Variable mortgage regret?

[killramos]

Dunno about country. Downtown Halifax near the university is pretty good odds tho

[Buster]

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Dunno about country. Downtown Halifax near the university is pretty good odds tho

They're all vomiting Donaire sauce into the gutters

[ExtraSlow]

Greenland?

[Tik-Tok]

Ukraine and/or Russia, eventually.

[killramos]

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They're all vomiting Donaire sauce into the gutters

Not a bad gig if you are peddling donair sauce

[ercchry]

If they’re already full of sweet sauce, is that considered sloppy seconds?

[killramos]

Not when it comes to points in the win column

[Xtrema]

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Ukraine and/or Russia, eventually.

I thought we already got all the Ukrainian women and kids.

[Misterman]

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Uber driver had $260,000 down payment AND now can't afford his home? You are going to have to call me "literally worse than Hitler" because I think this guy is a fuckwit who deserves to lose his home.

Kind of typical of Canadian immigration. Import a "Doctor" from India who only qualifies because he is bringing $300k with him, he uses the 300k to purchase a home and help inflate our bubble, then don't acknowledge his credentials and force him to work at a gas station as a minimum wage employee.

There's a reason so many of them are just saying "Fuck it" and going back.

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Isn't deposit lost to buyer if buyer back out?

Not only is it lost, but the builder then sues you for the difference in price of what you agreed to in contract and what he can sell it for now.

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Ballsy. But you are assuming BoC is quick to lower so soon. I feel they gonna do this wait and see approach for a while...

They have been pretty specific about their intentions. They acknowledge there is risks with raising rates too much, and with not raising rates enough. And they say the risks of not raising enough far outweigh the risk of raising too much. Sounds to me like we can expect more raises.

The big thing people are missing on this, is they think there is some sort of genuine intentions for the BoC of a "Soft Landing" to this mess. One can assume they have to be dedicated to curbing inflation, because the country is fucked if they don't. For inflation to come down they need unemployment to spike and defaults to occur. As long as people keep scraping by we should expect a high probability of rates to continue going up until people stop scraping by.

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You do not pick variable because it ensures the best outcome, you pick variable because it ensures the probability of the best outcome

That might be why YOU make that choice. Personally I don't plan to have a mortgage for 100 years, so I take into account a few more factors than an all time comparison of variable vs fixed.

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They're all vomiting Donaire sauce into the gutters

So you're saying they have a hard time saying no. Sounds like my kinda victim.... err I mean lady.

[dirtsniffer]

Considering renewing at 4.89 for a 5 year fixed. Can you talk me out of it?

[suntan]

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Considering renewing at 4.89 for a 5 year fixed. Can you talk me out of it?

Nothing beats the advice from a salesperson.

[vengie]

Lol yes.
Don't do it.

[Darkane]

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Considering renewing at 4.89 for a 5 year fixed. Can you talk me out of it?

What’s the alternative?

Can you lock in for 3? Mortgages compound differently than they appear.

It’s possible you’d save more in the long term at 4.89 over a 6% variable and then when a variable drops below locked in rates.

Need the tables and someone with a brain for accounting to run proper numbers.

Can you lock in a shorter term and then do +15% on payments? This like likely get you the furthest ahead

[jutes]

Everyone knows rates will go down in 2023. Everyone.

[Buster]

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Everyone knows rates will go down in 2023. Everyone.

I see what your did here

[killramos]

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Everyone knows rates will go down in 2023. Everyone.

Just need to look at the data

[dirtsniffer]

I am missing something

[killramos]

You arent

[Buster]

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I am missing something

Some posters confuse random guesswork with skill.

[Misterman]

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Considering renewing at 4.89 for a 5 year fixed. Can you talk me out of it?

I don't know your personal situation. If I was in the predicament right now, I'd assess how things are going and weigh my risks. BoC seems pretty committed to bringing down inflation. With inflation nowhere near under control, it would seem that likelihood of rates going up is stronger than the likelihood they go down. Best case scenario is rates stay steady, since they can't lower rates without bringing inflation back stronger. So I'd be looking at what the difference in rate was between my variable and the 4.89 fixed I could get. Personally based on my own risk tolerance, I'd probably be ok paying a tiny bit more to get a locked in rate right now, to avoid the potential of my payment going up another $500. If for some reason there is a black swan event where monetary theory just goes out the window and interest rates drop some significant amount in the next couple years, then I would eat the penalty and refinance my mortgage again. The penalty almost becomes moot if the value of my house is going to shoot back up more than the penalty.

- - - Updated - - -

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Some posters confuse random guesswork with skill.

Fortunately "Random guesswork" generally results in better outcomes than blatant ignorance.