"One of the challenges facing existing homeowners may be obtaining the best financing at renewal. As a result of the new mortgage stress test, (which requires borrowers to qualify at 2% above the contract rate, or the Government of Canada qualifying rate, whichever is more) many people may find that transferring their mortgage to a different lender at renewal may not be possible. Because of this, incumbent lenders may find they're able to offer less palatable renewal rates to their clients, ensuring higher profit margins. The homeowner is stuck between a rock and a hard place in this scenario. It can be expensive to renew, but even more expensive, or impossible, to move. This is when the advice of a qualified mortgage broker comes in handy."
Looks like the current government want to make it as difficult as possible for families to keep their homes.
Boy, it sure seems like Justin hates Canadians.
Tony, if that happens we'll all be affected unless you have all your assets in US or Europe...Posted by bubu on Thursday, March 22nd, 2018 at 11:38pm
Lock it for 5 years... By the end of next year or 2020 spring we might see 3-3.4% BoC rate and mortgage rates over 5%. Next increase will be before summer this year... Inflation is already over 2% target by BoC.Posted by bubu on Friday, March 23rd, 2018 at 2:53am
I'm hoping Trump will put tariffs on everything coming out of China. That will push up the U.S. dollar and push interest rates much higher as the cost of living skyrockets in America. Canada will have to follow or suffer a sub 50 cent dollar. I'm not sure what will come first a 50 cent dollar or another interest rate increase in Canada with Poloz at the helm. Poloz only cares about the home owners in Brampton and Mississauga.Posted by Tony on Friday, March 23rd, 2018 at 5:47am
This might be the year I finally buy a condo!! Haha I'm the most risk averse person ever but condos are really quite affordable now.
Will see. I say this every year, while I keep living with in my parents house
If someone loses their house because they're leveraged to the hilt and didn't factor in the possibility of rising interest rates, then they probably deserve to lose their house. It's not as though we had an insane hike to the interest rates of the 80's - rates are still near historic lows, even at the current "higher" rates.Posted by Taraz on Sunday, March 25th, 2018 at 7:17am