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  Canada Immigration Forum > About Canada > Business > Rate cut.
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Rate cut.




Check un du trois kat....

Interest rates cut by the Bank of Canada to 0.5% for bank prime.

fh.

http://www.cbc.ca/news/business/bank-of-canada-cuts-benchmark-interest-rate-to-0-5-1.3152673


 
Full House

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Post ID: 224458 15-07-15 11:39:09
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dhaikin
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Quote:
Originally posted by Full House



Check un du trois kat....

Interest rates cut by the Bank of Canada to 0.5% for bank prime.

fh.

http://www.cbc.ca/news/business/bank-of-canada-cuts-benchmark-interest-rate-to-0-5-1.3152673</font>


It might go to zero or even negative.
Point is, how bad the economy is, & what's more is needed to revive. What happens whenever rates starts to rise.


 
Post ID: 225846 15-08-15 21:19:14
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febpreet
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Just secured 2.05% variable from CIBC. I don't think there's any chance the rates would go up before the fall of 2017, as indicated by various financial institutions of repute. Even if the US economy all goes berserk, the Canadian counterpart is admittedly in recession so the chances of rates to go up is quite slim. Even if it does, it won't be disastrous and the rates go up gradually, just as they come down.

But, as they say, you can't predict, but forecast. The key is to buy within the limit and with the good amount of downpayment in order to safeguard yourself.

Invest your RRSPs and TFSAs in US$ bonds, if possible. If you're still quite far away from Retirement, the key is to hold the portfolio in high return bonds. Stay away from Canadian investment for a while.


 
Last edited by: febpreet on 18-08-15 12:35:32
Post ID: 225901 18-08-15 12:33:29
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hchheda
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FP - if you have not already closed the deal (for mortgage), please shop around some more. I have P-0.7 (RBC) since early june this year (which is 2.0 now) and subsequently my friend secured p-0.85 from BMO (1.85) -both 5 year variable with standard conditions - nothing restrictive. However much the P rate changes, your discount is going to remain the same - you will still be better off than the fixed rate from today.

Regarding investments - if you are entering now, it is good to buy C$ portfolios - from here it cannot go much down, but the upward possibility is higher for the long term gain.

The above are layman estimates - please use your own judgement.

Hiren


 
Post ID: 225904 18-08-15 13:16:49
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febpreet
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Hiren,

I had an issue with my mortgage. I got an incorporated business that not many providers deal with, or if they do provide with the higher downpayment (35%) to save on CMHC. The CIBC was the only one helped me with, so pretty happy with what I got. My existing one has Prime minus .9. I tried shopping around but most that I talked to had trouble understanding the business model (self-employed Incorporated) I work in. This, when my credit score is outstanding with no debts, other than my existing mortgage. Almost all the Banks, except CIBC weren't ready to include my Business income for the mortgage purposes. The mortgage is all approved and signed now.

For the investment, I agree with you, albeit with some reservations. I have had my funds in C$ and didn't see much growth for the past few years. I have it in the medium risk investment mix that I am going to change to high for the long term.


 
Last edited by: febpreet on 18-08-15 13:34:51
Post ID: 225906 18-08-15 13:32:52
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hchheda
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Quote:
Originally posted by febpreet


For the investment, I agree with you, albeit with some reservations. I have had my funds in C$ and didn't see much growth for the past few years. I have it in the medium risk investment mix that I am going to change to high for the long term.



I will let mortgage experts comment on your mortgage situation, not sure if it makes any difference now.

Your returns are low because you entered at a higher C$ value and it tanked, that is expected. But if you are making NEW purchases now - it will be foolish to invest in US$ because from here it will mostly go down (another 2-5% increase max) - the chances of C$ rising are higher in LONG RUN.

Good luck though.

Hiren


 
Post ID: 225910 18-08-15 13:48:09
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Barangas
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if they do provide with the higher downpayment (35%) to save on CMHC.

----------------------

Is it not 20% to save on CMHC?


 
Post ID: 225912 18-08-15 14:05:43
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febpreet
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Quote:
Originally posted by Barangas

if they do provide with the higher downpayment (35%) to save on CMHC.

----------------------

Is it not 20% to save on CMHC?



Not if you're applying with the Self-Employment Incorporation income. It's 35%.


 
Last edited by: febpreet on 18-08-15 14:34:55
Post ID: 225914 18-08-15 14:34:36
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Barangas
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Febpreet,

Since your mortgage is approved and signed, presume you have finalized the "Single Family House". Hope you found one which matched your wish-list. Congratulations.







 
Post ID: 225917 18-08-15 14:48:49
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febpreet
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Quote:
Originally posted by Barangas

Febpreet,

Since your mortgage is approved and signed, presume you have finalized the "Single Family House". Hope you found one which matched your wish-list. Congratulations.








Already found one :). Thanks.


 
Post ID: 225926 18-08-15 15:53:30
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