Variable mortgage regret?

[pheoxs]

Is what it is tbh. Sometimes in life you'll come out ahead and sometimes you'll come out behind. I, like many dumb dumbs, believed the BoC when they stated, repeatedly, that rates would remain low through 2023 or 2024.

HSBC 0.99% variable originally but currently up to 3.46%. Is unfortunate but when I signed the best options we're around 2%, so while I'm currently losing, it's not the end of the world. Still quite a few years to see how it pans out, Canada seems to be driving itself into a recession given our shitstain at the helm not really doing anything meaningful so I fully expect a rate raise by end of the year but in 2023 or 2024 some panic and rate drops to stimulate us out of a recession.

Would still likely resign variable again as, over long enough time, it'll likely come out ahead. Just how the markets go sometimes, can't get spooked in the short term.

[Kloubek]

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Um, me? Because I paid attention in my econ classes?

Logic dictates the rate had nowhere to go but up, though I think a lot of us uneducated folk assumed it would remain quite low for some time.

But really, the last couple of years have been a Murphy's Law of socioeconomic conditions and deviation from history, so it stands to reason insane inflation and higher interest rates were going to be part of the package.

[flipstah]

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I have a buddy who married a girl who made more than him. She turned out to be a bitch (or so I hear), and she chose to leave him. He's currently in the process of taking her to the cleaners.

Is she hot?

Also, variable is a crapshoot; results are varied. You’ll be laughing at this thread in 2-3 years.

I like fixed because I organize my socks by type.

[90_Shelby]

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He's also shaped like a pie.

So that's why he has an electric bicycle!

[Manhattan]

Sorry to say this but buying last June was probably the bigger mistake than getting on a variable rate. With (a lot?) more rate hikes on the way the amount of mortgages people will be approved for is going way down - have a look at any online mortgage calculator and you'll be shocked at how little you qualify for today. Huge downward pressure on prices. Feels like we're somewhere in between complacency & denial in the housing market cycle...much more pain ahead. My 2 cents.

With all that being said if you plan to be in that house 10+ yrs your decision to buy and choosing to go with variable vs fixed will NOT make or break your financial situation.

[suntan]

This is why your home should always be looked at not as an investment but simply as the cost of shelter.

[ExtraSlow]

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This is why your home should always be looked at not as an investment but simply as the cost of shelter.

Unkes you can heloc your house, then it's a stonk.

[ercchry]

60% TDS/GDS and 35yr am is a thing… not lenders where most of you will want your mortgage to be, but hell… still not as bad as no proof of income and interest only lenders

[kobe tai]

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Die with the most debt possible. YOLO

This is the way and my plan now hat I lost all my money in stonks

[03ozwhip]

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As luck would have it, it was literally immediately before interest rates started their climb. I think it was around February? May have been early March?



Sorry... yes. Will change my OP.

That's why I ask, because nearly everyone here always says variable lol

[msommers]

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This is why your home should always be looked at not as an investment but simply as the cost of shelter.

Bingo.

I was kind of against owning a house and leaning towards renting, honestly because Couch Potato Podcast showed it's not a great place to park a large percentage of your money.

Then my FIL got booted from his rental house after 5+ years because the landlords were cashing in on the housing spike and had to suddenly move. It became blindingly obvious that raising a family where that could happen is a factor I want to completely avoid. So we bought, no regrets.

[Misterman]

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...if only you had a time machine to go back to that time.

If some of you recall, I came on here asking the peeps if they felt we should go with a variable or fixed on our renewal. Almost 100% of everyone said variable, which turned out to be a poor choice. But honestly, who would have expected this much of a hike so soon? That hasn't happened in decades.

Literally anyone paying any attention at all saw this coming. The only argument I saw from anyone suggesting to go variable was "derp, historically............." Meanwhile, those of us in the not almost 100% camp, had heaps of information to back up exactly why this situation was coming.

Glad I followed the data and locked in at 2.5% Last year with the looming rate hikes forecasted to start in March this year.

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Is what it is tbh. Sometimes in life you'll come out ahead and sometimes you'll come out behind. I, like many dumb dumbs, believed the BoC when they stated, repeatedly, that rates would remain low through 2023 or 2024.

Just should've paid attention to the rest of what they said, like that rates would go up in March. Technically they're right about rates remaining low, when averaged over all time, 5% is still technically low in some sense. But inflation is almost 10%, so there's a long way to go on rate hikes yet.

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Bingo.

I was kind of against owning a house and leaning towards renting, honestly because Couch Potato Podcast showed it's not a great place to park a large percentage of your money.

Then my FIL got booted from his rental house after 5+ years because the landlords were cashing in on the housing spike and had to suddenly move. It became blindingly obvious that raising a family where that could happen is a factor I want to completely avoid. So we bought, no regrets.

For us, we were definitely cashing out our equity in our current home. But the question was between buying a cheap home or renting until the market correction hits. I also couldn't stomach the idea of some landlord forcing us into a move when I have a baby/toddler at home. So we were very strategic about buying. Bought a relatively entry level detached house, in a new neighborhood. Gambling that the increased equity from completing landscaping, the neighborhood being finished, schools and shopping centers being built nearby. Will offset the equity loss from the market downturn.

And realistically it's almost a moot point, because I'd have to pay at least in rent what my mortgage payment is. If I spend $25k/yr on rent, then essentially I can lose 25k/yr in home value and come out dead even. Unless the market crashed so hard that the bank tried to call in the loan, I don't see a huge downside either way.

[suntan]

Anybody upside down on their house will be ass raped when the renewal comes. Banks are rock hard over it happening.

[Buster]

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Literally anyone paying any attention at all saw this coming.

Bullshit. You didn't "know" any more then than you "know" now.

[88CRX]

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Sorry to say this but buying last June was probably the bigger mistake than getting on a variable rate. With (a lot?) more rate hikes on the way the amount of mortgages people will be approved for is going way down - have a look at any online mortgage calculator and you'll be shocked at how little you qualify for today. Huge downward pressure on prices. Feels like we're somewhere in between complacency & denial in the housing market cycle...much more pain ahead. My 2 cents.

With all that being said if you plan to be in that house 10+ yrs your decision to buy and choosing to go with variable vs fixed will NOT make or break your financial situation.

Did someone say dip? Buy the dip.

[Team_Mclaren]

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Bullshit. You didn't "know" any more then than you "know" now.

QFT. Love that we see Buster's inner caring and asshole side all in one thread.

I've always done Fixed, 2/3 is due in 2024+ at 2.x so those are coming out ahead for sure, one is due this Dec and for sure getting fucked on the next term. But it is what it is... not much I can do

[Misterman]

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Bullshit. You didn't "know" any more then than you "know" now.

Correct, I'm equally as aware now as I was back then.

If you want to get hung up on the context of the word "Know", that's a you problem. I certainly don't have a crystal ball, but there was an extremely high level of certainty on the trajectory the market has taken.

[killramos]

If you really “knew” the market outcomes of the past year there were a lot smarter choices you could have made than just locking in your mortgage.

You made an out of the market guess based on innuendo and low brow theory, contrary to what leagues of people smarter than you forecast, and got lucky.

Do not conflate luck with intelligence or clairvoyance. It’s a bad look. Just typical confirmation bias we expect from you regarding everything you spew.

[bjstare]

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If you really “knew” the market outcomes of the past year there were a lot smarter choices you could have made than just locking in your mortgage.

You made an out of the market guess based on innuendo and low brow theory, contrary to what leagues of people smarter than you forecast, and got lucky.

Haha took the words from my mouth. If it was such a certainty, he should have been yoloing his life savings into derivatives and retiring on the beach.

[suntan]

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If you really “knew” the market outcomes of the past year there were a lot smarter choices you could have made than just locking in your mortgage.

You made an out of the market guess based on innuendo and low brow theory, contrary to what leagues of people smarter than you forecast, and got lucky.

Do not conflate luck with intelligence or clairvoyance. It’s a bad look. Just typical confirmation bias we expect from you regarding everything you spew.

I have no free money. Also my company got its ass kicked.

My MAW104 did waaaaay better than VBAL/XBAL though.