Every day, mortgage broker Mary Sialtsis is hearing the same question from homeowners: will I be able to afford my mortgage when I need to renew?
“It doesn’t make sense for homeowners who need to renew to switch from a five-year fixed rate to variable rate at this time,” said Victor Tran, RATESDOTCA mortgage and real estate expert. Sialtsis is using a similar strategy in her practice. At the end of the day, she said, it comes down to people’s risk tolerance. After a year of instability in the real estate market, many homeowners want to choose a safer option with a short-term fixed rate.
For example, if someone bought a house five years ago and had a mortgage of $500,000 with an interest rate of 2.5 per cent and 25 year amortization, their monthly payment would be around $2,240. Five years later the homeowner would have paid around $76,000 of their principal payment making their mortgage $423,000, and the new amortization would be 20 years. With the new interest rate at five per cent their mortgage payment will increase to $2,780 per month.
It’s important to refinance at maturity — when the mortgage is up for renewal — because if you break the contract beforehand it will result in penalty fees.
Sell or go into a deeper debt hole.
Canadians are getting what they vote for. Enjoy.
Sell your house.
Selling is the only real option.
Rent space to someone who needs it and expand your family. Should become the new normal.
Mortgage renewals should be offered at their current mortgage rate. If they want to add to their mortgage or change things then the new rates should apply.
Give your house to me for free
Sell it. It's gonna go over asking price because of the shortage. You'll get all your money and your realtor will also make a thick commission. Suckers
Sell
Low interest rates fed the housing crisis by encouraging people to over-spend, and now rising interests rates will trigger the collapse as thousands will find they can no longer make their payments.
Die
It's good idea for time being While a recession 'buying time' Untill a market will improving Keep things prospectively alined
Can’t afford mortgage sell the house, rent it out, change jobs.
😆
Just make sure you don’t vote for Justin Trudeau. He gives away the taxpayer money to other countries and leave Canadian behind.
Onlyfans
Sell your house. You recklessly borrowed or got a fraudulent mortgage AKA a Brampton loan where people immigrate to Canada just so they can commit to mortgage fraud. CBC market place did a whole show on mortgage fraud.
Sell your house. You had to know rates are not stagnant.
Presuming your term was 5 years already, may need to extend the amortization and start all over again.
What can you do? You can start with voting this POS out
Find a mortgage broker.
Change your jobs or sell the house problem solved.
Rent out a room in your house or basement or sell your property to get the extra funds, or pay the increase-:)
Perhaps extending the amortization period would help.
sell it to an investment firm. They're our new overlords so the sooner you please them, the more likely you will be provided living accommodations in the near future (a box in an alleyway)
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