I'm curious how he plans to fund this new "right"

planning to speak with a mortgage specialist at a bank. it's my first time buying and i've been google searching broker vs bank. i think i'll stick to a bank but i see that hsbc, td, and rbc have the best rates so far. do most ppl go for variable or fixed? with how unstable the economy is right now it's probably better to go fixed at a higher rate? and what rates have people been getting? i'm seeing around 2.5-2.6% on 3yr variable and about 3.1-3.4% 3yr fixed. do people ever go for 5 or 10 yr fixed? sorry for all the questions. google seems to give pros and cons about everything but don't really have solid recommendations. ppl in here are quiet knowledgeable so i thought i'd ask.

With all those questions, I would highly recommend using a mortgage broker to answer them. A bank will of course answer them in a way that is beneficial to them and them only.

When I went for a mortgage last time (maybe 4 or 5+ years ago? possibly even longer?), I don't think there were 10 yrs fixed option available. Longest that I knew (back then) was 5 yrs.

IMO, the fixed vs variable option depends on your outlook & insights on the economy. At this point, I personally still think the variable route is preferrable over fixed for a 5 year term. With a rate differential of ~0.7% (between fixed and variable), I think that is still enough room for someone to benefit from the lower variable rate. You're looking at almost 3 separate rate hikes before the variable rate becomes more expensive than the fixed rate. I figure if the BoC is going to hike interest rates 3x over the next 2.5 years or so, a new variable mortage would still more or less come out even compared to a locked in fixed rate right now.

But hey, that is just my 2 cents, and they are probably worth less than that in reality. :P

Variable rates tend to cost the borrower less over the long term (20-30 years). However, most homeowners in Canada tend to choose fixed rates because they favour cost certainty. Are you risk averse or can you manage short term fluctuations in your payments?

Something else to consider is how long you anticipate being in this property. If you expect to sell before 5 years, the penalty to break a variable mortgage is only 3 months worth of interest. The penalty to break a fixed rate mortgage can be thousands more as the lender will calculate the penalty using an interest rate differential between your negotiated rate and the posted rate.

I was speaking to a developer the other day and he believes BOC is going to "try" and raise rates 3-4 times next year alone! That is if the economy can handle it.

Oh I agree that BoC is going to try and hike rates in the foreseeable future. But to do it more than twice over the next year seems far too aggressive to me. I am not convinced that our economy can handle it, and with 2019 being an election year, I think PM Special Snowflake is going to try what he can to "influence" a relatively stable interest rate.

I was down in Utah earlier this month and saw ads posted for 30-year fixed rates around 5.xx% and 15 year rates at 3.xx%. How do they do that down there? I would kill for a 30 year fixed at my current 2.39%:fullofwin:

how much is a place in utah?

probably a lot less risk when lending 200-300k as opposed to 800+ lol

^their houses are 200k :lol and mortgage deductions

Mortgages rates in the US are fixed for the life of the term/mortgage, are they not?

yup you can buy a real nice 3bdr detached in Salt Lake Metro area (where I saw the sign) for sub $400,000. Considerably less outside of that I would presume.

I seem to remember that they are. IIRC, the penalties from defaulting on payments also seem to be much lighter / inconsequential than what we have here in Canada, and hence the major housing crisis from the 2006 - 2012 era.

Am I alone in thinking that, people living in the most expensive cities in Canada, and protesting that it's unaffordable, is completely insane?
I mean, you wouldn't go to a high end boutique and protest that you couldn't afford the clothing.

I feel like thats not exactly a valid comparison.
A clothing store can function without multiple socioeconomic classes participation.
You weren't born in a clothing store.
You don't have to leave your friends and family behind in a clothing store.
You don't leave your job because you can't afford expensive clothes anymore.
You haven't invested your time in helping a clothing store become a flourishing and interesting society.

If you really want a city that is a reward to live in, you start looking at what people bring to the table other than ONLY money.

Fair enough. But the fact of the matter is people do have choices.

You see these protestors; 'demanding' the government do something. What makes them so entitled to make demands? Because they live there?

Would you rather see people 'demand' something gets taken care and nothing happens of or would you rather see those same people get fed up to the point where they take action in to their own hands and bring the issue to a level that the whole world will discover on the news. There's places in the world where something as simple as someone stepping down and resigning only took place because the people decided to say fuck it and start mass riots. Egypt comes to mind. Black lives matter demanding cops stay out of a parade. Somebody a page or two back i think had wrote about making this place less desirable to live in - there's been racist posters being put up lately. A few people trying to scare others out of living in the area? Nobody want's to move to an area of town where that shit is being put up and knowing there's a few nut cases who could be their new neighbor.

I would never take part in a protest holding a giant 'ban foreign ownership' ship or be in a riot but I've every right to express my concerns and be heard whether people like it or not. That entitlement is my freedom of speech.


People do have choices but when you're giving them the shittiest choices to choose from they'll take secret option C - get shit done in a way that would never be done without them. Every election it's surprising how they'll do what they can to try and please the public - foreign buyers tax, empty home tax, saying they'll take care of preventing demovictions and build thousands of social housing units, etc. When you're adding thousands upon thousands upon thousands of people to a city each year there's not a snowballs chance in hell that the housing crisis can be solved.

Way off topic here but I remember watching a movie on netflix a long time ago about a group of guys who lived near the border of Mexico and they were vigilantes who would find border jumpers and eventually kill them because nothing was being done towards preventing them from coming in. They were fed up and took the matter in to their own hands.

Yes?

I think that is actually what the definition of government is. A governing body of the people who employ it.


As for the most expensive city. You have a valid point. People live in Brooklyn because they can't afford New York. But the thing is, New York has jobs which can afford it. We're missing that here in Vancouver. Secondly, this isn't only dealing with Vancouver. It is affecting all of BC. Vancouver island is just as unaffordable for a regular Joe. I mean, even Nanaimo is expensive now. The domino effect is huge.

Perhaps to someone who decided to move here knowing they can't afford it, sure. To us who were born here, have family and roots here, I don't think it's insane at all. I'm not so entitled to think that I deserve to live downtown, but if you're making what is considered "good money" in this city you should be able to afford a place in the burbs without getting outbid by someone who doesn't even live here.

If you live here, work here, pay taxes here, and vote here then I think that should give you some entitlement over some rich person who doesn't.

My parents immigrated here from Fiji 30 years ago. They were only able to afford a house in Burnaby($80K) and eventually needed a larger home so Surrey($300K) was the only affordable option. I grew up in Surrey and now can only afford a house in Abbotsford($700-800k?) or Chilliwack. I accept this. If I want to live Downtown or even Surrey my wife and I need to make way more money. We accept this. I don't waste my energy protesting this economy, I figure out a way to make more money or be happy with where I live. This is my personality and I understand that people have a different approach but sometimes I feel people need to slow down with their entitlement.

Cool, your kids and grand kids can move to coquihalla lakes

What's your solution instead of whining?

Government has been constantly tightening the rules for years. But that doesn't satisfy the outsiders until Vancouver real estate crashes. Keep dreaming.

These are the times. You're privileged your parents are giving you a down payment from their equity. Or you hussle and find creative ways making more money. No one is holding ur hand and no one cares about you.

Sorry for rant. But it's a struggle for everyone and I just got in and happy I did.

limit home ownership.

one freebie
second home taxed at 25-50% of the value
third home etc

technically a family can have two homes, husband and wife

Let's be honest, vancouver has no economy per se. Seattle and San Francisco has corporate headquarters to support high home prices. We only have lululemon and EA?

https://en.wikipedia.org/wiki/Catego...d_in_Vancouver

As for Household names, I think we got Hootsuite and 1-800-GOT-JUNK :troll:

EA's from California dude. EA Canada is based here. We're a branch plant economy, always was. Which is why salaries are in the shitter :okay:

Just because they put a few measures in place doesn’t mean people should just say “ok fuck it”
It amazes me how little people care about the community they live in because they got in, so fuck anyone who can’t.

I’ve said it before and I’ll say it again, when the nurses and teachers can’t live here anymore, what are those of you that “made it” going to do?
Who the fuck is going to pour my 4 dollar coffee?
Who’s going to staff the award winning restaurants?
Who’s going to pour drinks at some of the best music venues in the country?
Maybe you don’t care because you are too housepoor to enjoy any of those things.