[Newsbot]

Title: Bank of Canada hikes interest rate to 2.5% — biggest jump since 1998
Category: Economics
Posted By: DrCaleb
Date: 2022-07-13 07:22:58
Canadian

[Strutz]

My mortgage isn't due for renewal until March 2023. I've been on a fixed rate of 2.94 for the last couple of years. I recently reinvested a GIC and have another up for renewal in November so I'll be talking to my advisor then about renewing my mortgage a few months early, if it is wise to do so then, which it may be.

[herbie]

Paid mine off a couple years ago. The first house I bought, mortgages were 18.9% at first.

[Strutz]

Ouch. I remember hearing coworkers complain about that rate back in the late 80's or so, well before I was in any position to purchase.

Good for you being mortgage free herbie! That's awesome.

I'm not overly concerned as I don't have that much left to go so we'll see how it turns out.

[herbie]

I actually paid it off twice, I remortgaged and remodelled 6 years ago.
It's easy if you live where prices are reasonable. Even at 6% like the last time.
People in Toronto/Vancouver are completely fucked though. Your homes are not worth $1M+, there are just a lot of fools and the desperate around who'll pay that.

[DrCaleb]

herbie herbie:

Your homes are not worth $1M+, there are just a lot of fools and the desperate around who'll pay that.

And a lot of greedy realtors who work on percentages.

[herbie]

Yes 7% was the MLS rate back when we got our first house. 7% of a million dollar property would've bought my first property and left change.
The BC gov't also had a $5,000 first time buyers grant. Now it has a 3% property transfer tax. And if it's a new home there's now 7% GST in that price!
Each level of gov't is making more tax than real estate commissions currently are. Do you think they give a shit that YOU can't afford a home? They'll happily hose the guy that can.

[Strutz]

herbie herbie:

I actually paid it off twice, I remortgaged and remodelled 6 years ago.
It's easy if you live where prices are reasonable. Even at 6% like the last time.
People in Toronto/Vancouver are completely fucked though. Your homes are not worth $1M+, there are just a lot of fools and the desperate around who'll pay that.

The assessments of property values are ridiculous around here and have been for a few years now. I bought my place in 2009 and my current assessment is way more than double now since it was then. No fucking way I'd pay that now for what I have, yet, some people have even down the hall from me. I couldn't believe the selling price, even if it was all remodelled all "pretty", I mean... more than double in 13 years... wow.

I'm not too worried about my renewal and like I said it'll be a matter of deciding whether to do it earlier and whether to to lock in fixed, which makes me more comfortable than a variable, but perhaps on a 2yr rather than 3yr.