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eyesthebye2
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Fri Jan 05, 2018 1:19 pm

reallyreal2 wrote:
http://vancouversun.com/news/economy/canadas-unemployment-rate-declines-to-lowest-in-four-decades/wcm/981965ed-9ae6-4375-9087-abd05b8f8c6e

Well looks like the economy is on fire - who here is expecting another rate increase very soon?

I am ... and looks like many others are also.  Canadian dollar is at 3 month high in anticipation of rate increase.  The question is not where rates are going but how fast and how high.  Hope everyone is prepared  :lol:


On the contrary. With $Cdn flying, the BOC will need to lower interest rates to bring the currency down before it effects exports. I think .80 would be Ok, but if we're above .82 by BOC rate announcement time I think it'll stay at current.
 
reallyreal2
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Sat Jan 06, 2018 9:12 am

Yah - that’s not how it works.

I hope you ready for .75% increase in 2018 because we are trending that way.
 
Harahomes
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Sun Jan 07, 2018 1:58 pm

reallyreal2 wrote:
Yah - that’s not how it works.

I hope you ready for .75% increase in 2018 because we are trending that way.

Actually that's exactly how it works.
 
reallyreal2
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Sun Jan 07, 2018 8:54 pm

Yep - 4/5 banks predict a rate increase this month. The other in April.

Let’s go with hara and ETB’s prediction....LOL
 
Harahomes
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Sun Jan 07, 2018 9:53 pm

reallyreal2 wrote:
Yep - 4/5 banks predict a rate increase this month.  The other in April.

Let’s go with hara and ETB’s prediction....LOL

All I'm saying is when the economy is strong and our dollar's value increases the government tends to lower the BOC over night rate to keep the dollar in check.  This is typically done to make our exports more affordable.  Couple that with Trump's stance on lowering the corporate tax rate drawing more manufacturing jobs back to the US, and the new lending rules. Remember, we are the largest trading partner with the US.  Increasing the BOC over night rate would stagnate the Canadian economy sending more manufacturing jobs to the US.  You should also remember, Trump is trying to amend NAFTA.  What will that look like?  Will we go back to higher duties on Canadian exports to the US?   
Also if the interest rate was increased new home owners would be the ones hurt, and it would draw more foreign investment to Canada due to the higher rate of return on investments here.  Remember if the overnight rate is increased, investment returns on financial instruments is also increased in turn.
But hey, what do I know? 
 
Harahomes
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Sun Jan 07, 2018 9:56 pm

reallyreal2 wrote:
Yah - that’s not how it works.

I hope you ready for .75% increase in 2018 because we are trending that way.

Also I was initially commenting on the fact that BOC overnight rate usually decrease with an increase in the Canadian dollar to make our exports more affordable.
Don't believe take economics 101 or google it
 
eyesthebye2
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Sun Jan 07, 2018 11:43 pm

Data shows a robust economy, but with just a 1.3% inflation rate. The numbers don't add up...should be higher.
Watch the $cdn if you want to know what the BOC will do. They won't want to knock the stuffing out of our exports.
Our whole economy is tenuous. Fed fucks with in too much by tinkering with the rates it could waylay any progress. We've been here many times in the past 8 years...as soon as Fed increases the rate it knocks everything askew
Last edited by eyesthebye2 on Mon Jan 08, 2018 11:26 am, edited 1 time in total.
 
reallyreal2
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Mon Jan 08, 2018 9:58 am

Yes - but the US is increasing interest rates also.  So when the US increases rates, that tends to increase the US dollar... which makes our dollar go down.

you guys talk like we are raising rates in a vacuum - we're not.  

Like I said, I hope people can afford an increase in interest rates  :lol:
 
reallyreal2
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Wed Jan 17, 2018 9:35 am

Well here is the first increase of the year - I stress first.

http://business.financialpost.com/news/ ... t-a-decade

Banks and economists are saying that we can expect two more quarter point increases - then there is "some forecasters, including economists at Royal Bank of Canada, see three more quarter-point increases this year."

1% increase in rates should be quite easy for the market to absorb.  I mean, if you have a $500K mortgage, that's only an extra $5K per year going to your mortgage payments.  If you can't afford that, you shouldn't have had a $500K mortgage to begin with.   :D

The multi-million dollar question... how does this effect the housing market in Vancouver and surroundings?
 
reallyreal2
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Wed Jan 17, 2018 10:29 am

.....and since the increase has been announced, the local RE agents are crying.  LOL

Who is more self centered than a "greatest place on earth" Vancouverite?  A real estate agent in Vancouver!

They seem to not understand that increases in interest rates is good - it means the economy is doing good!  Any realtor that is crying about these increases only cares about themselves and not their clients because clearly all they can see is this hurting their own bottom line.
 
yzfr1
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Wed Jan 17, 2018 1:07 pm

reallyreal2 wrote:
.....and since the increase has been announced, the local RE agents are crying.  LOL

Who is more self centered than a "greatest place on earth" Vancouverite?  A real estate agent in Vancouver!

They seem to not understand that increases in interest rates is good - it means the economy is doing good!  Any realtor that is crying about these increases only cares about themselves and not their clients because clearly all they can see is this hurting their own bottom line.


Can’t blame them, “now is the best time to buy” thats how they earn their living. It’s a conflict of interest, they are there to make the sale to get paid, if you get what you want thats just a bonus.

They dont have any fiduciary obligations.

What they need to do is make the database open to everyone, I should be able to see all listings.. sold prices etc etc. With Realtor.ca who the hell needs a real estate agent that cost them $30,000 in commissions.

Realtors should be like a consultant like a home inspector. One time fee of $1,000. I find the home I like and they do the due diligence, checking title, warn me of things like leaky condo. They get paid for their advice on a potential house buy. They get paid if its a buy or no buy that way there is no bais
 
eyesthebye2
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Wed Jan 17, 2018 3:34 pm

I think the new mortgage qualifying rules are still higher than a 1% increase in real rates.

Won't effect offshore buyers...I'm sure they'll appreciate locals being pushed aside and take a discount on their purchase
 
reallyreal2
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Re: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

Wed Jan 17, 2018 5:15 pm

Writing is on the wall - some choose to ignore and others read.

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