Quote:
Originally posted by Barangas
if they do provide with the higher downpayment (35%) to save on CMHC.
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Is it not 20% to save on CMHC?
Not if you're applying with the Self-Employment Incorporation income. It's 35%.
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.
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.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>
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I was on to CBC Montreal feed and it was pre broadcast announcement, such as testing etc., and I was too eager to get the announcement and hence the introduction to the topic.
Generally when an interest rate gets cut, the money that landed into Canada departs to greener pastures, seeking an higher yield. At least that is what they say. Also, the local industries are encouraged to borrow more and enhance their stock and production generate more and flood the markets and create demand.
There is more to it than what we think it is going to happen. Here is another scenario where imports become more expensive, because the purchasing power of the dollar drops down. It is like devaluing the Canadian Dollar. The markets find its own level.
You don't have to be a Governor to know that. The free floating gets started and the FOREX markets go wing ding and the Oil Companies enter into the picture and play with it. So also the others who want the Canadian Dollar devalued. The purchasing power of our Canadian Dollar goes down and people now want to get into Canada and sight see, purchase goods here and take it to their own country. All of this looks great on paper. In actual fact, the BIG Corporations that have been waiting for an opportunity like this has moved their capital, lock stock and barrel to countries that has cheap labour, such as Mexico, Bangladesh, India and China and opening up Newer branch plants and produce the same items that were manufactured here and create unemployment for us here.
These Corporations say that they get 15% or better yield on their capital with this cheap labour. Now they want to borrow more here at very low interest rates and create huge factories outside of Canada and hang us high and dry.
We do not have a huge capacity to borrow, like the Big Corporations, so when we go for our mortgages, we get a Canadian made rate when the interest rates drops. It has become a normal practice and the Consumer and Corporate affairs let the Big Banks also play with the interest rates. Now that we all know that there will be little or no activity will take place in the markets, we just wait for the New Immigrants come down and enter into the Real Estate Markets, either rent a place or buy one and fill the empty spaces and generate a flow of capital or help top up some one else's income who is owning a rental property. This type of free flow of cash creates consumer confidence and the wheels of high finance churns smoothly even in these down days.
Also it is nice to know that we are also gaining a very small chunk by saving on these interest payments to the Big Banks. Even there I see the Mortgage Brokers hedging their business by asking for a Higher Down Payment, in case the people who have business income head into a down turn. That is my observation. But it is nice to know that the borrower has a substantial amount invested into his property to satisfy the brokers requirements.
These are the times, if you can borrow and invest and make a good chunk of money, by taking a calculated risk, you will get ahead of all of us in the very near future.
HOW? There are very good vehicles that are on the market which only a few know and it is good to keep your eyes peeled open and get into it, the minute the avenue opens up. So, don't lose hope.
FH.
dup
Posts: 1351
Location: Brampton, Ont, Canada
Posted on: 19-08-15 09:26:45
Location: Brampton, Ont, Canada
Posted on: 19-08-15 09:26:45
Chalo local manufacturing ko Fayada hoga....
hope now they stay low for at least few years ...
sudden increase in rate will create huge Havoc/Chaos
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
Local manufacturing has long been packed to third world countries.
Because of the rate cut, it becomes questionnable to reinvest in the infrastructure then manufacture.
So the rate cut still largely benefits the big banks.
One favorable fact is the flourishing economy down south with the trend of maintaining current ratio between the currencies, that is it.
Quote:
Originally posted by Blue_Peafowl
Chalo local manufacturing ko Fayada hoga....
hope now they stay low for at least few years ...
sudden increase in rate will create huge Havoc/Chaos
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
