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Bank of Canada rate

Discussion in 'TRIBE Main Forum' started by madnezz, Dec 9, 2008.

  1. justin surdit

    justin surdit TRIBE Member

    Some lenders require you to only convert to a fixed rate term equal to or longer than the remaining amount of time on the variable rate contract...so if there were 5 months left you can convert to a minimum 6 month term (or longer)...if there were 7 months left you could convert to a 1 year term (or longer).

    Other lenders have a minimum required term that HAS to be converted into no matter how far along you are on the current variable rate mortgage, although not very many do this any more. In this example, even if you had 1 month left on your term and you went to convert, you would have to convert to the minimum required term as outlined at the time you took your variable rate (eg. 5 years) etc.
  2. AdRiaN

    AdRiaN TRIBE Member

    Fine, I will qualify my statement.

    You will always be better off with a variable rate mortgage unless you are able to perfectly time the money markets over the next 30 years. :rolleyes:
  3. T_Dot_House

    T_Dot_House TRIBE Member

    If we have 50 year low rates, then shouldn't we have 50 year low mortgage rates too? I think my logic makes sence in theory..
  4. AshG

    AshG Member

    i hope for your own sake that you aren't running a mortgage right now. if you are, you need to do some research.
  5. octo

    octo TRIBE Member

    so BoC has been lowering it's rate. interest rates "are at an all time low."
    yet, mortgage rates are higher right now than they were a few months ago?

    are they going to shoot up to the levels of the 90s recession?

    can i expect a low interest rate on a car loan?
  6. spaboy

    spaboy TRIBE Member

    I've been seeing a lot of ads for 0% financing. From the big 3 mind you
  7. 416

    416 TRIBE Member

    You don't need to perfectly time shit, son. You just need to pay attending to the BOC and bond rates which you should be doing if you have a couple hundred thousand dollar tied up in it.
  8. SneakyPete

    SneakyPete TRIBE Member

  9. Flashy_McFlash

    Flashy_McFlash Well-Known TRIBEr

    This is madness! Variable rate mortgages are the new Blue Dolphin E's.
  10. Phat Buddha

    Phat Buddha TRIBE Member

  11. TaCk OnE?

    TaCk OnE? TRIBE Member

    for realzies.

    ours is 40 points below prime.

    ten years has already dropped off our amortization schedule...this is good as long as I can find a job when this contract ends, lol.
  12. DJ Doublecross

    DJ Doublecross TRIBE Member

    I now earn a higher interest rate on my ING savings account than I pay on my mortgage!

    I wonder if I can turn this into free money somehow....
  13. Bass-Invader

    Bass-Invader TRIBE Member

    sell your house and put all the money in your ing savings account i guess
  14. DJ Doublecross

    DJ Doublecross TRIBE Member

    Maybe I'll do just that! Prosperity, here I come....
  15. Flashy_McFlash

    Flashy_McFlash Well-Known TRIBEr

    save your moniee
  16. TaCk OnE?

    TaCk OnE? TRIBE Member

    CIBC is still saying prime is 3.5, they better drop it to 3 as well.

    then I'll be just over 2.5%, which is kind of insane.
  17. kuba

    kuba TRIBE Member

    The article in the Toronto Star is stupid. The main guy on the business section is complaining about his $10,000 student loan linked to prime, and how he wishes that the banks passed the savings on, so that he can save for his daughter's education. On $10K, the difference between 3.5% and 3% is negligible and won't be enough to save for anything. I wish the reporting was more accurate, or perhaps less focused on such a non-issue.
  18. kyfe

    kyfe TRIBE Member

    I can't wait till April when my variable rate locks in again. I could be as low as 1.75 if there's another drop.
  19. Jeffsus

    Jeffsus TRIBE Member

    I'd like to note that my line of credit is now lower interest than my mortgage...

    and my mortgage was "a very good rate" a year ago...

  20. Bernnie Federko

    Bernnie Federko TRIBE Member

    Interest rate cuts in 2015 have done their job and the Bank of Canada needs to consider its options as excess capacity in the economy is used up, Bank of Canada Governor Stephen Poloz said on Wednesday in a CNBC interview in Europe.

    Poloz said Canada had unexpectedly strong growth in the first quarter and that while the central bank expects growth to slow moderately, it will not slow down dramatically.

    "It does look as though those cuts have done their job. But we're just approaching a new interest rate decision so I don't want to prejudge," he said in the interview.

    "But certainly we need to be at least considering that whole situation now that the capacity excess capacity is being used up steadily."

    The Bank of Canada cut rates twice in 2015 to counter the effects of an oil price shock that sideswiped the Canadian economy. In recent weeks policymakers have shifted to a more hawkish stance, and many economists expect a rate hike before the end of the year.

    Chances of a Bank of Canada rate increase in July rose to 43 per cent on Wednesday from 30 per cent the day before, while the loonie surged to a four-month high after the hawkish comments by Poloz.

    Poloz said every major region is gathering momentum and the synchronized growth phase is a positive, though everyone is in a different phase of the business cycle.

    "The U.S. obviously way out in front. Canada some distance, perhaps as much as two years behind, given the oil shock. And then a little bit behind of course Europe. So but we are all there for grappling with the same issues in sequence. Well you know that's good for collaboration," he said.

    Poloz also said that uncertainty about NAFTA has been weighing on business investment, adding that the trade agreement between Canada, the United States and Mexico is a critical tool in Canada.

    "By my understanding the actual negotiations will start later this summer and that they're all hoping for it to be relatively speedy. It suggests that they've got a tight agenda. And so let's keep our fingers crossed on that, that it's not a long, drawn-out process because of this, that it is a headwind," Poloz told CNBC.

    He also said the Federal Reserve's rate hiking cycle is fundamentally good news because it means the U.S. economy is strengthening further, which is good news for Canada.
  21. Bernnie Federko

    Bernnie Federko TRIBE Member

    Rate hike shows bank of Canada balking at inflation – at least, for now

    “The Bank of Canada, a famously inflation-targeting central bank, is raising interest rates in defiance of its own inflation measures. At least for a while. The central bank’s willingness to seriously bend its own rules on inflation suggests a couple of possible explanations. One is that it has given up waiting for inflation to do what inflation is supposed to do in an economic recovery, and is turning to other economic signposts to guide its policy decisions. Another is that it has other reasons to lift rates off their floor and it is jumping through a window of opportunity before it starts to close. I’d suggest it’s a little from column A, a little from column B.”
  22. kennyboy

    kennyboy TRIBE Member

    I can't believe how many articles I've seen in the last day regarding the "panic" that a .25% rate increase potentially causes to people.

    Really? Are you that close to the edge that a few extra $$ a month is the tipping point? Perhaps you shouldn't have been living like a rock star and using your home equity as a cash machine.

    And I'll be the first to say I have a HELOC and have used it for some home Reno/ repairs but I never thought rates would stay low forever and tried to make the most of the opportunity to pay down more on the mortgage while the rates were so low.

    I'm just going to sit back and see what the next few years have in store and hope for the best.
  23. kyfe

    kyfe TRIBE Member

    Apparently a lot of Canadians are carrying a wackload of debt. I don't really understand it myself but then again I only carry mortgage debt
  24. Klubmasta Will

    Klubmasta Will TRIBE Member

    I am curious to see whether the increased interest rate, with promise of another likely increase before the end of 2017, when added to the already slower real estate market in the GTA (in part due to the cooling measures imposed on foreign buyers), will trigger the Toronto real estate market correction that folks have been predicting for many years. The last time Toronto had a real estate market correction was in 1988-89, when values dropped by 40%, and it took 10 years for values to reach their previous levels. I have seen a number of newsletters advising investors (in residential and multi-residential properties) that now may be the time to sell, as well as many articles about how residential sales in the GTA have slowed significantly. On the flipside are the arguments that (i) there are many capable buyers that have been sitting on the sidelines waiting for the buying frenzy to slow, so those buyers may soon enter the market, and (ii) new buyers may want to take advantage of interest rates while they are still low, to lock them in at low rates for 5 years.

    Very often, these kinds of predictions become a self-fulfilling prophecy.

    I was in the market for an investment property in Toronto, but may decide to hold off as a result of recent trends.
  25. kennyboy

    kennyboy TRIBE Member

    Wackload of debt is one thing, and I agree I think there's a lot of people that are way over extended, but if 1/4 point puts you over the edge that's a scary thing. Not sure how you could sleep at night.

    And I have a mortgage and bills and daycare and all that good stuff, but I would never write a check that your ass can't pay for. Guess too many people jumped on the free money train.
    kyfe likes this.

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