COVID and the housing market | Page 229 | GTAMotorcycle.com

COVID and the housing market

mimico_polak said:
A rise to 10% interest rate would effectively make my own home unaffordable. Even if I was fixed today....it would come up around the time this massive rise will go up.
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You could keep it, it would just suck. Sell everything you can ( bike, non registered investments, tfsa, etc) to take six figures off your mortgage. Instead of investing new money, dump it in the mortgage. By the time you get to renewal, you should be able to make the minimum payments, vacations are off the table until rates drop.
 
So we're up 0.5% ... predictions of how high it'll go? Will this affect housing? Should I go buy a shack under the bridge now before prices jump again?
 
GreyGhost said:
You could keep it, it would just suck. Sell everything you can ( bike, non registered investments, tfsa, etc) to take six figures off your mortgage. Instead of investing new money, dump it in the mortgage. By the time you get to renewal, you should be able to make the minimum payments, vacations are off the table until rates drop.
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That's true....I'd be willing to sell off a lot of those investments (RSP tax be damned) before I give up this house.

Let's just hope Doug doesn't fire all the Ontario gov't employees...cause then I'm pooched.
 
Sochi said:
nobody knows where it goes - we watch markets reaction now, also wait till USA makes their move :)
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So glad I got my HELOC locked in at the TOP of the appraisal lol. Might be time to pick up a toy or something as those payments start affecting people's line of credit.

My variable payment goes up $100/month now. Time to give up the avocado toast.
 
Sochi said:
nobody knows where it goes - we watch markets reaction now, also wait till USA makes their move :)
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US handing out rates fixed at less than 5% for decades limits their ability to make big swings (or alternatively limits the effectiveness of the swings as 80% of the population is not affected by them). In fact, it could make things worse as people are locked into their home as a move would be financially devastating. A population that is not mobile is bad economically.
 
Interesting.


storeys.com

New CREA Pilot Program Will Let Homebuyers See Offers in Real Time

In a first for Canada, a new pilot program from the CREA will allow homebuyers to see all offers placed on a property as they're submitted.
storeys.com storeys.com

"In a first for Canada, a new pilot program from the Canadian Real Estate Association (CREA) will allow homebuyers to see all registered offers placed on a property as they’re submitted.

The real-time tracking will be shown on a property’s REALTOR.ca listing, using Australian property technology company Openn Negotiation. Details on when and where the pilot will launch are not yet clear, with the CREA saying that it will kick off some time this summer in select markets across the country"
 
mimico_polak said:
That's true....I'd be willing to sell off a lot of those investments (RSP tax be damned) before I give up this house.

Let's just hope Doug doesn't fire all the Ontario gov't employees...cause then I'm pooched.
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Could you invest your RRSP in your mortgage? This came up years ago in the last mortgage rocket climb with the caveat that if you missed a a payment the government could consider you cashed your RRSP in and they would grab half.
 
An older condo but a decent size, no frills. This one faces Dundas street but the other side of the building faces suburbia. Toronto / Mississauga border.

Considering the age due dilegence would be required to avoid expensive rehab. I told them to write off their snow melting system yers ago and they complied. One thing to watch is the number of levels in a parking garage. If an upper level deteriorates it must be repaired and six or seven figures show up.

www.realtor.ca

Check out this listing

#505 -11 NEILSON DR, Toronto, Ontario M9C1V4
www.realtor.ca www.realtor.ca
 
timtune said:
You obviously haven't seen them running around with cell phones. Not sure how they justify them. "Gotta have it for the farm"
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Cell phones are OK but their interpretation of the Bible is to be not dependant on an earthly source. With cell phones they aren't tied to one source. The Bell land lines tied them to Bell. The grid is the same. They can use electricity but not be connected to and therefore dependent on OPG. They can buy diesel for their generators from multiple sources.

It's funny to be talking to one on the phone and hear the clip clop.
 
nobbie48 said:
Could you invest your RRSP in your mortgage? This came up years ago in the last mortgage rocket climb with the caveat that if you missed a a payment the government could consider you cashed your RRSP in and they would grab half.
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I’ve never heard of investing RRSP into a mortgage. How’s that work?
 
mimico_polak said:
I’ve never heard of investing RRSP into a mortgage. How’s that work?
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The banks didn't like to mention it but basically there was a way of you setting up the paperwork to borrow the mortgage money from your RRSP paying the going rate. Your RRSP stays intact and you get a mortgage. Your cash flow will suck but the money stays with you in the locked pocket of an RRSP.

I'd check the current rules before pulling the trigger.

 
nobbie48 said:
Cell phones are OK but their interpretation of the Bible is to be not dependant on an earthly source. With cell phones they aren't tied to one source. The Bell land lines tied them to Bell. The grid is the same. They can use electricity but not be connected to and therefore dependent on OPG. They can buy diesel for their generators from multiple sources.

It's funny to be talking to one on the phone and hear the clip clop.
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Depends on the sect old order have wooden wheels on the buggy and hydro and phone but no internet or cell phone.

Dave Martins have car tires on the buggies, generators and internet as well as cell phones. Many also have vehicles but cant drive them they have a full time hired driver.

There is another group that does not have any phones but uses pay phones installed near their houses. They can also borrow cell phones but cant own them.

Sent from my Pixel 5 using Tapatalk
 
mimico_polak said:
I’ve never heard of investing RRSP into a mortgage. How’s that work?
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You have to pay setup fees of a few thousand and yearly maintenance fee of a few hundred. You have to pay posted interest rates (about 3 to 6.5% now) instead of discounted rate. Only a few places allow you to do it.

Imo, we arent there yet and arent going to be for a while. You can normally get a rate discounted by a few percent on a conventional mortgage. That means you would currently by paying 1 to 4.5%. Assuming your rrsp is invested in the market, you should be getting ~7 to 10%. That's a decent spread. Now, if you think the market will crash and interest will go to 10%, holding your mortgage in rrsp is a no brainer (assuming you can find someone to do it).

Edit:
If it got to the point where you were seriously considering cashing out rrsp to pay off mortgage, do this instead. Tax on rrsp withdrawal is brutal and you dont get the room back. This preserves capital in rrsp. In five years if rates are improved get a conventional mortgage and reinvest in the market (with a decent capital boost as your interest stayed with you).
 
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