Daniels mpv condos for sale.House prices are going to collapse and the Canadian dollar is going to soar? The Bank of Canada abruptly raised its benchmark interest rate by 100 basis points, or 1 percentage point, than expected today.Please Visit: daniels mpv condos for sale to Get Your VVIP Registration Today!
It was the biggest increase in interest rates since 1998, sharply raising borrowing costs in an attempt to control runaway inflation.
Bank interest rates affect interest rates such as mortgages and credit lines that Canadians receive from lenders.
After cutting interest rates to a record low at the start of the pandemic, the bank has raised interest rates four times since March as part of an aggressive campaign to fight inflation, which has risen to its highest level in 40 years.
Bank interest rates affect interest rates such as home loans and credit lines that Canadians receive from lenders.
The central bank raised the overnight interest rate to 2.5%, and the major commercial banks will correspondingly raise the Prime interest rate on home loans to 4.75%. After raising interest rates for five times in a row, mortgage interest rates are 2.25% higher than in February.
Equivalent to C $1 million per loan, bank interest increases by C $22500 per year, or nearly C $2000 per month.
The market in Duran peaked in February, when the average price reached C $1228990. The average price in June fell by about 20% to C $972354.
Lackie said that now some buyers are asking for a price reduction based on the current market, and sellers are forced to decide whether to renegotiate or not.
In the Courtice area, a house listed for C $799000 in February and March usually sells for between C $1.15 million and C $1.2 million, which is often higher than the asking price of C $500000.
Spring purchases are nearing handover, but average prices in the region have fallen sharply.
For example, if buyers expect the price of a house to have fallen by C $260000, they may rather lose the $60, 000 deposit they have already paid than give up the purchase, Lackie said.
In this case, the seller put the house back on the market. If they end up selling at a lower price, they may take legal action against the original buyer.
He suggested that the seller had better reach a compromise on the price and then close the deal.
Lackie points out that it may take two years or more for sellers to sue, and some sellers will agree to lower prices when they know they are still profitable.
“everyone needs to realize that there can be no more greed.”
Another problem is that if the market value of the property has fallen since the quotation date, and the buyer needs a loan, but if the bank’s valuation is lower than the selling price, the buyer must make up the difference.
“you have to come up with another $300000, because the bank will definitely not pay for you,” Lackie said. This is when the chaos begins. ”
In many cases, young buyers turn to the “parents’ bank” again, he said.