Topaz Posted February 9, 2011 Report Share Posted February 9, 2011 The Banks are now upping their mortgages, as if they NEEDED the money and the minister says he knew it was going to happen. So how will this affect future house buyers and renewers? The rate isn't too bad right now but it will be in the future and I don't understand why? Is there a way consummers can stop the interest rates from going up? Yes. The miister did say a few weeks ago that if the economy didn't grow that interest rates would stay low. Well, there's your answer for consumers of mortgages and loans. Stop buying. It may not be good for the economy but it would be good for those holding a mortgage or renewers or borrowers. Besides by stop buying you become a saver and isn't that what the government has been complaining about? http://ca.news.yahoo.com/flaherty-warns-even-higher-mortgage-rates-weeks-jump-20110208-101955-326.html Quote Link to comment Share on other sites More sharing options...
Moonbox Posted February 9, 2011 Report Share Posted February 9, 2011 The rates have gone up several times in the last two years only to fall back down again. The banks are speculating with rates. They have to borrow money to lend it out a lot of the time and if the spreads aren't big enough they increase the rates. As the rates go up housing prices will go down. The low rates are one of the reasons why houses are so expensive right now. There's also enough competition with brokers and lenders that people can still buy houses. 3.6% - 3.9% aren't exactly bad for 5 year rates. Don't you worry Topaz. Quote Link to comment Share on other sites More sharing options...
wyly Posted February 9, 2011 Report Share Posted February 9, 2011 The Banks are now upping their mortgages, as if they NEEDED the money and the minister says he knew it was going to happen. So how will this affect future house buyers and renewers? The rate isn't too bad right now but it will be in the future and I don't understand why? Is there a way consummers can stop the interest rates from going up? Yes. The miister did say a few weeks ago that if the economy didn't grow that interest rates would stay low. Well, there's your answer for consumers of mortgages and loans. Stop buying. It may not be good for the economy but it would be good for those holding a mortgage or renewers or borrowers. Besides by stop buying you become a saver and isn't that what the government has been complaining about? http://ca.news.yahoo.com/flaherty-warns-even-higher-mortgage-rates-weeks-jump-20110208-101955-326.html doesn't seem to be any way we can win...if we don't buy the economy goes flat and we have a recession lose our jobs/homes...then if we buy things to get the economy going and we're punished with high interest rates that could cost us our homes... Quote Link to comment Share on other sites More sharing options...
Hydraboss Posted February 9, 2011 Report Share Posted February 9, 2011 When the economy sucks, interest rates go down to stimulate spending on big ticket items. When the economy is hot, interest rates go up to cool the market and keep inflation in check. When the economy is anywhere in between, rates will fluctuate so banks can make a ton of money. This means consumers actually have to shop. If rates go too high, purchases slow and then rates start to drop again. It's a fluid system. Financially, the best thing to ever happen to me was this recession. My mortgage fell to 2% and stayed there for quite a while. It's sitting at 2.75% right now (but I'm sure it'll be 3%+ by next week). Still cut a ton of time off my amortization. Woo hoo. I'd personally love to see everyone start bitching about rates and stop making big purchases requiring a loan. The banks would react and soon I'd be back down at 2%. (it's sooooo cool to see a statement where the principal paid is WAY more than the interest.) Short of federal regulation on rates, there is little the government can do. Quote Link to comment Share on other sites More sharing options...
Bonam Posted February 9, 2011 Report Share Posted February 9, 2011 doesn't seem to be any way we can win...if we don't buy the economy goes flat and we have a recession lose our jobs/homes...then if we buy things to get the economy going and we're punished with high interest rates that could cost us our homes... Man all you guys do is whine. Don't buy homes you can't afford. If you can afford it and chose to buy it, then be happy that you now have a home. How freaking hard is that? Quote Link to comment Share on other sites More sharing options...
Jerry J. Fortin Posted February 9, 2011 Report Share Posted February 9, 2011 doesn't seem to be any way we can win...if we don't buy the economy goes flat and we have a recession lose our jobs/homes...then if we buy things to get the economy going and we're punished with high interest rates that could cost us our homes... Not really, but sort of. You are actually being punished by borrowing at interest to cover what amounts to a basic necessity in this climate. The cost of accommodation is our largest expense. Next up is food then utilities. If humans were a business they would write this stuff off as incurred expenses in a legitimate effort to make money like any other business. You need all that shit just to stay alive to go out and work for your days pay. The feds just don't get it, and few professional type humans will either, just us grunts in the trenches. Want to fix our economy? Fix that little issue. Make homes affordable through tax deductions, create demand for domestic products, design and construct a viable set of secondary industries geared to local resources. Do it all through the small scale efforts of the citizens instead of small business or large business. If you can cut the corporate tax rate you can cut the personal rate. Cut it up and leave it on the floor. Allow citizens to stimulate the economy with their tax savings. The entire goal of the government should be to eliminate all forms of income tax and change to a system of taxation based on consumer activity. Focus the tax instead of carpet bombing the citizens with taxes at every step. The government, or more properly the representatives of the people in Parliament, can help their citizens or stand in their way. After todays news of how the feds are going to treat the municipalities, and what they are doing to help business with the latest tax cut, I will suggest that many folks will begin to look at things in a different light. Even so the screwing of the citizens continues. Quote Link to comment Share on other sites More sharing options...
xul Posted February 10, 2011 Report Share Posted February 10, 2011 (edited) The rates have gone up several times in the last two years only to fall back down again. The (floating) rate went down in previous years to round up borrowers, and now it's time to raise the rate and round up the money. and once most borrowers have hastly shifted into fixed rate at the highest point, the rate will fall back again to round up more borrowers.... Edited February 10, 2011 by xul Quote Link to comment Share on other sites More sharing options...
Wilber Posted February 10, 2011 Report Share Posted February 10, 2011 The (floating) rate went down in previous years to round up borrowers, and now it's time to raise the rate and round up the money. and once most borrowers have hastly shifted into fixed rate at the highest point, the rate will fall back again to round up more borrowers.... Some truth to that methinks. Lending money is a business after all, not a charity. Quote Link to comment Share on other sites More sharing options...
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