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Canada

Fiendish Thingy

(19,225 posts)

13. Canadian mortgages reset every five years

Reply to elleng (Reply #2)

Mon Jun 13, 2022, 08:35 PM

Jun 2022

If you got a loan in 2020 when rates were dropped to emergency levels due to COVID, you might be paying 1.5%-2%; in 2025, you might be paying 6-8% (current rates are at around 5%). Even people who got a mortgage in 2017 for around 3.5% are going to be shocked when they see what their payments will be at 5-5.5% this year.

Estimates are that some buyers could see their payments balloon by 30-40%, depending on their specific terms and when they renew.

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If interest rates go up, 1 in 4 Canadians will have to sell their homes: [View all] applegrove Jun 2022 OP

china is drooling DonCoquixote Jun 2022 #1

Why? Please explain. elleng Jun 2022 #2

Mortgage stress test imposed by Bank of Canada have been exceeded by many homeowners. Alexander Of Assyria Jun 2022 #4

Canadian mortgages reset every five years Fiendish Thingy Jun 2022 #13

OYE! elleng Jun 2022 #16

Why? Their homeloan mortgage rate won't go up. brush Jun 2022 #3

Mortgage rates are going up is the entire reason, the income to payment ratio is set by the feds. Alexander Of Assyria Jun 2022 #6

Ahhh...that's for people looking to buy a home... brush Jun 2022 #9

Canadian mortgages reset every five years. Fiendish Thingy Jun 2022 #12

are all Canadian mortgage variable interest rate ? drray23 Jun 2022 #5

Yes, many took out variable rate terms, large minority if recollection serves....rates where Alexander Of Assyria Jun 2022 #7

OYE! THAT explains it. elleng Jun 2022 #8

The old "get a good deal" without looking to the future. jimfields33 Jun 2022 #10

Maybe, but home prices are up 20% across Canada in last 18 months. Alexander Of Assyria Jun 2022 #18

Whether fixed or variable, loans reset every five years- you can't get a 30 yr fixed in Canada Fiendish Thingy Jun 2022 #14

You can get a 30 year fixed rate mortgage in Canada but the interest is nuts. Alexander Of Assyria Jun 2022 #19

I remember my sister had one of those variable rate loans beck in the 70s captain queeg Jun 2022 #11

That's right True Dough Jun 2022 #15

That's for sure. I sold my house about 5-6 yrs ago captain queeg Jun 2022 #17

Wow, I'm glad my mortgage has gone bye-bye ironflange Jun 2022 #20