Interest Rate Review
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- Übergod
- Posts: 1438
- Joined: Dec 9th, 2017, 9:38 pm
Interest Rate Review
I'm going to say that on Dec.7th. the Bank of Canada will raise the prime interest rate by 50 basis points ?
With the rate at 3.75 & a 1 year GIC paying 4.75 I'm saying the rate will be going up ?
With the rate at 3.75 & a 1 year GIC paying 4.75 I'm saying the rate will be going up ?
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- Guru
- Posts: 6518
- Joined: May 29th, 2013, 2:08 pm
Re: Interest Rate Review
I asked the fellow at the bank we deal with and he told me not much more than 5%. But that was 3 weeks ago..
I have a HSBC 1 year GIC at 5.0%, others at 4.9% Good enough for me in this climate.
I am not wealthy but I am rich
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- Board Meister
- Posts: 462
- Joined: Jun 9th, 2010, 8:54 pm
Re: Interest Rate Review
They have already announced that there will be one more rate increase in December - and then no more are forecast for the foreseeable future.
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- Übergod
- Posts: 1438
- Joined: Dec 9th, 2017, 9:38 pm
Re: Interest Rate Review
Yes I'm aware the BOC is going to have a review on Wednesday but no one knows if the rate will increase or by how much ?
I only mentioned that my guess is they will raise the rate by 50 basis points & wanted to see what others think will happen ?
I only mentioned that my guess is they will raise the rate by 50 basis points & wanted to see what others think will happen ?
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- Board Meister
- Posts: 462
- Joined: Jun 9th, 2010, 8:54 pm
Re: Interest Rate Review
I am betting that your guess is pretty accurate.
- alanjh595
- Banned
- Posts: 24532
- Joined: Oct 20th, 2017, 5:18 pm
Re: Interest Rate Review
My guess is that it will increase by .5%, maybe .25%, and then 0% in 3 months.
Bring back the LIKE button.
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- Generalissimo Postalot
- Posts: 819
- Joined: Oct 25th, 2005, 5:17 pm
Re: Interest Rate Review
Bank of Canada interest rate is now 4.25%
Most banks have raised their prime rate to 6.45%
A good guess will see mortgage rates rise also.
Most banks have raised their prime rate to 6.45%
A good guess will see mortgage rates rise also.
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- Übergod
- Posts: 1724
- Joined: Aug 29th, 2013, 1:34 am
Re: Interest Rate Review
Can't tell if this is your interest rate projection or if you are asking about rates.
BOC never should have permitted their Overnight Rate to go below 2%, no matter the economic backdrop.
Instead, BOC panicked and pushed rate down to 0.25%. This leads to hyperinflation. Fun.
Now several generations of Canadians were duped into believing that 2% mortgage rates were normal and that it's acceptable to pay $1mm for a $650k house.
So when mortgage rates climb from 2% to 6.5%, the annual increase on $800k of debt is $26,000/yr after-tax.
Know many households who can spare $2,200/mo extra to cover increased carrying cost of their inflated house value?
I don't.
Thank the Bank of Canada and thank your mortgage lender. They walked you into this mess. Now you gotta figure your own way out without going bankrupt.
Hello Justinflation.
Welcome to Canada.
Next up will be warnings from the Big Banks about deteriorating credit quality of their soon to be overleveraged customers.
VaxxNOTsafe, ImmuneSystemWorkedThanks.
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- Grand Pooh-bah
- Posts: 2452
- Joined: Nov 20th, 2018, 1:46 pm
Re: Interest Rate Review
We're STILL in "real" negative interest rates.
Inflation is is around 7%
Interest rate is 4.25.
The REAL interest rate is -2.75%.
It's still cheaper to borrow money than it is to save money.
Looooong ways to go.
Inflation is is around 7%
Interest rate is 4.25.
The REAL interest rate is -2.75%.
It's still cheaper to borrow money than it is to save money.
Looooong ways to go.
- Bsuds
- The Wagon Master
- Posts: 55057
- Joined: Apr 21st, 2005, 10:46 am
Re: Interest Rate Review
Mazdatruck wrote: ↑Dec 7th, 2022, 4:52 pm We're STILL in "real" negative interest rates.
Inflation is is around 7%
Interest rate is 4.25.
The REAL interest rate is -2.75%.
It's still cheaper to borrow money than it is to save money.
Looooong ways to go.
Tell me where I can borrow for 4.25% please?
My Wife asked me if I knew what her favorite flower was?
Apparently "Robin Hood All Purpose" was the wrong answer!
Apparently "Robin Hood All Purpose" was the wrong answer!
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- Grand Pooh-bah
- Posts: 2452
- Joined: Nov 20th, 2018, 1:46 pm
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- Übergod
- Posts: 1438
- Joined: Dec 9th, 2017, 9:38 pm
Re: Interest Rate Review
I was told that the Banks aren't increasing the monthly mortgage payments for homeowners but have extended the life of the mortgage & this avoids the owner form going bankrupt ?
Maybe someone who's renewing their mortgage could explain what's going on ?
Maybe someone who's renewing their mortgage could explain what's going on ?