*Updated* Ongoing Bank of Canada Benchmark Rate Announcements

[Muta]

Originally Posted by DoubleF

Seems like more reason to pay down my mortgage ASAP.

That's what I'm doing. Every bit I can spare I'm just throwing it onto the available pre-payment. I could invest it in a GIC and make a small amount on that and use it to help pay down the principal when the mortgage expires, but I'm all about the peace of mind and doing it now. Try owning on your own too - it sucks major ass!

[Fuzz]

Originally Posted by powderjunkie

It is fun that Street view lets you see what preceded

This view of the first one is particularly good with the decrepit old camper parked there, while you can see nice houses in the background

https://goo.gl/maps/tVy8E8reLKrYphL86


The houses replaced in second example didn't look too bad before, but across the street was also infilled, so God only knows where that early 90s Caravan is parked now!

https://goo.gl/maps/3uVnBpUz51KzYZzs9

Ya, I bike past the first place. I assumed he just stopped paying gas bills, because every morning he'd be sitting out back by the fire.

[stampsx2]

Who would buy a pre built now? You qualify for a mortgage today, wait the one year for your house to be built, then find out interest rates have gone up so much that you don’t qualify anymore. If you back out you lose your downpayment and could be in a lawsuit for not fulfilling your commitment.

How is any buyer suppose to have any confindence in pre built with the boc ridiculously raising rates. They should set and hold but to me it’s like they want inflation below 2% right now.

Like stated earlier, we are below 2% inflation. It’s the increased mortgage payments that are skewing the numbers to 3%.

[Azure]

I'm sorry, but this is insane. Just relentless in trying to blow up the economy.

Inflation #s are very good all things considered, and they just keep driving the rates.

[Torture]

1 year 5 months on my mortgage. Fingers crossed that we start to go down by then. Feel for all of you all variable or at renewal right now..

[DoubleF]

Originally Posted by Muta

That's what I'm doing. Every bit I can spare I'm just throwing it onto the available pre-payment. I could invest it in a GIC and make a small amount on that and use it to help pay down the principal when the mortgage expires, but I'm all about the peace of mind and doing it now. Try owning on your own too - it sucks major ass!

It's one thing to beat the market and try to stay ahead of inflation, but for me personally, I'm aiming more for long term cash flow.

I aim to be mortgage free in 10 years or less. Save that $10-20K in interest payments annually along with no more mortgage payments. Unlocking $40K of cash every year would get rid of so much stress.

[Yoho]

https://twitter.com/user/status/1679172868456808448

[Slava]

It's tough for companies to do this kind of thing now. In the past there were ways for them to effectively change the character of the distributions (through some financial engineering), but those methods were changed several years ago. Now, most funds are giving you what they get in terms of character because they really don't have an option.

[chemgear]

Originally Posted by stampsx2

Like stated earlier, we are below 2% inflation.

We are? I think I missed the post. I thought most of the recent drop was just due to gas but things like groceries were still nearly 10%?

[Leondros]

Originally Posted by opendoor

Really? The ones I'm familiar with distribute primarily as Other Income (which is taxable at marginal rates) with a little bit of Return of Capital (which lowers the Adjusted Cost Base, eventually resulting in capital gains taxes all else being equal).

I just looked back at my tax slips from 2022 and you are correct - it went through as ordinary income unfortunately. There are games you can play on the money market etf's to generate capital gains based on sale price before distribution rather than getting the distribution but that would be quite onerous to do on a monthly or quarterly basis.

[stampsx2]

Originally Posted by chemgear

We are? I think I missed the post. I thought most of the recent drop was just due to gas but things like groceries were still nearly 10%?

We are below or near there. Increased mortgage payments make up the other 1% - 1.5%.

[GGG]

I think one problem with inflation is that people’s beliefs on inflation drive a lot of inflation. So the BOC regardless of what they plan to do next need to at a minimum present an aggressive posture. If they don’t and people expect rates to drop in the near future then it essentially undoes the affect of the higher rates as people can borrow over longer term at lower future rates.

I’d suspect they are done here. And we get a few holds until Christmas.

[stampsx2]

Originally Posted by GGG

I think one problem with inflation is that people’s beliefs on inflation drive a lot of inflation. So the BOC regardless of what they plan to do next need to at a minimum present an aggressive posture. If they don’t and people expect rates to drop in the near future then it essentially undoes the affect of the higher rates as people can borrow over longer term at lower future rates.

I’d suspect they are done here. And we get a few holds until Christmas.

The boc didn’t say anything today to indicate they are done raising rates.

[DoubleF]

Has anyone else felt more average people are more open to taking on larger debt loads right now when interest rates are higher than when interest rates were lower?

And I'm not talking about for necessity reasons. I'm talking for frivolous spending reasons.

[blankall]

Originally Posted by chemgear

We are? I think I missed the post. I thought most of the recent drop was just due to gas but things like groceries were still nearly 10%?

Are the grocery store increases tied to economic factors though? We are seeing all sorts of reports of how the grocery store oligopolies are conspiring to raise prices. 5 chains now control 80% of sales, and they all have record profits.

[flamesfever]

With so many people struggling these days with inflation, I think it demands a complete change in attitude as it pertains to needs vs wants. This applies particularly to the younger generation that have enjoyed low interest rates and easy borrowing costs for most of their life. For example, you may want a new car, but you will never need it. You may want that big square footage in your dwelling, but you will never need it, unless of course you start mass producing babies. You may want those nice holidays, but you will never need them. You may want to eat like a King, but you will never need to. Etc. Etc. Etc.

I think part of the problem is we are being continually programmed or conditioned to think we need certain things, when we really don't.

[GGG]

Originally Posted by stampsx2

The boc didn’t say anything today to indicate they are done raising rates.

They can’t or it undermines the affect of the rate raising they just did.

[stampsx2]

Originally Posted by GGG

They can’t or it undermines the affect of the rate raising they just did.

But they do sometimes. Last January they indicated they were done.

[chemgear]

Originally Posted by stampsx2

But they do sometimes. Last January they indicated they were done.

And that was a mistake, all it did was drag out the process.

[bizaro86]

Originally Posted by stampsx2

But they do sometimes. Last January they indicated they were done.

Yeah, I think at this point we should have all learned not to listed to what the BoC says, and just watch what they do.