Quote:
Originally Posted by Tapioca
I guess this story feeds into your overall perspective on Vancouver and the people here (after all, that's why you left), but what makes you think that this guy will be in a world of pain when his first mortgage comes up for renewal? Even if interest rates rise 2% in 5 years time, how much will that raise his payment? We're not talking about a million dollar home here.
Like I said before, what if the assumptions about fundamentals, and affordability are now wrong?
|
Let's make some assumptions here.
Factually, rent is cheaper than ownership.
If he was so offended at paying $1,800 for his place, and has bought an identical place, undoubtedly he is paying more. Add 2% higher rates, in today's economic environment in Canada and vancouver, I highly doubt this guy will be able to easily afford this increase.
Based on the article, he comes across as somewhat clueless (not knowing what he was signing, or being surprised by the rate increase for rent), so I assume he hasn't considered rate rises. I would bank on the realtor and mortgage specialist not even raising affordability concerns in light of potential rate increases in 5 years.
Just my thoughts, ur welcome to disagree.