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Interest Rates

Last week we touched on TD’s 0.15% move with existing variable-rate mortgage clients. There is nothing new to add this week as TD remains the only lender to make such a move with variable-rate clients. Perhaps TD backs down soon, perhaps other banks join them – time will tell.

The fresh news on rates is that most lenders – not all – hiked the venerable 5-year fixed rate for new applicants by as much as 0.25%.

What does it all mean?

  • A 0.25% hike equates to a ~$12.50 per month payment increase per $100,000 borrowed. Hardly a show stopper for many buyers.
  • These moves are not surprising considering the timing is just a few weeks after the banks’ fiscal year end, and reflect similar moves in Novembers past. The increase is usually followed by a decrease during the heat of the following spring market.
  • Long-term fixed rates are driven by the bond market, not the Bank of Canada. There is little chance of the BoC increasing Prime anytime soon.
  • This is a mosquito bite, not a shark bite.
  • Everybody be cool.

And in other news…


The Vacancy Tax




Vancouverites voted favourably on a motion put forth by the Ministry of Plenty to have telescreens installed in their homes to be monitored by a another division of city hall. Said division, The Ministry of Truth will be run by one Winston Smith. The purported purpose of the telescreen monitoring program will be to confirm that you are in fact residing in your residence, and thus the telescreen monitoring program ensures your avoiding tens of thousands in potential fines for waste, said waste being owning something you are not using regularly.

Expect similar legislation to soon extend to automobiles; why should we build more cars when yours can be put to use by all-night delivery drivers while you sleep? After all what is yours is really all of ours.

Proposals are also said to be in the offing to levy fines for unused exercise equipment, with the said fines being redirected to healthcare costs inevitably incurred from lack of use (exercise). So pluck that laundry off your NordicTrak, elliptical machine, and treadmill and get hustling. Big Brother is watching… on your newly installed telescreen.

In case you skipped middle school English class and believe I am being serious… click here

Of course all such taxes are for our own good, the greater good, and there will be no negative consequences whatsoever.


Thank You


Dustan Woodhouse