as starts and Plenty for mortgages. sales continue 1989 decline Lenders say there’s no shortage of funds for residen- tial mortgages in 1990 as house construction continues to slow down and the market for exist- ing homes softens. Whether or not rates go down, and that’s likely too, all kinds of innovative mortgage mark- eting ploys are expected as lenders struggle to maintain their market share. Canada Mortgage and Hous- ing Corporation anticipated a 16 per cent drop in the 1989 rate of residential mortgage lending from 1988, Housing starts were expected to be down 191,000 units in 89 from ’88. Sales of used homes were forecast at 281,000 compared with 292,000. ’ By ANN MARIE O'DONOVAN, CA Today, most of us have taken the convenience approach to banking and bill paying. We authorize our life insurance company to withdraw monthly premium payments directly _ from our chequing or savings Bank machines just keep coming Canadians love their auto- mated banking machines, the banks say, and they. certainly beat lineups at the wicket. Trust companies, credit unions, caisse populaires and others are very much in on the act too, and there’s no doubt the machines will become more widespread in the future. | - ABM network. at you~ Furthermore, whatever in- stitution you use, you can now get cash from just about any machine in the country be- cause of the shared Interac The following table shows numbers of machines across Canada, including cash dis- pensers, on July 31,1989: Province Banks Trust - Credit Unions ‘Others Total Cos &Caisses . oe Populaires British Columbia 733 59 178 — 970 Alberta 665 38 81 14 798 Saskatchewan 188 il 85 — 284 Manitoba 265 13 76 — - 354 Ontario 2,727 388 139 . 63 3,317 Quebec 1,040 33 692 8 1,773 New Brunswick 102 6 19 — 127 Nova Scotia 156 11 — — 167 Prince Edward Is. 15 3 _ — 18 Newfoundland 57 3 2 _— 62. . Yukon/NWT : io — — 3 Total 5,951 565 1,272. © 85 7,873: ‘Stripped’ bo attractive as “Stripped” or “zero coupon” bonds are increasingly an in- vestment option to consider if, as and when interest rates fal] from the high levels prevailing nds become |: rates fall. throughout 1989. That can’t be far off, if indeed it hasn't al- ready started by the time you read this. an, a wk ; a e | Bitl Sauer . Michael Look to these people. for: The Ultimate 4546 Lakelse Avenue, - Terrace, B.C. V8G 1P8 Phone 635-6166 | Beausoleil Jim Lynch account and we pay our telephone bills or make withdrawals from automated teller machines. _ While we are aware there is often a price for this con- venience, in the form of service »charges, we sometimes forget ' there is also a hazard. Failing to record banking transactions, or worse, failing to review - records of them: for accuracy, can lead to additional and sometimes steep charges. That's why it’s in your best ‘interest:to take time out. each - month for bank reconciliations. The objective is to compare the difference between the balance your records show and the balance the bank shows — that is, to ensure what you thought: you had in the bank i is indeed there. pig iden ai eR eg rg a MONEY SUPPLEMENT, 1990, PAGE 11 Reconciling accounts is a must in the era of ‘banking convenience’ Formerly, bank reconcilia- tions were largely limited to chequing accounts. Now, how- ever, with the introduction of the ATM and other bank ser- vices, monthly reconciliations are needed for chequing, sav- ings and other accounts. If you have a savings account, visit your bank branch regular- ly to have your passbook up- dated. Once updated, check the coding for the nature of each transaction. If you’ve arranged to.have your pay deposited or your mortgage withdrawn automatically each month, be sure these are duly recorded. And, in particular, look for the DM code which indicates the bank has processed a charge through your account — if you don’t know what it’s for, ask. Check ATM transactions Next, review the business you've. conducted through ATMs by checking all the transaction cards you've ac- cumulated over the month against the entries in your ‘book, Finally don't forget to ad- just your records for interest and service charges. Balancing your cheque book takes a little more time. Dur- ing the month you must keep a record each time you write a cheque or use your bank card. You must also record pre-auth- orized cheques. When you re- ceive your monthly statement, compare the charges it shows to those you’ve recorded, Again adjust your records to reflect — interest and service charges. If your balance and the bank's still don’t agree, the difference may be due to deposits or withdrawals made after the bank statement was prepared. To reconcile your. books, start with the bank’s closing ba- lance, add to it any deposits and deduct any outstanding cheques. Keepin mind reconciling your bank accounts is more than a mathematical exercise. To manage your money wisely, you must first know how much you have. Anne Marie O'Donovan is with Clarkson Gordon. WleAIpine & Co CHARTERED ACCOUNTANTS 4634 LAZELLE AVENUE TERRACE, B.C. V8G 1S7 PHONE: (604) 635-4925 FAX: (604) 635-4975 Chartered Accountants Providing the Following Services: AUDITING & ACCOUNTING ~ INCOME TAX CONSULTING MANAGEMENT CONSULTING COMPUTER CONSULTING DATA PROCESSING Alan McAlpine, C.A., Res. (604) 638-0429 Howard Pruner, C.A., Res. (604) 635-7987 J.B. Riding, C.A., Res. (604) 635-6862 Craig Mills, C.A., Res. (604) 635-3078 Ah ne pp nae SE ase Rig mere oy ee