Brookfield Office Properties Inc BRPYF

Variable or Fix Rate mortgage renewal????

[CrazyTrader]

Ok, so if you look at Canadian Bonds, short term rates are higher than long term rates, they call that INVERTED YIELD CURVE.  

Does that mean when you go to the bank to renew, the 5 year rate is less than the variable???

[SONOFFERGUS]

Of course.  Where are you headed with this CRAZY???

[CrazyTrader]

Gives you an idea where short term rates are heading.    Banks aren't going to lock in 5 year rates on mortages at 4.5% while paying GICs 5%.  

[SONOFFERGUS]

Ah so going nowhere.  How do you think banks set prices? Citation for those 5-year rates required.

[CrazyTrader]

is this what you want??    4.79% 5 year fixed  3.99% 6 month fix.   Posted rates.  Probably can negotiate lower. Canada Mortgage Rates from 3.99% | True North Mortgage Brokers

[SONOFFERGUS]

Not what I want at all.  I want for you to understand how a bank makes money.  Then you can get back to your BPO short squeeze analyses. Lol read the fine print on that 3.99%.  Not posted rates, broker teaser rates.  1% break fee if don't roll into term. Go to a real bank, compare mortgage and GIC rates to yield curve.  Take note of the relationship. Will banks lean

[CrazyTrader]

anyways, how do forcast?   Just follow what the media says and ignore what actually happening?

[CrazyTrader]

"transient"  remember that LOL

[SONOFFERGUS]

Apropos of what?  Inflation expectations vs. policy rate?

[SONOFFERGUS]

What is actually happening in your mind?

[CrazyTrader]

also if everyone is getting cheaper rates.... Brookfield should be too.