🚀 go-pugleaf

According to reports in Friday's papers:

CIBC and Bank of Montreal announced they're raising 
rates on two-, three-, four- and five-year
terms by .65 of a percentage point, one of the 
largest one-time increases in recent memory.
Rates on other mortgage terms are rising by smaller 
amounts.

Effective today, the new two-year rate is 5.75 per 
cent, the three-year term 6.25 per cent, the
four-year charge 6.75 per cent and the five-year 
term 7.1 per cent.

 (damian_levangie@hotmail.com) writes:
> I am locked in for five years with TD at 5.45% currently and
> dropping....got the floatdown option goin' on until I close on the
> house.  It will most certainly go down again...excellent time to be
> buying.  These great rates combined with the fact that the price of
> houses have definitely leveled off in Ottawa makes for great
> conditions...These rates are unheard of...
> 
> Cheers
> 
> On 12 Nov 2001 00:18:20 GMT, cx172@FreeNet.Carleton.CA (Elat Lerner)
> wrote:
> 
>>Mike (anon@xnews.com) writes:
>>> Actually while I'm not going to debate your whole message, you are wrong 
>>> about the mortgage rates being higher than 2-3 years ago.  According to 
>>> http://www.grgmortgage.com/histori.htm which gets it's data from CMHC, 
>>
>>Actually the site you recommend confirmed the exact rate I quoted:
>>6.71% for April 1999.
>>
>>And yes you are right, the current rates just dropped to 6.7% 
>>(wouldn't you know it I just renewed a mortgage on Wednesday 
>>when rates were still at 6.9%).
>>
>>However, the reporter was not talking about the rates today, they
>>were talking about the housing market last month. If you ask me
>>for my crystal ball, I will predict that the Ottawa housing market
>>will yawn at the lower rates and continue on it's downward spiral.
>>
>>Of course, my crystal ball has been known to malfunction at 
>>times :-)
>>
>>> mortgages have not been lower than the current posted rate (6.70/5 years) 
>>> in the past 40 years.  Furthermore, banks are more aggressive now and will 
>>> discount the rate up to 1.25% where as in the past (even recently) would 
>>> only discount 0.5-1.0% so the rate the consumers are getting is much lower 
>>> than it's ever been.  You can get a 1 year rate for 3.6% right now!
>>> 
>>> As far as the Ottawa market, it's certainly cooled down and homes aren't 
>>> selling as fast but prices haven't really gone down overall.  
>>
>>And you say this based on...?
>>
>>> They have 
>>> gone down a bit but that's mostly because homes are selling more slowly now 
>>> and buyers now have some negotiating power.  
>>
>>Is this not a contradiction to your previous sentence?
>>
>>> The list prices are actually 
>>> probably higher now than they were last year (last year many homes were 
>>> selling above list price).
>>
>>List prices don't a market price make.
>>
>>I wonder if the situation in Toronto is the same. Anyone?
>> 
>>> Just my 2cents,
>>> Mike
>>> 
>>> cx172@FreeNet.Carleton.CA (Elat Lerner) wrote in 
>>> <9sma3h$n16$1@freenet9.carleton.ca>:
>>> 
>>>>Eric Beauchesne wrote in the Citizen on Nov 10:
>>>>   "Falling rates buoy housing picture"
>>>>
>>>>Does Eric not know that today's mortgage rates are higher than those
>>>>of 2-3 years ago?
>>>>
>>>>    "Demand for new houses remains strong despite weakened economy: CMHC"
>>>>
>>>>Does CMHC not realize that this is a fallacy in many places including
>>>>Ottawa?
>>>>
>>>>In it's report Building permits September 2000  StatCan says: 
>>>>
>>>>    "The value of housing permits rose a marginal 0.2% to $1.8 billion; 
>>>>    only multi-family dwellings contributed to the gain...
>>>>
>>>>    Among the provinces, Western Canada accounted for September's rise 
>>>>    in housing permits; all  provinces east of Saskatchewan 
>>>>    posted declines."
>>>>
>>>>Does not sound like demand of housing is that great even outside Ottawa.
>>>>
>>>>Back to Eric: �
>>>>    "Despite the skepticism of opposition critics and some economists, 
>>>>    plunging interest rates are working their magic on a key sector 
>>>>    of the economy, housing, easing pressure on Finance
>>>>    Minister Paul Martin to do more to stimulate an economy many 
>>>>    analysts argue is already in recession."
>>>>
>>>>    Home construction rose a surprising 12.7 per cent last month"
>>>>
>>>>It did? In which part of the country?
>>>>
>>>>    "Urban starts rose in all regions," Canada Mortgage and 
>>>>    Housing Corp. economist Philippe Le Goff"
>>>>
>>>>Check the facts.
>>>>
>>>>    "Ted Carmichael, economist at J.P. Morgan Canada, agreed, 
>>>>    saying "falling mortgage rates..." 
>>>>
>>>>Maybe if you repeat this fallacy enough times it will become 
>>>>true?
>>>>
>>>>    "The pace of construction remained ahead of last year's 
>>>>    in all major cities other than Montreal, where starts were 
>>>>    down one per cent."
>>>>
>>>>According to the Ottawa Business News:
>>>>
>>>>    "There was a decline in Ottawa housing starts last month, 
>>>>    when compared to October 2000"  
>>>>
>>>>Back to Eric:
>>>>
>>>>    "For a homebuyer the savings from the drop in rates this year..." 
>>>>
>>>>That's a little better, but it would be nice if the Citizen 
>>>>explained that mortgage rates are still higher than they were a 
>>>>couple of years ago.
>>>>
>>>>    "...as the government leaves it to the Bank of Canada to 
>>>>    stimulate the economy."
>>>>
>>>>The Bank of Canada does not set mortgage rates. Doesn't Eric 
>>>>know that?
>>>>
>>>>    "Central banks' ... both the European and England's 
>>>>    central banks... U.S. Federal Reserve... Bank of Canada..."
>>>>
>>>>What have any of these to do with mortgage rates?????
>>>>
>>>>Kristin Goff continues with"                               
>>>>    "House sales surprise Ottawa industry"
>>>> �
>>>>    "Mortgage rates, which have fallen to 6.9 per cent on five-year 
>>>>    terms at major banks"
>>>>
>>>>You mean the 5-yr mortgage rate that "fell" from the 6.71% average 
>>>>rate recorded by the Bank of Canada for April of 1999? 
>>>>
>>>>    "Resales... In October the average was $172,900 last month which 
>>>>    was still up about 10 per cent from October, 2000."
>>>>
>>>>Don't know about that, but how about telling your readers that the 
>>>>average resale home in Ottawa fetched $175,594 for the first nine 
>>>>months of 2001. Sounds like prices are declining from where I stand.
>>>>
>>>>    "Mr. Knowlton said overall new home sales prices haven't 
>>>>    declined noticeably."
>>>>
>>>>Oh? So they did decline? By how much?
>>>>
>>>>The Citizen not covered the September New House Price index published
>>>>by StatCan on Nov 10. This report shows that new house prices moved
>>>>up a slugish 0.1% in Toronto and 0% in Ottawa.
>>>>
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