Ya it's "5 year fixed" I think I'm sitting pretty with 2.5% They're definitely going to have to raise rates yeah, and I agree that it wont go to that extreme due to the ramifications that would do to the millions of people that apparently are 200 bucks a a month away from being bankrupt.
I don' think they can change your rate if you are locked in. If it's a variable rate mortgage, then the rate could rise and fall. I don't think the mortgage rates will rise dramatically. So many people that are in over their heads would have to walk away, then the banks would have all these houses on their hands. I know someone who is a process server on behalf of a legal firm. He says he has never been busier serving people who owe money & have not been making the payments. He said the amount of folks over-extending themselves financially is huge.
Late fall we signed a 5yr fixed at 1.79%. They can't change your fixed rate.
Well good. 5 years time this will all blow over and the gravy train can keep chugging along.
No mortgage now but Ime the thing to do was go variable for the lower rate at the time but then you gotta watch the rates like a hawk in case you need to lock in, I was wroking in a bank when the mortgage broker gave me the heads up, rates are going up lock-in !
just got my property assesment, values up 34% in 22 and 19% in 21,
crazy time
Posted by: Adam-West
Ya it's "5 year fixed" I think I'm sitting pretty with 2.5% They're definitely going to have to raise rates yeah, and I agree that it wont go to that extreme due to the ramifications that would do to the millions of people that apparently are 200 bucks a a month away from being bankrupt.
25 year mortgage on $300K at 2.7% is about $1,350 a month. If the rate is 6.7% it's $700 a month more. So it would definitely hurt.
The government has to borrow money to pay the national debt, which would increase the annual deficit, which on turn would mean higher tax rates.
So interest rates going up would cause financial stress for a lot of people.
Posted by: switch
Posted by: Adam-West
Ya it's "5 year fixed" I think I'm sitting pretty with 2.5% They're definitely going to have to raise rates yeah, and I agree that it wont go to that extreme due to the ramifications that would do to the millions of people that apparently are 200 bucks a a month away from being bankrupt.
25 year mortgage on $300K at 2.7% is about $1,350 a month. If the rate is 6.7% it's $700 a month more. So it would definitely hurt.
The government has to borrow money to pay the national debt, which would increase the annual deficit, which on turn would mean higher tax rates.
So interest rates going up would cause financial stress for a lot of people.
Meh my payment would only go up like 350.
But yes I agree that it would stress out lot of people that aren't as daft as me.
Posted by: tungsten
https://thetyee.ca/News/2022/01/07/Tax-Me-Says-Prof-Home-Jumped-Price/
He was on the CBC this afternoon, didn't come off too well.
Ha! Never see this in Vancouver.
So is this not the elephant in the room right now?
The Hedge funds in the USA are buying up homes like crazy. Happening here too.
Good episode on The Fifth Estate about the housing crisis in Canada focused on rental units.
I'm still renting a 1 bed suite at 31. One less affordable space for anyone low income. Waiting on the market to cool off a little, not so much asking prices but the bidding wars.
I am fearful of cashing out, downsizing to the boonies (SSC or Island), due to likelihood of bidding wars and loosing out on offers for a new location.
One less three bed/three bath family sized DNV townhome available for a young family to sink 70% of their income into. Our two cats love the space to run.
i had to wait 5 yrs after cashing out of PG, I was doing the caretaker gig in a house for low 300$ rent, couldn't quite buy another house, fortunately the Americans shit the bed in 08 and by 2010 the market had dropped to where I managed to get back in the market with no job in a house with a basement suite and I've never looked back
I been promoting the suite deal for yars and people don't wana but I'm thinking the prices have made it more desireable
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