https://www.ratehub.ca/best-mortgage-rates

Hot damn, variables rates are now higher than fixed rates for 5 year terms - variable is floating around 5.5-6% while 5 year fixed is floating around 5-5.5%. On a million dollar mortgage the difference in payment compared to last March is something like $6k vs $4k (5.39% vs 1.6%). Wild.

I guess they expect BOC to lower rates again in the next 5 years?

Yep, we should (hopefully) hit the peak in the first half of next year (I'm guessing another 50bps) then likely it's stable till end of 2023 before starting to gradually come down in 2024. This is still speculation as interest rates seem to have less impact on inflation than in the old days and if the BOC doesn't get the results it wants then the pain is going to continue for awhile.

Once the foreclosures start flowing they are going to have to drop it. I’m getting raped on my variable because every time I saw what was happening I thought there was no way that the BOC really wanted middle class families just to lose their homes, but now I realize they really don’t care about the collateral damage. I’m just very thankful I didn’t buy something that was near the top of my budget because I’m smart enough to realize how stupid I am with spending on fun shit. I really feel for these people who are busting their asses and successful that are stuck living like they are minimum wage workers because of bad decision making and foresight by the powers that be.
Obviously even more so for the people at the bottom that are struggling to pay rent as a result of these absurd property costs.

And yet there's barely any downward price movements for Vancouver..

Who can even buy right now? Corporations and balling af elite?

People who can pay cash or people with helocs ready to go :awwyeah:

Home prices down 5%. Mortgage payments up 40%. Affordability crisis averted!!!

Yep exact same spot here. I'm holding on to variable but have cash buffer to ride this out fortunately since we didn't over extend ourselves.

Hoping they'll finally stop the increases soon :badpokerface:

https://inews.co.uk/inews-lifestyle/...crisis-2017139

Help is on the way (though it really just means increasing your debt load) in the UK and likely everywhere else too.

Owe the bank $100, that’s your problem. Owe the bank $100 million? That’s the banks problem. The bank won’t care if foreclosures are few and far between. But they will care if it becomes a systemic issue. The last thing a bank wants to do is to foreclose on a large % of homes since it represents a loss for them too. They would much rather continue to collect interest.

Not me, lube me up now. FeelsBadMan

Everyone start a youtube channel in your living room and write off that mortgage interest.

Westopher needs his own youtube cooking channel!

A family member of mine just bought solo this month without help at early 30's.

Low 5's fixed for 3 years, a newer condo, $1M in Van, saved and worked for close to 17 years. I speculate earned around $60 - 130-150K after taxes the last 9 years. Plus $350K down.

Not sure if good time to buy but looking at the inventory downtown, false creek, and mount pleasant. There really isn't any inventory maybe 20 units in the last 3 years that fit his criteria? I creeped the first owner who's taking an L from presale pricing and he was in the medical field.

Then you gotta pay capital gains when you sell, it'd only be for the portion/time of the house that you use and you don't use your living room 24/7. It wasn't worth the deduction even for self-employment income lol.

I think if the foreclosures start coming it's going to be on the government and commercial banks to solve it - it's not technically the BOC's problem, they own solving inflation and if there's wreckage that's not for them to fix.

It's going to be the gov't allowing 40 year amortizations again or other types of band-aids. None of them are appealing b/c they're still propping up the housing market by doing that.

Need a marketing campaign that tells everyone how fucking horrible it is to live here, that will push people away and lower prices.

Hondaracer can be the creative director of this campaign :troll:

albertaiscalling!

I don't think we will see enough forclosures here in Canada compared to the US. Especially in Vancouver where there's a lot of hidden/undisclosed wealth.

Asian families who are struggling to pay off their variable mortgages will most likely be able to ask their parents or cousins for money to cover.

I think we'd probably sell our cars, eat out less, no entertainment, go meatless, before losing our home lol.

Aka mortgage has to be close to 70 if not 90% of our take-home. Most of the young peeps will rent it out at a loss and move home.

There is a TON of people in this city who have already forgone those things that we could give up because they were manipulated into believing that homes only go up forever, and it’s get in now or never. Especially in the last 2 years. Couple that with potential job losses as BOC said they want unemployment to go up to curb inflation.

^^ this, literally you still start only fans before you sell your home, even if you had to sell you probably built so much equity already so you will be + after selling. It's the guys who bought at the peak that can't afford payments who will sell or multiple properties. But then you can just rent it out.

My payments have gone from 5400 to 9000 since March and during that time I took a new job that, while it pays very well, doesn't pay at the higher end of what I'm qualified for but I took it b/c it offered great work life balance and wouldn't stress me out. Now that I'm staring at 9k/mo I'm seriously considering starting up some side hustles in consulting which would eat into that free time that I was supposed to get. Nobody needs to cry for me but, man, it does suck when I think about what that money could otherwise go to (like the monthly payments on a 718 GTS...)

If this is what I'm going through the folks who are working and middle class with variable mortgages are getting CRUSHED. There's going to be some wreckage for these folks which will be very unpleasant for them (and ultimately "unfair"). This story is just sad but probably getting to be common: https://www.cbc.ca/news/canada/toron...food-1.6669364

Damn, I feel for ya. I'm awaiting my $3K/month payments in 2 years. I'm already doing consulting on the side plus 2 side gigs lol.

It baffles me how much we have to work just to make it.

My renewal timing is equally shitty, going into my 3rd term in April '23. Although at current rates should only be about an extra $250/month

Hey man, I appreciate your honesty. So many people online love seeing people get wrecked for choosing variable, or having bought at the peak, over-leveraged, etc.

My payments have gone from $3900 to $5900 to keep with my amortization schedule.

Honestly, I'd rather lose my left nut before I even contemplate selling this home that I've worked so hard for. I've considered a part time weekend job that is low profile even though I make 300 a year. I'm fortunate to be in a position where I'm just saving less than I would like to. I feel really bad for the middle class, hard working individuals that pooled all of their money to purchase a house in the last couple of years only for the market to turn.

Many of them made the decision to buy, and to take a variable mortgage on advice from BOC too. I'm not jumping in joy because somebody is about to lose their home, and I'm not going to celebrate anyone else's misfortunate.

I mean it's arguably low for the last 6-8 years lol.

Reading the comments are rough, people losing their home and wanting BoC accountable, as well as blaming big 5 for giving them this much leverage. On the other hand, people complain about the stress test and how they can only qualify for $400-500K on a $100K income. I think it's an overall lack of knowledge of how the financial system works.