Starting Now

Beginnings

Effective today new higher mortgage rates begin.

First Strike

For the second time this month the Royal Bank took the first strike against the low interest rates and was soon followed by Scotiabank raising rates for home loans by a quarter of a point.

The reason to justify this is that the cost of borrowing money from the bond markets has increased.

It Begins

Savers tired of low returns have put pressure on the banks to pay more to warrant higher returns. Expect that soon we will see the central bank begin the long promised increase that will assuredly start yet another round of mortgage interest rate hikes.

For those who have benefited from the low rates of the past year will be able to tell their grandchildren that they ‘remembered when’!

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:

davers Says:
April 14th, 2010 at 4:47 pm

I still dont understand why RBC raised their rates again. BMO still has a posted 5 year closed rate of 3.95%. I cant see them attracting any customers with 6.1%.

Rates do need to go up as the bond market does, but raising them when some other banks still havent followed your first increase doesnt make much sense to me.

Boombust Says:
April 14th, 2010 at 5:32 pm

“…that they ‘remembered when’!”

On the other hand, Larry, I think there will be a lot of selective amnesia.

(Some people will have gone so far OVER their heads, they won’t want to remember.)

April 14th, 2010 at 5:45 pm

@davers
trying to grab market share tis all.

April 14th, 2010 at 5:46 pm

@boombust
this could be true. Ginko in their coffee might help.

Boombust Says:
April 14th, 2010 at 7:42 pm

@boombust

this could be true. Ginko in their coffee might help.

Or, how about St John’s Wort for any ensuing depression?

RavingBull Says:
April 14th, 2010 at 9:18 pm

I wonder if bank rates are somewhat ahead of the curve (ie. if they’ll stay in this range for a while, other than changes to the short end of the curve)?

Larry, listings close to 16,000 for REBGV, clearly at a 12 month high. Sales (I’d bet you a nice bottle of scotch on this) will decline once we pass the end of this month, and go lower still as we go into june and july.

So, what’s your view on things. Should listings hit an all-time high in the months ahead and sales stall, then what? Paint us a picture, would love your thougths.

April 14th, 2010 at 10:38 pm

@Raving
LOL! that’s not a bet! You are just looking for me to stock your larder.
Don’t count on sales stalling. The listing number is loaded with a lot of places that bark at you when your drive up to them.

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