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  • Jan 18th, 2018 10:45 am
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[OP]
Deal Addict
Feb 22, 2011
2040 posts
1853 upvotes
Toronto
Jungle wrote:
Jan 12th, 2018 2:28 pm
Pretty simple psychology chart, not unreasonable to see how this applies to past, current and future market.
You might even say it's too simple
Sr. Member
Jan 17, 2006
650 posts
366 upvotes
Toronto
Jungle wrote:
Jan 12th, 2018 1:13 pm
Seems like some "smart money" is out. Speculators/ flippers left holding the bag, fighting for the exits. Might be too late now. (BTW we're at the "return to normal stage" .. ) OFSI + raising interest rate will be fear stage.

Image
Yeah, most of those speculators and flippers left holding the bags full of money that they made in last 10 or so years. People who were actively flipping last few years literally made millions.
Garths followers and angry priced out renters are the ones who really left holding the bags and those are empty bags as well )
[OP]
Deal Addict
Feb 22, 2011
2040 posts
1853 upvotes
Toronto
ilim wrote:
Jan 12th, 2018 3:06 pm
Yeah, most of those speculators and flippers left holding the bags full of money that they made in last 10 or so years. People who were actively flipping last few years literally made millions.
Garths followers and angry priced out renters are the ones who really left holding the bags and those are empty bags as well )
It's pretty crazy if you think about it, literally a million sales in the last 10 years. My wife got to the party late, only 2.5 years ago. She bought a place for $350k and now comparable are at $550k. The fact people will laugh at that situation as if she's hurting is extremely ironic. New tenant is paying $2400, it was like $1500 3 years ago. She invested $70k and is up $200k, has over $300k in equity and gets positive cash flow every month. It's only been a few years.
Member
Dec 25, 2010
240 posts
17 upvotes
Toronto
My mortgage is coming up for renewal in May. I bought my condo 5 years ago and since then, I've gotten married and don't live there anymore, but rent it out to family at cost.

When renewing, should I shop around or stick with TD? Are there advantages to being with a bank as opposed to somewhere else? Also, would there be any concern that I wouldn't be able to qualify for a mortgage now?
Deal Addict
May 31, 2007
4632 posts
1748 upvotes
rjw85 wrote:
Jan 12th, 2018 3:50 pm
My mortgage is coming up for renewal in May. I bought my condo 5 years ago and since then, I've gotten married and don't live there anymore, but rent it out to family at cost.

When renewing, should I shop around or stick with TD? Are there advantages to being with a bank as opposed to somewhere else? Also, would there be any concern that I wouldn't be able to qualify for a mortgage now?
I would shop around using a broker you are likely to get lower rate than TD renewal. This is assuming your finances are in good shape for approval.

The only thing to be aware is:

1. you will face a stress test if switching lenders (I'm assuming you'll pass since you had condo for 5 years) and
2. If you have a collateral mortgage, (HELOC on title, etc) you will pay lawyer fees to unregister

Work with a broker you have nothing to lose really.
Member
Feb 23, 2009
291 posts
313 upvotes
Oshawa
rjw85 wrote:
Jan 12th, 2018 3:50 pm
My mortgage is coming up for renewal in May. I bought my condo 5 years ago and since then, I've gotten married and don't live there anymore, but rent it out to family at cost.

When renewing, should I shop around or stick with TD? Are there advantages to being with a bank as opposed to somewhere else? Also, would there be any concern that I wouldn't be able to qualify for a mortgage now?
Depends how much business you do with TD. If you have a good advisor there they may be able to get good rates, waive fees and provide more services based on keeping you as a customer.
Deal Addict
Apr 23, 2007
4537 posts
793 upvotes
London
Jungle wrote:
Jan 12th, 2018 3:59 pm
I would shop around using a broker you are likely to get lower rate than TD renewal. This is assuming your finances are in good shape for approval.

The only thing to be aware is:

1. you will face a stress test if switching lenders (I'm assuming you'll pass since you had condo for 5 years) and
2. If you have a collateral mortgage, (HELOC on title, etc) you will pay lawyer fees to unregister

Work with a broker you have nothing to lose really.
You could use the broker as leverage too. I renewed my mortgage with TD last month. They nearly matched the broker’s rate to keep me. It was 0.05 more than what I could get from the broker, but if you factor in legal fees, discharge fees and having to go through the entire process again, it was worth it.
Jr. Member
User avatar
Dec 17, 2009
130 posts
76 upvotes
rjg4235 wrote:
Jan 12th, 2018 3:16 pm
It's pretty crazy if you think about it, literally a million sales in the last 10 years. My wife got to the party late, only 2.5 years ago. She bought a place for $350k and now comparable are at $550k. The fact people will laugh at that situation as if she's hurting is extremely ironic. New tenant is paying $2400, it was like $1500 3 years ago. She invested $70k and is up $200k, has over $300k in equity and gets positive cash flow every month. It's only been a few years.
I think people are more so laughing at the ones who bought near the peak wanting to make a quick buck, than someone who bought almost 3 years ago.
Deal Addict
Feb 9, 2009
4931 posts
2476 upvotes
Jungle wrote:
Jan 12th, 2018 1:13 pm
Seems like some "smart money" is out. Speculators/ flippers left holding the bag, fighting for the exits. Might be too late now. (BTW we're at the "return to normal stage" .. ) OFSI + raising interest rate will be fear stage.

Image
Not if trump pulls out of Nafta — clearly this guy has no care for Mexico or Canada , we may even see rate cuts if that reality sets in.

At least with 2 rate hikes (and even with potentially one more) he’ll have bullets to cut if needed.
Sr. Member
Jun 15, 2012
823 posts
70 upvotes
MB
Royal Bank, TD and CIBC raise their fixed 5-year mortgage rates to 5.14%
And bank of Canada rate on 1%
And people here were arguing me that BofC has some influence over mortgage rates.
Bonds and federal reserve only have influence over Canadian bank's interest rate.
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
- Warren Buffett
Deal Addict
Feb 9, 2009
4931 posts
2476 upvotes
ukrainiandude wrote:
Jan 12th, 2018 10:33 pm
Royal Bank, TD and CIBC raise their fixed 5-year mortgage rates to 5.14%
And bank of Canada rate on 1%
And people here were arguing me that BofC has some influence over mortgage rates.
Bonds and federal reserve only have influence over Canadian bank's interest rate.
You do realize that’s just benchmark — their 5 year variable rate is 2.75% and the 5 year fixed is definitely negotiable...
Deal Fanatic
Jan 27, 2006
7042 posts
2063 upvotes
Vancouver, BC
Sanyo wrote:
Jan 12th, 2018 8:08 pm
Not if trump pulls out of Nafta — clearly this guy has no care for Mexico or Canada , we may even see rate cuts if that reality sets in.

At least with 2 rate hikes (and even with potentially one more) he’ll have bullets to cut if needed.
Now he is saying that he prefers a deal over cancelling... of course, we need to wait until the next tweet to see what he really means :)

BTW. Now the press is also saying that the story of the impending cancellation by Trump was actually made up by us (ie the Government of Canada) as a negotiation gambit. I guess after this thing gets done or cancelled, there will be a sequel to Trump's "The art of the deal".
Deal Expert
User avatar
Apr 21, 2004
42051 posts
10393 upvotes
What are the odds of a rate hike on Jan 17? Still at 80% or now 99.99%?
Deal Expert
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Apr 21, 2004
42051 posts
10393 upvotes
S52B wrote:
Jan 12th, 2018 7:36 pm
I think people are more so laughing at the ones who bought near the peak wanting to make a quick buck, than someone who bought almost 3 years ago.
I sure am not laughing at these people but with the run up just from 2015 to early 2017 , they should have expected smaller gains and bigger risks. If this were their second or third or nth purchase, they made some good money flipping in the past and today if they are stuck, hopefully they can rent it out to get a long-term mortgage subsidy.
Deal Addict
May 31, 2007
4632 posts
1748 upvotes
alanbrenton wrote:
Jan 13th, 2018 6:42 am
What are the odds of a rate hike on Jan 17? Still at 80% or now 99.99%?
Bnn reports as of Friday morning 86%, so seems like a go

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