Mortage Rate

[adDiction]

that's 1.45 off prime which is ridiculous you must be an employee of a broker firm or put out for the boss where did u get this

[blownz]

Originally posted by redx2nv
3.3 here. variable.

I'm curious how you got that as well.

I have been looking and with 300 down and borrowing 500 I am looking at prime less .65 so 4.1

I was assuming I could get it to prime less .7 or .75 but how the hell did you get 1.45???

That would make a huge difference!

[Daxin]

With the housing market cooling down and I believe the Bank of Canada will be announcing something about the interest rate this week. Does anyone see the rates going even lower in the next five years? OR higher?

[Masked Bandit]

Originally posted by Daxin
With the housing market cooling down and I believe the Bank of Canada will be announcing something about the interest rate this week. Does anyone see the rates going even lower in the next five years? OR higher?

Well they announced this morning that there will be no change in rates at this time.

I guess things could eventually go a bit lower but logic would state that over the next decade, rates will have to go up. I think the historic average for mortgage rates is something like 8%. We've been below that for a long time now so I'm guessing at some point it will have to come up to AT LEAST the 8%?

When we decided to buy a new house a couple of years ago I based our family budget on a mortgage rate of 6.5% (even though the actual rate is quite a bit lower right now). This way, if / when the rates come up we won't be screwed.

[benyl]

Originally posted by Daxin
With the housing market cooling down and I believe the Bank of Canada will be announcing something about the interest rate this week. Does anyone see the rates going even lower in the next five years? OR higher?

The Bank of Canada interest rate does not directly affect mortgage rates.

Mortgage rates are affected by long term bond rates.

[whodiman]

Originally posted by benyl


The Bank of Canada interest rate does not directly affect mortgage rates.

Mortgage rates are affected by long term bond rates.

Probably more accurately, the bank of canada rates is used to help control the economy, currency and inflation. It really doesn't have anything to do with encouraging house buying. If one of the 3 factors above are hurting the rates are used to adjust this.

[redx2nv]

Originally posted by blownz


I'm curious how you got that as well.

I have been looking and with 300 down and borrowing 500 I am looking at prime less .65 so 4.1

I was assuming I could get it to prime less .7 or .75 but how the hell did you get 1.45???

That would make a huge difference!

Pm me, my buddy is a mortgage broker in edmonton. He got me the deal and anyone can get it.

[blownz]

^ I definitely will if we make up our minds on what to buy. We want to build but I am a bit concerned about what the value of my place might be when it comes time to sell 6 months or so into the building of the new place. But thanks.

[kenny]

Banks raise mortgage rates:

http://www.cbc.ca/money/story/2008/06/11/mortgages.html