When the mortgage rates go up, in areas like Toronto, and Vancouver the monthly payments are going to cost hundreds more. Some people aren't going to
be ready for that.
Those are the cities that the banks will be insisting on more money down just to refinance, it'll be noticeable when those mortgages are more than
the house is worth. Houses just cost too much there.
We just bought our second house, will be mortgaged to the hilt on both, but I've thought out 4 years ahead. We might sell one of them then, depending
on how much the rates go up. We also have a loan that will be paid off then, that'll go towards the higher rates.
I'm sure we'll be OK, we're in the prairies, where you still get good value
We just bought the second at 2.9 % - lowest rate I've ever heard of, and the one we're currently living in, has a rate of 3.9%. Both these rates
will hold fixed for 4 years. Both houses combined have a value of $250,000, but they're rural, so the taxes are less than $1000 a year on each
I still haven't figured out what people get for their taxes in cities, other than garbage pickup and light pollution
I expect rates to be at least 7% in four years. These last few years the rates have been ridiculously low. I remember when 10% or 12% felt normal.
The people in this group are being told by the real estate agents that the interest rates are low and will remain low until US starts raising them and
then Canada will follow I have had clients tell me that their real estate agent and brokerages are telling them that there is treaty between US and
Canada in 2008 that the rates cannot be increased independently. I was stunned and when I told the couple that is a lie they did not believe me, after
all I only work for the people ( real estate agents, Lawyers, underwriters and mortgage brokers)
Wow, that is a total lie. Our banking systems are totally different and separate. Our rates are already going up, slowly, but it's happening. The
2.9% rate we got, is over now. We got locked in before we started looking for a second house.
And the most fearful part of all this is that there is no way to verify income.
That's how the states got into their housing mess.
Scary stuff ahead for some.