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Lower rates doing nothing for up-sizing clients

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Real Estate Professional | 26 Jan 2015, 09:11 AM Agree 0
Lower interest rates – announced by the Bank of Canada last week – will mostly benefit first-time home buyers, not the average up-sizing clients, say agents.
  • EddieN | 26 Jan 2015, 10:35 AM Agree 0
    Until the lower BoC rate translates into lower rates at the banks, nothing will happen. Even if the rates at the banks do drop, there is still no guarantee that the market will be affected. The current real estate prices are discouraging people from selling their property to move up. It is plainly unaffordable. So, the prices will become dormant or continue to slightly grow due to lack of inventory, regardless of the rate. The change in the rate will only encourage people to refinance their current mortgages or borrow money to fix up their existing property. What will be interesting to see is when people start dumping their properties when they can longer afford to maintain their lifestyle due to high level of taxation (property tax + income tax + sales tax) combined with the high cost of living and salaries not keeping up
  • Jeff | 26 Jan 2015, 11:00 AM Agree 0
    Ugh. When I clicked on this article in the email, the headline was "Lower rates set to benefit first-time buyers". It has since changed to the much more negative sounding "Lower rates doing nothing for up-sizing clients"... what's with you folks today?
  • Marcella Kammerer Royal LePage State Realty | 26 Jan 2015, 12:11 PM Agree 0
    Well, unfortunately it is not easy for first time homebuyer's or for those who want to buy up. The banking regulations makes it harder for anyone to purchase a home but easily lend money too freely to those who have over extended their credit. Banks are making their decisions for the wrong purpose. Its getting homeowner's in trouble and first time purchaser's can't get into the market. Rest assured, banks will always be making money.
  • e .harold | 26 Jan 2015, 01:00 PM Agree 0
    this rate adjustment is inflationary - it allows Builders and Developers to continue raising prices for land and starter homes - people are going farther into debt to pay high Realtor fees - makes more people look for the low to no fee market - BAD
  • Larry | 26 Jan 2015, 07:50 PM Agree 0
    First of all I don't agree that a 1/4% drop in interest rates is going to do a whole lot for first time buyers. But lets say you are right, wouldn't that put more pressure on condos as there are more buyers and therefore the condo prices will go up and therefore the gap would remain the same between the condo and single family homes?
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