Mortgage rates rise at RBC, more to follow?

Looks like RBC just upped two of it’s mortgage rates by one fifth of a point.

What will we do without our record low mortgage rates?

It’s probably just a minor fluctuation, but other banks are expected to follow as bond yields have edged up in the last month.

So if you want to do a rate lock in now might be the time.

Helmut Pastrick of Central One Credit Union explains:

“Sentiment has improved with respect to Europe and the economic outlook,” Pastrick said. “The economic news was quite negative for a period of weeks and now it is somewhat less negative.”

RBC’s posted rate for a three-year, fixed-rate mortgage will go up 0.2 percentage points to 4.05 per cent. Meanwhile, an RBC special-offer rate for five-year closed mortgages rises to 3.69 per cent.

The rise in the cost of funds for banks will mean other lenders will probably also raise their rates, or absorb some of the cost increase to hold onto or gain market share,” Pastrick said.

Read the full article over at the Vancouver Sun.

 

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patriotz
Member

@Chip:
“Studies show they do not, and the overall net cost is over $20 billion a year.”

That’s correct, but it’s not because immigrants use the health care system disproportionately. The problem is that immigrants no longer have incomes that are as high as native born Canadians.

The fix is to cut down the number of immigrants who are likely to have subpar incomes. And cracking down on the rich ones who are evading taxes would help too.

Best place on meth
Member
Best place on meth

@patriotz:

“A report released Thursday by TransUnion shows that the average Canadian’s non-mortgage debt reached $26,221 in the second quarter of 2012, up $192 from the previous quarter. The $26,221 amount is the highest per person debt level since the credit bureau started tracking the data in 2004…”

The article doesn’t show the numbers for BC but I heard this morning they were about $10,000 higher than the Canadian average.

VHB
Member
VHB
Aug-2012	
Total days	22
Days elapsed so far	15
Weekends / holidays	7
Days missing	0
Days remaining	7
7 Calendar Day Moving Average: Sales	72
7 Calendar Day Moving Average: Listings	188
SALES	
Sales so far	1193
Projection for rest of month (using 7day MA)	503
Projected month end total	1696
NEW LISTINGS	
Listings so far	3009
Projection for rest of month (using 7day MA)	1317
Projected month end total	4326
Sell-list so far	39.6%
Projected month-end sell-list	39.2%
MONTHS OF INVENTORY	
Inventory as of August 22, 2012	18919
Current MoI at this sales pace	11.16
Best place on meth
Member
Best place on meth
Anonymous
Guest
Anonymous
Chip
Guest
Chip

@patriotz:

“Also people who want to immigrate to Canada have to pass a medical test first, which already screens out many people who would likely be a burden to the health care system.”

Everyone eventually becomes a burden on Canadian healthcare, whether it’s heart attacks, cancer or a thousand other things. ThE relevant question is, do immigrants as a subset of the population pay more into the system than they take out.

Studies show they do not, and the overall net cost is over $20 billion a year.

Look, immigration can be an incredible benefit. But there’s no mathematical way to show that current immigration POLICY is beneficial. It just isn’t.

joe_blown_away_by_high_housing_costs
Guest
joe_blown_away_by_high_housing_costs
I think the media tone has become more bearish, but there are still RE pumping articles out there. Like this one: http://www.theglobeandmail.com/report-on-business/economy/housing/housing-downturn-wont-be-as-deep-as-some-fear-cibc/article4494733/ CIBC economist says real estate down turn will be short and mild due to immigration fueled growth in people between 25 and 34 — the age cohort that makes up a lot of first time buyers. “But Mr. Tal says the group aged between 25 and 34 – the age group that makes up the vast majority of first-time buyers – will continue to grow, and he says growth in the housing market could be even stronger due to immigration. Over all, the CIBC economist says the next decade will see an annual population growth of 0.9 per cent, in line with growth seen in the past decade – a period of strong demand for residential real-estate and… Read more »
patriotz
Member

@Anonymous:
“The rent on these commercial units is based on what other tenants have paid for similar properties.”

If a rental property (commercial or residential) is sitting empty that means the owner is asking above market rent by definition.

Anonymous
Guest
Anonymous

@fixie guy: “He’s blaming the failure of HMV, Starbucks and the other ‘arresting number of vacant storefronts’ in the Robson corridor on the exorbitant cost of commercial footage, driven by the real estate bubble’s impact on land value.”

The rent on these commercial units is based on what other tenants have paid for similar properties. That is how a commercial lease works upon renewal. I don’t see how the property bubble has impacted that. HMV was going to close no matter what based on CD sales. Who buys CDs anymore? Starbucks does have a store across the street so maybe they figured most of the business would end up there if they closed. It is the only place in the world to have 2 Starbucks so close.

registered
Member
registered

@96 patriotz: It still amazes how even someone like Ben can fall back to inverted phrasing. Assuming the reporter captured his sentiment accurately,

“… if something spooks Canadians and they decide on mass to start paying off their debt, that will slow economic growth and could result in job losses…”

should read

“… it shows the extent to which our economic growth is based on debt instead of fundamentals, a scenario which can’t be sustained for long before the jobs created evaporate…”

The corrective actions implied between the two are completely different.

registered
Member
registered

@93 Vote Down The Facts Says:“Gotta love the way Garth is trying to blame the failure of HMV on Vancouver real estate prices.”

Read it again. He’s blaming the failure of HMV, Starbucks and the other ‘arresting number of vacant storefronts’ in the Robson corridor on the exorbitant cost of commercial footage, driven by the real estate bubble’s impact on land value.

patriotz
Member
http://www.theglobeandmail.com/globe-investor/personal-finance/home-cents/average-canadians-consumer-debt-hits-record-high-26221/article4493866/ Despite repeated warnings, Canadians have returned to their borrowing ways, pushing consumer debt levels to a new record high. A report released Thursday by TransUnion shows that the average Canadian’s non-mortgage debt reached $26,221 in the second quarter of 2012, up $192 from the previous quarter. The $26,221 amount is the highest per person debt level since the credit bureau started tracking the data in 2004… Ben Rabidoux, an analyst with M Hanson Advisors and author of The Economic Analyst blog, says that if something spooks Canadians and they decide on mass to start paying off their debt, that will slow economic growth and could result in job losses. “You can not have everyone in Canada pay off their debts at the same time because that will drag on the economy,” he said. “It is a strange dynamic. How… Read more »
patriotz
Member

@Crikey:
“This would not even discriminate between immigrants to Canada and those who were born in Canada (they could be treated equally). Basically, one should get a level of service based on the number of years you have lived in and out of the country.”

That doesn’t make any sense at all. You’re saying that someone who immigrates to Canada, and makes $100K/year from the year go and pays taxes on it, should receive less services than someone who was born in Canada but has never had a job.

Also people who want to immigrate to Canada have to pass a medical test first, which already screens out many people who would likely be a burden to the health care system.

Chabar
Guest
Chabar

@ZRH2YVR:

Who would on earth paid that much money at this point but Chinese/HAM?

Vote Down The Facts
Guest
Vote Down The Facts

Gotta love the way Garth is trying to blame the failure of HMV on Vancouver real estate prices. Hmmm.

gordholio
Member

#85, Makaya:

Au contraire! 🙂

http://www2.canada.com/vancouversun/news/archives/story.html?id=2b246eb8-2f57-40a7-bba4-e182e875d797&p=2

Though back then I was somehow known as “Gourd.”

Loon
Guest
Loon

@crashcow:
Your friend is in for a rude awakening. Tragic yet they deserve everything they get.

yvr2zrh
Member

Regarding the sales over $5M (list in 000’s)

In July – 5 transactions.
9,948
6,850
6,300
5,830
5,000

August to date has 8 transactions
5,800
8,950
12,200
6,250
6,180
9,180
6,800

Just using these sales, the average will go up by about $16,000 compared to last month. However there is more to this average as we are losing the lower end transactions and the mix has pushed the median and average up.

As to my average calculation, 1,600 units is too high as this is solely detached. Detached will come in around 670 this month.

Anonymous
Guest
Anonymous

@local observer:

True, except for one thing. The OP said it was a 3 million dollar house. In this city, that most definitely does not buy you a “mansion.”

local observer
Guest
local observer

If the 24 year old in the mansion is indeed a student, presumably at UBC,he has medical (extended as well as basic) covered by his tuition fees. All students have to pay whether they want to or not.

Anonymous
Guest
Anonymous

@Burbs Boy: Did PaulB put you up to this? Another desperate realturd?

vangrl
Member
vangrl

http://www.theglobeandmail.com/globe-investor/personal-finance/whats-the-rush-first-time-buyers-nows-the-time-to-rent/article4493774/

“First-timers account for just over one-third of the housing market, which means they have quite a bit of clout. If they were to take a buying hiatus, it could really slow the market down.”

Makaya
Member
Makaya

It’s funny how dramatically headlines in newspapers have changed in just a few month…

What’s the rush, first-time buyers? Now’s the time to rent

Makaya
Member
Makaya

The mortgage war has started… well sort of!

TD raises 3-year mortgage rate to match RBC

good-format
Guest
good-format
Copied from PaulB’s number http://www.laurenandpaul.ca Date Listing Sales S/L Price(+-) Inv Inv(+-) Aug-01 258 61 23.6 99 18,708 Aug-02 182 49 26.9 114 18,740 32 Aug-03 202 93 46.0 92 18,799 59 Aug-06 0 0 0 0 - Aug-07 232 113 48.7 128 18,784 -15 Aug-08 210 49 23.3 105 18,851 67 Aug-09 195 120 61.5 119 18,816 -35 Aug-10 169 96 56.8 118 18,806 -10 Aug-13 206 103 50.0 124 18,788 -18 Aug-14 239 97 40.6 125 18,811 23 Aug-15 175 53 30.3 110 18,826 15 Aug-16 183 76 41.5 91 18,792 -34 Aug-17 169 59 34.9 86 18,848 56 Aug-20 245 85 34.7 126 18,875 27 Aug-21 206 63 30.6 114 18,925 50 Aug-22 138 76 55.1 85 18,919 -6 Total-Cur 3,009 1,193 39.6 1,636 211 5-day avg 188 72 38.2 100 19 Total-EST 4,515 1,767 39.1 2,439… Read more »