Bank of Canada says some Canadians could see mortgage payments jump by 45% in 2025-26 as rates rise

Elevated levels of inflation – which is currently at a 31-year-high – could also mean that households allocate more of their income to food and gas if wage increases do not keep pace, the central bank said in its annual financial system review.

The bank increased rates by 50-basis-points in April and June and money markets are betting on another half point rise in July. The scenario focused on mortgages with a five-year term taken out at banks in 2020-21, when rates were at record lows. It assumed variable- and fixed-rate mortgages would renew at median rates of 4.4 per cent and 4.5 per cent respectively in 2025-26.Article content

financialpost Why raise the rates so rapidly?

financialpost they have 3-4 years to prepare for that potential impact on their personal finances.

financialpost The banks are going to own a lot of houses and the costs of up keep.

financialpost Liberal winning.

financialpost That's the chance you take when you grossly overpay for a house to begin with.

financialpost Thank liberals

financialpost So anybody out there still think this wasn't done by design? Repeat of 2008-2009 recession or worse. Build Back Better my ass.

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Housing prices in Canada could fall 15 per cent by Dec. 2023 after Bank of Canada rate hikes: reportAs the Bank of Canada continues to hike rates in order to curb inflation, housing prices in Canada could fall 15 per cent from its peak by the end of next year, a new report from Desjardins says. Not enough… Anyone that bought a house past 2 years will have a hard time renewing their mortgage when the value of house drops lower than what they owe its already down 15% form its highs in many places!
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