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A couple of issues here. Firstly US does not dictate Canadian rates, sadly. The fed raised interest rates recently and likely will raise then further if the con

A couple of issues here. Firstly US does not dictate Canadian rates, sadly. The fed raised interest rates recently and likely will raise then further if the conditions are right. In Canada many people, especially young people, have dangerously high mortgages for their income. They bought into property because of fear of missing out, often aided and encouraged by their parents who made out like bandits and assume the market can only go up. Secondly Chinese cash coming to Vancouver is almost by definition illegal because of the $50k cash limit Chinese can take out of the country.

jperras 10y ago
> Firstly US does not dictate Canadian rates, sadly. Of course not, but 5 year-fixed rate mortgages are set according to the bond market, not BoC overnight rates. If interest rates set by the US Fed are high, then lenders are going to securitize Canadian mortgages with US bonds, due to the higher yields found there.
- RandyRanderson 10y ago
  Agreed. While the US and CA rates sometimes differ, it's not by much and they usually loosely track each other. This is the effect when you have 2 economies that are so closely tied.
RandyRanderson 10y ago
If you look at the US and CA rates you;ll see they track each other quite closely and it's not like canada is driving the US rates. I agree most BC residents have dngerously high mortgage payment to income ratios. That's something that the gov should have stopped by slowing foreign ownership but they didn't and now can't. Now that the gov can't change things for fear of triggering a huge crash, one is inevitable. So now we're in a situation where the bubble will get massive and then explode. My point is, just try and enjoy it! Re chinese cash: If I've learnt anything from the big banks or uber it's that if you do something illegal on large scale it's not illegal. ;>

jperras 10y ago

> Firstly US does not dictate Canadian rates, sadly. Of course not, but 5 year-fixed rate mortgages are set according to the bond market, not BoC overnight rates. If interest rates set by the US Fed are high, then lenders are going to securitize Canadian mortgages with US bonds, due to the higher yields found there.

RandyRanderson 10y ago
Agreed. While the US and CA rates sometimes differ, it's not by much and they usually loosely track each other. This is the effect when you have 2 economies that are so closely tied.

RandyRanderson 10y ago

If you look at the US and CA rates you;ll see they track each other quite closely and it's not like canada is driving the US rates. I agree most BC residents have dngerously high mortgage payment to income ratios. That's something that the gov should have stopped by slowing foreign ownership but they didn't and now can't. Now that the gov can't change things for fear of triggering a huge crash, one is inevitable. So now we're in a situation where the bubble will get massive and then explode. My point is, just try and enjoy it! Re chinese cash: If I've learnt anything from the big banks or uber it's that if you do something illegal on large scale it's not illegal. ;>