BoC lowers interest rate

[SilverRex]

to 4.25% so now I wonder what would really happen. Doesnt it hurt the loonie? Dam, isnt this going to give reason to people to continue to push house prices higher? and with the weaker loonie, say bye bye to cheap cars and incentives

[sputnik]

Originally posted by SilverRex
to 4.25% so now I wonder what would really happen. Doesnt it hurt the loonie? Dam, isnt this going to give reason to people to continue to push house prices higher? and with the weaker loonie, say bye bye to cheap cars and incentives

It is hard to say what it will do to the loonie going forward.

The Canadian dollar has come down about 10% over the past few weeks in anticipation of a rate cut so it is hard to say if it will fall further or not.

When rates are dropped you always run the risk of higher inflation. That will mean higher prices for houses and other consumer goods.

The Bank of Canada has been talking about dropping rates a full percentage point (back down to 3.5%) for a while now so I wouldn't be surprised to see the dollar come down (good for oil companies) and houses begin creeping up again starting this spring (if not earlier).

[SilverRex]

true, the recent decline in the value of the loonie is probablly already factored in, at least I dont think it has any more legs to push any higher against the US. The strong loonie just doesnt last, I remember reading somewhere it should be somewhere in the 98 cents territory for the CAD vs the US.

[civic_rida]

how much will this affect mortgage rates?

[el-nino]

Mortgage rates will drop. Ive been anticipating BoC to drop there rate since the loonie hit par. We'll see what happens i guess...

[The Cosworth]

Originally posted by SilverRex
true, the recent decline in the value of the loonie is probablly already factored in, at least I dont think it has any more legs to push any higher against the US. The strong loonie just doesnt last, I remember reading somewhere it should be somewhere in the 98 cents territory for the CAD vs the US.

trading at .9868 right now

Originally posted by civic_rida
how much will this affect mortgage rates?

Mortgage rates will drop because they are based on the BoC rate. This means people think they can afford more money on a house and will ultimatly drive house prices up again. Yippie



edit: one thing I am concerned with, are the people who are loaded up to the max on a house at 4 or 5% mortgage rate, what happens when they climb to 8 or 9 or even higher (and trust me it is bound to happen, just who knows when). Can you say 1980's all over again.


Maybe I can get some good property in Rosedale and mount royal when all the wanna be rich buggers lose their houses.

[Splooge]

^

[G]

Originally posted by brendankharris


edit: one thing I am concerned with, are the people who are loaded up to the max on a house at 4 or 5% mortgage rate, what happens when they climb to 8 or 9 or even higher (and trust me it is bound to happen, just who knows when). Can you say 1980's all over again.


Maybe I can get some good property in Rosedale and mount royal when all the wanna be rich buggers loose their houses.

If they initially had enough money to get into the house and you didn't what makes you think if interests go up and they end up foreclosing you will be able to afford their house? Rates will go up for everyone not only those who are highly leveraged.

[The Cosworth]

Originally posted by G


If they initially had enough money to get into the house and you didn't what makes you think if interests go up and they end up foreclosing you will be able to afford their house? Rates will go up for everyone not only those who are highly leveraged.

haha good point. I wont loose any money though, so I may be ok if it crash's and I haven't bought yet but had the cash

[Neons4life]

So if the interest rates are going to drop that much would a number of people re-mortgage their homes?

I locked in at 5.1%

[Antonito]

Originally posted by G


If they initially had enough money to get into the house and you didn't what makes you think if interests go up and they end up foreclosing you will be able to afford their house? Rates will go up for everyone not only those who are highly leveraged.

Because unlike what most home owners think the world doesn't stop the minute you buy a house and sometimes peoples lives change?

[The Cosworth]

Originally posted by G


If they initially had enough money to get into the house and you didn't what makes you think if interests go up and they end up foreclosing you will be able to afford their house? Rates will go up for everyone not only those who are highly leveraged.

Originally posted by Antonito


Because unlike what most home owners think the world doesn't stop the minute you buy a house and sometimes peoples lives change?

Actually you know what, rethinking it I was right to begin with.

If you buy a $750,000 house at 4% and can afford that, when you re-mortgage at 10% and you cant afford the payments, so either you try to sell your house (and no one else can afford the 750K either) so you sell it at a loss, or the bank repo's it and tries to get as much as they can as quickly as they can.

So someone like myself who doesn't lose money on a property can now afford your 750K house being sold for 500K at the same interest rate because the price is lower.

I was right, I am in a better position to buy a property when that hits the fan, lets hope you don't have to renegotiate your mortgage when that happens

[USED1]

^You won't loose anything, learn to fucking spell. It's LOSE

[The Cosworth]

Originally posted by USED1
^You won't loose anything, learn to fucking spell. It's LOSE

fuck didnt have your coffee this morning asshole?

one letter when I was typing like a maniac... jesus

[KappaSigma]

Keep in mind the US is suppose to cut their rates by .25% to .5% in the next couple of weeks as well

[autosm]

Originally posted by G


If they initially had enough money to get into the house and you didn't what makes you think if interests go up and they end up foreclosing you will be able to afford their house? Rates will go up for everyone not only those who are highly leveraged.

Highly leveraged and a lost jobs are a bad thing .

A 100000$ cash saved may buy you in a few years what 300000$ will buy you today . It has happened in the past more than once.

The people that did not buy recently may have the last laugh ?

[SilverRex]

welp at least it lowers my line of rate credit rate. lol

[modded46]

loonie is taking a beating..



This is a good thing.. More people will opt into buying houses which is exactly what we need right now to get things going again in the housing industry..

Not to mention all the purchasing that has been going on in the US by Canadians.. Need to bring some of that money back to Canada if you want to move forward.

[liquid1010]

I'm happy... just made some good purchases.

[civic_rida]

I guess i aint moving out anytime soon lol.