blkngldbabe
Well-known member
Quoi?
New Canadian Politics Thread
- Thread starter MindzEye
- Start date
UWHabs
Well-known member
Mortgage terms longer than like 5 years are practically unheard of in Canada. It's amortized over like 25-30 years, but you have to renew every 5 years. Which is always a little weird, since it means if mortgage rates go up a lot when you have to renew you can be really screwed.
Habsy
Not playing around anymore.
So it's a pseudo-arm. I get it, the rate gets adjusted at term anyway.
Wayward DP
Well-known member
our max term is 5 years. options are fixed rate, or variable. variables sounds like your ARMs.
we got a 5-year fixed, last year, for like 5.6% or something?
rates also depend on whether your mortgage is insured.
blkngldbabe
Well-known member
The mortgage is like 20 years left but we renew every 5. At least my family does.
MindzEye
Wayward Ditch Pig
I’m at 2.64 and need to renew next May. Prob ably
Looking at between 4.5-5%
Just go 25-30 yr to get the monthly down, but make sure you're comfortable with the penalty to break and refinance if/when rates come down again if the monthly spend is that bad.
Fwiw, you're probably going to be a half point lower than current rates by now, so in the low 4's.
Here's the BoC meeting dates for the rest of the year
July rate cut is probably 50/50 at the moment pending June inflation data. But 1 more rate cut this year is a pretty safe bet, and 2 an okay-decent bet imo.
Wayward DP
Well-known member
sorry, technically a 25 year term. but needs to be renewed every 5 years, or less. and can only lock in for 5 at a time.
Wayward DP
Well-known member
one of, if not the biggest union in Canada, telling the courts to go fuck themselves:
View: https://x.com/AllFactsNoHate/status/1808528705959940332
View: https://x.com/AllFactsNoHate/status/1808528705959940332
LeafGm
Well-known member
A rare occasion where I’d thoroughly enjoy seeing some protestors get their skulls cracked by police batons and trampled by police horses.
trujaysfan
Well-known member
We don't do anything over 10 years and basically 5 years is the longest done.
It's fixed rate, variable rates were stupid starting rates.
Aberdeen
Well-known member
What a joke.
lecoqsportif
Well-known member
Yah. I hear you. Bank of Canada. But they need to stay totally independent from government. Otherwise we become a banana republic.
But I hear you. It sux. And I know this is cold comfort, if they hadn’t moved up it would be much worse later. Like bigly worse. This is probably the most consequential, non life threatening, aspect of COVID (that’s the fundamental cause.)
It sux. Nothing but bad choices.
lecoqsportif
Well-known member
I get what you mean, but not if you refinance like trujays and blkgld. Change in rates is the issue.
lecoqsportif
Well-known member
We don’t have 30 year mortgages. They don’t exist. We have short-term deals.
The trade off, apparently, is that long term sweetheart rates can cause massive friction in real estate markets and result in thin markets (relatively speaking.) Shorter term rates structured in Canada can be riskier (both for lenders and borrowers), but it is said to result in more fluid real estate markets because people can get out of mortgage contracts more readily. That’s the theory, but there are so many other issues (like land zoning and lack of construction trades.)
anne25
Well-known member
True. I’m glad I no longer have to deal with mortgages with the cost of houses today.
The lowest mortgage rate we had was 11.59% and the highest was 13.50%. We were very lucky to not have to renew our mortgage when the rate hit 18% . However our first home only cost about $45,000 and the next about $80,000 and last one about $125,000.
At least when we sell this place we might get enough to pay for the old folks home.
trujaysfan
Well-known member
Addition 9k per year.. fun with an infant at the same time.