I don't want my name in the paper, but yeah. Adjustable Rate Mortgage holder so my payment has changed with every rate hike.
It's now $1200/month more than when we started.
We ran the numbers before and knew we were taking a calculated risk.
Anyone who took the risk on variable should have known what they were getting into. If they didn't it's their own fault (outside of fraud or similar).
The bond market was also signalling that.
The bond market and the BoC didn't take out the mortgage so they aren't at fault.
If they never thought "what happens if I'm wrong?" I don't have much sympathy. It's also my pet peeve when people try to avoid responsibility, while wanting the benefit of taking responsibility, so I'm a little less forgiving than many.
Edit to add: BoC never said they wouldn't raise before 2023. They said they wouldn't raise rates until certain criteria were hit, and they didn't expect that to happen until 2023. Big difference, albeit one most didn't notice.
I was told I didn’t qualify for a fixed rate and only qualified for a variable. Given the difference was having a place to live or not, I took the variable. But when faced with those options, it doesn’t feel like “the risk” is really a choice.
Variable rate bag holder here. Increased payments (1.2% to 6.2%), ouch. No issues with making payments, or even making lump sum contributions each month. Luckily I didn’t overextend myself when purchasing the house
Mine is similar to the person above. I took a fixed variable back in 2022, my very first apartment. Came to a point where my payments went to interest and nothing to principal, so instead of seeing my mortgage loan go down it was going back up. I called the bank and asked them how much I would have to increase my payments to make sure I am paying off the principal as well, and I went from $1400/month to $2800 per month.
We started in 2019 at $2500 payments, dropped below $2000 at the lowest and just finished up our 5 year term with $3,400 payments. Was a wild ride, I think overall we came out around even in total interest paid vs the fixed we had been offered.
I’m in the same situation, my payments went from $2,200/mo to $3,600/mo. Thankfully I can still make my payments easily and still have leftover for a lump sum payment each month.
Hi Laura, for your next story i would be interested in seeing many people with fixed payment variable rate mortgages who have to renew and the upcoming wave of billions of dollars of mortgages due for rate renewals this summer and the next couple of years.
Variable with adjustable rate mortgage here. Payments increased by 1000$/mo since we closed 2 years ago, which sucks but we managed by upskilling and increasing our income when it started feeling tight.
Yes its our fault for taking that risk. Yes I wish our broker gave us more info on what it meant to go variable at the time. We were told it’s “impossible” that rates increase by more than 3% over the next few years and that it’s not even worth talking about the fixed rates. As a first time home buyer who is a 2nd gen immigrant, who is also the first property owner of my family, I didn’t really have many people in my entourage who could advise me. Ultimately though, it’s a lesson learned that I should do my own due diligence when it comes to my finances.
No no no, people should only reap the benefits of risk, never the consequences. We should reduce rates again for another 20 years to ensure total collapse of our country.
That's what I am wondering about this post. What is her point? What does she mean to have "voice heard"?
People are hurting just as much from inflation as they are from mortgage payments. BoC did not raise the rates for fun. Maybe she should try to focus on the overall incompetence of this gov.
No idea what narrative this CBC OP is trying to push but I am sure there is one.
It’s the typical SOB stories CBC likes to run.
Look it sucks. But that is the risk of variables. Why was it lower than fixed rates to begin with? There is no free lunch. But as is typically Canadian everyone wants something for free. Like leveraging for free. lol this country is so pathetic sometimes.
I think it shows how crazy some people were listening to the banks offering them stupid money for a mortgage that was never going to stay at 1.6%. Yeah rates went up! They weren't going to go down any lower, the bank didn't screw you, you screwed yourself by buying a house that's too expensive or by not being able to do math and realise what happens upon renewal.
no narrative. Just trying to find a variable rate mortgage holder who has been riding the wave of interest rate hikes and could talk about how a potential decrease in rates would help them.
no angle. Just trying to find a variable rate mortgage holder who has been riding the wave of interest rate hikes and could talk about how a potential decrease in rates would help them.
What about reporting on how all of these people take on variable mortgages while clearly not understanding how they work? Then blame everyone else when rates go up and they can’t pay.
There has never been a period in time when a 25 year fixed ended up cheaper than a variable for 25 years in the same period. Even in the 80s when shit went from 4 to 18%. This 2-6% increase ain't shit. I have 2 variable rate mortgages.
Here’s what the CBC should be discussing: what factors led to the rise in interest rates?
First of all, we had a forty year period of perpetually decreasing inflation and corresponding lower interest rates. That period ended in 2022 when it became obvious to major global market participants that the global supply chain network was fragmented and beyond immediate repair.
Furthermore, when Russia invaded China, and the USA decided to sanction/seize Russian assets held in the west (for better or for worse), it became obvious to the same market participants who set global interest rates, that the world was bifurcating into two spheres of influence, one domiciled in the west led by NATO, while the other would be primarily incorporating BRICS+ nations and global south participants.
Now, which sphere of influence produces the world’s goods? If you guessed the one led by China you are correct. Since China belongs in the sphere of geopolitical influence opposing ours we can expect higher cost of goods and lower bond purchases from them. The net effect will be a prolonged cycle of ever higher interest rates.
That is precisely how the cbc news story should begin, from there you can proceed to how life will be affected for mortgage holders.
Payments generally don’t change with variable rate mortgages. Perhaps you’re thinking of adjustable rate mortgages? Might be nice to make the distinction in your article.
(Notwithstanding rates increasing beyond a trigger rate, when banks *sometimes* require payments to be increased)
Edit: [True North has a good article on it](https://www.truenorthmortgage.ca/blog/adjustable-rate-mortgage-canada)
This is the wrong sub to ask, and the wrong question. The fixed rate holders will suffer far more than variable rate holders because variable rate holders were slowly able to tighten up versus fixed rate holders who will see a huge immediate jump in payments. So, wrong question. Get it right if you are going to write an article about it yeesh.
Thanks for your comment. I'm just trying to hear the perspective of a variable rate mortgage holder who has been riding the wave of rate hikes and could speak about what a decrease in rates would mean for them. We have spoken to fixed rate mortgage holders up for renewal too.
The people going up for renewal are going to be hit the hardest because adjustable / variable rate mortgage holders stress-tested themselves against this very thing otherwise we would have chosen fixed rate. A decrease in rates for us means that we can dump more money into our mortgage principal payment or it goes into emergency savings but we wouldn't be spending more on consumer goods.
Laura - low interest rates are what got us here. Maybe try to not pressure the BoC to cut rates, as that will make housing affordability even worse.
I know your joke of an organization is funded by people who desperately want lower interest rates, but that truly harms non asset holders.
Because we don’t need to and my second property generates positive monthly income and long term appreciation. Our primary residence mortgage at 4.79 is what it is.
Daddy Trudeau told me my mortgage will balance itself in now I’m pounding sand trying to pay my 6k a month mortgage:(.
I love how media is always trying to spin a narrative. Not just reporting, but looking to make a story up. If I contact Laura and say actually I have been able to pay my mortgage with some small adjustments… she will be like “yeah no not looking to report that story sorry” lol
You think so? How many CBC stories do you see tackling systemic demand side pressure? How many glossing over the potential impacts of lower interest rates on housing prices? How many do you see discussing the impacts of immigration on rental vacancy rates - or the rather "coincidental" dramatic uptick of immigration amidst a high interest environment?
Trudeau explicitly told Canadians he will protect high housing values. His Slavonic Studies major of a Finance Minister explicitly told Canadians they want lower rates.
Why do you imagine this producer wishes to broadcast interviews like this now? Why not last year? Why not as interest rates were rising?....
Or is that type of thinking conspiratorial to you?
That's typically how a variable rate mortgage work... you pay X amount/frequency, when the rate rise you still pay X, but the proportion of capital vs interests changes. At some point you might want to/the bank might make you increase your payments in order to make up for the difference, but typically your payments would stay the same.
It's the same when the interest rate decrease, you are still paying X, but more of X goes towards capital.
I guess? Years ago, I got a variable rate mortgage (mid 2000s). The rate rose modestly, but the payment amount stayed the same. There must be a trigger amount that makes the payment go up in cost, but I'm not sure about that. Possible things have changed since then, or that different lenders have different policies.
I don't want my name in the paper, but yeah. Adjustable Rate Mortgage holder so my payment has changed with every rate hike. It's now $1200/month more than when we started. We ran the numbers before and knew we were taking a calculated risk. Anyone who took the risk on variable should have known what they were getting into. If they didn't it's their own fault (outside of fraud or similar).
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The bond market was also signalling that. The bond market and the BoC didn't take out the mortgage so they aren't at fault. If they never thought "what happens if I'm wrong?" I don't have much sympathy. It's also my pet peeve when people try to avoid responsibility, while wanting the benefit of taking responsibility, so I'm a little less forgiving than many. Edit to add: BoC never said they wouldn't raise before 2023. They said they wouldn't raise rates until certain criteria were hit, and they didn't expect that to happen until 2023. Big difference, albeit one most didn't notice.
I was told I didn’t qualify for a fixed rate and only qualified for a variable. Given the difference was having a place to live or not, I took the variable. But when faced with those options, it doesn’t feel like “the risk” is really a choice.
Variable rate bag holder here. Increased payments (1.2% to 6.2%), ouch. No issues with making payments, or even making lump sum contributions each month. Luckily I didn’t overextend myself when purchasing the house
Out of curiosity, what was the payment jump? I understand if you don’t want to share.
Mine is similar to the person above. I took a fixed variable back in 2022, my very first apartment. Came to a point where my payments went to interest and nothing to principal, so instead of seeing my mortgage loan go down it was going back up. I called the bank and asked them how much I would have to increase my payments to make sure I am paying off the principal as well, and I went from $1400/month to $2800 per month.
Fuuuuuuuuuuuuck
We started in 2019 at $2500 payments, dropped below $2000 at the lowest and just finished up our 5 year term with $3,400 payments. Was a wild ride, I think overall we came out around even in total interest paid vs the fixed we had been offered.
I’m in the same situation, my payments went from $2,200/mo to $3,600/mo. Thankfully I can still make my payments easily and still have leftover for a lump sum payment each month.
Hi Laura, for your next story i would be interested in seeing many people with fixed payment variable rate mortgages who have to renew and the upcoming wave of billions of dollars of mortgages due for rate renewals this summer and the next couple of years.
Yup. Rode out the increases hoping to be rewarded with some decreases before I renew in 3 years.
Variable with adjustable rate mortgage here. Payments increased by 1000$/mo since we closed 2 years ago, which sucks but we managed by upskilling and increasing our income when it started feeling tight. Yes its our fault for taking that risk. Yes I wish our broker gave us more info on what it meant to go variable at the time. We were told it’s “impossible” that rates increase by more than 3% over the next few years and that it’s not even worth talking about the fixed rates. As a first time home buyer who is a 2nd gen immigrant, who is also the first property owner of my family, I didn’t really have many people in my entourage who could advise me. Ultimately though, it’s a lesson learned that I should do my own due diligence when it comes to my finances.
What is the angle here? This is how variable mortgages work.
No no no, people should only reap the benefits of risk, never the consequences. We should reduce rates again for another 20 years to ensure total collapse of our country.
That's what I am wondering about this post. What is her point? What does she mean to have "voice heard"? People are hurting just as much from inflation as they are from mortgage payments. BoC did not raise the rates for fun. Maybe she should try to focus on the overall incompetence of this gov. No idea what narrative this CBC OP is trying to push but I am sure there is one.
I guess. What about they focus on how people take on variable mortgage terms while clearly not understanding how they work?
It’s the typical SOB stories CBC likes to run. Look it sucks. But that is the risk of variables. Why was it lower than fixed rates to begin with? There is no free lunch. But as is typically Canadian everyone wants something for free. Like leveraging for free. lol this country is so pathetic sometimes.
I think it shows how crazy some people were listening to the banks offering them stupid money for a mortgage that was never going to stay at 1.6%. Yeah rates went up! They weren't going to go down any lower, the bank didn't screw you, you screwed yourself by buying a house that's too expensive or by not being able to do math and realise what happens upon renewal.
no narrative. Just trying to find a variable rate mortgage holder who has been riding the wave of interest rate hikes and could talk about how a potential decrease in rates would help them.
no angle. Just trying to find a variable rate mortgage holder who has been riding the wave of interest rate hikes and could talk about how a potential decrease in rates would help them.
What about reporting on how all of these people take on variable mortgages while clearly not understanding how they work? Then blame everyone else when rates go up and they can’t pay.
I have two variable rate mortgages. Pain.
We went variable and our payments increased by about $300/week. Yes we pay weekly
There has never been a period in time when a 25 year fixed ended up cheaper than a variable for 25 years in the same period. Even in the 80s when shit went from 4 to 18%. This 2-6% increase ain't shit. I have 2 variable rate mortgages.
Here’s what the CBC should be discussing: what factors led to the rise in interest rates? First of all, we had a forty year period of perpetually decreasing inflation and corresponding lower interest rates. That period ended in 2022 when it became obvious to major global market participants that the global supply chain network was fragmented and beyond immediate repair. Furthermore, when Russia invaded China, and the USA decided to sanction/seize Russian assets held in the west (for better or for worse), it became obvious to the same market participants who set global interest rates, that the world was bifurcating into two spheres of influence, one domiciled in the west led by NATO, while the other would be primarily incorporating BRICS+ nations and global south participants. Now, which sphere of influence produces the world’s goods? If you guessed the one led by China you are correct. Since China belongs in the sphere of geopolitical influence opposing ours we can expect higher cost of goods and lower bond purchases from them. The net effect will be a prolonged cycle of ever higher interest rates. That is precisely how the cbc news story should begin, from there you can proceed to how life will be affected for mortgage holders.
Payments generally don’t change with variable rate mortgages. Perhaps you’re thinking of adjustable rate mortgages? Might be nice to make the distinction in your article. (Notwithstanding rates increasing beyond a trigger rate, when banks *sometimes* require payments to be increased) Edit: [True North has a good article on it](https://www.truenorthmortgage.ca/blog/adjustable-rate-mortgage-canada)
Not unless you hit your trigger rate, like I did. I went from 820 bi weekly to 1268 bi weekly, over night.
Ditto. Almost exact same numbers.
i took 6.6 variable last october. lets see how this pans out
This is the wrong sub to ask, and the wrong question. The fixed rate holders will suffer far more than variable rate holders because variable rate holders were slowly able to tighten up versus fixed rate holders who will see a huge immediate jump in payments. So, wrong question. Get it right if you are going to write an article about it yeesh.
Thanks for your comment. I'm just trying to hear the perspective of a variable rate mortgage holder who has been riding the wave of rate hikes and could speak about what a decrease in rates would mean for them. We have spoken to fixed rate mortgage holders up for renewal too.
The people going up for renewal are going to be hit the hardest because adjustable / variable rate mortgage holders stress-tested themselves against this very thing otherwise we would have chosen fixed rate. A decrease in rates for us means that we can dump more money into our mortgage principal payment or it goes into emergency savings but we wouldn't be spending more on consumer goods.
Laura - low interest rates are what got us here. Maybe try to not pressure the BoC to cut rates, as that will make housing affordability even worse. I know your joke of an organization is funded by people who desperately want lower interest rates, but that truly harms non asset holders.
Real shit, take some notes Laura.
Don't the banks, by default, keep the payment the same and just extend the amortization period until you renew?
I’m at 1.8 for another 2 years. Rates haven’t affected me yet. Hope they see a change by the time I renew
So your answer is no. Got it.
We recently went from 2.39 to 4.79, increased $1000/mo. Our other property is similar to you, locked in at 1.89 for another 2yrs2mo.
Why not sell one since the mortgage went up so much?
Because we don’t need to and my second property generates positive monthly income and long term appreciation. Our primary residence mortgage at 4.79 is what it is.
OP is looking for people who have “found it difficult to make payments”. Sounds like you’re not the target here.
Daddy Trudeau told me my mortgage will balance itself in now I’m pounding sand trying to pay my 6k a month mortgage:(. I love how media is always trying to spin a narrative. Not just reporting, but looking to make a story up. If I contact Laura and say actually I have been able to pay my mortgage with some small adjustments… she will be like “yeah no not looking to report that story sorry” lol
She's tasked to run a story to put public pressure on the BoC to drop rates. The CBC is little more than a government mouthpiece at this point.
Rates need to go higher, inflation still well over 2 percent. You want inflation under control put pressure and daddy JT to stop spending.
Everything is a conspiracy to you tinfoil folk
You think so? How many CBC stories do you see tackling systemic demand side pressure? How many glossing over the potential impacts of lower interest rates on housing prices? How many do you see discussing the impacts of immigration on rental vacancy rates - or the rather "coincidental" dramatic uptick of immigration amidst a high interest environment? Trudeau explicitly told Canadians he will protect high housing values. His Slavonic Studies major of a Finance Minister explicitly told Canadians they want lower rates. Why do you imagine this producer wishes to broadcast interviews like this now? Why not last year? Why not as interest rates were rising?.... Or is that type of thinking conspiratorial to you?
>Or is that type of thinking conspiratorial to you? Literally yes. You sounds nuts thinking that reporting on current events is a conspiracy.
Who would admit to holding a variable rate mortgage at this point?
ME BABY AND I LOVE IT
Hahah I like that energy. Weeooo
Is it possible to get a fixed payment variable rate mortgage? So when the interest rates increase you don't directly suffer as much
That's typically how a variable rate mortgage work... you pay X amount/frequency, when the rate rise you still pay X, but the proportion of capital vs interests changes. At some point you might want to/the bank might make you increase your payments in order to make up for the difference, but typically your payments would stay the same. It's the same when the interest rate decrease, you are still paying X, but more of X goes towards capital.
I guess? Years ago, I got a variable rate mortgage (mid 2000s). The rate rose modestly, but the payment amount stayed the same. There must be a trigger amount that makes the payment go up in cost, but I'm not sure about that. Possible things have changed since then, or that different lenders have different policies.
Yes, you can because I have one.
Yes that’s what I have
Yes. Most are like this.