mortgage rate and housing price

chrichri

What do you guys think about the latest trend for mortgage rate and housing prices in richmond?

How likely will fixed mortgage rate go down again in this year?
I heard BOC will announce another rate drop in March. Let's say prime rate goes down again. The fixed rate might go down, but it should slowly go up in 2 yrs...
How much lower will it be?

How about the housing market?? A lot of people say it is gonna go down until 2010.
If you would have to buy a property now, how much discount will you ask for??

tofu

fixed rate doesn't link to prime rate, it is more link to bond rate, since they are both long terms

variable rate is more link to prime rate.  but the variable rate was changed from prime minus _% to prime plus _% over the last yr or two.  so the actual rate that you are getting is not that much diff.

there was a research study based on the last 20?25?yrs figures. if you keep your mtg at 5yrs fixed rate or keep your mtg at variable rate, you are end up paying almost the same amount of interest.

few basic questions you should ask yourself.
- will you have time to monitor the interest rate.
- if the interest rate goes sky rock, will you still able to make the pmnt
- how long will you keep the ppty

MiCo

wouldn't prices go down even more after 2010?

快樂牛郎

原帖由 MiCo 於 2009/2/16 00:43 發表
wouldn't prices go down even more after 2010?

Market is efficient.

MyOMy

唔理利率高低, 要有銀行借比你？ 肯借幾多％？以前你有３成訂, 吾駛点審查, 銀行可能会借７成比你。 依家我睇就比較難啦。个人認為, 如有意思買楼, 可以去銀行問下可以借幾多, 先至考慮利率及買幾多錢嘅楼。

chrichri

getting a high ratio mortgage from banks are not that hard as long as credit score, income, tdsr and gdsr fall within the guideline .... they mostly look at your credit score, your salary and debt....

i am not worried about getting approved by mortgage, but i am not too sure if i should buy a property now.

tofu

wow, you must earning really good income.  even though you don't have any cr card, loan or loc....  if you are paying 10% down to purchase a $400K ppty, your income need to be $80K+/yr.  

the bank will love to give you the mtg, but probably not the CMHC/GE.  CMHC/GE is the one who final approve your mtg.  they are tighten the policy.  they are more concern risk then business.

do you need to pay rent now
r u happy where you live now

there is no single answer for everyone

in general, people will say it is not the best time, since the mkt still trends downward.  but how many people can time the mkt?

i will suggest you to talk to your banker to see how much you can get
also start checking open houses as your weekend activity, you need to do some research before you know which is a good deal mean

chk out the foreclosure one, you may find some good deal

auyatyat

回復 7# tofu


有無人試過買foreclosure?
可唔可以分享o下..

大C姐

呢邊好少要俾3成訂﹐同常俾20%就已經唔洗俾CMHC insurance charge(我唔係好記得exactly叫咩名)。通常最少係5% downpayment。

而家variable rate都仲做緊prime minus ~0.7%﹐5年fixed就大概4.0%+/-。本人認為fixed高過variable咁多﹐認該做variable﹐因為5年之內個variable rate有無可能有一半時間高過4.0%先? 再講﹐如果你係岩岩做mortgage﹐個loan最大果陣緊係揀個interest較低嘅rate啦。如果5年後個variable真係好高﹐你到時先再轉都未遲。你起碼賺左頭頭一兩年低息先啦。

講到尾﹐個利息係升係跌﹐升得有幾快都係未知之數。我做variable有2%的話﹐點解要搏做fixed硬俾5年4%呢?

auyatyat

回復 5# MyOMy

無錯..最好做個pre approved mortgage,睇o下自己可以借到幾多
我眼見唔少人落offer 唔落subject,結果自己又借唔到,appraisal 又唔到價...