My Confession to Buyers + Prime Rate Goes Down to 3%, Jan 20th, 2009!!!

Bank of Canada has announced this morning, January 20th, 2009, that it's cutting its key interest rate to 1%. 1%! That's the lowest for the past 50 years. The prime rate went down to 3% right away. I already have received an updated rate sheet from one of my mortgage brokers. It looks beautiful:)

Needless to say, I'm very happy for more affordability in housing market for first-time buyers. I'm not going to brag all over again why it's a great time to buy. You can read it on the home page of my Maple Ridge Real Estate website. You should also take a look at a great article by Ozzie Jurock "Will We Be Fine In 2009?". I'll summarize the keypoints: record low interest rates, abundant choice of homes, record deals can be negotiated.

I keep saying and saying it all over again for the past 5 months but everybody seems to have his own opinion. And it's great, you should! But you should also listen to the real estate professionals like me. This buyer's market will end one day and it will happen very soon. What will happen then? Everybody will start running around like crazy looking for a place. Guess what will happen to inventory and prices? No brainer.

I'm not saying this so I can make my commissions and sell you something because I'm in sales. Of course, I'm in sales. Of course, I need to sell in order to make money. Do you work for free? But besides making money I'm building my business. I won't be able to build it without you. So, do you think you'll refer someone to me if I sell you a crappy place at high price under pressure?! I do not think so!

So, I did go on and on and on and on although I said I wouldn't:)

Anyways, I'm happy today. Prime went down and my mortgage rate went down instantly by 0.5%. Why? Because I have a variable interest rate mortgage and it's chepaer for me to own than rent. How much was my mortgage rate a year ago? Higher by 3%.

You know, I've had a thought once or twice I should have rented in April 08 instead of buying. But then I sat down and added up my moving fees, storage fees, rent and higher interest rate by 3% and I feel so good my hard-earned $s don't go into other landlord's pocket.

Happy Decision Making!