The discount on variable rate mortgages reached 118.5 per cent in early 2022, as variables made up 55 per cent of the share of mortgages in that period.
By comparison, in 2020 variables were trading at a 89.5 per cent premium and made up only 7.4 per cent of the new mortgage share. The Bank of Canada hiked its benchmark policy rate by 25 basis points in March, followed by two consecutive 50 bps hikes in April and June to bring the rate to 1.5 per cent.Article contentthat Canadians who recently bought with variable-rate mortgages could see monthly payments jump significantly on renewal.
“These households will see the largest rate increase because they took out a mortgage when rates were at or near record lows. This is particularly true of the historically large number of households that opted for variable-rate mortgages,” it said. The CMHC report also found that residential mortgage debt continued to ramp up in 2021, rising nine per cent compared to the previous year, as a result of strong activity in the housing market and record-low interest rates.
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Canadians flocked to variable-rate mortgages ahead of Bank of Canada rate hikes, CMHC saysICYMI: Canadians flocked to variable-rate mortgages ahead of Bank of Canada rate hikes, CMHC report shows — via financialpost RealEstate Mortgages
Source: OttawaCitizen - 🏆 21. / 68 Read more »
Canadians flocked to variable-rate mortgages ahead of Bank of Canada rate hikes, CMHC saysICYMI: Canadians flocked to variable-rate mortgages ahead of Bank of Canada rate hikes, CMHC report shows — via financialpost RealEstate Mortgages financialpost You are not very wise if you opt for a variable rate. financialpost Wow nobody learned about those things during the 08' financial crisis. financialpost Your variable is lower than a fixed. Even if the rates 'jump' as the article states... It won't be more than a fixed. And even if it does approach the rate of what a fixed is eventually, you saved money that whole time.
Source: nationalpost - 🏆 10. / 80 Read more »
Canadians flocked to variable-rate mortgages ahead of Bank of Canada rate hikes, CMHC saysICYMI: Canadians flocked to variable-rate mortgages ahead of Bank of Canada rate hikes, CMHC report shows — via financialpost RealEstate Mortgages financialpost Yes, and big surprise when the bank of Canada governor is telling them that rates will stay low for the foreseeable future. And yet people mock Pierre Poilievre when he talks about holding the head of the bank of Canada accountable. financialpost They did what? financialpost People are naive and gullible. That is the only thing keeping the economy floating at this point. Smart people aren’t taking variable mortgages.
Source: VancouverSun - 🏆 49. / 61 Read more »
Canadians flocked to variable-rate mortgages ahead of Bank of Canada rate hikes, CMHC saysICYMI: Canadians flocked to variable-rate mortgages ahead of Bank of Canada rate hikes, CMHC report shows RealEstate Mortgages
Source: financialpost - 🏆 7. / 85 Read more »