Cdn Mortgage Rates Drop

[errolanderson]

This may be just the beginning . . . . RBC 1st major bank to cut their fixed 5-year fixed mortgage rates. This will likely trigger more to follow. Competition is likely to pick up between lenders as the Cdn housing market slows.

Real estate values globally in-decline . . . .

[macdon02]

This may be just the beginning . . . . RBC 1st major bank to cut their fixed 5-year fixed mortgage rates. This will likely trigger more to follow. Competition is likely to pick up between lenders as the Cdn housing market slows.

Real estate values globally in-decline . . . .

Might be a fine time to recognize the economic conditions of downtown Toronto don't match the commodity based prairies.... bwtf do i know. BOC will never accommodate the west or anything other then the housing markets of Toronto and Vancouver

[malleefarmer]

https://www.abc.net.au/news/2019-01-16/australia-to-see-worst-fall-in-house-prices/10720406 https://www.abc.net.au/news/2019-01-16/australia-to-see-worst-fall-in-house-prices/10720406

[errolanderson]

mallee . . . Canada housing fallout may be just behind Australia. Excessive consumer debt and rising unemployment will likely place more downward pressure on Canada's market. China investment dries up.

The days of record-breaking bank profits may also be numbered . . . .

[ajl]

As I predicted long ago, Canuckistan is already in recession in Q4 (will be official after the growth numbers get revised) and this is the beginning of the end. Have been putting money into longer dated GIC so that there is some investment return. Do have to be mindful of guarantee limits as some financial institutions will not survive this go around. There was 4% GIC's available in Ontario but everywhere else the best so far was 3.6. Looks good when stocks and real estate do -5 total return.

[jazz]

Don't really understand the strategy here. The BoC jacks the prime and then the banks drop their 5 yrs. makes no sense unless they are targeting lines of credit or something. Lot of those around.

I heard through the g****vine that the banks will be putting an end to interest only payments on HELOCs. There will have to be principle repaid. $300B of these things in Canada and people only making interest only payments on them.

[15444]

I heard through the g****vine that the banks will be putting an end to interest only payments on HELOCs. There will have to be principle repaid. $300B of these things in Canada and people only making interest only payments on them.

If that is true, it means the banks were being stupid and valuing these homes at full (or near full) value for the loan. They should be valued at 50% to play it safe. Can the bank take these homes if it is the person's primary residence? I sure ****ing hope so.

[errolanderson]

The next biggest risk factor impacting markets may actually be . . . the bond market itself.

You can’t continually finance growth with increasing debt loads. Eventually, debt no longer supports growth. Then debt becomes a liability and the real bill comes due . . . . Bankers and business owners must face this reality.