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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rp1
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Yalie
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Yalie
From the last thread: I got voted into foreclosure today because I disagreed with a guy who wanted to strip new canadians from their citizenship if they don’t buy homes AND live here, so the country doesn’t turn into an insurance policy for ‘foreigners’. Quite a few people seemed to disagree with me, because I dared to voice an opinion at odds with what seems to be the general consensus on this site. For what it’s worth, I actually agree with you on the whole voting down thing. I tend to avoid the down arrow because I welcome dissenting views, even when I violently disagree. On the other hand, I’m not sure why you’re so appalled by the idea of stripping citizenship from foreigners (yes, I used that word – I am obviously a raving racist) who have clearly moved… Read more »
AfroFrancophone
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AfroFrancophone
@Yalie: Thanks for your more cordial answer. Don’t get me wrong, I am not condoning this type of behavior. All I am saying is that from a strictly LEGAL point of view, these people don’t do anything wrong, simply because the government allows it to happen! For what it is worth, I have been through the immigration process myself. And you know what, Quebec is the ONLY province in the country that requires immigrants to commit to a certain number of years of residence in the province (it was sthg like 5 years, dunno if it has changed or not). So, Should these practices be stopped? Absolutely. Should we throw these people under the bus for doing sthg that the system allows? I don’t think so. (And btw I’m not calling anyone racist, everybody is entitled to their own opinion.… Read more »
AfroFrancophone
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AfroFrancophone

@Yalie: And speaking of Canadians retiring in other countries, don’t you think it has an effect in these economies (albeit on a smaller scale, hopefully) similar to HAM moving to Canada?

Food for thoughts…

ScubaSteve
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ScubaSteve
Since PaulB posted his #’s late last night, and VHB isn’t around, I updated his chart for him. ——————— Total days 22 Days elapsed so far 14 Weekends / holidays 7 Days missing 0 Days remaining 8 7 Calendar Day Moving Average: Sales 67 7 Calendar Day Moving Average: Listings 196 SALES Sales so far 1117 Projection for rest of month (using 7day MA) 536 Projected month end total 1653 NEW LISTINGS Listings so far 2871 Projection for rest of month (using 7day MA) 1568 Projected month end total 4439 Sell-list so far 38.9% Projected month-end sell-list 37.2% MONTHS OF INVENTORY Inventory as of August 20, 2012 18925 Current MoI at this sales pace 11.45 ——————— 2012 = 1653 sales + 37.2% sell-list (Projected) -vs- 2011 = 2378 sales + 50.8% sell-list That is a 30% decrease in sales YOY… Read more »
Chip
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Chip
“im pretty sure not a single one of them told the immigration officer “Hey, I intend to stay here just long enough to get my citizenship, drop of the family, and move back to China where I’ll continue to make tons of money and pay no taxes in Canada”. If they did, I guarantee their application would not be approved” You have a touching faith in our immigration policy. The following is clear to our government: 1) most immigrants are poor and stay poor in Canada, even after 14 years here 2) the net cost of immigration is over $20 billion a year 3) free healthcare and education are the primary reasons for immigrating, not opportunities to start businesses or apply skills as you might see from immigrants in Singapore So let’s not pretend our immigration officials are being tricked… Read more »
rp1
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rp1

#7 @Chip: The biggest problem in any large organization is getting someone to give a shit.

Chip
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Chip

@Chip:

Maybe I should put ‘poor immigrants’ in quotes, considering that places like West Van and Richmond report the highest poverty rates in BC.

That’s another one of those facts that should prompt some sort of investigation, but I dare say our immigration officials would be shocked, just shocked, to discover that people may be here for reasons other than the opportunity to watch ice hockey or see Arcade Fire play live.

patriotz
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@Yalie: “As far as I’m concerned, there is no difference between this Harvard dude and every single one of these douche bag astronaut dads, sorry, “new Canadians”, who immigrated under false pretences.” Let’s get something straight here. Immigrating under false pretences means lying on your immigration or citizenship application. Citizenship can be revoked for this and it does get revoked. There is no legal requirement for any Canadian citizen to live in the country for any length of time. For example Missy Franklin is a Canadian citizen who has never had a permanent residence in the country. You can even come back to the country and run for Prime Minister like someone did last year. It is perfectly legitimate for any Canadian citizen to leave the country any time they want, and that includes someone who got their citizenship yesterday.… Read more »
patriotz
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Ottawa housing sales cooling, realtors say Ottawa’s formerly hot real-estate market is cooling down, as the effects of new federal mortgage rules are beginning to be felt, local realtors say… “With the new rules, the month-to-month payment has increased. So it’s kind of delayed the process,” (Emily Reid) said. Reid graduated with a master’s degree in business administration, landed a government job, and then saved up for two years. But the new rules mean she will have to save a little longer, either to have a bigger down payment, or to afford higher monthly payments. Hey Emily, how about putting those MBA skills to work and calculating a fair value to pay for a condo, instead of buying at whatever price you can get a loan for. After issuing months of warnings about the rapid expansion of Canada’s condominium market,… Read more »
VHB
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VHB

@patriotz: You compared Tunney’s pasture to False Creek? lol

patriotz
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@VHB:
“You compared Tunney’s pasture to False Creek?”

I meant the “before” False Creek. Or perhaps Metrotown (again “before”) with waterfront. 🙂

VHB
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VHB
@ScubaSteve: Nice work on the projections. Backing out the 7day MAs required some deft spreadsheetery, SS! Some reflections. 1. Sales are truly suckifying. 2. 21 day MA now under 40% for only the 2nd time since the RE year got underway in February. See here 3. After stagnating and falling back since July, we are actually starting to get some traction on total inventory over the last week. Blip or trend? I don’t know, but maybe we should put some beerz on ice for a 19K party. Note, this would be our 2nd 19K party and there will likely have to be a 3rd in September too. No biggie, I like parties! 4. We have a shot at a 12-handle on Moi. All it would take is 19200 in inventory and 1600 for sales. Might be a stretch, but let’s… Read more »
yvr2zrh
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Off to golf on this cool Wednesdaay. Some thoughts for the group as August is almost over now. 1.) The split of Attached and Detached right now tell very different stories. Attached has 50/50 chance of coming in below the 2008 numbers. The decrease in sales this month is really driven by poor condo sales. SFH sales will come in 25% up from 2008, 15% down from last month and 35% down from last year. For attached? Flat from 2008, down 20% over last month and same month last year. 2.) We like to use the inventory numbers here that include Bare Land and Multi-unit buildings. These add close to 1,000 units to our inventory list while having only a trickle of sales. I would expect we have about 20 sales per month on these group. The REBGV only tracks… Read more »
Anonymous
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Anonymous

so scary about the mortgage rises! it rises so high that you can have a three years fixed at 2.69, and 5 years fixed at 3.09. call your mortgage brokers! oh wait, you dont have the gutt. never mind.

AG Sage
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If the bond bubble is bursting, this is not temporary.

patriotz
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@AG Sage:
A couple of things to keep in mind:

1. Mortgage rates, either insured or uninsured, are not necessarily tied to government bond rates. Lending risk (there’s a risk of added expenses even for insured mortgages) and profit margins add another layer above GoC rates.

2. There is a ceiling to government-insured mortgage debt and the GoC has signalled it wants to stop the growth before the ceiling is hit, by tightening requirements.

Message is don’t get the impression everything will stay rosy for would-be mortgage borrowers just because government borrowing rates stay low. It sure didn’t in the US.

left already
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left already

People so often miss the forest from the tree, but that is because our media is fxxed too and too many people are dependent on it for the news.
Take for instance the case of Canadians rioting over milk at Costco in Bellingham. All discussion in the media or the forums degenerated into a behavioural issue as if the Canadians were rude and the americans polite whereas the real problem is economics and how overstretched and overtaxed the canadian consumer is.
Same goes for the immigration, it is lack of jobs and opportunity that should be discussed not residency. CRA should use its broad powers to tax the worldwide income of its investor immigrants rather than harassing the working guy for petty issues and the immigration system is long due for an profound overhaul.

patriotz
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@left already:
“the real problem is economics and how overstretched and overtaxed the canadian consumer is.”

The number one reason why Lower Mainland consumers are overstretched is the ridiculous housing bubble that has been created by house buyers paying too much. If not for this bubble a real economy that paid decent wages would have a fighting chance.

Canadians are not overtaxed, they are in fact undertaxed because governments are spending more than they are taking in. With regards to BC, the voters decided last year to give a billion dollars to the federal government and revert to one of the dumbest sales tax regimes on the planet.

Governments should crack down on tax evaders as I’ve said, but that’s not going to solve the real problems. And the voters don’t want to hear about real solutions.

Yours Truly, Eagle.
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Yours Truly, Eagle.

Is this going to cause the crash? We’ve seen rates go up and then back down again and again and still no crash. Maybe this time it’ll happen?

What goes up must come down, right? Except for the flag the Americans planted on the moon. That’ll never come down. That’s science.

“The eagle has landed” ON THE FUCKING MOON, while the fat stupid russian bear pouts in his cave.

registered
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registered

16 Anonymous Says: “call your mortgage brokers! oh wait, you dont have the gutt.”

How many times does it have to be pointed out to you clowns that the housing market relies on the money available to borrow and interest rates only make up one component, and one that proved largely irrelevant to markets bursting all over the globe? Insurance, term lengths, minimum down payments, income proof and much more all play into the number of qualified buyers in a market and therefore in total demand for homes.
Just kidding, since it’s obvious posters like yourself are only here to lie and astroturf NO amount of repetition will ever be enough. Carry on foreclosure boy.

registered
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registered

@20 patriotz: Not sure why it hasn’t occurred to me before but reading your post about retrograde citizen-imposed tax policies highlighted another commonality between BC and California.

Anonymous
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Anonymous

@fixie guy: abit touchy today, arent we. must be the month end thing.

jesse
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@Anonymous: “must be the month end thing”

No, the guy has some good points. Back under the bridge.

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