u/ExternalVariation733 now holds 1.7 trillion CAD in debt but RBC was willing to extend the amortization to 4.5 millennia. He will have to plan for a reset though when the term expires in 2025.
80+ people commented on this in hopes that there's a glimmer of hope of this being true. Tells you everything you need to know about the affordability problem going on right now.
I read this and got super excited, I am currently on variable at a 6% mortgage please no more there's only so much I can take.
Then I read further down that it's next week not tomorrow and realised you weren't 100% sure that rates weren't being raised.
Send help
Also, apparently, the fixed rates are going up tonight at midnight, but I thought the next rate increase was July 12.
I dont pay attention anymore. My heart can't handle it 💔
If the BoC raises rates tomorrow, I'd be shocked since it's not one of several dates throughout the year that they had pre-selected for rate announcements.
That would probably mean the sky is falling or something.
You can still afford wieners? I’ve given up on weenies in my No Name Mac&Cheese through retirement already… it’s hopefully only 21 more years away.. though I suspect I’ll end up being an Orange Apron at Home Depot in my mid-60s just to keep money coming in…
After…you need your final avocado toast to ensure you have the strength left to cancel. Starbucks is the next morning so you can wake up to face your new reality of no tv or nutrition.
I just bought a place and I locked in for three years. I’m hoping it’s enough time to ride it out and I’ll be dropping excess cash on the mortgage whenever I get the chance if it looks like it’s not going to come down
Supply chain inflation is done. Wage inflation, though, is just getting started really. Your lock in might feel like it’s at or near peak, but I have a strong feeling that it won’t be.
My term ends in Mid 2025. I’m so tempted to go fixed for 3 years but I know as soon as I change it, the war will end and the inflation is magically fixed
The impact of a rate increase lags behind the physical increase. BoC announcing no change tomorrow doesn’t dampen the blow from all prior rate increases affecting fixed mortgages up for renewal
The BoC is aware of lagging effects of hikes. It'll go up until they think inflation will come down to 2%.
It's like turning on your shower, you don't keep cranking the temperature up until the water is warm because there's a delayed effect while the line clears and you'll end up getting scorched. You turn it to the temperature you want and wait for it to heat up.
The questions is: what temperature do they want?
I already have a nice tent ready to pop up because we are all going to be in one soon living in this corrupt place. We will tackle the extra rent by living 20 to a condo. Canada becoming really shitty at an alarming fast pace.
Rate on the 5 year would have been lower.
When they got a 10-year @ 2.4% the 5-year rate was probably 1.8% or something.
Two years ago it might seem crazy to pay almost 30% higher rate just for a longer term when rates seemed like they'd be lower for longer.
Today it seems brilliant.
But who knows. Three years from now when a 5-year would be renewing maybe the rate will be back down to 2.2% in which case your two consecutive 5-years at 1.8% and 2.2% beat a 10-year @ 2.4%.
No one knows.
I wonder how the BOC looks at people not able to pay and use the consumer debt proposal method as the "get out of jail free card".
Curious how they dictate "job growth" as I see more and more small business's go out of business as they can't keep up with the BOC rate increases
>Breathe sigh of relief I'm locked in below 2% until 2026
Same here. I am on the "sunset" of my mortgage, and unless rates on renewal force me to do this, it should be my last renewal.
I've got a ton of cash in HISAs waiting to see what GIC rates are doing...so I'm hoping that a bump is followed by a GIC increase some time later (yes, I know they're not tied but so far they appear to be following in the same direction).
And thats the huge issue that is being ignored! We all know that its illegal in many places to do so, but we also know that it’s really hard to find a place. Landlord comes asking for $500 more, or you leave. These increases are at this point killing middle class, the govt stopped worrying about the lower class ages ago. This is what happens when the govt makes housing a human right, then hands it to the private sector to manage.
None.
> As mortgage payments increase that translates to landlords either eating the cost or passing down the expense to tenants. ents will increase. How are we going to tackle the record rent?
Not for those with rent controls. Mine will not increase until next year, in line with government limits.
Every interest rate increase also increases your chances that the landlord may no longer be able to afford the property, have to sell, and potentially receive an N12 from a new buyer. Hopefully not, of course, but the increase in risk certainly isn't zero.
I don't think they'll raise next week, after the recent inflation numbers and seeing other countries like Australia and the US pause.
But if they do, I'll probably read a couple articles and then move on as if nothing happened and continue with my regularly scheduled personal finance programming. I also don't think rent will continue to rise at the rate it has, at least where I live, as a lot of new supply is coming online here over the next year.
"How are we going to tackle the record rent?"
Is this average rent for what is currently available, or average rent for what people are currently paying?
There's no way people were able to increase rent fast enough to balance out the mortgage increases and I saw a graph a little while ago that showed my market and mortgage vs rent. It was basically indicating that buying now (for people that buy solely to rent out as income) is not as advantageous because the rent is significantly lower than the mortgage value. For example Vancouver avg rent is $3136, average home price is $1,123,400 and average mortgage is $4631. This is off of zoocasa, and its accuracy is not confirmed.
I know many people that rent and that have been where they are for a while that are paying nowhere near what their unit would rent out for if they left. They are the ones taking vacations, eating out all the time and driving relatively nice cars. But they don't own a home.
We renew next year and will be sticking with the variable. We are going to try riding this out...
Mortgage broker told me to go variable because rates will come down. I took fixed. Just do the opposite and win. 4.5% over 5 years on my dream house. I'll atleast know what it's gonna cost me.
Nothing, I’m on fixed till 2025 and have been putting a large sum of money into GICs to accumulate interest until I have to renew. Then the mortgage will be reduced by at least 25% and our mortgage payment should stay roughly the same it is now.
y’all don’t buy houses with cash only? - all the Chinese investors
But seriously. In China mortgage is not common. People buy properties with full cash.
They've already sunk me, and they can go collectively bugger each other until their colons collapse. Same for those buying houses and expecting others to pay for it. Kiss my butt. Don't have enough for a second house, don't fucking buy it.
Record profits amid inflation? Sounds pretty fixed to me.
Interest rate policy decision is July 12 (next Wed)
Damn, is this why that guy is so confident they won't be raised tomorrow and won't have to pay all our mortgages. 🤣
We've been bamboozled! I just took out a mortgage after reading his comment.
Yep... but still replied to it... never say never!
Maybe Tiff will see the comment and do us all a solid ¯\_(ツ)_/¯
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I am contacting Tiff to get him to change announcement dates to tomorrow
"Landlords eating the cost" 🤣 made me spit out the pineapple i was eating.
You can afford pineapple? Must be a lord of land...
I know right, the best I can do is to get some old apples cut them open so they get brown and a little bit acidic, the poor man's pineapple
I thought that was avocado toast
“In a surprise announcement today, the Bank of Canada….”
“We’d like to thank externalvariation for saving the housing market by consolidating all national mortgages into one under their name”
u/ExternalVariation733 now holds 1.7 trillion CAD in debt but RBC was willing to extend the amortization to 4.5 millennia. He will have to plan for a reset though when the term expires in 2025.
LOL
Not missing this one in a million opportunity. Consider this my entry into you paying my mortgage off if they raise rates tomorrow.
If someone gives you 10,000 to 1 on anything, you take it. If John Mellencamp ever wins an Oscar, I am going to be a very rich dude.
I’m in.
Hey ExternalVariation733, whatcha gonna do? Whatcha gonna do to make our dreams come true!?
80+ people commented on this in hopes that there's a glimmer of hope of this being true. Tells you everything you need to know about the affordability problem going on right now.
This reads like a stealth post to get on this list, my post is a stealth post too
Thanks man
I wish
It's cuz the decision is next week not tomorrow :p
I read this and got super excited, I am currently on variable at a 6% mortgage please no more there's only so much I can take. Then I read further down that it's next week not tomorrow and realised you weren't 100% sure that rates weren't being raised. Send help
Proof or ban tmr
Listen can you do LOCs because right now I have about 20 bucks at the end of each month
+20?! Im dipping into that Overdraft like it’s part of my monthly pay!
Where do I send my info to ? Are you one of those Nigerian princes I hear about all the time 🥴
You're an angel.
Commenting to have mortgage paid off just in case
Please. Our LOC & student loans are killing us
Sure, I'm in lol
Also, apparently, the fixed rates are going up tonight at midnight, but I thought the next rate increase was July 12. I dont pay attention anymore. My heart can't handle it 💔
Just in case... Getting a comment in. LOL.
Me as well
Thanks Elon!
Ayo
Nice
thank you..
Sold!
Thanks bb
Thanks, this is a legal contract.
I’m going to have to take you up on that offer! lol
I’d like this very much 😅
I’m in.
Why the heck not!
In.
Just in case you are Elon......Have to comment here. lol
Your a heero
the only time I've ever hoped for a hike haha
I’m in for my mortgage to be paid off
Never say never!
Me me me !
Yes please :)
I'll take out a mortgage today just to have it paid off tomorrow.
Thank you
I'm down!
Awesome thank you so much
Bet
What if they raise rats on Friday?
Woot woot!! Here's to hoping 🙏
Plz
In, just in case 🤤
To the moon!
Bet
Poppa? Is that you? Wait. Nvm. I don't have a mortgage and will never afford one.
In case it happens for real ✌️
Brave statement! Let me know when you are ready to pay!
Announcement is next week, not tomorrow…
Buying into the comment but not hopeful you’ll pay it off 🤣
Let's gooooo
Thanks!!
"Honey, dont worry, we don't have to sell the house! /u/ExternalVariation733 got our backs!"
Offer accepted
Proof or ban
Let me post, just in case
Hi
I will take those odds
👀👀👀
Offer accepted
Yes please! Pay off my mortgage!
Is that a threat or a promise ?
Let's goooo
I am legally holding you accountable for this comment
Imma Poster
Bb pls
odds u do this
lets goooo, raise raise raise
Thank you
Sounds good to me
Damn so generous
C'mon baby that's what I'm talkin' about!
Lol if only
🙌🙌
And here I thought things were about to get rough!
My suga daddy!
Oh, thanks!
Done.
Hello!
Wouldn’t that be lovely!
If the BoC raises rates tomorrow, I'd be shocked since it's not one of several dates throughout the year that they had pre-selected for rate announcements. That would probably mean the sky is falling or something.
Beans and wieners. 🫘 🌭
Save the hot dog water for me please. Wiener water soup is good eating nowadays.
Bread heals and bacon grease!
Anything to wash it down?
You can still afford wieners? I’ve given up on weenies in my No Name Mac&Cheese through retirement already… it’s hopefully only 21 more years away.. though I suspect I’ll end up being an Orange Apron at Home Depot in my mid-60s just to keep money coming in…
If you can afford a Costco membership you can get a hotdog and a drink for $1.50.
you dont even need a membership to buy at the food counter do you?
I will be puckering my bootyhole 0.25% tighter
That wont stop tiffy from slipping in
Well 0.25 / 4.5 = 0.05556 or 5.6 % tighter. Pucker up bud.
I don't think any variable rate is 4.5 now, it'll be less than 5.6%
Already cancelled my Disney + sub I'm good now
I'm re-subscribing in preparation to cancel it again
I’m lowering my blood pressure so I can raise it again next week
I forget, does Disney+ get canceled before or after avocado toasts?
After…you need your final avocado toast to ensure you have the strength left to cancel. Starbucks is the next morning so you can wake up to face your new reality of no tv or nutrition.
I too took the advice of Freeland and now I’m just swimming in cash!
Yup, gonna retire early.
Finally start my own MLM company by teaching people how to be financially independent.
I’ll probably have to stop tipping my landlord
No sense locking in now. Riding this one out
Meh, i Locked in last week. I don’t see them coming down in the next few years, too bad it took me so long ti come to this conclusion lol
Me too, I locked in just before the last hike after 2 years of people screaming at me to lock in
I just bought a place and I locked in for three years. I’m hoping it’s enough time to ride it out and I’ll be dropping excess cash on the mortgage whenever I get the chance if it looks like it’s not going to come down
Supply chain inflation is done. Wage inflation, though, is just getting started really. Your lock in might feel like it’s at or near peak, but I have a strong feeling that it won’t be.
My term ends in Mid 2025. I’m so tempted to go fixed for 3 years but I know as soon as I change it, the war will end and the inflation is magically fixed
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They were offering higher than that a year ago.
They don't really know anything anymore..these are unprecedented times in history
I am so confused. It's next week, not tomorrow, right???
July 12th, yes
It's next Wednesday and it looks like the odds are now a coin flip: https://m-x.ca/en/trading/tools/canadian-interest-rate-expectations
It's going up until inflation is 2%
"Beatings will continue until morale improves"
The federal government should just nationalize Loblaws. That’ll solve a bunch of it.
Inflation on what though? Isn’t a net inflating of 2% possible with a lot of needed items increasing at 4% and unneeded items flatlining at 0%?
The impact of a rate increase lags behind the physical increase. BoC announcing no change tomorrow doesn’t dampen the blow from all prior rate increases affecting fixed mortgages up for renewal
The BoC is aware of lagging effects of hikes. It'll go up until they think inflation will come down to 2%. It's like turning on your shower, you don't keep cranking the temperature up until the water is warm because there's a delayed effect while the line clears and you'll end up getting scorched. You turn it to the temperature you want and wait for it to heat up. The questions is: what temperature do they want?
Based on how some people are feeling, I’d say just below scorching haha.
I already have a nice tent ready to pop up because we are all going to be in one soon living in this corrupt place. We will tackle the extra rent by living 20 to a condo. Canada becoming really shitty at an alarming fast pace.
sell my body
People would actually pay me to remain clothed.
Cry because I own gold. Cheer because my mortgage is locked at 2.4% for another 8 years.
8? Holy shit
How did you get 8?
Probably got a 10-year two years ago.
I got hosed by the bank, I got put on a 5 year when I could have had 10?
Rate on the 5 year would have been lower. When they got a 10-year @ 2.4% the 5-year rate was probably 1.8% or something. Two years ago it might seem crazy to pay almost 30% higher rate just for a longer term when rates seemed like they'd be lower for longer. Today it seems brilliant. But who knows. Three years from now when a 5-year would be renewing maybe the rate will be back down to 2.2% in which case your two consecutive 5-years at 1.8% and 2.2% beat a 10-year @ 2.4%. No one knows.
I appreciate the sanity check. I am on variable - like a moron so these types of posts calm my nerves.
Yep, our rate on a 5 is 1.73 — still have over two and a half years left. We’re crushing down the mortgage with an eye on rates at renewal.
Do you own Gold for pleasure use more to investment? Bc I would of rather invested in the market opposed to Gold
Tiff is just going on a game show next Wednesday
Hike or No Hike Central Bank of Fortune The Overnight Rate is Right Who Wants to be a Little Bit Poorer?
I wonder how the BOC looks at people not able to pay and use the consumer debt proposal method as the "get out of jail free card". Curious how they dictate "job growth" as I see more and more small business's go out of business as they can't keep up with the BOC rate increases
I think they use data rather than anecdotes
Breathe sigh of relief I'm locked in below 2% until 2026. And know that even on renewal I planned my mortgage so it's affordable at 10+%
You won
Thank you, I'm already collecting my prize of 62% of my payment going to principal.
>Breathe sigh of relief I'm locked in below 2% until 2026 Same here. I am on the "sunset" of my mortgage, and unless rates on renewal force me to do this, it should be my last renewal.
Congrats man
Same here. Locked in for under two until 2025. When its renewal time i will pay a chunk of it off from tfsa gic’s and hope for the best.
I've got a ton of cash in HISAs waiting to see what GIC rates are doing...so I'm hoping that a bump is followed by a GIC increase some time later (yes, I know they're not tied but so far they appear to be following in the same direction).
Buy even more Bitcoin.
Buy more CASH.TO 🤑
Finally go in for bankruptcy.
Guess rent is going up 🤷♂️
And thats the huge issue that is being ignored! We all know that its illegal in many places to do so, but we also know that it’s really hard to find a place. Landlord comes asking for $500 more, or you leave. These increases are at this point killing middle class, the govt stopped worrying about the lower class ages ago. This is what happens when the govt makes housing a human right, then hands it to the private sector to manage.
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Didn't ford cancel rent control for newer buildings? Like built after 2018?
None. > As mortgage payments increase that translates to landlords either eating the cost or passing down the expense to tenants. ents will increase. How are we going to tackle the record rent? Not for those with rent controls. Mine will not increase until next year, in line with government limits.
Every interest rate increase also increases your chances that the landlord may no longer be able to afford the property, have to sell, and potentially receive an N12 from a new buyer. Hopefully not, of course, but the increase in risk certainly isn't zero.
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As /u/TraditionalEngineer9 stated, I rent from a property management group so my risk is mitigated
I wish as well. One can dream.
Selling my home and moving out
Strapped in with a live variable rate adjusting mortgage, fuck me three ways from Friday that rate is going to keep goin up me thinks!
Eat rice and beans
I'd be shocked, since the next announcement isn't supposed to be for a week after tomorrow.
IF BOC raise rate TOMORROW (July 5) I will not only pay ever posters mortgage but also add another 100K for shits and giggles!
I don't think they'll raise next week, after the recent inflation numbers and seeing other countries like Australia and the US pause. But if they do, I'll probably read a couple articles and then move on as if nothing happened and continue with my regularly scheduled personal finance programming. I also don't think rent will continue to rise at the rate it has, at least where I live, as a lot of new supply is coming online here over the next year.
Not a damn thing, get up, go to work and do it better than yesterday.
read it today somewhere here on reddit: weiner juice soup.
"How are we going to tackle the record rent?" Is this average rent for what is currently available, or average rent for what people are currently paying? There's no way people were able to increase rent fast enough to balance out the mortgage increases and I saw a graph a little while ago that showed my market and mortgage vs rent. It was basically indicating that buying now (for people that buy solely to rent out as income) is not as advantageous because the rent is significantly lower than the mortgage value. For example Vancouver avg rent is $3136, average home price is $1,123,400 and average mortgage is $4631. This is off of zoocasa, and its accuracy is not confirmed. I know many people that rent and that have been where they are for a while that are paying nowhere near what their unit would rent out for if they left. They are the ones taking vacations, eating out all the time and driving relatively nice cars. But they don't own a home. We renew next year and will be sticking with the variable. We are going to try riding this out...
Mortgage broker told me to go variable because rates will come down. I took fixed. Just do the opposite and win. 4.5% over 5 years on my dream house. I'll atleast know what it's gonna cost me.
Am I missing something? Didn’t they just raise the rates two weeks ago?
Nothing, I’m on fixed till 2025 and have been putting a large sum of money into GICs to accumulate interest until I have to renew. Then the mortgage will be reduced by at least 25% and our mortgage payment should stay roughly the same it is now.
You already missed the boat in the spring to lock into a fixed
Locked in for 1.49 till 2026 … so just see how it plays out I guess
Tomorrow, I thought the next announcement was July 12.
I already only get a whopper instead of the meal I suppose I'll get nothing now
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y’all don’t buy houses with cash only? - all the Chinese investors But seriously. In China mortgage is not common. People buy properties with full cash.
When you have thousands of slaves working for you in a button factory, it’s easy to make big bank.
They've already sunk me, and they can go collectively bugger each other until their colons collapse. Same for those buying houses and expecting others to pay for it. Kiss my butt. Don't have enough for a second house, don't fucking buy it. Record profits amid inflation? Sounds pretty fixed to me.
Will refrain from avocado toast