REVscene - Vancouver Automotive Forum

donk. · 12-09-2022, 02:22 PM

The only person accountable, is yourself

You don't blame a drug dealer for ending up homeless from smoking meth

snowball · 12-09-2022, 02:40 PM

Quote:

Originally Posted by Gerbs

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.

I will rent out my house and move back into my parents' place before I dare sell it.

So many people on reddit dreaming of a crash without realizing the impact it would have on their own jobs. I don't think anything like that will happen unless 2026 rolls around and the rates are still 4+ and all the people who locked in at sub 2% need to renew.

JDMDreams · 12-09-2022, 02:42 PM

And that's why we have the stress test, you guys are making bank that's how you got that $1m mortgage and won the land owner lottery. You could always rent out and move to Alberta. Or sell and buy 3 houses there be a slum lord. ??? Profit.

supafamous · 12-09-2022, 03:30 PM

https://globalnews.ca/news/9337718/t...lotto-max-win/

"‘I can finally afford a house,’ Toronto man says after winning $55M lottery jackpot"

Love the headline

yray · 12-09-2022, 03:43 PM

Quote:

Originally Posted by sonick

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

I am in the same boat, are you considering putting part of the cash buffer to lumpsum payments ?

sonick · 12-09-2022, 03:57 PM

Quote:

Originally Posted by yray

I am in the same boat, are you considering putting part of the cash buffer to lumpsum payments ?

Yup already did a few weeks back, put a chunk in to ease off on the payments a bit.

JDMDreams · 12-09-2022, 04:40 PM

Would you lower your payments after lump summing or keep them the same? It doesn't really help if you're dropping the payments right after lump summing cuz you're still gonna fall behind then assuming rates doesn't drop.

Badhobz · 12-09-2022, 04:58 PM

9k a month!! jeez louise thats a lot of money per month.... may the interest be with you next year.

Gerbs · 12-10-2022, 04:29 PM

Just helped a friend this afternoon to understand their mortgage payments. They're shocked that their recent payments on variable rate was going 90% into interest lol. They thought things were okay since payments didn't change.

They're going to spend 72% of household after tax income at $2,400/month + everything else upon renewal.

GG, luckily they're still early in their careers and have 4 years to plan this out lol.

sonick · 12-10-2022, 04:52 PM

Quote:

Originally Posted by JDMDreams

Would you lower your payments after lump summing or keep them the same? It doesn't really help if you're dropping the payments right after lump summing cuz you're still gonna fall behind then assuming rates doesn't drop.

The lump sum goes towards decreasing the principle so the payments go down as the interest is calculated on a lower principle.

hud 91gt · 12-10-2022, 08:09 PM

Quote:

Originally Posted by Gerbs

Just helped a friend this afternoon to understand their mortgage payments. They're shocked that their recent payments on variable rate was going 90% into interest lol. They thought things were okay since payments didn't change.

They're going to spend 72% of household after tax income at $2,400/month + everything else upon renewal.

GG, luckily they're still early in their careers and have 4 years to plan this out lol.

$2400 in rent doesn’t buy you much, and all of that is “interest.”

JDMDreams · 12-10-2022, 09:15 PM

You're lucky if your payments are only $2400

SSM_DC5 · 12-12-2022, 11:39 AM

My mortgage payments are up 58% this year.

Gerbs · 12-12-2022, 12:10 PM

Quote:

Originally Posted by hud 91gt

$2400 in rent doesn’t buy you much, and all of that is “interest.”

Gotta roomie to save money, the 1BR and 2 BR solo living is for ballers only

EvoFire · 12-12-2022, 04:20 PM

I think some people may come up to a totally different problem no one has thought about soon if BoC hike rates more than expected in the next 6-8 months.

Most mortgages have a limit of how much you can raise your payments, and the cap is typically at 100%. For those that are already at 60%, that cap is looming.

Right now the projection is another 0.5% and that should be it. I am however not holding my breath though as no one thought it was going to go up more than 2% a year and that was the high side of projections. We are currently at 4% and counting.

Traum · 12-12-2022, 05:52 PM

BoC is slowly coming around to the realization that interest rate hikes alone can't ever hope to correct the inflation problems we are seeing. As I (and many others) have said previously, a large part of the problem traces back to the supply chain issue. Until that gets resolved, continuing to raise rates is only going to kill everyone (financially).

Personally, I don't believe that additional rate hikes will be limited to just another 0.5%. I'd expect the next 6 months to see maybe another 1%+ hike, and then I can't reasonably guess how things might turn out. But I would believe BoC's words that they have the intention to slow / stop raising interest rates at the pace they had during this year.

JDMDreams · 12-12-2022, 06:30 PM

I doubt they can "afford" to raise another 1% sure they want to but like you mentioned interest rates has nothing to do with supply chain. They will most likely cave into pressures of the public, last thing they want is mass recession and it was the gov fault, look at China they can't even keep their zero Corona policy, the gov will eventually bend over, last thing they want is another interest rate freedom protest which I'm sure will have massive support cuz everyone is getting fucked over.

Sure there will be casualties but then its just once again gonna benefit the rich and companies. And the have nots will continue to bitch about affordability. Unless you move to buttfuck no where like Calgary.

EvoFire · 12-12-2022, 07:52 PM

1% is likely by June, but I think we will be steady right now until Feb. We'll see how much people are hurting after Christmas and utilities is due across most munis (can't speak for every muni, but most in GVRD has utilities due in Feb and property tax in July)

Judging by the going trend, we on RS is again the minority as overall I'm not hearing a lot of noise about mortgage payments on the news from individuals. There's occasional pieces but seems like no one has a mortgage or something. Also a lot of people a risk averse, there are actually a lot of fixed rate holders. Though those that have to renew in 23 is going to be in a buttload of hurt jumping from <2% to 5-6%.

hud 91gt · 12-12-2022, 08:30 PM

Edit: Revscene thread malfunction.

6thGear. · 12-12-2022, 09:48 PM

Quote:

Originally Posted by JDMDreams

You're lucky if your payments are only $2400

I've finally hit my trigger rate and spoke to the bank a couple days ago. I'm to add $200 to my biweekly payment which works out to a tad under $2400/month. That'll bring my amortization back to 21 years at the current rate.

Special K · 12-12-2022, 10:59 PM

Quote:

Originally Posted by EvoFire

I think some people may come up to a totally different problem no one has thought about soon if BoC hike rates more than expected in the next 6-8 months.

Most mortgages have a limit of how much you can raise your payments, and the cap is typically at 100%. For those that are already at 60%, that cap is looming.

Right now the projection is another 0.5% and that should be it. I am however not holding my breath though as no one thought it was going to go up more than 2% a year and that was the high side of projections. We are currently at 4% and counting.

Why would there be a cap of 100%? It wouldn’t make sense for the bank to refuse a customer who wants to pay at least the interest portion and not dip into the principal.

EvoFire · 12-12-2022, 11:07 PM

Quote:

Originally Posted by Special K

Why would there be a cap of 100%? It wouldn’t make sense for the bank to refuse a customer who wants to pay at least the interest portion and not dip into the principal.

Just part of the the initial canned package of rules that you sign on. Some of these rules aren't really applicable to the current situation as a 4% hike over 9 months is quite far out there.

The reason the rules exist is to maintain the banks income from this particular "investment" for them. There's a limit to how much you can raise your payments by, which is 100%, and there's a limit to how much you can contribute lump sum, which depending on the bank can be 10-30% of your total.

JDMDreams · 12-12-2022, 11:24 PM

Usually there will always be ways to throw money at your mortgage. If you can't increase payments anymore then lump sum the money in. I doubt the bank won't take your money if you owe them that much that your payments have doubled. Also it's the end of the year and everything will usually reset for next year.

supafamous · 12-13-2022, 07:43 AM

Quote:

Originally Posted by JDMDreams

Usually there will always be ways to throw money at your mortgage. If you can't increase payments anymore then lump sum the money in. I doubt the bank won't take your money if you owe them that much that your payments have doubled. Also it's the end of the year and everything will usually reset for next year.

There's usually some small penalties if you throw more money at your mortgage than what's in the contract - eg. if you exceed the 15% annual lump sum you have to pay some small amount to cover the loss in revenue they would have gotten from interest payments.

I'd have to pull out my contract to see what TD charges but it's there in awkward language.

sonick · 12-13-2022, 07:57 AM

Quote:

Originally Posted by supafamous

There's usually some small penalties if you throw more money at your mortgage than what's in the contract - eg. if you exceed the 15% annual lump sum you have to pay some small amount to cover the loss in revenue they would have gotten from interest payments.

I'd have to pull out my contract to see what TD charges but it's there in awkward language.

Yeah you can't willy nilly lump sum or increase payments, usually you have one or two per year you can do it but that's it.