Author Topic: Real Estate Culture  (Read 954 times)

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Offline kimmy

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Re: Real Estate Culture
« Reply #30 on: March 17, 2022, 02:10:43 am »
I renewed in in November at 1.92% on a 5 year fixed rate. I should be mostly or fully paid off by the time it comes due.  I just felt like rates won't stay that low forever, and I liked the peace of mind that comes with having that guaranteed for the duration.

Scotiabank thinks that rates will jump to 3% within a  year:
https://betterdwelling.com/bank-of-canada-waited-too-long-expect-much-higher-interest-rates-scotiabank/

 -k
Paris - London - New York - Kim City
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Offline MH

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Re: Real Estate Culture
« Reply #31 on: March 23, 2022, 12:35:27 pm »
So my rate is going up to 1.65% variable ... but to look in for 5 years is 3.49%??🤔

Why would I ever lock in ?

Online Bubbermiley

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Re: Real Estate Culture
« Reply #32 on: March 23, 2022, 12:48:25 pm »

Why would I ever lock in ?
Because maybe no one is foreseeing the hyperinflation that will force them to jack up rates to an unheard of degree overnight.
Hopefully extremely unlikely, but some people sleep better knowing it won't change...until you have to renegotiate in five years. Much more likely you just pay more for the "security" though.
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Offline MH

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Re: Real Estate Culture
« Reply #33 on: March 23, 2022, 03:07:24 pm »
Because maybe no one is foreseeing the hyperinflation that will force them to jack up rates to an unheard of degree overnight.
Hopefully extremely unlikely, but some people sleep better knowing it won't change...until you have to renegotiate in five years. Much more likely you just pay more for the "security" though.

Yeah... she said my payments would go up like $700 if I locked in...

Now - we could afford that, possibly - but why ?

Online Bubbermiley

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Re: Real Estate Culture
« Reply #34 on: March 23, 2022, 03:31:03 pm »
Yeah... she said my payments would go up like $700 if I locked in...

Now - we could afford that, possibly - but why ?
Because your variable rate will be going up too, and there is a reasonable chance it will be higher than 3% before the end of your term. But even if it is, chances are you'll still pay less overall with the variable. But you never know.
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Offline MH

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Re: Real Estate Culture
« Reply #35 on: March 28, 2022, 03:32:02 pm »
The fixed rate is SO much higher that I feel like we will never get there if I stay adjustable.

I had a call from a broker who offered us 1.3%.  Not bad but it doesn't make enough of a difference to go with an unknown.

Offline Queefer Sutherland

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Re: Real Estate Culture
« Reply #36 on: March 28, 2022, 04:07:04 pm »
I live in a dumpster on the corner of 5th and Main.  If you guys have any food left over at Easter dinner feel free to slip it under the lid.  Thanks in advance.
I queef, therefore I am.
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Offline Squidward von Squidderson

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Re: Real Estate Culture
« Reply #37 on: March 31, 2022, 12:29:09 pm »
So my rate is going up to 1.65% variable ... but to look in for 5 years is 3.49%??🤔

Why would I ever lock in ?

https://www.cbc.ca/news/business/interest-rate-analysis-1.6402439
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Offline MH

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Re: Real Estate Culture
« Reply #38 on: March 31, 2022, 01:18:00 pm »

Offline Squidward von Squidderson

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Re: Real Estate Culture
« Reply #39 on: March 31, 2022, 02:29:40 pm »
As I thought, though, 3.25 per cent is about what I am being quoted for 5 years.

The article says 3.25 within a few months.   Longer term, it may go even higher.  Locking in would protect from an even higher rate. 
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Online Bubbermiley

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Re: Real Estate Culture
« Reply #40 on: March 31, 2022, 03:04:42 pm »
I was always haunted by my sister's 20% mortgage in the late 1970s.
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Offline Queefer Sutherland

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Re: Real Estate Culture
« Reply #41 on: April 07, 2022, 08:09:49 pm »
They been saying the boomers had it easy.  Well they've increasingly been having to waste giant chunks of their retirement savings to help their children even afford to buy a house.  Now it takes the wealth of 2 generations to afford a house.

40-50 years ago you could afford a house on a single income, now it takes 3-4.  The banks are sucking everyone dry, yo.
I queef, therefore I am.
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Offline MH

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Re: Real Estate Culture
« Reply #42 on: April 08, 2022, 07:41:21 am »
1.They been saying the boomers had it easy.  Well they've increasingly been having to waste giant chunks of their retirement savings to help their children even afford to buy a house.  Now it takes the wealth of 2 generations to afford a house.

2. 40-50 years ago you could afford a house on a single income, now it takes 3-4.  The banks are sucking everyone dry, yo.
1. Uh.  Can you read that again ?  If a boomer has the money to "help" their kids buy a house doesn't that say boomers are way better off than... the generation trying to buy a house ? 

2. More evidence the boomers had it good.

There's a thread on this on MLW.  It's speculators and game-players.  The Real Estate sector is providing lots of jobs to the uneducated, indirectly.  Houses on our street are flipped and renovated regularly.  Those guys used to work in factories.

Real estate is 10% of GDP which seems high.  Can't find stats on where it was in the past.

https://betterdwelling.com/canadian-real-estate-provided-over-10-of-gdp-growth/

Offline Queefer Sutherland

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Re: Real Estate Culture
« Reply #43 on: April 08, 2022, 03:11:10 pm »
Well my point isn't who had it easy or not.  My point is that the real estate and banking sector is now sucking large amounts of wealth from multiple generations.  It is destroying the middle class.

I would propose some kind of rule where mortgages (and down payments somehow) be based on a buyers income.   This would prevent parents from being able to help drive up bids.

I queef, therefore I am.
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Offline Squidward von Squidderson

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Re: Real Estate Culture
« Reply #44 on: April 08, 2022, 04:03:33 pm »
Well my point isn't who had it easy or not.  My point is that the real estate and banking sector is now sucking large amounts of wealth from multiple generations.  It is destroying the middle class.

I would propose some kind of rule where mortgages (and down payments somehow) be based on a buyers income.   This would prevent parents from being able to help drive up bids.

How would government be able to micromanage where someone gets money, and whether itís a gift, or for helping with a house?   Thatís an unworkable, naive idea. 

And now people who manage to hide income would get a better mortgage rate and be able to have less of a down payment? 

Do you actually think these things through? 
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