On a topic that is seldom discussed thus far in the election, it appears that zero percent interest rates are still working their “magic”.
The spike in mortgages is evidence of Canadians’ demand for more living space during the Covid-19 pandemic, which sent sales and prices to record highs. Driven by lower interest rates, the total amount of real estate-related debt outstanding in the country has risen 9.2% in the past year, the largest increase since 2008.
I am currently using all the low interest tools they are offering me, to simply retrench. No renovations, no upgrades, just anti-fragility.
Keep your current house, but get a lower rate while the getting is good. Use the extra money to switch to accelerated bi-weekly. Consolidate whatever debt you can, pay the highest interest first, minimal payments on the lower rates.
Now is not the time for a new car, or a new TV, or new anything.
Agreed.
We are heading towards Argentina here.
Think double digit inflation.
A 60 cent dollar and IMF loans.
Prepare.
Next ten years could be the roughest.
That’s the ONLY exit ramp from this financial gorge-fest … massive, uncontrollable inflation
And misery. Soup line kinda misery
If you can pay cash and need something, buy it now while your money still works.
What’s everyone’s thought on energy prices.
IE electric, natural gas and automotive gas.
My thoughts are all will be going up significantly in the next 10 years because of inflation.
Anyone agree / disagree?
https://calgaryherald.com/opinion/columnists/varcoe-soaring-power-prices-in-alberta-jolt-consumers-sparks-consternation
Soaring electricity prices in Alberta because government forced us to shut down coal plants before scheduled.
“The higher average prices experienced year-to-date have largely been a result of market disruptions, higher demand stemming from extreme weather, unplanned generator outages, tie-line outages, and a LOW WIND RESOURCE.”
Yup. I got my latest power bill from EPCOR today. I wasn’t impressed by the fact that I paid nearly 10% more than last month.
In the early 1980s we felt lucky to be able to lock in a 17% mortgage rate in Toronto as they were heading to 20%.
.
And then we were able to reduce approx. half our mortgage amount down to a 14% rate from my parents, who were only getting about 11% on their savings at the bank …so they gained more interest while we reduced our interest.
So if your young folks don’t think unimaginable mortgage rates can actually happen in a first world economy like Canada, I’m here to tell you they did and they will again. By the way, Canada’s PM at the time of our 17% mortgage was Pierre Trudeau.
Jimmy Carter designed the economic conditions that gave rise to my 16.5% mortgage … when the prevailing rate was 21.5%. I felt “lucky” … but still voted that idiot Carter out of office.
Done ane done, my renewal just came up, locked in tight.
And for God’s sake, implore your children to enter into a field that will be in high demand, like a trade. I myself, have been in corrections for the last 24 years. As a miner my old man had always imparted that advice and was skeptical when I chose my path. No, its not a trade per se, but one thing that has always been with us since time immemorial is crime. Granted business is always brisk, but with what is coming business is about to boom (no pun intended).
Thank God you’ve survived a legitimately dangerous job
Real estate is what is keeping dingleberrie’s economy afloat, it is attracting off shore money, which offsetting manufacturing/oil decline.
The promise by any party to build more housing is a gift to real estate sales-persons, builders, developers and therefore political party donations. Using credit cards obscures the reality of the limitations cash payments. Making promises to solve all life’s problems will lead sheep over the edge. Amazingly the most gullible are the same ones who want carbon taxes and big houses get the most air miles.
Monetary policy mirroring fiscal policy. Hand in glove. What could go wrong? Monetized debt allowing inflation to go wild.
Now underway. The Bank of Canada is underwriting covid debt as we speak, with short maturities. What could go wrong?
A great deal given the federal debt is in maturities five years or less. Where will interest rates be of five years from now?
The Liberals and their co-opted Bank governor pretend these are just market clearing and inflation target operations.
Stealth monetization is what it is. Happened after WW2, when our debt was astronomical, bought cheaply by select groups.
With a whole bunch of men returning from war and raising families. Until 1951. Higher taxes and lower growth resulted.
With both those already here, what will happen this time, as government borrows and interest rates rise, or worse still, statist crowding out drives interest rates negative, resulting in deflation, more akin to the 1930s than the 1950s. Thanks to statist profligacy there will be no middle ground as baby boomers impose pension and medical costs, with productivity low and falling, with undoubtedly more tax increases on “the rich,” that select group now composed of anybody with a good paying job.
This is what we’re being asked to approve, by a PM yelling himself hoarse at yet another wedge outgroup – the unvaccinated.
Some hope? Probably not, but I dare to dream for my beloved nation.
https://nationalpost.com/opinion/conrad-black-trudeau-shouldnt-be-so-confident-even-without-any-credible-challengers?__vfz=medium%3Dstandalone_content_recirculation_with_ads