Comments on: Bank of Canada Needs Higher Rates To Stabilize Real Estate & Counter Fed: Scotiabank https://betterdwelling.com/bank-of-canada-needs-higher-rates-to-stabilize-real-estate-counter-fed-scotiabank/ Canada’s Fastest Growing Real Estate News Source Mon, 12 Jun 2023 03:17:35 +0000 hourly 1 By: Blue Chevy https://betterdwelling.com/bank-of-canada-needs-higher-rates-to-stabilize-real-estate-counter-fed-scotiabank/#comment-90891 Mon, 12 Jun 2023 03:17:35 +0000 https://betterdwelling.com/?p=23477#comment-90891 We caused gas prices to go up ,
We caused food prices to go up,
We spent government money
as there
was no tomorrow ,
We allowed corps to make record profits.
We did none of this and we get the bill with higher rates.
Unfair.

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By: Andrew Baldwin https://betterdwelling.com/bank-of-canada-needs-higher-rates-to-stabilize-real-estate-counter-fed-scotiabank/#comment-90859 Fri, 09 Jun 2023 15:43:22 +0000 https://betterdwelling.com/?p=23477#comment-90859 Derek Holt is like so many financial experts. He sees nothing wrong with the existing target inflation indicator of the Bank of Canada although it is clearly defective. In the short term it should be changed to exclude mrotgage interest. In the long run, it should switch to a macroeconomic measure of consumer prices, distinct from the CPI, with an owner-occupied housing component based on the net acquisitions approach. The only G20 central bank that has done this is the Reserve Bank of Australia, but the Australian CPI has adopted the “net weight net price” approach, i.e. lot prices are excluded from both index weights and price indexes. The Canadian index should adopt a “gross weight gross price” approach, similar to the NP1 experimental index that I introduced in 1985 as part of the StatCan indexes with special treatments of owner-occupied housing. This would make the Bank’s decisions much more sensitive to house price movements, protecting Canadians against damaging housing bubbles.

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By: Banker https://betterdwelling.com/bank-of-canada-needs-higher-rates-to-stabilize-real-estate-counter-fed-scotiabank/#comment-90858 Fri, 09 Jun 2023 15:04:01 +0000 https://betterdwelling.com/?p=23477#comment-90858 People need to accept the fact that the run up in real estate values and the stock market over the past 15 years was derived from rock bottom interest rates an era of free money. The value of the average persons home has increased on a yearly basis more then they earn while working at their jobs. This is completly unproductive and these inflated asset values have put our financial system at risk. Money is not free and people need to remember that the gains in the market and in real estate are only realized when one sells out not by taking a line of credit out against the equity. Once the Bond Rating Agencys get around to downgrading the canadian banks all hell will break loose. Now is the time to sell and realize gains or those in a loss position should sell to minimize their exposure. The government can no longer suppress rates to artificial levels. The pain is coming.

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By: Ray Hoskins https://betterdwelling.com/bank-of-canada-needs-higher-rates-to-stabilize-real-estate-counter-fed-scotiabank/#comment-90829 Wed, 07 Jun 2023 03:06:13 +0000 https://betterdwelling.com/?p=23477#comment-90829 So every person that has a mortgage or is considering getting a mortgage has to pay a penalty because of the lack of housing driving up prices. Build more housing and prices will stabilize. But no, keep the working person in debt to the bank instead because we all know the money going to the banks and wealthy will trickle down to the peasants. Yah right.

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By: Bill https://betterdwelling.com/bank-of-canada-needs-higher-rates-to-stabilize-real-estate-counter-fed-scotiabank/#comment-90826 Tue, 06 Jun 2023 23:34:40 +0000 https://betterdwelling.com/?p=23477#comment-90826 Rate hikes will primarily hurt renters and first-time buyers. Investment property owners in the GTA and Vancouver (the first city being the only one with decent-paying jobs), can raise rents with near-impunity.

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By: Jay https://betterdwelling.com/bank-of-canada-needs-higher-rates-to-stabilize-real-estate-counter-fed-scotiabank/#comment-90819 Tue, 06 Jun 2023 20:13:22 +0000 https://betterdwelling.com/?p=23477#comment-90819 Why do you guys keep calling the federal government The Fed? That’s highly confusing as literally everyone else uses it to refer to the U.S. Federal Reserve.

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By: Khurram Jamil Butt https://betterdwelling.com/bank-of-canada-needs-higher-rates-to-stabilize-real-estate-counter-fed-scotiabank/#comment-90811 Tue, 06 Jun 2023 17:46:49 +0000 https://betterdwelling.com/?p=23477#comment-90811 In reply to Allen B.

Allen B, if you don’t bring in those million new people a year – (actually its just 550,000) – the economy will stagflate. The local Canadian is not that interested in developing the skill set to keep the economy growing. Its the immigrants – the doctors and engineers and computer geeks – who are contributing to the emerging employment sectors. So the govt is stuck in a situation where they actually NEED the fresh blood but are not creating the capacity to house them. If you want to stop immigration, just get better at doing the techy things yourself.

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By: Vito https://betterdwelling.com/bank-of-canada-needs-higher-rates-to-stabilize-real-estate-counter-fed-scotiabank/#comment-90810 Tue, 06 Jun 2023 17:36:47 +0000 https://betterdwelling.com/?p=23477#comment-90810 In reply to Allen B.

BANKS WANT HIGHER INTEREST RATES SO THEY CAN CHARGE MORE FOR PEOPLE WHO NEED LOANS, ETC! WHY DOESN’T THE GOVERNMENT FORCE THE BANKS TO LOWER CREDIT CARDS INTEREST FROM 20 % TO SAY 10% ! BANKS ARE TOO GREADY . IN THE MEANTIME THEY PAY 1/2 OR LESS PERCENT ON YOUR DEPOSITS AND USE YOUR MONEY TO LEND TO PEOPLE WHO NEED TO BORROW AND CHARGE HIGH INTEREST RATES. I LOVE TO SEE WHAT THE BANKS WOULD DO IF EVERYONE CLOSE ALL THEIR ACCOUNTS AT THE SAME TIME! WE WOULD BE IN THIS MESS IF THE RATES ARE AT AFFORDABLE RATES AND PEOPLE WILL BE ABLE TO BUY HOMES ETC… THE GOVERNMENT SHOULD ALSO STOP GIVING MILLIONS TO PRIVATE COMPANIES, TAX INCENTIVES ETC. WHILE COMMON PEOPLE ARE TAXED TO THE ROOF!

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By: Ike https://betterdwelling.com/bank-of-canada-needs-higher-rates-to-stabilize-real-estate-counter-fed-scotiabank/#comment-90806 Tue, 06 Jun 2023 02:29:06 +0000 https://betterdwelling.com/?p=23477#comment-90806 I think Scotia wants their mortgage customers to lose their homes

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By: Earl https://betterdwelling.com/bank-of-canada-needs-higher-rates-to-stabilize-real-estate-counter-fed-scotiabank/#comment-90804 Tue, 06 Jun 2023 00:29:12 +0000 https://betterdwelling.com/?p=23477#comment-90804 Seriously! Can you do this without affecting personal lines? We are being beaten to death with interest rate increases. When I can only get maximum 1% increase per year but everything else goes up 5 – 7% that’s negative action for the worker bee. Not fair coming from the Ivory Tower

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