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Old 12-09-2008, 12:36 PM   #1
daytona
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Interest rates.



Did you hear some financial forecasters are predicting %1 or even %0.75 interest rates by mid 2009 !!.great timing for me since I have to look for mortgage around that time.So why is damn car rates still so high?..the best I can find for a used three old car is %6.9.....
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Old 12-09-2008, 12:53 PM   #2
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Well, hope you can still get a mortgage by then?
I'm really not sure where this is going to go.

Save up so you can put 20-25% down for your mortgage.
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Old 12-09-2008, 12:54 PM   #3
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I really can't see 1% rate for mortgages in 6 months..
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Old 12-09-2008, 01:09 PM   #4
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EDIT: I should add a disclaimer that I don't really know shit about this, just going by what I heard

The fixed interest rates are not related to the overnight lending rate. The BoC just hopes that the banks will pass the savings onto the people but it doesn't happen very quickly if at all. Even with variable rates, they can just jack up the premium of the rate, say give you prime + 7 and you're done... And as was said above, the banks are all puckering their assholes for loans (regarding the rates, the equity ratio of the mortgage [I've heard rumors of some banks demanding 30%+++], salary/credit requirements etc).
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Old 12-09-2008, 01:15 PM   #5
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actually i got the scoop from the financial district that there is a .5% drop tomorrow. so new prime is 3.50% as of tomorrow.
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Old 12-09-2008, 01:22 PM   #6
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the banks often pocket the difference, they don't have to pass the savings to consumers.

in the 80's mortgage rates were as high as 22%, what would happen if that were to happen today?
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Old 12-09-2008, 01:34 PM   #7
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Originally Posted by jstalin View Post
the banks often pocket the difference, they don't have to pass the savings to consumers.

in the 80's mortgage rates were as high as 22%, what would happen if that were to happen today?
people would walk away from there house with suitcases just like they did in the 80's. if you had the cash to buy straight out you made millions on RENT!!
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Old 12-09-2008, 01:45 PM   #8
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i was getting lucky bought a house last year did a downpayment of 90 grand and pay 4.3% on a 5 year fixed no mortage insurence and i save every month
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Old 12-09-2008, 02:18 PM   #9
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I really can't see 1% rate for mortgages in 6 months..
Nobody said that mortgage rates will be @ 1%. Everyone is offered a different rate. The mortgage rate is based on a lot of factors but is driven off the prime rate. Good credit, consecutive terms, high income grants you a mortgage rate of .75% - 1% below prime (not offered, you must haggle for it). If you have modest income, good credit, and somewhat of a history, you will get as low as 0.25% above prime. Bad credit is usually never under 1%++ above prime.

But Canada is much to slow to react to current market situations. Both the US and Europe have been much faster at adjusting their interest rates to guide spending habbits. In my 10 years of being a "Canadian" I have yet to see decent leadership.
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Old 12-09-2008, 04:23 PM   #10
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Even thou prime goes down, banks jack up mortgage rates to offset it.

Few months ago a variable mortage was prime - 1% .

Now that prime has dropped, banks are offering prime + 1%. Assholes.
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Old 12-09-2008, 08:42 PM   #11
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i have a prime + 0%... so, my rate will be 3.5% assuming they dont go down the full 0.75%.. most likely they'll go down to a 3.25% prime rate i think to match Bank of Canada reduction in a few weeks like before
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Old 12-09-2008, 08:46 PM   #12
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With the right down payment you'll always get a mortgage. My first house was just under $360k and with 20% down I got prime + 1.
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Old 12-09-2008, 09:04 PM   #13
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Sounds like the experts expect another 0.25% drop for BoC prime in January... From what I've been hearing most figure it will stop around 1-1.25% BoC prime.

My mortgage is prime - 0.75% on a 5yr variable but I have the option to lock in. If the lenders prime hits 3% (making my mortgage 2.25%) I'm definately going to lock in for the remainder of the term (~4yrs).

I'm not saying this just to sell houses, but I'm really excited for any of my first-time buyer clients because the combination of low rates and a higher inventory of properties means the next 6 months is going to be an awesome time to buy your first house/condo.
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Old 12-09-2008, 09:11 PM   #14
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Originally Posted by uber e36 View Post
I'm not saying this just to sell houses, but I'm really excited for any of my first-time buyer clients because the combination of low rates and a higher inventory of properties means the next 6 months is going to be an awesome time to buy your first house/condo.
Not sure how you can say this, a buyer isn't going to get a mortgage like you have, banks are offering prime + 1% on 5yr variable mortgages. (right now without the recently drop it is 4 + 1= 5%)

That is probably the rate you paid a year ago. So even thou prime went down, mortgages haven't. I'd aruge it actually went up.
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Old 12-09-2008, 09:28 PM   #15
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Not sure how you can say this, a buyer isn't going to get a mortgage like you have, banks are offering prime + 1% on 5yr variable mortgages. (right now without the recently drop it is 4 + 1= 5%)

That is probably the rate you paid a year ago. So even thou prime went down, mortgages haven't. I'd aruge it actually went up.
The damn banks arent lowering the rates with the reduce prime rate.If they do lower it it spread over months and they jack up the credit card rates to offset any losses..its win win situation with them.
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