You may have heard the report that RBC published and was televised Monday night. I have attached the link to the actual report below.
RBC red flagged Vancouver due to the lack of affordability.
Since when has Vancouver been affordable? Why red flag it now? Why is only there only negative news coming from the big banks.
The say affordability is decreasing in Vancouver and I guess that would transfer over to Victoria a little, if it were the case.
The reasons they used are recent increasing rates and increasing values.
The percentage of household income taken up by ownership costs is not as high as it was in 2007-08 and the market is softening, prices are reducing.
The fixed rates have decreased almost a full percentage since they started increasing prime this summer. And even though Prime has gone up to 3%, the variable rate mortgages have stayed the same due to the better discounts that are being offered.
6 months ago the big banks released a publication saying that Prime rate and fixed rates are going up, and fast. Banks do not make as much money on variable mortgages as they do fixed. Since then, fixed rates have decreased substantially and prime is increasing slowly, so far, but looks like it won’t be going anywhere anytime soon.
It is hard to take these types of articles seriously when it looks like they only have their own best interests in mind.