Even though the BOC rates have yet to rise, there is evidence of tightening from lenders. RBC recently increased terms on LOC loans (from prime +1% to prime +2% for many borrowers). This without a change in prime. Now comes news that may herald the beginning of hard times for speculators.
This from McLovin on robchipman.net 29 Nov 2009 12:29 pm -
“An interesting side-bar on “banks tightening up”… HSBC will [now] only finance 60% of the first $500K for a non-owner occupied [investment] (Rental unit), and 50% of the remainder. Even to a mega-bear like me that is excessive. Either they don’t really want to lend money, or they see bad things coming. This means that, for a non-owner occupied $1,000,000 property, HSBC is asking for 45% down.”