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Originally Posted by Red
Of course it does. Plus loosening up of lending rules.
2006 saw the introduction of 0% mortgages and 40 year amortizations. It really fueled the market.
Sept 2010 saw the introduction of emergency 1% interest rate from BOC. That has kept the party going after the US crash. We saw a bit of a fall, but BOC lowered the rates to entice new wave of buyers. Saved the market for the time being.
The 2006 rules have now been reverted back so that’s good, but until we see BOC pull back the emergency rates we will continue to see the madness. Speculation is that the rates will start rising in 2015. When they do…watch out.
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Every year they say that rates will start rising next year some time. It is getting hard to believe with the US still struggling that they will get going any time soon.