Planworth

America's unemployment rate falls to 13.3% as economy posts surprise job gains

A great and shocking piece if good news came to the Americans: The job market may be recovering well ahead of schedule.

Only just in May the unemployment rate fell to 13.3% and the economy gained 2.5 million jobs. Since the Bureau of Labour Statistics had been tracking this sort of data since 1939, this was the largest monthly gain.

Back in April the market experienced a drastic loss of 20.7 million jobs and the unemployment rate rose up to 14.7% with businesses closing their doors due to COVID-19.

To learn more continue reading here: https://www.cnn.com/2020/06/05/economy/may-jobs-report-2020-coronavirus/index.html

Canada’s Housing Agency Tightens Mortgage Insurance Eligibility Amid COVID-19

The Canada Mortgage and Housing Corporation announced changes to its lending stands this past week, leaving extra challenges for Canadians looking to borrow money for a home purchase.

The qualifying credit score for mortgage insurance was 680, however the Country's national housing agency increased it to 600. This limits the gross and total debt servicing ratios to their standards of 35% and 42%.

CMHC head Evan Siddall stated that In order to protect the economic futures of Canandians these actions had to be taken as COVID-19 has left the financial market in a vulnerable position.

To learn more, continue reading here: https://globalnews.ca/news/7027943/cmhc-mortgage-insurance-coronavirus/

Common Pitfalls when Dealing with US Persons

Canadian clients who also happen to be US citizens or green card holders (US Persons) present unique challenges and opportunities because rules on both sides of the border apply to them. Many planning strategies that seem like no-brainers from a Canadian perspective can lead to potentially negative US tax consequences for US Persons.

To learn more, continue reading here:
https://www.planworth.co/common-pitfalls-when-dealing-with-us-persons/