Any one has any insight / guess work into where the mortgage rates are headed?
Location: God's own country
Posted on: 06-12-07 16:43:49
Mortgage rates will head south soon.
In the next meeting with the fed's next week, People (Economist's) are expecting 0.25 or 0.5 % cut. The general concensus is that the interest rates are to come down in USA in the months to come.
Cutting of the interest rates in USA would make our currency stronger. To counter that the bank of Canada would have to cut interest rates in order to keep our currency at check. They already did it yesterday by cutting the interest rates by 25 basis points (0.25%).
Oil is currently at $87 a barrel. As oil goes up, so will our currency too. So it is reasonable to assume that if the price of oil goes up, our currency would go up and this in turn would induce the bank of Canada even more to cut interest rates. So you do the math.
TK A
Sidenote : Hope you are aware that if the interest rates comes down, your mortgage rate would also come down.
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I am a Gents and not a Ladies.
So have interest rates already come down?
I am a first time buyer planning to buy a 2BR condo in York region with amenities like pool, sauna, gym etc etc., My budget being 1800 dollars a month max. How much mortgage should I get with zero down payment? Do you know of any nice buildings in this area?
Please include property tax, maintenance cost (specially if you are not handy), condo/townhouse monthly fee and moving expense (new furniture/tv/other stuff)if needed.
Quote:
Originally posted by ulludapatha
So have interest rates already come down?
I am a first time buyer planning to buy a 2BR condo in York region with amenities like pool, sauna, gym etc etc., My budget being 1800 dollars a month max. How much mortgage should I get with zero down payment? Do you know of any nice buildings in this area?
Play around with some of the online calculators... it will give you a rough idea of how much you can borrow. If you are seriously looking around, contact a good mortgage consultant
Here is one calculator -> http://www.ingdirect.ca/en/mortgages/index.html
Since you are a first time buyer, just watch out if the property you are going for is freehold or not. If not, you will have another montly expense (which will affect your mortgage amount as well!)
Bank of Canada lending rate was cut today by 1/4% and they might add another 1/4% cut at their next announcement therefore reducing lending/mortgage rates by the big banks. Expect rates to go down very soon (if not already).
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Vimal Patel, Realtor
Homelife Royalcorp Real Estate Inc., Brokerage
Cell: 416-887-3745
Office: 905-856-6611
Fax: 905-856-6232
vimal.patel@gmail.com
http://www.vimalpatel.ca" rel="nofollow">LINK
Quote:In general, this type of knee-jerk reaction cut in interest rates is very bad policy.
Originally posted by vimpatel
Bank of Canada lending rate was cut today by 1/4% and they might add another 1/4% cut at their next announcement therefore reducing lending/mortgage rates by the big banks. Expect rates to go down very soon (if not already).
It ensures that we are looking at inflationary pressures.
It is also a clean sign that the economy is already in recession.
The central banks are hoping to avoid a full-blown depression.
The only thing worse than deflationary recession is inflationary recession
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