Negative mortgage interest rates

I'm just gonna pull up a seat and sit right here in the corner.

*waits patiently*

Real estate too da mooon.

Denmark: where money grows on trees.

Forget negative rates, for me the sweet spot would be "households in the country paying as little as 1% to borrow for 30 years.".

No way inflation stays that low that long.

Negative mortgage rates I don't think there will be any real advantage to customers but I've been wrong before.

This is the problem both perpetual stock market and RE bears don’t understand.... central banks changed from inflation fighters to asset pumpers. If there’s even a blip in asset prices....tightening policy turns overnight into neutral then into cuts...then into QE type actions.

I think this is wrong but that said...who am I? The tsunami of rising asset prices is like Niagara thru a garden hose.

So the windows for making money is narrow on the bear side. Even 10 years ago. The stock market hit a hit in summer 2008 and ultimately bottomed March 2009. For sure it’s short sharp shock. But the people that made real cash were those that bought, and keep buying on the way down. And by 2010 were well up.....yet the central banks kept doing all sorts of wild stuff to keep pumping. Hence a 10 year tripling of your money and then some in stock markets and also big returns in RE.

Also witness the 2017 summer lull in GTA RE once the summer was over, prices stabilized even u dear a stress test environment and condos went limit up price wise this time. Dec’s stock market slump? Recovered with 3 months...

So on the bear side to me feels like standing in front of a train with a Zerohedge (stocks) or Garth Turner/Toronto Star (RE) shirt saying “but I’ll be right soon”.

Well Canadian Variable mortgages are based on each banks prime rate not the BoC Prime rate which is the case in many European countries. As TD showed they can make their prime rate whatever they want to. Obviously they wouldn't let it go low enough to have mortgages with a negative rate. I think the European rate is currently -.25% but new mortages have a clause that if it is negative it is treated like zero. So a common mortage now is prime +2.5% which would make the current rate 2.5% rather than 2.25%.

Bears have avoided this thread like the plague. Wonder why?

JayLove06 wrote: ↑ Bears have avoided this thread like the plague. Wonder why?

Because they can’t reach the fruit anymore.

JayLove06 wrote: ↑ Bears have avoided this thread like the plague. Wonder why?

Probably because it is a stupid topic dropped here without even looking and understanding details on what is happening in EU market.... If your expectation as end user is to get negative rates on your mortgage, wish you good luck.

Japan also has 100 year mortgages

EU countries updated their mortgage contracts so they don’t have to pay out interest money ever. Only handful of people ended up getting few dollars, rest all contracts were modified in time.

Expect the same here if there already a clause does not exist about bank not paying us interest to borrow

In this lifetime banks are not going to pay us.