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Thread: Bank of Canada annouces 3 more rate hikes before 2023

  1. #16
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    Default Re: Bank of Canada annouces 3 more rate hikes before 2023

    Quote Originally Posted by forumname View Post
    We bought our first house a little over 2 years ago right before the rates fell, so our 3%+ rate has looked pretty bad until recently.

    We put 20% down, we max out our yearly lump-sum payment of 15% of the original mortgage amount, and we've done double-payments for the last year or so. We sacrificed getting a little bit of a worse rate for the good repayment "privileges", and our plan was to be in a position to simply pay the entire thing off when the 5 year term was up in case rates were unfavorable when its time to renew (and as of now, it looks like that may be the case). We've learned not to tell people this in real life because they scoff and chalk it up to some kind of 'luck' (even though we don't have particularly high incomes), but I don't mind sharing it with strangers.
    I did tell my neighbors over beer what i was planning. A few agreed with me and a one paid a small penalty to renew early. The ones who didn't now wish they did.
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    Default Re: Bank of Canada annouces 3 more rate hikes before 2023

    Quote Originally Posted by 2014olympicgold View Post
    I bought a crappy house prolly 10yrs ago, then reno'd it, sold it 5yrs ago and took the money to invest with then rented due to work travel

    I worked my butt off for 2 straight yrs to get a downpayment for the house, then worked hard for 2yrs to reno it. Still ended up ahead, but man I am now effed. Early 30s, renting, and looking at interest rates skyrocket. My only hope to own now are these people who stretched themselves too thin in 2020 and their house is going to be worth less than their payments so they need to quick sell. I'm lucky I'm in a rent controlled building, but man...the housing market is effed for first time home buyers. Working 2 jobs might be the only way to survive now.

    It's not a fun time, but it's also not like it's a shock. What did we think was going to happen?
    Personally, I was living paycheck to paycheck and unable to save money. I can't imagine trying to save in Ontario or BC for a house.

    But I tapped into the RRSP first time homebuyers loan for mine. 5 years ago that was still possible in Nova Scotia to be a living pay to pay fellow and get your 5% downpayment, but now with the price explosion, I doubt i could have done it had I tried in 2020. RRSP loans are one of the smartest things the government ever did for working class Canadians.

    Apartment life in Halifax is rough. In 2012 I was paying $1300/mth for a good 2 bedroom apartment. Now the prices are insane here. its closer to $2000 for that same apartment unless you want to live in the shittiest areas. Since house prices doubled in the last 2 years, most mortgages come in around the $2000 mark too. Well, they did at 2.1% for 5 year rates.
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    Default Re: Bank of Canada annouces 3 more rate hikes before 2023

    Quote Originally Posted by saucelife90 View Post
    The housing market is only going to get better for first time buyers. At the rate it was going, they would have never been able to enter the market. This correction will give them that opportunity. Or those of us who missed out on a rental property/cottage before the prices skyrocketed. Save your $ and wait a couple years.
    Depends on the province. Halifax house prices went up by near 90% over the last 2 years . The correction is only expected to knock them back 30%.
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    Default Re: Bank of Canada annouces 3 more rate hikes before 2023

    Wanna know?

    2016- bought land, built house $400K (1.9%) payment 2k/mth
    2020 - sold for 820K
    2021 - bought new home for 850k on Strata (2.1%) payment 2k/mth
    2022 - sold that for 1.15M.... yeah at the VERY TOP.
    BUT
    Also bought next property at the very top for 940k. Its a junk pile double wide trailer on a larger piece of land in the city but my mortgage balance is small. Will be paid off in 5 years at 4.2% payment 2k/mth. I should be ok, but many wont be. Others who were fearing they would never own may end up in the best situation of all.

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    Default Re: Bank of Canada annouces 3 more rate hikes before 2023

    a lot of people got stupid when house prices jumped. They sold high, bought high and are now gonna be royally screwed when it's time to renew.

    in 2016 we bought our new built home for $540 and it's worth anywhere between 800/900 now with the peak price around a million last april may.

    My mortgage is at 1.59% for another 3.5 years and we should be good despite what rate we will get at that point.


    The only good thing, in my opinion, about the house market crashing is that the rates can't get too high as I have a hard time believing they will make people walk away from homes like in the 80's.

    Also, I fully anticipate trudumb to not be re-elected in 2 years (fingers crossed) so hopefully things stabilize before my renewal is up

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    Default Re: Bank of Canada annouces 3 more rate hikes before 2023

    Quote Originally Posted by Stifler View Post
    a lot of people got stupid when house prices jumped. They sold high, bought high and are now gonna be royally screwed when it's time to renew.

    in 2016 we bought our new built home for $540 and it's worth anywhere between 800/900 now with the peak price around a million last april may.

    My mortgage is at 1.59% for another 3.5 years and we should be good despite what rate we will get at that point.


    The only good thing, in my opinion, about the house market crashing is that the rates can't get too high as I have a hard time believing they will make people walk away from homes like in the 80's.

    Also, I fully anticipate trudumb to not be re-elected in 2 years (fingers crossed) so hopefully things stabilize before my renewal is up
    You are in dream land if you think things will stabilize back to low rates in time for you to renew.
    We had all time low rates for years and years as they tried to massage the market to boost the GDP. The conventional 5 year rate is going back to 6% or higher and staying there.
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    Default Re: Bank of Canada annouces 3 more rate hikes before 2023

    Quote Originally Posted by J0e Th0rnton View Post
    We had all time low rates for years and years as they tried to massage the market to boost the GDP. The conventional 5 year rate is going back to 6% or higher and staying there.
    Which "they" are you referring to? It's been about 50% Conservatives and 50% Liberal in the 14 years since rates came under 5% to stay... Or were both doing it?
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    Default Re: Bank of Canada annouces 3 more rate hikes before 2023

    Quote Originally Posted by Loch View Post
    Which "they" are you referring to? It's been about 50% Conservatives and 50% Liberal in the 14 years since rates came under 5% to stay... Or were both doing it?
    Don;t go down the road called "They". That is where the conspiracies live.

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    Default Re: Bank of Canada annouces 3 more rate hikes before 2023

    Quote Originally Posted by Loch View Post
    Which "they" are you referring to? It's been about 50% Conservatives and 50% Liberal in the 14 years since rates came under 5% to stay... Or were both doing it?
    All federal government for the past 12 years and the bank of Canada who takes advice from them. And yes, it started under Harper's watch and got worse during the last 4 years. Was never meant to carry on this long. Kicking the can down the road and using real estate to artificially prop up the GDP has consequences.

    During the start of the great recession in the states, it was understandable as it helped cushion how much canadians felt it. A few years later, not so.

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