Any of you who believe in articles claiming the future

You should reach out to whoever wrote that, and get them to tell you the winning lotto numbers

Since they know the future

My $364K remaining mortgage will be $2,550 @7%, lets hope it doesn't hit 7% until 2025. :pokerface: Can you early renew before expiry to lock in?

To be fair 7% is the historical average. Our commercial mortgages at work are at 7 - 8% on recent properties on a variable rate.

Usually 6 months before you can, atleast that's my experience with Scotia and BMO. Dont know about the others, but I'd assume its simillar.

You can renew early if you are on variable I think. You stuck with fixed.

Even if you renew now or fix now it's kinda too late 2y it's 4.5% 5y is 4.85% so your payments will go up immediately. Or you click clack roll the dice and stay on variable. Yolo:lawl:

I think with RBC it was 90 days with a fixed? I definitely did mine early.

I'm riding 1.49% fixed until it goes 6%+ but was wondering if it was 4 - 5% in 2024/25 could I just lock it in earlier.

I'm talking to friends are some of them went 1.29-1.39% variable when fixed was 1.49%, makes no sense to me lol.

The average in the last 32 years seems to be around 6% and not the 7% historical average for 5-year fixed. I almost locked in 3.4% - 25 year fixed lol
https://loanscanada.ca/mortgage/cana...-rate-history/

It's 120 days with RBC.

My timing is great (/s), my second renewal is up at the beginning of next year.

At least I won't have daycare payments anymore by then.

The young homeowner could be sacrificed to moderate inflation:

https://www.cbc.ca/news/business/can...ttis-1.6481496

Yet... unemployment is 5.1%, which is a historic low:

https://www.cbc.ca/news/business/can...-may-1.6484179

If you want to keep ahead of inflation, get a new job as the market has never been hotter for job seekers.

Our 5-year fixed was expiring in November of this year, but we paid the three month interest cancellation fee and renewed 8 months early. I think it went to three months interest in the last year of the mortgage.

I've rented like a sucker but man, is this finally the perfect storm?

5 year fixed already 4.5%

My buddy in Maple Ridge has a 600k Mortgage, pretty standard I guess for the cities. He was at 2.49, and up for renewal in 3 years.

We could very well see 5-7% in 3 years.

Mortgage payment is what 2500/month now, so it'd be 3400 ish around renewal.

Another 900-1000 a month? Are people ballin' out of control?

On top of everything else.

Imagine being able to buy during 2014/15 lows, renew at 2020 interest rate lows.

Life is good.


$1,000/month would send most people I know to pain town.

At the time I went 1.49% fixed, HSBC was offering 0.99% variable... with a 0.2% spread vs. fixed the only reason I could see going variable is if I thought I was going to sell < 5 years.

1000/month + all the added extra costs lately with food and transportation basically means I give up saving for retirement and bank on the world ending. Seems like a safe bet anyways, but I’d rather spend that 1k a month on car parts if that’s the angle I’m taking.

Seems BOC is pretty much both hands tied now.

USA will increase rates no question. BOC can't daddle, they have to follow.

An economy devoted to high housing, is exactly what you are describing. When people stop eating out, cut discrentionary spending, is that a healthy economy?

What's disturbing lately is, some real estates are still trying to get/dupe buyers to get into this market as soon as they can. That rate's can only go so much. Is that the peak market?


Nice watch.... His tone seems pretty straight forward, do what ever it takes to bring inflation in check. Do you risk jumping into the Housing Market now? when the guidance is clear? increase rates until things cool down. 5 year fixed at 4.5 now, with clear horizons of 5% + in future years.

https://twitter.com/SteveSaretsky/st...Mcgcr8aZK9XvQA

Bit of a damning video with clips of Tiff talking about interest rates and inflation. I don't think have as harsh a view on things as this has been a problem for pretty much every central bank - they didn't think the inflation was anything more than just a spike - and now they're all scrambling to slow the economy down.

I'm surprised how inflexible they are now though - why does it have to be 2%? Is it the end of the world if we only get it back down to 4% for now and give ourselves a longer runway to get back to "normal"? Feels like they're just jumping all over the place right now and it's just gonna cause a lot of pain for everyone.

“Can’t see inflation coming but can control earths temperature by 1.5 degrees”

Lol

They really like to let shit get way the fuck out of hand before doing something. Maybe interest rates should have hiked before homes in the country were 10x peoples incomes? Basically anyone who’s bought in the last two years that isn’t rolling on equity is going to be ravaged.
The real estate market has been out of hand for a decade now, and become peoples only real contributor to net worth in most of this country. Crazy to think you can treat something as an investment when you literally become homeless if you sell it to cash in the gains, for any single homeowner. So many people that thought they were big time investmenter bro because their assessed value went up are in for a tough ride.

Yeah I do feel for the people that were fed the whole "buy now or be priced out forever" the last couple years. You pretty much had to over leverage yourself just to get in the game and now they are basically making you the sacrificial lamb in all of this.

With gas prices making commuting and basically everything else more expensive and high interest rates eating up the rest of peoples spare cash how does this not spell disaster going forward?

Even if you didn’t buy in the last few years and our real estate market wasn’t gangbusters we would still be fucked. Renters aren’t in a better situation as rents have been skyrocketing. Inflation would still be wrecking our stagnant salaries and the interest rates would be crushing our investment portfolios. Stay in cash? Still get fucked by inflation lol. The economy is an addict hooked onto low interest rates, and we are about to see our economy go through withdrawal.

It’s one of the downsides of having an economic system based on interest rates and we pursue economic growth endlessly…
It’s much like a retailer pursuing higher sales by continually dropping prices.

What would you guys go with?

5 year variable 2.95% or 4 year fixed rate for you is 4.49%

It's a coin toss but I'd probably go variable. You can expect another 1% increase in rates this year, possibly even a bit more but how long will it stay that high? This is about controlling inflation and at some point it's so high that it creates a new threat that's even worse (people losing their home in droves b/c they can't afford the new payments).

I think it's more about your cash flow now if shit hits the fan let's say, do you have that $1000 -$2000 extra to survive a month. How much savings do you have? Extra $2000 a month is $24000 a year. Do you have that in the bank. Or available somewhere. But if that does happen I'm sure a lot of people will be taken out before you and our economy is fucked by then. I'm 100% sure people are cutting back on spending already just with fuel prices, if you think housing costs, mortgage going up ppl aren't gonna past that on on renters? Everyone will suffer.

2022 rent allowable rent increase is 1.5%
2023 will be bigger for inflation, but the difference won't be that bad for established renters.

Landlords can play the family game but lets hope the RTA get's some more teeth at shitty landlords.

Shitty no idea but Variable has won for the past 10 years? or longer. I think fixed is the time now. You have inflation at 8.6%, but true percent is higher.

Supply chains still fubar, Shanghai shutting down districts again, ports are fubared.

I think fixed for more peace of mind.

Depends on what type of variable rate mortgage - is it the type where your payments stay fixed but you just end up extending your amortization because a higher % of each payment goes towards interest? Or the type where your payments can change?