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In this episode, we break down what to get out of the Bank of Canada's upcoming rate of interest choice. With weak financial development, rising joblessness, and inflation listed below target, numerous forecast a larger-than-usual cut might be en route. However will it actually effect home mortgage rates, or has the result already been priced in?
Also in this episode:
Toronto's new condominium sales hit a 30-year low, with financiers pulling back due to high interest rates, triggering financing problems for contractors and resulting in job delays or cancellations.
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Can’t wait to see comments of people asking why low inflation is a bad thing 😅
Low inflation isn’t a bad thing ever. However,some inflation must occur in a good economy….unless ppl think a pay raise at their job is a bad thing? Increasing wages are ‘inflation’ the same as price increases. But let’s keep it all within reason!🤣😂
Low inflation isn’t a bad thing, but deflation is what scares economists.
That 50 basis point cut would be amazing for mortgage rates
Mortgage rates are linked to long term bond rates. Cuts mean little to mortgage rates.
He might be on a variable.
@@SamJerry-v4z – That’s true for fixed-rate mortgages, but variable rate benefit immediately.
@@ColdRunnerGWNso does my HELOC. I’ll take 50 points.
@@James_48 – I’m sure there are many others that are in the same boat with a HELOC. I have an unused one and it’s prime plus a few points (I forget how many), and if I did use it I would also benefit on it.
thanks for the video Marc. very knowledgeable. scary, but we need to hear it.
I am team 50 basis points 🙂
you got my vote.
@@toantang5483Voting for central bank policy is how you get Zimbabwe. As soon as politicians use central bank policy, you are no longer a serious economy.
Are you serious? People really believe our inflation is 1.6% ?
The more people deny science and create alternate facts, the longer real relief will take. The regressive PP pipsqueak, 12 word platform guys need to stop sleepwalking.
Yeah, year over year
Meaning on average goods and services etc year over year went up 1.6%. It’s not going down, never will. Just slower going up
I can’t believe people still don’t understand 😂m
I think it excludes main necessities like shelter and couple others.
Thanks Marc. Will variable rate mortgages drop faster compared to fixed with interest rate cuts?
Depends on what the bond market does
Hi Jason. Short answer is yes. Variable rates are tied to the prime rate directly, so with each drop by the BoC you should see an almost immediate adjustment in a variable rate. The mechanics are different from the longer term fixed mortgages. Always nice to hear from you. Hope you’re well.
I could see this coming for 3 yrs. The Canadian economy has been gutted by the obsession Canadians have with real estate. They’ve leveraged themselves to the hilt and beyond. It’s been 25 yrs of under investment into every sector except real estate which is a completely non productive sector. If we are lucky we end up seeing 10 yrs of stagflation. In Toronto the income to home price ratio is an insane 13 times. And the BOC is dropping rates rapidly because the economy has been struggling for over 6 quarters.
Should be 0.75 cut
CIBC thinks that the BOC might do 0.75!
Come on… ONE MONTH of low inflation compared to years of high inflation, and suddenly it’s too low?
You’re too busy looking at the stock market and not caring about people affording to put food on the table.
The cut should not be less than .50
I hope inflation doesn’t get too low! Would hate to see the purchasing power of my dollars be maintained and money actually acting as a store of value.
Thank you for the new video! I don’t have a clue what the BoC will do. All I know is I’ve been doing pretty well this year, so hopefully they won’t do anything rash and change the trends.
condo market was destroyed by builders building small 400 – 500 square foot units and stupid investors buying them with the intention to never live in them at low interest rates. Now rates are up and investors want to sell. NO ONE WANTS THESE UNITS and never will. Larger units are way to expensive for what you get, and some of those built overnight buildings are already falling apart and having maintenance issues. The condo market in GTA is dead ! and everyone knew this was going happen when they where building them. This is no surprise to any one who was paying attention. Greedy mom and pop investors all thought they were real estate tycoons buying this crap as an ” investment “
I have a question… From where do you get this kind of news ? 😮
The rate of infltion may be under conteol, but prices are still out of reach. We need to see negative inflation and prices coming down.
either a .25 cut or keep as is 😀
I am really worried about the current bank crisis/interest rates, these are all the signs of yet another 2008 market crash 2.0 , so my question is do I still save in the Canada dollar or is this a good time to buy gold/silver?
Personally ive seen Builder contractors struggling to get contracts to go through and trades people are feeling the brunt of it. Lots of real estate agents are aggressively looking for the best work for the cheapest price and getting what they paid for. The trades industry is feeling it, which makes it a tougher industry to be a part of/get into untill real estate agencies and companies have more capital to invest in renovating or building new properties. Its a wild catch 22
At least .75
That’s probably not happening as it would create a “what does the BoC know that we don’t????” Markets would get very jittery.
Why ScotiaBank mortgage rates are so high 6,45 % ? Can someone explain!?
Strange when rates go up banks are quick to raise mortgage rates but when interest rates go down they wait a long time before lowering mortgage rates?
That may be prime rate. If you go for fixed mortgage with reasonable amount then bank will give you 2-2.1% discount on prime rate.