Royal Bank Salute

Three Times Lucky

In salute to a quickly changing financial world with dire warnings from the Bank of Canada, RBC seemingly on a mortgage rate increase rampage, has for the third time in as many weeks increased mortgage rates.

If you contributed to the hat this young lady is wearing and were amongst those thinking the Vancouver real estate market was going to slow as a result of these pronouncements and other factors, then her salute is also for you!

In a Globe and Mail report from Tavia Grant and Steve Ladurantaye, they tell us that “the rate on a five-year closed mortgage is now 6.25 per cent, an increase from the previous rate of 6.10 per cent. A one-year closed rate will, as of tomorrow, be priced at 3.80 per cent. All rates were increased by 15 basis points.”

Warm Fuzzies

The feel good part about this latest increase is that banks can adjust the rate they charge. Things you need to know in order to get their ‘preferred’ rate.

  • be in a good financial position
  • use a mortgage broker to find the best deal
  • negotiate, negotiate, negotiate

For How Long?

Grant and Ladurantaye kindly point out that this latest hike comes on the heals of a Canada Mortage and Housing report ” showing that 81 per cent of recent home buyers feel comfortable with their current level of debt.”

All seems good for now but, are these same folks going to feel that way when rates hit 7,8,or 10 percent or more?

  • will buyers continue to assume high debt loads?
  • will sellers stand guard over their high prices?
  • has everyone forgotten that the low rates were to serve a nation wide recovery
  • have we forgotten that what we now see as high rates were common not long ago?
  • will those CMHC repondents salute their ‘comfort’ when it is time to renew their mortgage?

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

When Life Moves You - contact Larry:

*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

Reader Comments:

Samsonite Says:
April 26th, 2010 at 2:45 pm

Larry

SHE would make a great Realtor!

April 26th, 2010 at 4:17 pm

@samsonite

hey – that’s my sister.

fish10 Says:
April 26th, 2010 at 6:20 pm

Larry

there is a side career waiting for you as a stand-up comic.

That pencil behind my ear is to remind you not to forget the numbers.

April 26th, 2010 at 6:33 pm

@fish
LOL! thanks! A long pole, (no pun intended) might help some days. 🙂

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