Mortgages Push Higher Despite Jumbo Rate Cuts

The Bank of Canada slashed rates another 50bps. They will keep cutting rates despite the US Fed being done cutting rates this month. Interest rate differential continues to widen. The loonie keeps falling. Fixed rate mortgages in Canada are not moving.

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[mydressmemos]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[SportsCentreLo]

Trudeau and Freeland have no idea what they’re doing.

[MandyLuck]

Starts are falling because living in Canada is not as good as it use to be.

[johnkirstein]

I've had a hunch for a while that people are going to get caught off guard when mortgage rates stop dropping despite the central bank's cuts.

[glenf]

Bailing out irresponsible consumer debt in 08 led to higher prices and more debt today.

[rickfearn]

People don't get it. The falling Canadian dollar means only one thing: Canadians are getting poorer. It is not complicated.

[mtrest]

Someone who works in the investment industry said that in the past year, banks have been pushing them to sell all cmhc backed (junk) mortgages to pension funds to ensure taxpayers remain on the hook for it.

i.e the govt does not transfer that liability back to banks which created that sub prime mortgage junk.

That is how slimy things have become.

[WayneShaw-rj]

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[lesasmith]

“Clearly the leadership in this country is disastrous.” Indeed…

[JanRiffler]

The rates have to go way up to save the loonie. Otherwise Weimar Republic 2.0

[hill]

Is it just me or people fail to realize lower Canadian dollar=higher inflation.


It's like these people put these videos out with a giant sign saying "talking my book".

[grab-a-javaroastersfresh]

Even if it's not a U.S. product, commodities like coffee beans from Peru are traded in U.S.D.
Trade from Peru to Canada traded in USD goes up.

[mrwarbucks]

.50 cent range looney on the horizon, once they start printing again QE 4EVER

[peter_eva]

Dude. We are heading towards currency debasement, mostly likely.
They couldn't raise high enough to bring inflation down firmly cuz of the debt payments. So now they will play the game of lowering rates to renew national debt and then raising them in-between to try and offset rising inflation.

[goldentiger]

With 75% of pre-pandemic mortgages set to renew in 2025 and 2026, banks are increasingly anxious. Despite lowering interest rates and offering 30-year amortization options, new mortgage payments are still expected to rise. Fixed rates are climbing, and while variable rates have seen a slight decrease, many people fail to realize that this reduction has positioned us for a potential second wave of inflation, which could be even more severe. It worries me to think that, after March, variable rates may also begin to increase.

[olgatempel]

population growth and migrants were just as low in the 70s..70 000 migs per year....economy and rates were great...dollar was at par with US and a couple of times we were higher....The reason was we had a well managed economy...we didnt flood our housing with foreign buyers....Canadians could afford homes with a regular job

[ADobbin]

Correction... Because of rate cuts. Not despite. Lending amounts go up because the interest goes down.

[dexterbartholemew]

We have a PM who takes no interest in monetary policy and believes the deficit will balance itself. We are doomed!!

[Kevriyal]

US economy would be in a terrible spot if their government was not operating at a deficit of about $2, 500, 000, 000, 000 annually. Yes that number is not a typo.

[LivefreeLoz]

Hit 240k today. Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in October 2024