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McGavin posted:Please tell me you didn't get a variable rate mortgage in early 2022. The writing was clearly on the wall regarding future rate hikes by then. Yes I was/am the idiot. I got worn down by years of everyone around telling me I was worrying about nothing and bla bla bla. I made my bed and I’ll lie in it. We’re not in financial distress nor will we be anytime soon, so I consider it a cautionary tale for others to not be so stupid. I still think the stress test was too easy to pass, and I still think the GDS is too generous.
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Jan 23, 2023 22:02
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McGavin posted:Please tell me you didn't get a variable rate mortgage in early 2022. The writing was clearly on the wall regarding future rate hikes by then. What's the clear writing on the wall now? BoC stops raising rates because households are at breaking point, americans keep raising and canadian dollar tanks? I'd love to hear your thoughts cause I have no idea
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Jan 23, 2023 22:14
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I got a variable rate in 2020, but our mortgage is like $1600 a month so even with a big rate hike we won't be homeless or anything. I hope.
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Jan 23, 2023 22:19
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Postess with the Mostest posted:What's the clear writing on the wall now? BoC stops raising rates because households are at breaking point, americans keep raising and canadian dollar tanks? I'd love to hear your thoughts cause I have no idea gently caress if I know. We're in uncharted territory. Lots of variables like what you mentioned plus inflation and the war in Ukraine. From 2020 to early 2022 the BoC rate was 0.25%. It's pretty hard to go down from there. The only question was how much it was going to increase and how fast.
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Jan 23, 2023 22:21
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We got fixed 2% in 2020 and will definitely put any extra cash that comes our way down on the mortgage. But we put %30 down and the assessment has gone up a quarter million since, so I'm not too worried, although it will suck getting any size mortgage at 6% or w/e.
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Jan 23, 2023 22:23
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Bought a townhouse at 1.39 for 370k until March 2026 in West end Toronto on the subway. Then all my friends packed up and left. I want my friends to come back home. Crash, baby crash.
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Jan 23, 2023 23:19
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redbrouw posted:Bought a townhouse at 1.39 for 370k until March 2026 in West end Toronto on the subway. Then all my friends packed up and left.
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Jan 23, 2023 23:21
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Mr. Apollo posted:When did you buy and where about? I live in the west near near the subway and I'm trying to think of the last time I saw townhomes for that cheap. Maybe 2010 or so? I had help from a dead parent and in laws that were seriously considering fleeing Hong Kong and substantial savings of my own from living like a gremlin goon. The 370k was just the mortgage. Edit: all of the help was predicated on it being used to buy a house and make grandchildren, or take care of them in bad times. So I can't really consider it an opportunity cost. Regardless, I bought a house and then got pinned like a bug on a board while all my friends left. redbrouw fucked around with this message at 23:34 on Jan 23, 2023 |
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Jan 23, 2023 23:28
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Mr. Apollo posted:When did you buy and where about? I live in the west near near the subway and I'm trying to think of the last time I saw townhomes for that cheap. Maybe 2010 or so? Same, I haven’t seen anything like that since I moved back in 2016.
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Jan 23, 2023 23:35
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redbrouw posted:The 370k was just the mortgage.
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Jan 23, 2023 23:44
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Even just as a renter it sucks as all my friends having kids increasingly bug out to the burbs chasing homeownership and more bedrooms. But they've all gone to different suburbs so there's not even a point to moving to be near them because they all chose different residential wastelands I guess that's just part of life, but man it sucks when cities can't sustain their people.
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Jan 24, 2023 00:12
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Segue posted:Even just as a renter it sucks as all my friends having kids increasingly bug out to the burbs chasing homeownership and more bedrooms. But they've all gone to different suburbs so there's not even a point to moving to be near them because they all chose different residential wastelands Contrariwise, see the discussion some time back in this thread about how downtown Vancouver was never designed with the expectation that people would raise their kids there, but the population of kids has exploded over the past twenty years, and now they're having a problem of not enough schools. Versus the (near/City of Vancouver) suburbs, which have almost halved the numbers of kids. (Not contradicting the bit about it sucking when cities can't sustain their people tho. There are also plenty of stories of folks just outright leaving due to cost/availability of daycare too.)
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Jan 24, 2023 00:32
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Primus posted:Yes I was/am the idiot. I got worn down by years of everyone around telling me I was worrying about nothing and bla bla bla. I made my bed and I’ll lie in it. We’re not in financial distress nor will we be anytime soon, so I consider it a cautionary tale for others to not be so stupid. I think calling you an idiot for making this decision is harsh, too. Sure, in hindsight it wasn't the best financial move, but if interest rates were still hanging around zero then you'd be ahead. Hindsight is 20/20 and making decisions that have repercussions five years down the road is not always a given.
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Jan 24, 2023 00:59
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The inflation rate was ticking up steadily throughout 2021, so there was no way interest rates were going to stay at 0.25% for much longer. It was pretty obvious.
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Jan 24, 2023 01:32
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We got a 5 year fixed because I was sure there was no way things could stay that low We then went on to have a kid and are eyeing up fixes and renovations and a van I guess it’s a good thing I’ll have my upgrade before we get a new, higher rate
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Jan 24, 2023 02:14
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Postess with the Mostest posted:What's the clear writing on the wall now? BoC stops raising rates because households are at breaking point, americans keep raising and canadian dollar tanks? I'd love to hear your thoughts cause I have no idea If it were me today getting a new mortgage or renewing I'd get a fixed for like 2 or 3 years. My guess at this moment of time is that things may rise slightly more, then stagnate and the hope would be that by year three things have declined. Re: stress test. I'm sure there's plenty of people whom passed the stress test and can "technically" afford to pay 6% or whatever we're at now who are nonetheless Not Happy to have to do so. OFSI is considering changes... I love the spin here from the Mortgage Brokers that "boy you'd better Buy Now before it's Too Late!" I'm sure there is absolutely no news where that is not their recommendation. quote:Tougher mortgage qualification rules may be coming this year — and some brokers fear a wave of panic buying
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Jan 24, 2023 04:19
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Naked short selling isn't a crime dear scumlord. 
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Jan 24, 2023 05:52
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Femtosecond posted:If it were me today getting a new mortgage or renewing I'd get a fixed for like 2 or 3 years. My guess at this moment of time is that things may rise slightly more, then stagnate and the hope would be that by year three things have declined. Nice, that all sounds like good stuff. Protect people from themselves while also having a slight impact on driving housing prices lower (maybe?). I'm biased here because this will only help me have less competition.
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Jan 24, 2023 14:51
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Segue posted:Even just as a renter it sucks as all my friends having kids increasingly bug out to the burbs chasing homeownership and more bedrooms. But they've all gone to different suburbs so there's not even a point to moving to be near them because they all chose different residential wastelands This is why I started putting more effort into my career. It's a depressing reality but if I'm never going to have a stable base of social networks, then I might as well just take that time and chase designations, certifications, and additional courses to pad my resume to afford inevitable rent increases when I have to jump from one job to another.
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Jan 24, 2023 16:01
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mojo1701a posted:This is why I started putting more effort into my career. It's a depressing reality but if I'm never going to have a stable base of social networks, then I might as well just take that time and chase designations, certifications, and additional courses to pad my resume to afford inevitable rent increases when I have to jump from one job to another. This was me, then i burnt out and now I'm at a job way beneath my ability and my salary reflects it. :/
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Jan 24, 2023 16:38
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Come now, my friends, there is more than enough debt for all of us - whether we are sacred homeowners or horrible renters!
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Jan 24, 2023 21:57
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Comical post on reddit, surely everyone can handle these interest rate increases. After all, canadians have definitely not taken on too much debt:quote:First time home owners, we’ve had our home for 13 months.
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Jan 29, 2023 15:10
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oh and they're also a landlord and renting out their basement in vancouver lmaoquote:First-time landlords, vetted thoroughly, called all 4 references etc (minus a credit check - will do next time). First tenant, 4 months in with ongoing issues, summarized below.
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Jan 29, 2023 15:21
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RBC posted:Comical post on reddit, surely everyone can handle these interest rate increases. After all, canadians have definitely not taken on too much debt: I guess at least this example can handle it. But still. I just don't understand who buys into a variable when there's basically nowhere lower to go. The up side is that it might go down a tad and save you a few hundred dollars, the down side is technically unlimited but realistically even an increase of 2-3% is highly possible.
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Jan 29, 2023 15:24
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Fidelitious posted:I guess at least this example can handle it. But still. Can they? They're relying on a tenant that pays late every month for at least a thousand a month. And parents money to buy: quote:... we borrowed $200k from our parents to get into the market... The more I read their post history the funnier it gets. It's like the perfect example of everything wrong with the canadian housing market right now.
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Jan 29, 2023 15:43
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We found out that the people we bought our house from, who according to the rumour mill sold due to being in heavy consumer debt, bought a local McMansion that had been on the market for years and was considered extremely overpriced, likely using the proceeds they gained from selling to us combined with flipping the next house they bought and sold exactly one year later.
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Jan 29, 2023 15:49
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RBC posted:Can they? They're relying on a tenant that pays late every month for at least a thousand a month. And parents money to buy: Ah okay, I didn't realize there was more to your quote. Just because they managed their payments to keep their amortization period I figured they were at least in decent shape.
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Jan 29, 2023 15:59
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quote:With each and every single BOC rate hike, we’ve worked with our mortgage specialist (in writing) to increase our payments accordingly so that we are kept on track with our contracted amortization schedule. I'm so confused by this person. Who loving cares about being "kept on track" with your amortization schedule? Why on earth would you subject yourself to this? oh no I'm paying more interest to the bank! Who gives a poo poo? Just let the amortization go out longer. Why is this person so deadset on paying off their home in exactly 25 years? Unless it's a specific special product, variable rate mortgages have fixed payments and this persons' woes are entirely self inflicted because they're being a weirdo. Now obviously they're not terribly likely to get 1.36% on renewal in five years time, but thats a future issue. Seems a lot better to me to to deal with that then (when interest rates are likely less) than to put yourself in extreme financial pain now (and for several years until renewal) They hosed up and made the wrong choice and now they're gonna have to pay more interest to the bank. Oh Noes! That they've decided that they'll never give more money to the bank and are now penniless is their decision and not one that is being forced on them. Femtosecond fucked around with this message at 19:34 on Jan 29, 2023 |
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Jan 29, 2023 19:26
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Fidelitious posted:I just don't understand who buys into a variable when there's basically nowhere lower to go. The up side is that it might go down a tad and save you a few hundred dollars, the down side is technically unlimited but realistically even an increase of 2-3% is highly possible. Selecting variable can also be a bet on neutrality, that vaguely everything will mostly stay about the same. Typically variable rates are at a discount to fixed, pricing in the risk that they could go higher. So this is why so many folks point to the data showing variable often outperforms fixed, in that typically rates don't change, so if you have a discounted rate that doesn't change you do better, even if the rate rises slightly. So even if we were still in a low interest rate environment with little movement opportunity to the downside at all, if you thought that the rate wasn't gonna go up or down in the next few years, variable could still be a good bet. (interestingly we're now in an environment where this is inverted, as the expectation is for lower rates in the future, and so variable is more expensive than fixed.) Does anyone know if as part of a Banks' risk assessment process if they ever restrict the purchaser from selecting a variable rate because it's too risky? I thought this was true, but maybe this sort of risk check was ostensibly captured by the stress test (which we've now passed lol).
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Jan 29, 2023 19:47
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If the interest rate is lower it’s because the bank considers it a less risky (for them) to give you. Lender doesn’t really care about whether you can afford a 3 point increase, they are only going to sell the mortgage to an investment bank hopefully for a profit, which is really the only criteria they care about when deciding who gets a loan.
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Jan 29, 2023 20:01
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qhat posted:If the interest rate is lower it’s because the bank considers it a less risky (for them) to give you. Lender doesn’t really care about whether you can afford a 3 point increase, they are only going to sell the mortgage to an investment bank hopefully for a profit, which is really the only criteria they care about when deciding who gets a loan. Looking around at the mechanisms of how Canadian Banks bundle and re-sell mortgages and I found this passage which I find interesting. quote:...in Canada, payments from mortgage-backed securities are guaranteed by the Canada Mortgage Housing Corporation CMHC (and by extension, the Canadian government). Furthermore, in order to further protect Canadian [Mortgage Backed Securities] MBS from default, it is only loans that are insured against default, either by necessity or by the borrower's choice, that are eligible to be pooled for the purpose of an MBS. This, along with restrictions such as the mortgage stress test, make investing in Canadian mortgages very robust and secure, so long as the government has the ability to back up their guarantees. The immediate question that comes to mind is whether there are any other mechanisms at all by which the banks are able to repackage and resell mortgages that don't have CMHC insurance. If they don't have any other options well that sort of puts a lid on the amount of risk that the banks can indulge in. If it's too much for CMHC then they can't do it, and those buyers are going to have to go elsewhere to MICs (or maybe credit unions?). I've always been under the impression that banks are extremely reluctant to put themselves into some sort of situation where someone is going to default and they have to go to the effort and drama to foreclose yada yada and this is the reason (along with regulations forced on them ie. stress test) that drives them to be cautious, but if they're only able to resell "low risk" mortgages at all well that would certainly drive the banks away from the high risk stuff.
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Jan 29, 2023 20:42
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Femtosecond posted:I'm so confused by this person. Who loving cares about being "kept on track" with your amortization schedule? Why on earth would you subject yourself to this? I bet their mortgage has an amortization trigger point that when the interest takes up too large a precent of the payment (possibly >100%) then the payment jumps. I doubt they'd be doing that if they didn't have to.
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Jan 29, 2023 23:57
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RBC posted:Can they? They're relying on a tenant that pays late every month for at least a thousand a month. And parents money to buy:
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Jan 30, 2023 01:34
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Yes I absolutely expect someone who can carry a million dollar mortgage to be able to save 200k. Change thread title to "discriminating against the poor with a one million dollar mortgage."
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Jan 30, 2023 01:39
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Seems bad. Some real remarkable stats here about just how much rent control is keeping a lid on rent appreciation from seriously insanely spiking. quote:There are fewer apartments available to rent in Canada than at any time since 2001 I dunno maybe we should build some more homes for people to live in?  But then if we did that developers would make money which is bad so I guess we should do nothing.
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Jan 30, 2023 02:07
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Femtosecond posted:Seems bad. I look forward to hearing about how building more homes won't create more homes again itt
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Jan 30, 2023 02:48
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Despite the alarming big number headline, bankers seem pretty unperturbed about the whole situation in this article from a few days ago. quote:Tens of thousands of Canadians could default on mortgages due to rising rates, bank CEOs say To be honest, with the Bank of Canada's recent dovish comments, this attitude may be already out of date, and they might be even more optimistic about the situation now as the sentiment seems to be an expectation that from here on interest rates will stagnate and decline.
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Jan 30, 2023 03:09
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linoleum floors posted:Yes I absolutely expect someone who can carry a million dollar mortgage to be able to save 200k. I’m not going to look it up because effort, but at 1.35% interest with the stress test my guess is needed household income would have been around $160-170k. That still requires >one full year of earnings. My parents first house COST them less than a year of earnings TOTAL. Not deposit. Total. This is a problem and it affects everyone who doesn’t have generational wealth. HookShot fucked around with this message at 03:39 on Jan 30, 2023 |
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Jan 30, 2023 03:37
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RBC posted:parents money to buy I wonder what the odds are that the parents had to borrow this money. HookShot posted:Do you really expect the average Canadian to have $200k saved up and just sitting around even if they can afford the monthly payments on a property? Slightly more than 10% of Canadian households have that kind of money available (not tied up in real estate or retirement funds). That by itself should make it obvious that homes in Toronto cannot possibly all sell for a million dollars, or anything remotely close to that number. When the prices are fueled by borrowing instead of savings, what happens when the borrowing goes away and/or gets more expensive? It ain't "number go up." COPE 27 posted:I look forward to hearing about how building more homes won't create more homes again itt You can just admit you didn't understand the post instead of continuing to embarrass yourself, y'know.
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Jan 30, 2023 05:52
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Femtosecond posted:Even with all the boomers dying and our lack of natural growth, StatsCan still sees population growth as a giant up and to the right. a part of me unironically wants to see the US shoot itself in the face via the debt ceiling because that's one of the few things that would for sure blow up the asset mkt
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Jan 30, 2023 06:00
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