ING CEO, Peter Aceto, is surprised so many mortgage shoppers haggle with their banks. “If you are buying something in a flea market, that’s one thing,” he says. “Why some people can go in to a branch and negotiate 25 basis points off and why someone else can negotiate 100 basis points off – just based on their negotiation skills, on their relationship – to me, it just doesn’t seem like a fair way to do business.”
“This is not a time to buy, but to rent. There is absolutely no advantage to buying…when you can live in the same unit for thousands less as year as a renter, and have these wretched losers subsidize you.” — MP Garth Turner (Ha. So much for politicians being politically correct!)
“The consensus is rates are going to be back up,” says Warren Jestin, chief economist at Scotiabank.
TD predicts no Bank of Canada rate hikes until late 2009. But TD ‘s Craig Alexander does acknowledge fixed rates could jump 1/2% over the next few months.
“In our view, we’re probably going to see in the next couple of months more concern about inflation, more of a back-up in interest rates, although by the end of the year they’re going to come back down again.” — Warren Jestin, chief economist at Scotiabank.
“Basically the bond market is swinging wildly between a possible U. S. recession and global inflation,” notes Bank of Montreal economist Doug Porter.
The Glob & Mail writes that: “BMO’s Doug Porter says the recent surge in interest rates may have gone a bit too far…Don’t be in a rush to make a [fixed-rate] commitment.” (Gutsy advice.)
Almost 6 in 10 Canadian homes have a mortgage. The percentage of Canadians with mortgages is at the highest level since 1981. Vancouver Sun 1Vancouver Sun 2
The delinquency rate on subprime Canadian mortgages is 1.5% says the Globe & Mail.
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