Just nine days after RBC cut posted rates to new lows, followed by a couple of other lenders, we have three lenders who have raised their fixed rates without warning. TD is raising fixed rates 15-25 basis points, effective tomorrow.

First National has raised their 5-yr fixed rate to 5.79%. RIGHT MORTGAGE is increasing their 5 yr fixed rate to 3.79% at midnight tonight. This is the first such increase in almost six months.

Other banks typically follow competitors’ posted rate moves within 1-2 days. We will know in the next few days if the rest will follow this time.

Not having seen or heard any reason for this increase, I as a simple person must try to rationalize this move with some logic so I can try and predict what will happen next. If one was to play "Devil's Advocate" he might remember a trend in early 90's. After the scare of high interest rates in 1981-82, people were a little shell-shocked. Once rates had settled in the more acceptable traditional 8-10% range and the market settled down, buyers could sit a little and look before making the decision to buy. At that time I was a Prince George Realtor and I noticed that whenever we had a slight jump in interest rates, many of the buyers and sellers who had been sitting on the fence suddenly made a move to buy or sell. The fear of loss of the available current rates motivated people to do something.

Now, I am not for a minute suggesting that anyone else might notice the same trend and try and manipulate the market. I am only saying, it will be interesting to see what effect these increases today have on the market:

• locking in of current variable rate mortgages to fixed rates now rather than gambling and waiting for the rates to continue their previous descent

• deciding to make an offer to buy a property and take these rates today rather than risk the possibility of higher rates tomorrow

• deciding to accept an offer on the table to sell a property that might be subject to higher rates of financing tomorrow

• fence sitters who have been thinking about re-financing and are now motivated to do so

This all coming at a time when real estate sales and rates have been dropping steadily since April. And there isn't any news this should change in the near future.

Once again, it is my duty to give notice to those who are currently on variable rate mortgages that there is a pending increase coming to fixed rates (not variable rates) for those who can't sleep at night worrying about the fear of ever increasing rates... it might be time to have a talk about your options.

Thanks,

Bob Quinlan

Mortgage Broker

office: 250-564-9161

toll free: 1-866-964-9161

#2 - 1810 Third Ave.

Prince George, BC V2M 1G4

The information contained in this report has been prepared by The Canadian Real Estate Association, in co-operation with the B.C. Northern Real Estate Board . The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither The Canadian Real Estate Association nor the B.C. Northern Real Estate Board assumes any responsibility or liability. Copyright©  2010 The Canadian Real Estate Association. All rights reserved. Reproduction in whole or in part is prohibited without written permission.

Above copy is courtesy of:

Prince George Real Estate - Kitchen Renovations

Tue, 02 Nov 2010 09:56:08 +0000 

There is no protection for property rights in the 1982 Canadian Charter of Rights and Freedoms. Yet property rights are recognized in most other industrialized countries, and were recognized in the 1960 Canadian Bill of Rights. 

The National Citizens Coalition cites several examples of governments interfering with the enjoyment or use of property: Ontario landlords’ properties devalued by provincial legislation, companies put out of business by government monopolies in Manitoba, and B.C. dairy farmers compelled to surrender parts of quotas to the Milk Board. 

How did it come about that property rights were excluded from the Charter? They were in the first draft but several provinces and the NDP objected to their inclusion. So they were left out of the final version. 

The provinces balked at a property-rights clause because they though it would interfere with municipal/provincial land-use regulations. The NDP objected because of “social rights” such as rent control, labour standards, native land claims, environmental regulations and division of matrimonial assets. For more details, see Property Rights and the Constitution (http://dsp-psd.pwgsc.gc.ca/Collection-R/LoPBdP/BP/bp268-e.htm). 

Constitutional entrenchment of property rights is the newest campaign of the National Citizens Coalition. Those interested can visit the NCC website (http://nationalcitizens.ca/respect_property_rights.html) to learn more, sign a petition, or share their story. 

Should property rights be protected in the Canadian Charter of Rights and Freedoms?