http://www.canada.com/business/fp/raises+mortgage+rates/2739115/story.html
http://www2.macleans.ca/2010/03/29/banks-to-increase-mortgage-rates/
Location: Brampton, Ont, Canada
Posted on: 30-03-10 09:48:03
Quote:
Originally posted by Aashu
Quote:
Originally posted by Blue_Peafowl
rate cant just jump to high ... it has to go slowly ,,, i am not that expert but i can say within 3 years it will reach to 4.5 or 5 MAX ( make your own calculation, y pay 3.75 % from now while you can pay much lower with variable at current time.
well eff tomorrow it is 4.59 % for 5 yr fixed....
I am reffering to Prime rate , u think it will go up that fast ? economy is still bad it will take at least year or two to recover , so prime rate also follow same trend
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
Mark Carney and lot of economist are saying from long time and cautioning buyers that interest rates can go in one direction sooner than people anticipated. Interest rate needs to go high with bond yield. We shall see higher interest rates in US too.
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http://www.greaterfool.ca/
Rates will continue to rise because (a) inflation has been rekindled, (b) the monetary authorities are worried the bubble will burst if it’s not first deflated, (c) indebted governments will be flooding the bond market and (d) we overdid it. Consumer debt is now a threat.
How much will rates rise? Well, the central bank has not even moved yet – that is scheduled to happen in July, but it could take place weeks sooner. The prime rate of 2.25% – on which variable rate mortgages are based – could well be 1% higher by Christmas, or maybe even 1.25%. That will add exactly this amount to all variable rate mortgages, so you can kiss the days of 2% home loans goodbye. They will not return in this lifetime.
Next year, more increases. Eventually the prime rate will double (I told you that months ago), and then travel a bit north of that by some time in 2011. This will cause rape & plunder in the housing market, while not being enough to make a difference to savers with their brain-dead GICs.
In fact, the housing bubble’s now officially dead. It may takes months for this to be reflected in prices, but there’s no longer any fog on the mirror.
Quote:
Originally posted by Blue_Peafowl
Quote:
Originally posted by Aashu
Quote:
Originally posted by Blue_Peafowl
rate cant just jump to high ... it has to go slowly ,,, i am not that expert but i can say within 3 years it will reach to 4.5 or 5 MAX ( make your own calculation, y pay 3.75 % from now while you can pay much lower with variable at current time.
well eff tomorrow it is 4.59 % for 5 yr fixed....
I am reffering to Prime rate , u think it will go up that fast ? economy is still bad it will take at least year or two to recover , so prime rate also follow same trend
Have any of the banks changed their Prime rates.. I dont think so..They have just changed their Fixed and Variable rates..
For existing variable holders i think it is a wise decision to wait..
Prime will not move more than 2 % over the next 2 years, and most people on variable have good rates.. I personally have prime minus .95 .. For me it makes no sense to change to fixed because my current rate will jump from 1.30% to close to 3.5 to 4%..
Sorry i am sticking with Variable until Prime goes to 6% which is probably going be after my current mortgage closes in 3 years time.
Location: Brampton, Ont, Canada
Posted on: 30-03-10 14:23:44
Quote:
Originally posted by dudewheresmycar
Have any of the banks changed their Prime rates.. I dont think so..They have just changed their Fixed and Variable rates..
For existing variable holders i think it is a wise decision to wait..
Prime will not move more than 2 % over the next 2 years, and most people on variable have good rates.. I personally have prime minus .95 .. For me it makes no sense to change to fixed because my current rate will jump from 1.30% to close to 3.5 to 4%..
Sorry i am sticking with Variable until Prime goes to 6% which is probably going be after my current mortgage closes in 3 years time.
That is wat i was saying, i m a agree with Dudewas... I am happy with variable
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
