Bank Of Canada : Reduces Interest Rate to 0.75 % - Good For Variable MTG.

[tjthemanto]

Royal Bank, Bank of Montreal cut prime to 2.85% from 3%

http://www.theglobeandmail.com/report-on-business/royal-bank-of-canada-cuts-prime-to-285-from-3/article22656364/

[tjthemanto]

Canadian banks on brink of mortgage price war

http://www.theglobeandmail.com/report-on-business/rbc-is-first-to-cut-mortgage-rates-as-bond-yields-plunge/article22639128/

[emg]

Sorry for the stupid question but does this mean that house prices are going to increase? Can someone please explain? Would this be a time to sell and rent?

[MortgageQueen]

Depends where you live emg.
Likely to see increases in GTA, Ottawa and some larger cities in Ontario and BC. mainly. Wherever the economy is still in good shape and properties are moving well on the market.
Keep in mind to check what the costs of rent are in your area before you make any big moves.

[tjthemanto]

Sorry for the stupid question but does this mean that house prices are going to increase? Can someone please explain? Would this be a time to sell and rent?

Will probably just increase in GTA and GVR ..that too only in Spring/Summer - 2015.

Most immigrant come here & there is a shortage of rentals & houses in these cities.

I don't see an increase in condo prices though , just single home prices.

A correction ( not crash ) is definitely coming later on in Fall/Winter of 2015.

[xlxo]

Sorry for the stupid question but does this mean that house prices are going to increase?

Not quite.... with the falling dollar, housing prices in Canada are discounted to new immigrants with their foreign currency.... especially those with US money.

[valuemortgage]

And the banks still have a long way to go, as the lenders on the broker channel are offering silly low rates. You can currently get a 5y fixed at 2.54%, and a 5y variable at 1.95% (prime minus 0.90%).

Canadian banks on brink of mortgage price war

[tjthemanto]

BOC rate remained unchanged today . They mad an annoucement today.

[Xplorer]

thanks for the inside info. good stuff!