- Joined
- Oct 22, 2007
- Messages
- 1,191
I just watched BNN at my daughter`s where a broker from Mortgage Intelligence was interviewed. When I came home I saw RBC hikes mortgage rates again
What is going on?
I think 2 things: 5 year bond yields are rising on expectation of an improving economy and large government debt.
Canadian Banks want to take advantage of the high demand for houses in areas with the new HST. Since those areas include Vancouver and Toronto, this demand for mortgages, especially 5 year mortgages is extremely high.
If one sticks with variable rate for now, the favorite of many REIN investors, then you should do fine. I also noted that in markets such as Calgary, in spite of overall increasing prices, the condo market is stuck in a rut. Especially in NE Calgary where you can buy townhouses as low as $175K.
I bet that investment opportunities in Vancouver and Toronto will be increasingly difficult to find until the HST has been implemented. But that in many other places we still get excellent investment deals.
What is going on?
I think 2 things: 5 year bond yields are rising on expectation of an improving economy and large government debt.
Canadian Banks want to take advantage of the high demand for houses in areas with the new HST. Since those areas include Vancouver and Toronto, this demand for mortgages, especially 5 year mortgages is extremely high.
If one sticks with variable rate for now, the favorite of many REIN investors, then you should do fine. I also noted that in markets such as Calgary, in spite of overall increasing prices, the condo market is stuck in a rut. Especially in NE Calgary where you can buy townhouses as low as $175K.
I bet that investment opportunities in Vancouver and Toronto will be increasingly difficult to find until the HST has been implemented. But that in many other places we still get excellent investment deals.