Longdong,That is the problem sometimes, people just look at the...

Longdong,

That is the problem sometimes, people just look at the nominal value of interest rates in terms of their impact on property. Yes, they are at historiacal lows, but this is all relative. In real terms your commitment level is way above what it was when interest rates were at 18%. That is what I based my analysis on, which eliminates the abiguities of nominal interest rates, taxes and AWE's.

If they are forcasting 2.5% increase in rates, then that increases the debt servicing ratio by 10%......yuk!

Maybe when the debt servicing ratio hits 100%, that is, one complete wage will go to the mortgage, people might stop and think, hmmm....can we afford this?