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Page THE IIALTON HILLS Saturday August 1 1 1990 Bank of Canadas workings prove interesting and useful Ever wonder what the Bank of Canada does that so affects the cost and supply of money Explanations of the central banks arcane manoeuvring tend to put peo ple to sleep This need not be so The Bank of Canada s workings are com plicated but they can be interesting as well It plays a cat and mouse game with financial markets sitting back and watching market players grow reckless Then it pounces It is useful to understand how the bank works and what it cares about because it can affect your saving borrowing and spending The Bank of Canada the federal government banker It is run John Crow governor Mr Crow reports to Finance Minister Michael Wilson Unlike the S central bank the Federal Reserve Board the Bank of Canada does not claim to be independent of government the bank has been the money supply Simph put the supph measures circulation and in the bank When it is growing people borrow and spend When it begins to shrink cut back banks hue less money Itnd so people have less to spend Title MOMS The bank can influence he in two It can increase or settlement balances the amount of monev that fimntial Dianne Maley institutions have available to them at the central bank Or it can and sell Government of Canada treasury bills in the open market Financial institutions keep bank accounts with the central bank so can clear their through it But the central ban con the total amount of money to the banking system Because it is s banker the central bank tan shift government deposits from the banks accounts to its own account This reduces the of money available It cm dram from the system In selling bills on the open market to financial institutions The financial institutions have to come up with the money to the central for the Thills When it wants to add money to the the hank bills from them instead All this fancy footwork has an feet on interest rates If the bank floods the system with money this puts downward pressure on the cost of borrowing because bankers have more to lend If it wants to put up ward pressure on rates the central bank reduces the suppl of money When it does this bankers find themselves short of money to meet their reserve requirements They call some dav loans forcing interest rates up on the overnight market If the pressure is kept up the rate rise moves along the term spectrum Rising rates curb spending They also prompt people to switch from cash and bank deposits to longer term investments So the amount of readv cash in people s hands tends to shrink when interest rates rise People might decide to buy bills which like Canada Savings Bonds are not included in the money supp ly for the past or so the central bank has been Irving to slow the economy So it has been putting up ward pressure on interest rales This only begun and monev supply growth to slow Bv its ss analysts are able to predict the direction of interest rates l money numbers are not an infallible guide so an ire not always Paint gives our homes lasting beauty and value This irtich prepared by local and Ontario Real Association Oil- for the benefit of consumers in the real estate market Used as protection against the elements for of years paint also gives our homes lasting beautv character and value If you re thinking of painting the exterior of home this summer or fall but remain apprehensiv about the amount of work and time involved keep in mind that the kev to a successful job is a combination of common sense patience and a lit tie bit of elbow grease Before you begin make sure you have everything need Aside from paint and paint brushes or rollers a ladder and drop cloths are essentia may also need folding paint spravers heat guns paint scrapers shelve or Before rent or mechanized equipment make sure read the manufacturers directions and know how these tools properly Once vou got all the tools and materials need for par ticular job its time to prepare the surface re going to paint All areas to be painted should be clean and dry Painting directly over dirt or old cracking paint won give you the smooth finish you want and both the old and the new paint will even tually fall off A lot of direct can be removed wiping with a damp cloth but if the surface is really dirtv you may want to use a pressure sprayer which you should be able to rent from your local hardware dealer If you come across any mildew it imperative to remove it beore pain ting otherwise it will persist and work its way through the new paint later on Mildew em be eliminated rubbing the affected area with a mixture of one part bleach to three parts water You even want to gel some mildew resistant paint or buy a special pamt adhesive which inhibits mildew Once you finished cleaning and the surfaces have dried thoroughly it s time to scape off loose and peel paint This can be achieved using sandpaper a scraper wire brush electric scraper or heat gun For mosl jobs sandpaper and a scraper or wire brush will suffice but if there a lot to remove you may want to use an electric scraper or heal gun An electric scraper helps remove pamt vibration heat gun heats the old paint making it easier to lift off When using these tools il s a good idea to wear safety glasses pro tect your eves from flying paint chips also advisable to put drop cloths on the ground and shrubs to catch the flecks of paint as then fall instead of to rake or pick them up afterwards While cleaning and scraping the surfaces to be painted I pro notice a few areas that require some extra attention such as cracks and holes or stains Putty can be used to fill cracks and holes and spot primer should be applied to bare wood in areas thai are exposed to a lot of weathering You should also recaulk around win and doors or any places where water can get If you are working with new wood siding it will also require special at and should be given a spot coat of shellac before painting otherwise wood knots will end up show through the paint it After given the surfaces a thorough cleaning re to paint Make sure don paint on a windv or one that is extremely hot and spread plenty of ground sheets or drop cloths over shrubs lawn furniture the driveway vour car and anything else want to protect When preparing the paint mix two or three cans of the same color into a large container compensate for slight variations of shade between cans Start painting at the top of house and work vour wav down If re working solo it s heller pa nl one entire side of house at a time to ensure consistency of ap plication It s t good idea to cam a cloth with vou to clean up my drips as go along If get some paint spots on win can wipe hem off as they dried and then scrape awav with razor blade hen using a pressurized pamt sprayer you should cover doors and windows wilh large pieces of heavy paper or cardboard to pro them Make sure you apply the paint evenly and wear a breathing apparatus so don t inhale minute pain particles II also a good idea to wear prolective coveralls and goggles so don I become cove red with paint ire excellent for painting items such as shutters following these simple pro vou end up with a job you can be proud of and a finish that should 1 for some time Survey Completed Wednesday August 8 MORTGAGE RATES ANNUAL INTEREST SIX MONTH ONE YEAR TWO YEAR THREE FOUR FIVE rail TRUST COMPANIES Canada Trust 14 14 14 14 13 Municipal Trust N A 13 13 14 00 14 14 CHARTERED BANKS Bank of Commerce N A 14 14 14 00 13 Bank of Montreal 14 14 14 14 00 13 75 13 Bank of Nova Scotia N A 14 25 14 14 13 13 Royal Bank 14 14 14 14 13 13 Toronto Dominion 14 14 14 13 This survey was prepared to help the Herald readers track weekly Bank and Trust Company rates Energy efficiency important to home Contract I aw Mortgage Law of Agency Mortgage Financing and Standards of Business Practice these are but a small sampling of the courses an aspiring real estate prac titioner must complete before being licensed a provincial government body to trade in real estate These and countless other courses represent the minimum re for licensing which are updated regularly to reflect an in creaasingly sophisticated marketplace and to meet legitimate consumer expectations Real estate practitioners must continually up date their skills and training to pro tect the interests of consumers and by the same token ensure the ultimate in service instance realtors can explain the benefits of prequalifying poten tial buyers for mortgage financing This lets the purchaser know precisely the type of home that can be afforded and assures the seller than an offer to purchase is made by someone who can assume the re quired financial responsibility Most lending institutions for ex ample now add costs to the PIT formula Principle plus Interest plus in establishing a potential debt service abihtv This invariably into focus a need for the skills to properlj assess energy efficiency of a home and its potential effect on the transaction this isn an area of mor financing where realtors can help Since the energy crisis of the early 70s all sources of energy whether for transportation manufacture or personal comfort have gained par significance as witnessed by he ever growing environmental concerns our society The inclu sion of energy factors as a condition of mortgage financing makes it ob vious why housing consumers should pa close attention to the structure and over all condition of any house Through their real estate boards realtors have access to consumer in formation on energy efficiency in a program developed jointly by the Canadian Electrical Association Energy Mines and Resources Canada and The Canadian Real Estate Association The purpose of this program is to help such con sumers identify these energy factors and their impact on the purchase or sale of a home From a marketing standpoint the energy factor is very important to a residential property transactions Its therefore wise to follow a simple energy checklist with the help of your realtor whether you re buying a house or trying to sell one The simplest way to determine the energy efficiency of a home is the feather test glue a downy feather to a toothpick and run it along window and door frames wall outlets and exhaust vents if any Drafts are the major cause of either heat loss in the winter or heat intake in the summer which incidentally are good in dicators of a home energy A careful look at the heating system its type the degree of in sulation looking behind a wall outlet for example ventilation the types of doors and windows the of actual occupants and of course the energy bills will all help in determining the energy con sumption factor In the home buyer and home seller scenario this simple energy checklist will serve two important purposes for the potential buyer it could determine the overall ability to carry mortgage costs and for the seller it could mean doing a few inexpensive renovations and repairs to increase first the chances of a troublefree sale and by extension the buyer market base which is so important when putting a house up for sale