Variable mortgage regret?

[Brent.ff]

Come on guys, he predicted this a year in advance! You know, the same year that BOC held it at 0.25 and had said that they hadn’t planned to raise it for ‘a few years’. Misterman is smarter than the BOC. Duh.

Show me the post that you keep referring to as ‘told you so’, cause from a quick skim, it never happened.

[ThePenIsMightier]

Well, hang on... The Liberals started printing money and then they kept printing money and then printed more money and that was no secret and we all saw that.
We should all know, and I think most of us did, that printing money leads to inflation. And the only attempted "cure" the govt has for inflation is to raise lending rates.

So, I think many of us saw an increase in rates coming. However, I doubt many people expected such radical and quick increases. Hence, this thread.

[suntan]

To be fair there's probably no one that works at the BoC that has ever gone through a period of M0/M1 money dumping, and remembering things from school is annoying, so their stance is understandable.

I mean the gov't gave $20K to people that made $5K. What were they thinking was going to happen?

The most laughable thing are the insipid forecasts coming out of the banks right now.

[03ozwhip]

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Well, hang on... The Liberals started printing money and then they kept printing money and then printed more money and that was no secret and we all saw that.
We should all know, and I think most of us did, that printing money leads to inflation. And the only attempted "cure" the govt has for inflation is to raise lending rates.

So, I think many of us saw an increase in rates coming. However, I doubt many people expected such radical and quick increases. Hence, this thread.

Ya pretty much. I knew it was going to go up, just wasn't expecting it going up 7 times in a year and anyone saying they saw that coming is full of shit.

[suntan]

I dunno I thought it'd be worse. I was thinking 10% was a possibility if they went that route. But I also thought the BoC was going to tank the $ instead.

[94boosted]

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Our mortgage payments have gone from $1073 to $1640 so far, but we are actually paying $2640 a month into it to speed things up.

And by we I mean the other half.

Yah we're up 53% on our mortgage payment with this latest hike. We went variable in the spring of 2021 as, at that time, I naively thought Covid was going to be around for years to come. I don't even want to tell you what I was offered for a fixed rate back then

If 1/3 of folks are variable and 20% of those on a fixed mortgage will need to renew this year, I wonder when the music will stop.

[Xtrema]

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If 1/3 of folks are variable and 20% of those on a fixed mortgage will need to renew this year, I wonder when the music will stop.

We will see if that mortgage stress test started in 2016 works at all.



The question is, will the next 15 years like last 15 years or we are going back to the 90s.

[ExtraSlow]

Close down CMHC and let lenders do their own risk assessments. Now that'll fix the housing market!

[suntan]

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Yah we're up 53% on our mortgage payment with this latest hike. We went variable in the spring of 2021 as, at that time, I naively thought Covid was going to be around for years to come. I don't even want to tell you what I was offered for a fixed rate back then

World economies were about to collapse, they had no choice but to open up, and they should have never closed them down to begin with.

[bjstare]

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Close down CMHC and let lenders do their own risk assessments. Now that'll fix the housing market!

Now we're talkin.

[suntan]

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The question is, will the next 15 years like last 15 years or we are going back to the 90s.

If it looks like the 2000s there's going to be a lot of fucked people.

Banks are loving this. Underwater houses can't be sold, so the lendee is going to take it up the ass so far it'll be a new category on pronhub.

[89coupe]

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The best mortgage strategy is simple:. Wait to see where rates go, and then travel back in time to either keep variable or go fixed.

The best mortgage is no mortgage.

[Xtrema]

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the best mortgage is no mortgage on primary residence.

ftfy

But I am sure people still have loads of HELOC.

[88CRX]

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The best mortgage is no mortgage.

Word! Renting is best.

[killramos]

Just never be poor and these things don’t matter so much

[suntan]

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The best mortgage is no mortgage.

What a terrible strategy, that's like leaving on the table!!

[Buster]

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The best mortgage is no mortgage.

So very middle class thinking of you. I expected better

[max_boost]

Y’all terrible predictors of the future except RE agents. It’s always a good time for those guys

[90_Shelby]

Over 20 years ago, when I still lived in the NE, and drove shitty cars, while working as a minimum wage mechanic; I remember asking a well off client for any simple guidance he could provide me. His words were, "Spend less than you make," and this has always resonated with me.

Back to the thread topic, and looking at the historical data, current rates are still low despite the rate hikes. What's the typical amortization period? 20-30 years?

Instead of regretting not locking in your interest rates, I would think there would be more regret associated with buying a house that cost too much if there is anxiety with the rate hikes? Aren't renewal periods every 3-5 years for a 20 to 30 year span for most people? Looking at that chart over any 20-30 year period tells quite the story.

[max_boost]

Don’t you guys have massive portfolios or did the meme crypto crash put a dent in it