due on Completion 
• GST can be payable TWICE on newly constructed residential properties (e.g. if GST was paid on the original purchase and the property was re-sold without being occupied in the interim)