Comments on: Congrats! Canadians Just Set A New Record For Borrowing Against Their Homes

By: Reaper

Reaper — Sun, 22 Apr 2018 23:01:05 +0000

In reply to xelan. You mean the fictitiious economy down south ? Don't worry when the stock bubble bursts in the US and the crap hits the fan they will be dropping rates back 0 % and re introduce QE. If they left them at 0% they would have no room to go but negative like most of Europe which is in shambles

By: Xelan

Xelan — Thu, 19 Apr 2018 02:32:08 +0000

I’m surprised we don’t hear anything in the news about King City (GTA).
Pricewise it’s kind of holding up but it’s in a full blown panic mode right now:
Currently listed on the market: 269 properties
Sold within the last month: 21
That’s a whooping 13 months of inventory.
Many developers are now trying to sell their land around King City, you can easily find their listings.

Since it’s the most expensive city in GTA it’s going to be hurt the most.
I advice everyone to watch what happens with the King City’s prices in the coming months due such high inventory.
It will show us what would happen to Toronto or any other city if inventory grows significantly.
Here are the stats for King City:
https://www.zolo.ca/king-real-estate/trends

By: Alistair McLaughlin

Alistair McLaughlin — Wed, 18 Apr 2018 20:14:45 +0000

In reply to Tommy. If it does, it will also mean a bargain basement economy and jobs market. That doesn't mean it won't happen. I think it will at some point. But I'm not looking forward to it, much as I think it needs to happen.

By: Tommy

Tommy — Wed, 18 Apr 2018 19:32:53 +0000

Let’s hope this leads to bargain basement home prices in a couple years.

By: Tommy

Tommy — Wed, 18 Apr 2018 19:31:12 +0000

In reply to Moller.

There is still time this year for hikes to be announced.

The scheduled announcement dates for 2018 are as follows:

Wednesday, January 17*
Wednesday, March 7
Wednesday, April 18*
Wednesday, May 30
Wednesday, July 11*
Wednesday, September 5
Wednesday, October 24*
Wednesday, December 5

By: xelan

xelan — Wed, 18 Apr 2018 19:04:38 +0000

In reply to xelan.

Mmr, why you are providing false information?
Since 2013 5 years fixed mortgage rate just briefly exceeded 3% in 2013 and was always lower than 3% after that time except recently.
http://www.mtgitright.com/siteimages/Graph_-_Variable_vs_Fixed_rate_over_time.JPG
Most of the people will renew at a higher rate this year with the stress test on top of that if they change the lender.

Actually my friend is renewing now. He has 5 year fixed signed in May 2013 and his rate is 2.89%. Now the lowest rate he can get for principal residence is 3.19% and since is actually an income property the lowest is 3.49%.

By: Sam

Sam — Wed, 18 Apr 2018 18:47:38 +0000

In reply to Moller. You might be right, but the banks aren't stupid! If the banks think along the same lines, expect the gap between fixed rate and variable to grow.

By: xelan

xelan — Wed, 18 Apr 2018 18:09:32 +0000

Moody just downgraded Ontario to negative outlook:
http://business.financialpost.com/news/economy/ontario-government-financial-outlook-changed-to-negative-moodys
Last year it downgraded credit ratings for all ours 6 major banks.

By: Bob

Bob — Wed, 18 Apr 2018 18:09:17 +0000

The % jump from 2014 doesn’t seem high compared to the jump in property values since them.

By: Foxxy

Foxxy — Wed, 18 Apr 2018 16:58:31 +0000

In reply to xelan. Mmr - I'm not sure how possible that is. The US is already at 1.75 and they are predicted to raise to 2 in Q2 of 2018. Can Canada really afford to lag 2-3 points behind for a whole year? I know we often forget that there are any other economic drivers beyond RE but unless we do something soon inflation is about to get a lot hotter.