Canada, mortgage, rates

Playing it safe with a locked in decade

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56 Comments

Interest rates are at historical lows and it doesn’t look like that’s due to change anytime soon.

Of course if you could predict future changes with accuracy you could become incredibly wealthy.

It’s the unknown that’s the challenge and that’s why some people chose to pay a premium to lock in todays low rates for many years.

Unfortunately you can’t get the incredibly low rates that US buyers enjoy on a 25 year term, but 10 year rates have fallen along with 5 year and variable rates.

Ten year products are growing in popularity recently with terms available as low as 3.6% according to this article in the Financial Post.

only about 1% of the market locks in for longer than 10 years, Bank of Montreal recently did away with an 18 year locked in mortgage:

“We had to shelve that. It wasn’t a very accepted product by customers,” said John Turner, director of mortgages at Bank of Montreal. “People have a problem getting their head around that long of a commitment.”

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surrey wedding photography

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internet cafe timer

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rp1

The US dollar has unmistakably entered a bull market. If true, the gold crash is for real and commodities will crash in an emerging market debt crisis. There will be a real interest rate shock but I can’t tell if it’s inflation or deflation, and a vicious global recession. A US dollar shock will follow in a few years.

That’s if 2000-2013 plays out like 1966-1981.

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Barb Rennie

BTW Mr. Jason Kenny, just in case you read this blog: I am Chinese and even I am getting really pissed off with the immigration policies that are allowing the mainland china immigrants to take advantage of our Country.

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Anonymous

Also, if this Bombing in Boston turns out to be Muslim related. STOP all immigration into Canada from Muslim countries. Enough is enough!

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Anonymous

There is too much CONCENTRATED Immigration in Canada!! As a result: 1) Some cities have already become Asian. Richmond is a prime example. I would never move there even if someone gave me a house for free –> the culture is just too different for my taste. And NO I don’t want to experience yet another culture! 2) These places will elect ethnic politicians…who propagate policies that further reinforce ethnic ghettos. Approximately 20-25% of MLA’s currently running are minorities. 3) The Conservatives had their chance to limit immigration. Instead they double immigration via the Temporary Foreign Worker program. On top of that, these people aren’t even counted in population stats. The Cons will not get a majority in the next election. 4) There will be a rise of an anti-immigration party (UNFORTUNATELY, that’s not what this is about). “I-Day” will… Read more »

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Short'em High

FYI, “QE Infinity and Beyond” is already in operation. Even “the Bernank” knows that infinity plus infinity is still only infinity. What hasn’t been tried yet is to directly expand payroll at the Federal Reserve. Bernanke could take some of the weekly QE Infinity money and directly hire people to reduce the unemployment rate. Those new Fed employees could be held in reserve and contracted out to other agencies or private firms that need extra labor on demand.

Hey @Romeo Jordan, keep up the fight! Recently, Zoomer Radio 740 Toronto “Conspiracy Show” guest Gerard Caliente, explained the problem with depressed gold prices. That was one week ago, Sunday. Apparently the Illuminati are generating a lot of spurious sell orders which keep the price of gold down. Listen for youself:

http://www.zoomerradio.ca/shows/the-conspiracy-show/podcast-the-conspiracy-show/the-conspiracy-show-podcast-april-7th-2013/

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Yalie

Score one for the Real Estate Cartel, who just won their case in Toronto against the Competition Bureau:

http://www.thestar.com/business/real_estate/2013/04/15/competition_bureau_loses_its_mlsaccess_case_against_treb.html

Apparently the ruling was based on a technicality, and the good news is that they can (and hopefully will) file another suit.

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realist

@ 15, 16, 17, 24, 34
If you wish to have positive, polite PC spin, call it “global cosmopolitan society”, and if you wish to be provocative, call it “ethnic cleansing”. It is the same phenomenon as in Quebec in the 1970’s – the peaceful displacement of English-speaking Canadians of European extraction to somewhere else. And as in Quebec, it is occurring because it suits certain powerful interests that it be so.

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jack crack shack

The stock market has NO relevance towards the economy. It will not collapse again…

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crashcow

Sentiment towards metals & miners is even more extreme than in the depths of ’08. And while the metals & miners have been crashing hard, US$ weekly has been up against 8-yr falling resistance and failing to break out.

I currently have no positions in gold, but am waiting for the trade setup. There is strong support @ $19 for SLV. Do not be a hero and jump in yet.

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Anonymous

“Still up 400% compared to 2% for the S&P 500 over the same period.”

What cherry picked period is that? And did you forget the dividends?

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Barb Rennie

The article talks about the common practice of the mainland chinese family leaving the wife and kids in Canada, meanwhile the main breadwinner goes back to China. This strategy enables the family to have “insurance” in case the father, husband, main breadwinner needs to escape China. The kids and wife will have Canadian citizenship guaranteeing the same to the father. How is this right? Not paying tax on income for years, enjoying the safety net of this country and all it’s benefits for his future retirement. Something needs to change.

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mac

Definitely bad economic news has the propensity to hit people in the psyche but it’s early days yet. Dow could rebound. Or they could announce QE2Infinity&Beyond.

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jack crack shack

Here go the explosion of listings. The price stickiness is about to wear off 🙂

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JR

I don’t know whether its a pop or a phssst but something is definitely deflating.

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VHB

Apr-2013
Total days 21
Days elapsed so far 10
Weekends / holidays 5
Days missing 0
Days remaining 11
7 Day Moving Average: Sales 121
7 Day Moving Average: Listings 285
SALES
Sales so far 1155
Projection for rest of month (using 7day MA) 1329
Projected month end total 2484
NEW LISTINGS
Listings so far 2998
Projection for rest of month (using 7day MA) 3131
Projected month end total 6129
Sell-list so far 38.5%
Projected month-end sell-list 40.5%
MONTHS OF INVENTORY
Inventory as of April 15th, 2013 17192
MoI at this sales pace 6.92

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Romeo Jordan

sorry to get the ball rolling on gold/stocks the other day

that said, i bought more today and friday (today I paid 7% less for things than i did on Friday, talk about deflation!)

it was weird, what happened friday

‘accidental’ early release of fomc minutes; cypress gold sale news; goldman pre market sell/short call on gold; then 400 tons hits the comex at the open

seems just to perfect to me

jmho

paulb thanks for the stats, looking good!

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Anonymous

“So much for gold being a “store of value” eh?”

Still up 400% compared to 2% for the S&P 500 over the same period.

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Vote Down The Facts

So much for gold being a “store of value” eh?

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Democrass

Nice stats. Real estate is toast.

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Anonymous

New Listings 322
Price Changes 174
Sold Listings 121
TI:17192

http://www.paulboenisch.com

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Guy Smiley

“what we’re experiencing in Vancouver is nothing less than ethnic cleansing”

A mild overstatement. Expect, and rightfully so in my opinion, to get hit in the mouth if you pull that one out in front of any croations or tutsis etc.

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mac

Prawnfan welcome to the blog.

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Lifetime Renter

Patriotz your point does not alter the fact that the very great majority of workers in China, Mexico, India, etc. have no avenue to come to this country except as TFW’s or as illegal immigrants. Either way they serve as a rightless and easily exploited labour pool. The few workers in these countries able to meet criteria of skill or family reunification represent a small fraction of the working class of these countries. Meanwhile those with sufficient funds have been able to buy their way in.

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