Who will be the first lender to drop mortgage rates?

After yesterdays Bank of Canada rate cut we’re seeing lots of articles about what this means for the housing market.

Reasonably enough economists are predicting a dip in mortgage rates after this cut, but so far the big banks don’t seem to be in a hurry.

However, TD Bank was quick to announce Wednesday it will maintain its prime interest rate at three per cent, noting that factors beyond the central bank influence its rates.

“Not only do we operate in a competitive environment, but our prime rate is influenced by the broader economic environment, and its impact on credit,” the bank said in a statement.

And the Royal Bank appeared in no hurry to drop rates either, saying in an email response to a query that “while we don’t have any product announcements to make at this time, we are considering the impact of today’s Bank of Canada decision.”

It was anticipated that the Bank of Canada would move to increase its overnight rate later this year due to an improving economy, until crude prices started to slide and dropped below US$50 a barrel.

Phil Soper, president of realtor Royal LePage, predicted Canadians could be shopping for cheaper mortgages within days.

“It doesn’t take long to react to a policy change like this,” Soper said. “That’s why it’s such a powerful tool.”

Read the full article over at Yahoo.

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[…] asked which will be the first lender to lower mortgage rates and now we have the […]


“If the dollar is falling, people go back to the real estate market as a safety net. It’s always been that way and it’s going to be even more so because of the falling dollar.”

That can’t be an actual quote from Bal Atwal.

disinflation in Asia

Disinflation, weaker growth put pressure on Asian central banks

“Disinflation is a slowing in the rate of increase in the general price level, as represented by the average price of goods and services in the onsumer basket.
For instance, between 1981 and 1983, the annual rate of increase in the Canadian total Consumer Price Index (CPI) declined from 12.5 per cent to just under 6 per cent. Again, from 1990 to 1992, the rate of inflation slowed from about 5 per cent to 1.5 per cent. This
is disinflation.”

Shut It Down Already

Admin can confirm I’ve never been banned.


Shut It Down Already spends their time crying on a blog they hate but keeps coming to

are you ok? you got banned but still cry here


I enjoy reading and contributing to this blog.

Anyone have a chart of the spot price of aviation fuel, and any inside info on which airlines are hedged, nay or yeh?

And the anecdotal stories on the Alberta commuter… this is golden. Im on Van Isl, full blown Dutch Disease raging here.

Shut It Down Already

I’ll give it until the end of the year. Can’t imagine this site being up for much longer than that. All the others threw in the towel long ago.

Time to end this blog?

Maybe this blog needs a break for several years?

Westside Realtor

Election…wonder when they pill the trigger!

Ya, I agree, this move reeks of politics…wonder if the BoC forces banks to reduce prime….

Interesting times.

HAM continues to be in short supply.



The irresponsibility of the Central Bankers is mind boggling. Screw savers. Pump up bubble after bubble. Anything to delay the reckoning a bit longer until the economy finally explodes like an over-fed glutton unable to stuff anything more in his mouth.

This move by Poloz was to buy Harper the next election period. He talks about housing being over-valued and then does what-ever he can to pump it up even more.

Barb Rennie

If only I had a crystal ball. I could be really rich in such times!

The uncertainty of the ages – dropping oil prices, loonie, interest rates. Anything increasing? Retail store closures, unemployment rates, bankruptcies, consumer proposals, consumer debts.


Space, returns on investment properties should be much higher than returns on stocks or bonds to compensate you for the additional risk.

Many Franks

Here’s some balanced reporting for you. Low dollar equals ‘bargain’ Vancouver real estate for international buyers Bal Atwal, a commercial realtor at Avison Young who specializes in the sale and acquisition of investment properties in B.C., said: “It’s a number of things. Essentially the low dollar leads to two factors: it will help attract even more investment and it will make it harder for local Canadian investors to invest in the U.S.,” he said. “Interest rates are at record low and this will translate into a very hot real estate market. If local Canadians can’t go (as easily) to the U.S., they will have to look locally, but as foreign investment is even more attracted to this market, there will be more competition.” The sinking Canadian dollar and what it says about the wider economy is a “legitimate concern,” said… Read more »


…They want to review my tax records. Hope this has nothing to do with my posting the truth and letting the cat out of the bag regarding foreign money coming in…

Na, they’re wondering how your Surrey building lot rose in value by 750% this week. Either that or they’re your keepers, posing as G men, come from the from the booby hatch to take you home.


New Listings 186
Price Changes 39
Sold Listings 105


UBC in crisis mode

Brave souls!
Those developers who are buying all below $2,000,000 lots, and build new to make a profit, you are our economic engines!


@crabman – Does buying CA/US 10 year bonds with an interest rate of 2.5% or those European government bonds with rates under 1% make sense? How about equities with no or sub 1% dividend rate make any sense? Using the same logic you are arguing against buying Vancouver housing with 1% cap rate? Aren’t you hoping to sell your stocks/bonds to someone else for a higher price? Aka a greater fool? Oh right, I forgot, equity is different cuz there is no holding cost or they will grow! How is different in principle from a RE investor believing they can improve and grow the rent? And what happens when growth plan doesn’t pan out like Target? Stock takes a hit. But stock and bonds are just total different from RE in every way. Until they are not. Buying 10yr, 20yr,… Read more »


According to Ian Young @SMP

“33,000 Hongkongers departed Vancouver (back to HK) in those 15 years (1996-2011). What’s more, arrivals are now a mere trickle – in 2013, there were only 383 new Hong Kong immigrants for all of British Columbia.”

Royce McCutcheon

@28: Yes, that’s right. The CRA couldn’t handle your truth bombs.


The big 5 banks obviously don’t agree with the Bank of Canada move, so they’re not changing prime rates. Lets see how long it takes for Joe Oliver to chastise them:



Going to stop posting for a while .

bye bye.


Just got a call this morning from Canada Revenue Agency! Serious.


They want to review my tax records. Hope this has nothing to do with my posting the truth and letting the cat out of the bag regarding foreign money coming in..

Coincidence? I don’t know.

Frosty One

Well Tim, let’s just hope the liver holds out.

Tim Hortons Hears a Who

I think Mr. Poloz is proving that If you just keep giving the alcoholic more booze it wards off the DTs quite effectively.