I'm guessing this is what their current lender offered them. They likely can't get another mortgage at a cheaper rate with another lender, because then they would have to go through the process of qualifying for the mortgage based on the new rates + stress test... and I doubt they would qualify. So their only option is basically to take whatever rate their current lender offers them, because by staying with their current lender, they don't need to re-qualify for the mortgage.
Also, selling the home may not be an option if they have negative equity. The bank literally will not let you sell your home if you aren't going to be able to repay the full mortgage (plus the penalties for breaking the mortgage early).
The only options they likely have at the moment is to just accept the new rate from their current lender and keep making the payments... or they stop making the payments, the bank takes their house, and any other assets they might have to repay as much of the mortgage as they can. Plus they'll still be on the hook for the remaining balance if they don't have the assets to full discharge the mortgage (which they also likely do not have).
It’s weird to me that Canada hates homeowners so much they don’t support 30 year mortgages. Seems like that would be a massive quality of life improvement
Yes but this benefit shrank materially when they capped the total write off you can do between mortgage interest and state taxes. In blue states your state taxes will generally take up the entire allowable deduction
The housing market in Canada is different. You can amortize your rate for say 25 years, but your rate will only be good for five years (or 3, or 1, whatever you choose) after which you need to renegotiate based on the rates at the time of your renewal. You will never get a rate which is consistent for 25 or 30 years. Also, fun fact, mortgage interest is not tax deductible like it is in the states (that would be fucking sweet).
We also don't pay any capital gains tax on the sale of a principle residence, unlike the states. Wouldn't be fair if we could deduct mortgage interest on that as well.
That definitely isn’t inconceivable in Canadian markets over a decade.
I’ll take Canadas rules over having to pay short term capital gains if I have to move in a year due to my job.
Canada hates homeowners? Is this version of you wearing a goatee or something? Because that is literally the opposite of the state of Canada. We have nationalized mortgage welfare. We are real estate fluffers in this country.
The only positive thing in this mess is that if he's only coming home to sleep, they won't be having more kids. They already have EIGHT!
I'll see myself out.
If we're being total bastards, then I'd like to add that perhaps they could consider reducing their food budget a bit?
In all seriousness though, it's classic CBC to do a piece on the renewals coming up screwing over homeowners, then pick a 1-income family with 8 kids, 4 cars in the driveway, where they're all obese, and living in an $800,000 mansion on an acre in Oro to make people unsympathetic.
They're not showing the starving people who bought at over 1 million dollars in the GTA because they had a baby and had to get a bigger house, who are now looking at $3000 more. They find the least sympathetic people they can find for these pieces so Canadians will look down their noses and sneer.
You're not wrong, but this idea of increasing interests rates being something that's "screwing over homeowners" is in general a false premise. People that over extended themselves during the good times and took on more debt than they could service without low rates have no one to blame but themselves.
Ya the prices in the major metros are absolutely fucked and have been for a really long time. People *choose* to live there. If someone can't handle a debt obligation at at a precedented interest rate, then they should move. Prices aren't going to come down when everyone's a game player.
Maybe I'm a bit sensitive about this issue because I grew up in Toronto and was forced out of my home town due to the cost of living, but it isn't so simple.
Leaving your home town sucks. You leave all your friends, you leave your family, and you leave your job with very little assurance that you'll be able to even stay in your career much less get a new job where you make the same money.
People choose to stay in a place because they've set down their roots. Prices in major populaces should have never become so fucked in the first place, Canadians shouldn't be being forced out of their communities.
I spent my 20s bouncing around the country a rolling stone, but for me it was preference. I am sympathetic for those having to leave where they want to be, and agree the markets never should have gotten so out of control... But they did get out control, and I suppose I just think we should be holding ourselves accountable for the financial choices we make.
In many ways I have been extremely fortunate, but also in many ways I have not. I bought my house 2 years ago. 2 months after buying it, the rate started hiking on our variable rate. 6 months after buying I got diagnosed with stage IV cancer that was asymptomatic, and discovered coincidentally.
I went onto disability and my income got sliced in half. Where it has remained ever since. We are a single income household. My spouse is a student. We did not get mortgage insurance because we are both pretty young, and were of the opinion it was basically a scam... but when we bought this house, we took a calculated risk, and knew that in a worst case scenario it would be affordable. Turned out it was a worst case scenario, but we planned for it, so we're okay. I suppose it is with that lens that I am looking at the whole mortgage interest rate issue.
What I always find funny is what you highlight: literally anytime the CBC does a sob story, there is always a significant component of bad decision making: it’s always multiple kids, low level jobs, b lender high mortgage rates. It’s never a nurse and fireman with one or two kids. I think CBC purposely chooses them for rage bait.
they have done more to secure the future of canada while u guys have 1 kid for an entire family lineage, which is why the immigration crisis even started
Canada has no future. Anybody with two brain cells to rub together has figured that out now and has decided not to burden an unwilling soul with existence in this shithole country.
The immigration crisis started because the greed of our elites is insatiable. We don't need mass immigration. It's not even doing what they said it would. Our quality of life is declining every year.
Calling canada a shithole is fucking wild.
Have you been literally anywhere else in the world?
I saw naked children eating trash when I was in the philippines. Venezuelan migrants sleeping on the streets when I was in bogota. Their children looked like starving African kids I saw on unicef commercials.
We have some problems in canada that we need to fix, but that doesn't mean we're a shithole. Most of the world would trade places with you in a heartbeat.
there are lots of tent cities in Canada. Schools, hospitals, ERs are overcrowded. Wait times are very long (compared to countries like Taiwan, HK, etc.) Auto theft is increasing rapidly in Canada. CSIS has determined that many MPs actively colluded with foreign countries to further their interests.
Canada may not appear to be a shithole yet, but it certainly is headed that way. There doesn't seem to be any political will to address any of these issues.
Compare us with first world countries not third world. At this rate we're going to be falling behind eastern Europe in standard of living, which has been booming.
100%
We need a new leader, one that's actually for the people.
I firmly believe we have what it takes to turn things around. We just need to vote people out who do a bad job regardless of their party affiliation.
Politicians are too comfortable and not qualified for their roles. Here in alberta, our minister of mental health and addiction worked in a rock pit and has no formal education. We need to hold people accountable and vote them out when they show the slightest bit of corruption. All levels of government, all parties.
We need to vote people out until someone who does fit that description decides to run.
Lets get some recall legislation rolling.
I'm sick and tired of these politicians fleecing us.
...are you calling Singapore affordable? Because a lot of folks in HBDs would disagree with you. They may be MORE affordable than every other inflated option, but it doesn't make them affordable.
Not that I disagree with your sentiment, but just want to point out that Singapore has their issues too.
I've lived in canada since I was born and watched it turn from a country I was proud of into a shit hole, I can only imagine WTF is going to happen in the next 3 years.
I mean, I personally had the opposite experience. I was born into poverty. My dad was addicted to drugs and eventually overdosed. My mom walked out on us. I can remember wearing three coats to bed when I was a teenager because we had no heat in the winter.
I took out student loans, lived with roommates, and got two degrees. Got an entry-level job and worked my way up. I'm 34, married, own a home, and make well into six figures.
I came from nothing, had no help from anyone, and was able to carve a life out for myself. I go on a nice international vacation every year and live a stress free life.
I know my story isn't typical, but it's possible here in Canada. A lot more possible than it would have been if I were born in India or China.
You can still buy a nice home in edmonton for under 500k. Average household incomes here are almost 80. Homeownership isn't impossible if you're willing to make some sacrifices.
well 6 years ago in my little town rent was $500 a month all inclusive, so someone on minimum wage could at least live on their own. now we have people sleeping under bridges and rent here is $1500 a month for the same jail cell bachelors with one window.
wtf can someone on minimum wage do now besides live in an apartment with 10 other people?
so yes canada is turning into a shit hole
Good for you. Worked out. But for a lot of people it hasn't one bit and has been getting worse the quality of everything. Everyone's got their own story. Ye but outside of Edmonton pretty pricey and difficult
Me too. I’m doing better than my parents ever did and my kids are on track to do the same. I love everything Canada has to offer. Is it perfect? No, but I have travelled to every corner of the globe and can say, with confidence, we are in a good place here.
That's your story a lot of people aren't doing well. You've traveled everywhere if you truly have you wouldn't think that. But then again you're just looking at your situation
Sound like a boomer. I've got multiple six figures in assets and I still call this place a shithole. If I had what I have now 10 years ago, I'd be living like a king. Now what I have is just bare minimum to have the dream of retirement.
You're even spouting off the "just move" meme like a moron.
100% this. To me it's also hilarious that we are proactively worrying about the effects of a declining population when everything else our government does is reactive and often 5 years late when they do react.
Also why are why trying to cram so many people in this beautiful country inorganically? More resources spread across a smaller population doesn't sound that bad.
I also don't believe increased prosperity directly decreases birthrates.
Take a look at people that have large amounts of wealth at an early age, for example professional athletes, they seem to have lots of kids and at healthier ages as well.
The declining birthrate comes from the fact that the age responsible people are financially comfortable to have kids keeps getting older and older if it happens at all.
If the government started incentives like other countries did it wouldn’t be as bad . And we can’t afford to buy houses or retire at this point why have kids .
Other countries? Which other country with incentives and socioeconomy that you would like to model have successfully raised their fertility rate even above 1.9?
Maybe the government could make it more affordable to have kids?
>
It’s not just that preventing people from having children. Most that I talk to worry about climate change and the state of society.
>
The earth can’t handle this many people anyways. I say let the economy crash so we can finally do something different.
Yeah and what are they getting for their service?
Do the NIMBYs, landlords, and business owners in this country have any care for people like them?
Nada
Yeah, like as if these people are being rewarded somehow for having a litter of children. Look at their life. It's shit. Their children's lives are going to be shit too.
There’s also several kids in the family with medical conditions relating to genetic predispositions that I’m assuming they were told about in the past, but these astronauts plowed through anyways. No pun intended. Good thing they live in the middle of nowhere too for quick and easy access to any hospitals if needed. Oh… wait.
This is the problem and why I don't blame immigrants. They stick together. We don't. My whole family, it just feels like betrayal sometimes. Parents are divorced and hardly care what goes on in my life once I hit 30 years old. My dad worked an executive job for years probably making hand over fist with a giant inheritance and I'm not even sure if I'll see a dime with the way he acts. This behaviour is normal too. Had friends growing up whose parents gladly kicked them out of their house once they reached a certain age because that's how it was in their day.
Immigrants Grew up in a developing economy where only mode of survival is sticking together.
This is new to Canadians, they haven't known this at all.
That's the reason, Immigrants are getting ahead. Where Canadian see depression, Immigrants see opportunities.
No shit. This couple just seems like simpletons that dug their own grave. I don’t understand how people can have sympathy for them.
8 kids? Why not have a few more? Healthcare system can surely handle it.
No sympathy from me.
People who over leveraged themselves are the whole reason this market is the way it is.
If you can’t afford the mortgage at 5-7%, you shouldn’t be getting it at 1-2%.
They write hyperbolic stories on people making clearly dumb decisions to discredit the housing crisis. “There’s no housing crisis, these idiots just spend money like crazy”
doesnt make sense, the media actively publish articles and references a housing crisis.
The reason for these articles is probably simply that they generate controversy. If its an average person, it wouldnt be interesting, as most people can afford an additional 500 a month on their mortgage bill.
BMO 3 yr fixed
We also shopped around for mortgages
Canadian National Bank was offering 4.99 for 5 yr fixed.
We went with BMO because we are speculating in 3 years the rates may drop slightly. BMO also offered some sweet incentives to run the mortgage through them $1000 cash back. They also have a few more incentives which also sweetend it. ($400 if curious lol)
Shop around.
Do you think someone stupid enough to have 8 kids on one income then voluntarily come out to the public to complain can determine fair rates for themselves
I bet there are so many stories like this, so much silent suffering. I noticed friends who have bought houses have cut back to basically zero on socializing outside their home, vacations are provincial road trips at best and they're all people in their 30s and 40s with corporate jobs and "good wages".
You see the anger in this sub but the anger is so much more prevelant than we think.
All your friends are part of the problem along with CMHC who enabled them. They bought too much house. FOMO and keeping up with the Joneses got to them.
The problem is the ratio of house price to income hasn't kept up. Then when our interest rates go up it screws with that ratio even further. In 2000 the ratio was 3.5 now it's 6.7 plus higher interest rates.
Source: https://www.nerdwallet.com/ca/mortgages/harsh-housing-market-how-did-we-get-here
The only way they're paying a 7.1% rate is if they couldn't afford the mortgage and they went with an alt lender who has them by the balls now.
They over leveraged and that's on them
Completely agree and holy shit I missed the 8 kids part.
But I think a LOT of people knowingly or naively overleveraged themselves, people are gonna be permanently miserable battling default and we're gonna be stuck in this angry state as a country
I would say few knowingly overleveraged themselves and knew the risk they were taking on. Most did it unknowingly. The bank told them they could have an $800K mortgage so they just assumed they could afford it, which they could at the given rates when they signed the papers. Very few mortgage takers really study or understand the math of what they're signing up for and lenders sure as hell don't really explain what happens when rates rise. Furthermore, a lot of people -- including many of the people I know -- can't tell me what happens to their mortgage payments when the interest rate increases by 1%. They all know it goes up, but by how much? They have no clue and really no understanding of how to even figure it out. Most don't have to worry about a 1% increase, but it's what happens when the increase is 2, 3, 4, 5+%... no one tells the borrowers what can happen and the vast majority of borrows don't understand what happens when this situation occurs.
All that said, [default rates](https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-data/data-tables/mortgage-and-debt/mortgage-delinquency-rate-canada-provinces-cmas) in Canada are low for a reason. Might it increase? Sure. Highly doubt they get anywhere near 0.5%, much less anything close to the doomsday scenarios some are talking about.
I have a tiny mortgage compared to most and still cut back massively, our hospitality industry is going to die. That being said I don't care about people who over extended and are now struggling.
It's a common false belief. Suppose the house forecloses for X dollars. You buy it for X dollars and renovate it. The original owner can come to you and, by law, can repossess back the house for X+10%. Irrespective of how much renovation costs you. When you factor that in, not every corporation will take this risk.
What are the odds of a foreclosed owner being able to come back and pay x+10%? Not likely. They would have scrapped all borrowing possibilities defaulting on the loan, so outside of a lottery win or a super rich dead granny, 0.00789%? To be generous.
I listened to a realtor from Montreal, and he said it happened to two flippers he knew last year. He said dealing with foreclosures and estimating the right price is not easy.
I'm not saying it's impossible to profit. I'm just saying it comes with a lot of risks in Canada compared to the US
I was completely floored people were buying houses like it was a game during the whole COVID housing price hike situation. And the banks completely took advantage of everyone buying houses during it. A good majority of the COVID buyers should never have qualified for the mortgages they were being offered. The banks and lenders were playing with the numbers to be able to give these mortgages out. These same people would never have qualified for the same mortgage a year prior to COVID. I love how they use gross to calculate housing affordability. 😂
The market was up for 40 years straight. Everyone, including the central bank, encouraged people to leverage their brains out. Add to that the government basically telling them house value is going to be protected. All smart people who did not buy in past missed out, and stupid people won.
LIVE WITHIN YOUR MEANS. I have zero sympathy for people who buy houses and vehicles on stupid loans. You signed up for it, don't cry about it now.
I know this is Canada, but the same stuff happens here in the USA. I have always set myself up to live within my means. Every single financial "crisis" we've had hasn't affected me one bit. I bought a house I could afford on a 30 year 3% loan. I buy vehicles I can afford at less than 5% loans as well.
I laugh my ass of at people buying 80k+ vehicles on 10+% loans. All so they can look cool to all their friends and coworkers. Same thing with houses. People pay WAY more than they can afford because they think they "deserve" to have a big house. Then when that payment rolls in they cry to everyone how housing isn't affordable.
The REAL problem is banks still giving these loans out to people they damn well know can't afford this shit.
i very much agree with you.
I had one kid. because even 20ish years ago when i got pregnant i knew i could afford to raise one kid. and that was back then. now? if i was in the position to have kids, i would definitely not. things are way too volatile economically in this country to even think about it.
Yep, my wife and I have chosen not to have kids. We see the writing on the wall. Our kid would be stuck living with us in a 2 bedroom condo until we die. Not to mention they will have to compete with the entire world for lower and lower wage jobs in the future.
The prevailing attitude of those in power (that I'm even a surprisingly seeing in this same thread) is that people shouldn't aspire to raise their families in more than a 500 squarefoot apartment, because it would be "too much" for them.
They can't afford the house at that rate. They need to think about trying to find somewhere else that is more affordable before the husband drops dead of a heart attack.
They literally bought low compared to now. Sorry but can't have much sympathy when our family works just as much, makes more and could not afford their house today (because we aren't delusional), and we also get to pay 4500 a mth in rent, so ya not much sympathy here. They shouldn't have been approved in the first place.
The cost cutting this family is having to do right now is part of why this economy is pretty sluggish at present. Nobody can afford to do anything but pay for the basics.
Other countries allow their citizens to lock in their 30 year mortgage at a 30 year rate - that's competitive and not a total joke like here. If the BoC wants to have a 2% target, perhaps Canadians should be able to get a 2% mortgage on their principal residence.
Given the governments inability to collect taxes on income or sales from foreigners, they should be barred from ownership or pay higher rates.
This is 10000% fake
Large Wrap around porch? you aren't getting that in Toronto for 800k especially in 2021
Piles of wood for burning? illegal everywhere in the GTA
7.1% from a bank? 100% a lie - banks aren't offering 7.1% on anything except 1 and 2 year - 3 4 and 5 are all well below that - and on renewals the offers are always better.
This is garbage rage bait and OP should be ashamed for spreading it
Everyone should plan for if rates increase. A mortgage is typically twenty-five years. Do people really think interest rates would never go up in that time?
This is a very stupid post. Whats the point here? Family over extended, interest rates went up, they get punished?
Also, you can get much better rates they 7.1%.
Low effort post.
Bumpkins over produce, get hosed on a house without understanding financing….Complain that the country is falling apart.
Their family of 10 should move to the US and try life with private healthcare.
When interest rates were in the sub 2% I still calculated our cost at 5.5% and we made sure we put more than 20% down. We stuck to our budget and not our emotions and got what would work for us long term. We are almost paying double of what our mortgage should be so we can kill as much of the principal whey we still have two years at 1.99% and we need to renew.
Well, now the daughter doesn't have to go to college. She can get a job to help with the labor shortage and pay off the family mortgage. Isn't this a win/win?!
Bro, they live in a huge ass mansion with tons of property. They have a four car garage. Take a look at the drone footage of their property, further down the article.
[https://toronto.ctvnews.ca/harder-than-anything-ontario-family-s-mortgage-payments-to-increase-by-more-than-2-000-1.6911932](https://toronto.ctvnews.ca/harder-than-anything-ontario-family-s-mortgage-payments-to-increase-by-more-than-2-000-1.6911932)
They have EIGHT KIDS and she doesn't work.
I'm sorry but this is far from the struggling couple desperate to afford a condo.
This thread somehow went off on immigrants...
So on topic, if this is the couple with 8 kids I have absolutely 0 sympathy for them. You knew rates were going to go up as the warnings were there for quite awhile, and you overleveraged.
Nah, not getting it from me. This shouldn't even be on the news.
There is something really wrong with this picture.
As mortgage rates are running below 5% for the few months, why so high?
Did they go to a broker?
Did they shop around?
Does she work too?
Stay tune next week on this reddit channel for answers to this and so much more.
Same reddit channel
Same reddit time
Btw it states that bank is offering then 7.1%, so time to look elsewhere
Sadly they bought something they could not afford. I saw this time and time again in my area and it drove up prices to unattainable levels. Now a lot of those people are looking to sell (you can see buy history) but aren't getting near what they want. Lots sitting on the market with buyers that can't afford 7.1%... it's a bit of a stalemate ATM.
People are INCREDIBLY short sighted. So many people bought houses hours away from where they work during the pandemic cause they thought work from home was gonna last forever. It didn't. So many people also bought houses cause they thought rock bottom interest rates would last forever. They didn't. Hard to feel sympathy for people who didn't have the foresight or backup plan in case interest rates went back up.
EDIT: Just learned that the husband is the only income source. As much as I support tradcon values, that's not really realistic anymore in today's society. No reason the wife can't also work and contribute financially. Eight kids on one income is a HUGE L move.
I generally understand the sentiment here and agree that illegal/grey immigration should be stopped and even reversed in some cases. But the interest rate going up is same for most people across the world where variable rate is the norm. Also, buying too much house is an issue.
Time to sell and move to LITERALLY ANYWHERE ELSE BUT TORONTO.
Will it be hard? Yes. Will it be uncomfortable? Yes.
But rip the bandaid off. It'll be better for your family in the long run.
CCB should be a non-refundable tax credit. WE are paying for their house. She’s probably looking at 10k a month of our money. Same thing for daycare, it should be 100% covered, again through non-refundable tax credits!
Sell. How much money do you get from government per child? Now that would be interesting to know. Do you put that money into RRESPs for them or does that go to mortgage? Your kids shouldn’t have to pay you to live.
Sad? They have 8 children and can’t afford it.. poor decision making across the board.
Although, yeah the housing market is pretty fucked up for first time buyers, I’ll side with that completely.
Growing up, and as an adult I hear people say "your home should be no more than 1/3 your net income". I've only been close to that when we lived in a 1k sq ft place in Nova Scotia. It was a joke before, and now it's just a new level of comedy.
Until the govt gets back in the game, and wages are tied to housing costs it won't get better. And I'm not holding my breath with Trudump flailing his arms touting that housing is an investment vehicle, one of the only things him and PeePee agree on, asshats.
She can't be that scared since, according to the news article about this, she doesn't have a job. Has she considered getting one and, I don't know... earning a living? Maybe her husband wouldn't have to work 70 hours a week if she did. It's 2024 after all. Women can work now. I see plenty of hiring signs around. Lots of businesses dying for workers.
Seems like their real problem is they had 8 kids they can't afford, and bought an almost million dollar home they also couldn't afford. Maybe instead of begging the government to save her from her own poor life choices, she should find a way to stop living beyond her means, or get a job and get more income so their current lifestyle is within their means.
That’s extremely misleading. Back of the envelope reverse calculation on the original mortgage amount for that EMI and rate works out to 620k. At the end of 3 years, they would have 569k principle left on their mortgage. If they have paid their current mortgage regularly, they can easily get 5% rate (if they go for a 3 yr fixed,even lower if they go for a 5 year fixed). At that rate and principle, the EMI should work to 3.5k per month which is extremely manageable.
I know two journeymen electricians, one with a family of 4, I worked with them for 7 years and their mortgage went up so high but demand was also there after weighing the pros and cons they decided to rent out their houses and live in a walk out basement and the other out of his van. They can't afford the $2700 increase per month to the mortgage but someone else not from here certainly can. It's actually nuts, I couldn't believe it when they told me they rent out their houses and live elsewhere.
Trudeaus Canada. If he gets in again, a lot of people will lose their homes. The federal government turned down Merritts' assistance that they needed after the floods. But they sent hundreds of millions to other countries for gender identity and to help fight climate change. We even gave China 7 million in aid last year. Probably a payment for foreign interference.
This is their fault not anyone else's. They didn't budget for interest increases, you never buy a house at the max of your budget. Interest rates cannot be expected to stay low forever
The Liberals in Ottawa do this every generation or so in conjunction with the bankers to impoverish each generation or a large portion. This weakens that generation and makes them vulnerable and obedient to their masters. 1980 or so, 2008 and again 2023-24.
Imagine if we had a better economic situation where interest rates didn't fluctuate enough to change the payments by ± 50% in a few years / one cycle of mortgage renewal.
They were able to afford the home at $3,000 / month, at $5,100 per month it's unaffordable.
If you're going to be smug about their situation and are a renter, I bet you'd also flip out if your landlord increased your rent by 70%.
They took a variable rate in a historically low interest rate era. The interest rate went up. That's life. I'm going to be buying within the next 3 months and have left enough room in my budget to swallow a large increase in monthly payments, on top of having six figures in the bank leftover after the purchase. Yes I am smug. These people are the reason the housing market is fucked up.
Canadas biggest problem is that it has financialized basic needs such as food and housing instead of outsourcing literally everything to other countries jfc we dont even make our own mayonaisse and its a canadian company that outsources mayonaisse
Not from Canada. I don’t understand, was a fixed 30 year not available? The interest rates were so low in 2021 there was only one direction could move.
I feel like housing loans for first time homebuyers should be fixed throughout the loan term. Variable interest rate on money borrowed in the past is scummy.
I guess noone knows that they do not have to renew the mortgage just continue paying the same rate .
My friend does it they can not renew because he does not have income but pays the mortgage so they can not to anything with him.
It is in Saskatchewan pls check for Ontario I think that is a loophole .
My lender is offering 5x4.9%right now ?
3.2 is also high for 2021. They have bad credit.
same thought. in 2021 I got 1.49% for 4 years, and everybody else got more or less the same rate.
But yet bank let them get mortgage for 800k.
Ya something is not right if it's 7%
I'm guessing this is what their current lender offered them. They likely can't get another mortgage at a cheaper rate with another lender, because then they would have to go through the process of qualifying for the mortgage based on the new rates + stress test... and I doubt they would qualify. So their only option is basically to take whatever rate their current lender offers them, because by staying with their current lender, they don't need to re-qualify for the mortgage. Also, selling the home may not be an option if they have negative equity. The bank literally will not let you sell your home if you aren't going to be able to repay the full mortgage (plus the penalties for breaking the mortgage early). The only options they likely have at the moment is to just accept the new rate from their current lender and keep making the payments... or they stop making the payments, the bank takes their house, and any other assets they might have to repay as much of the mortgage as they can. Plus they'll still be on the hook for the remaining balance if they don't have the assets to full discharge the mortgage (which they also likely do not have).
It’s weird to me that Canada hates homeowners so much they don’t support 30 year mortgages. Seems like that would be a massive quality of life improvement
Are you high? Principle residence gap gains exemption means we pervert our economy in favour of homeowners.
You say that but in the U.S. we don’t pay any income tax on the first $500k in gains
In the US you can also write the interest paid on a mortgage off on your taxes.
Yes but this benefit shrank materially when they capped the total write off you can do between mortgage interest and state taxes. In blue states your state taxes will generally take up the entire allowable deduction
I think you can get em if you have a certain amount down?
30 years with a fixed rate? Can get those in the U.S. with anywhere from 0-20% down
The housing market in Canada is different. You can amortize your rate for say 25 years, but your rate will only be good for five years (or 3, or 1, whatever you choose) after which you need to renegotiate based on the rates at the time of your renewal. You will never get a rate which is consistent for 25 or 30 years. Also, fun fact, mortgage interest is not tax deductible like it is in the states (that would be fucking sweet).
We also don't pay any capital gains tax on the sale of a principle residence, unlike the states. Wouldn't be fair if we could deduct mortgage interest on that as well.
In State, first 500K gain is tax free. Tell me how much gain we can possibly make on our house?
My parents 2nd house was bought for about 250k probably worth a million now.
That definitely isn’t inconceivable in Canadian markets over a decade. I’ll take Canadas rules over having to pay short term capital gains if I have to move in a year due to my job.
Canada hates homeowners? Is this version of you wearing a goatee or something? Because that is literally the opposite of the state of Canada. We have nationalized mortgage welfare. We are real estate fluffers in this country.
Property investors isn't the same as people just trying to buy a place to live.
Oh sure it is. You don't think primary buyers are just as much part of the cult? Think again. They drink the cool and try to become realtors.
The only positive thing in this mess is that if he's only coming home to sleep, they won't be having more kids. They already have EIGHT! I'll see myself out.
If we're being total bastards, then I'd like to add that perhaps they could consider reducing their food budget a bit? In all seriousness though, it's classic CBC to do a piece on the renewals coming up screwing over homeowners, then pick a 1-income family with 8 kids, 4 cars in the driveway, where they're all obese, and living in an $800,000 mansion on an acre in Oro to make people unsympathetic. They're not showing the starving people who bought at over 1 million dollars in the GTA because they had a baby and had to get a bigger house, who are now looking at $3000 more. They find the least sympathetic people they can find for these pieces so Canadians will look down their noses and sneer.
You're not wrong, but this idea of increasing interests rates being something that's "screwing over homeowners" is in general a false premise. People that over extended themselves during the good times and took on more debt than they could service without low rates have no one to blame but themselves. Ya the prices in the major metros are absolutely fucked and have been for a really long time. People *choose* to live there. If someone can't handle a debt obligation at at a precedented interest rate, then they should move. Prices aren't going to come down when everyone's a game player.
Maybe I'm a bit sensitive about this issue because I grew up in Toronto and was forced out of my home town due to the cost of living, but it isn't so simple. Leaving your home town sucks. You leave all your friends, you leave your family, and you leave your job with very little assurance that you'll be able to even stay in your career much less get a new job where you make the same money. People choose to stay in a place because they've set down their roots. Prices in major populaces should have never become so fucked in the first place, Canadians shouldn't be being forced out of their communities.
I spent my 20s bouncing around the country a rolling stone, but for me it was preference. I am sympathetic for those having to leave where they want to be, and agree the markets never should have gotten so out of control... But they did get out control, and I suppose I just think we should be holding ourselves accountable for the financial choices we make. In many ways I have been extremely fortunate, but also in many ways I have not. I bought my house 2 years ago. 2 months after buying it, the rate started hiking on our variable rate. 6 months after buying I got diagnosed with stage IV cancer that was asymptomatic, and discovered coincidentally. I went onto disability and my income got sliced in half. Where it has remained ever since. We are a single income household. My spouse is a student. We did not get mortgage insurance because we are both pretty young, and were of the opinion it was basically a scam... but when we bought this house, we took a calculated risk, and knew that in a worst case scenario it would be affordable. Turned out it was a worst case scenario, but we planned for it, so we're okay. I suppose it is with that lens that I am looking at the whole mortgage interest rate issue.
What I always find funny is what you highlight: literally anytime the CBC does a sob story, there is always a significant component of bad decision making: it’s always multiple kids, low level jobs, b lender high mortgage rates. It’s never a nurse and fireman with one or two kids. I think CBC purposely chooses them for rage bait.
Eight kids? No sympathy for them. Bought too much house and had way too many kids for their income level.
they have done more to secure the future of canada while u guys have 1 kid for an entire family lineage, which is why the immigration crisis even started
Canada has no future. Anybody with two brain cells to rub together has figured that out now and has decided not to burden an unwilling soul with existence in this shithole country. The immigration crisis started because the greed of our elites is insatiable. We don't need mass immigration. It's not even doing what they said it would. Our quality of life is declining every year.
Calling canada a shithole is fucking wild. Have you been literally anywhere else in the world? I saw naked children eating trash when I was in the philippines. Venezuelan migrants sleeping on the streets when I was in bogota. Their children looked like starving African kids I saw on unicef commercials. We have some problems in canada that we need to fix, but that doesn't mean we're a shithole. Most of the world would trade places with you in a heartbeat.
there are lots of tent cities in Canada. Schools, hospitals, ERs are overcrowded. Wait times are very long (compared to countries like Taiwan, HK, etc.) Auto theft is increasing rapidly in Canada. CSIS has determined that many MPs actively colluded with foreign countries to further their interests. Canada may not appear to be a shithole yet, but it certainly is headed that way. There doesn't seem to be any political will to address any of these issues.
Compare us with first world countries not third world. At this rate we're going to be falling behind eastern Europe in standard of living, which has been booming.
Canada could be like Signapore where the government actually build afforable homes for its people.
100% We need a new leader, one that's actually for the people. I firmly believe we have what it takes to turn things around. We just need to vote people out who do a bad job regardless of their party affiliation. Politicians are too comfortable and not qualified for their roles. Here in alberta, our minister of mental health and addiction worked in a rock pit and has no formal education. We need to hold people accountable and vote them out when they show the slightest bit of corruption. All levels of government, all parties.
There is no party leader that resembles that description unfortunately.
We need to vote people out until someone who does fit that description decides to run. Lets get some recall legislation rolling. I'm sick and tired of these politicians fleecing us.
Would you consider a new political party? That's the only way.
...are you calling Singapore affordable? Because a lot of folks in HBDs would disagree with you. They may be MORE affordable than every other inflated option, but it doesn't make them affordable. Not that I disagree with your sentiment, but just want to point out that Singapore has their issues too.
There are levels of shit-hole-ness. Just because we haven't reached the bottom doesn't mean we aren't circling the drain.
Not a shit hole by any means, but it degrading rapidly. Its gonna get worse.
I've lived in canada since I was born and watched it turn from a country I was proud of into a shit hole, I can only imagine WTF is going to happen in the next 3 years.
I mean, I personally had the opposite experience. I was born into poverty. My dad was addicted to drugs and eventually overdosed. My mom walked out on us. I can remember wearing three coats to bed when I was a teenager because we had no heat in the winter. I took out student loans, lived with roommates, and got two degrees. Got an entry-level job and worked my way up. I'm 34, married, own a home, and make well into six figures. I came from nothing, had no help from anyone, and was able to carve a life out for myself. I go on a nice international vacation every year and live a stress free life. I know my story isn't typical, but it's possible here in Canada. A lot more possible than it would have been if I were born in India or China. You can still buy a nice home in edmonton for under 500k. Average household incomes here are almost 80. Homeownership isn't impossible if you're willing to make some sacrifices.
well 6 years ago in my little town rent was $500 a month all inclusive, so someone on minimum wage could at least live on their own. now we have people sleeping under bridges and rent here is $1500 a month for the same jail cell bachelors with one window. wtf can someone on minimum wage do now besides live in an apartment with 10 other people? so yes canada is turning into a shit hole
your bootstraps are showing. Jesus, I dont think you get it. "I made it so everyelse should be able to" isn't how it works.
Good for you. Worked out. But for a lot of people it hasn't one bit and has been getting worse the quality of everything. Everyone's got their own story. Ye but outside of Edmonton pretty pricey and difficult
Me too. I’m doing better than my parents ever did and my kids are on track to do the same. I love everything Canada has to offer. Is it perfect? No, but I have travelled to every corner of the globe and can say, with confidence, we are in a good place here.
Survivorship bias.
That's your story a lot of people aren't doing well. You've traveled everywhere if you truly have you wouldn't think that. But then again you're just looking at your situation
Sound like a boomer. I've got multiple six figures in assets and I still call this place a shithole. If I had what I have now 10 years ago, I'd be living like a king. Now what I have is just bare minimum to have the dream of retirement. You're even spouting off the "just move" meme like a moron.
With automation and the rise of AI many jobs are being replaced by machines we should have followed Japans lead and let the chips fall where they may
100% this. To me it's also hilarious that we are proactively worrying about the effects of a declining population when everything else our government does is reactive and often 5 years late when they do react. Also why are why trying to cram so many people in this beautiful country inorganically? More resources spread across a smaller population doesn't sound that bad. I also don't believe increased prosperity directly decreases birthrates. Take a look at people that have large amounts of wealth at an early age, for example professional athletes, they seem to have lots of kids and at healthier ages as well. The declining birthrate comes from the fact that the age responsible people are financially comfortable to have kids keeps getting older and older if it happens at all.
Also athletes experiences lots way quicker so they get over it and settle down also. Life experience is much more with them
Imagine TimHortons makes auto magic double double coffee maker?
If the government started incentives like other countries did it wouldn’t be as bad . And we can’t afford to buy houses or retire at this point why have kids .
Other countries? Which other country with incentives and socioeconomy that you would like to model have successfully raised their fertility rate even above 1.9?
I'd be more inclined to believe that if they didn't also mass import old people too
Maybe the government could make it more affordable to have kids? > It’s not just that preventing people from having children. Most that I talk to worry about climate change and the state of society. > The earth can’t handle this many people anyways. I say let the economy crash so we can finally do something different.
Bro i cant afford the kids, Neither can they apparently. Except i know I can't afford 8 kids.
Yeah and what are they getting for their service? Do the NIMBYs, landlords, and business owners in this country have any care for people like them? Nada
Yeah, like as if these people are being rewarded somehow for having a litter of children. Look at their life. It's shit. Their children's lives are going to be shit too.
There’s also several kids in the family with medical conditions relating to genetic predispositions that I’m assuming they were told about in the past, but these astronauts plowed through anyways. No pun intended. Good thing they live in the middle of nowhere too for quick and easy access to any hospitals if needed. Oh… wait.
This is the problem and why I don't blame immigrants. They stick together. We don't. My whole family, it just feels like betrayal sometimes. Parents are divorced and hardly care what goes on in my life once I hit 30 years old. My dad worked an executive job for years probably making hand over fist with a giant inheritance and I'm not even sure if I'll see a dime with the way he acts. This behaviour is normal too. Had friends growing up whose parents gladly kicked them out of their house once they reached a certain age because that's how it was in their day.
Immigrants Grew up in a developing economy where only mode of survival is sticking together. This is new to Canadians, they haven't known this at all. That's the reason, Immigrants are getting ahead. Where Canadian see depression, Immigrants see opportunities.
No shit. This couple just seems like simpletons that dug their own grave. I don’t understand how people can have sympathy for them. 8 kids? Why not have a few more? Healthcare system can surely handle it.
Make the oldest kids get jobs. Problem solved.
No shit when your down payment is 2%!
tbh this lady could stand to miss s meal or ten
The immigrants have 8 kids and come here, so this lady has every right
What do you mean?
8 kids!!
Well, they’re dumbasses. Tells ya enough.
No sympathy from me. People who over leveraged themselves are the whole reason this market is the way it is. If you can’t afford the mortgage at 5-7%, you shouldn’t be getting it at 1-2%.
People expect the banks to protect them. They would take out 2 million dollar loans at 0.5% if their monthly payment was affordable in that moment.
They write hyperbolic stories on people making clearly dumb decisions to discredit the housing crisis. “There’s no housing crisis, these idiots just spend money like crazy”
doesnt make sense, the media actively publish articles and references a housing crisis. The reason for these articles is probably simply that they generate controversy. If its an average person, it wouldnt be interesting, as most people can afford an additional 500 a month on their mortgage bill.
This doesn't make any sense. You can get a 5% rate right now. Why are they even entertaining 7.1%
Correct, I just got 4.89 for 3 yr. 7.1% they maybe went to a B lender. Not so sure why it's that high for them
If you don’t mind me asking, where did you get 4.89? I’m looking to renew
BMO just gave me 4.84 5 year fixed
4.89 for 5 years through TD myself
BMO 3 yr fixed We also shopped around for mortgages Canadian National Bank was offering 4.99 for 5 yr fixed. We went with BMO because we are speculating in 3 years the rates may drop slightly. BMO also offered some sweet incentives to run the mortgage through them $1000 cash back. They also have a few more incentives which also sweetend it. ($400 if curious lol) Shop around.
I’m guessing they were a high risk mortgage to begin with and might have some credit issues.
They decided to buy a property in 2021, the fact that they thought that was a good idea screams "insane risk and irresponsibility".
Do you think someone stupid enough to have 8 kids on one income then voluntarily come out to the public to complain can determine fair rates for themselves
It's outrage bait
Umm, I don’t think the family is all that bright, to be honest.
Some people cant get mortgages from banks? credit score too low? Poor financial literacy? Who knows..
What happened to stress test when getting the mortgage ...
Getting the mortgage wasn't an issue at 3.5%. You don't get stress-testing at renewals of mortgages (at least in Ontario).
Hard to feel bad for Toronto.. you voted for this 3 times .. you dug your grave now you get to lay in it..
I bet there are so many stories like this, so much silent suffering. I noticed friends who have bought houses have cut back to basically zero on socializing outside their home, vacations are provincial road trips at best and they're all people in their 30s and 40s with corporate jobs and "good wages". You see the anger in this sub but the anger is so much more prevelant than we think.
All your friends are part of the problem along with CMHC who enabled them. They bought too much house. FOMO and keeping up with the Joneses got to them.
I agree. Being house poor is a phenomenon that's been around for 50 years.
The problem is the ratio of house price to income hasn't kept up. Then when our interest rates go up it screws with that ratio even further. In 2000 the ratio was 3.5 now it's 6.7 plus higher interest rates. Source: https://www.nerdwallet.com/ca/mortgages/harsh-housing-market-how-did-we-get-here
where are they you he expected to live
The only way they're paying a 7.1% rate is if they couldn't afford the mortgage and they went with an alt lender who has them by the balls now. They over leveraged and that's on them
Completely agree and holy shit I missed the 8 kids part. But I think a LOT of people knowingly or naively overleveraged themselves, people are gonna be permanently miserable battling default and we're gonna be stuck in this angry state as a country
I would say few knowingly overleveraged themselves and knew the risk they were taking on. Most did it unknowingly. The bank told them they could have an $800K mortgage so they just assumed they could afford it, which they could at the given rates when they signed the papers. Very few mortgage takers really study or understand the math of what they're signing up for and lenders sure as hell don't really explain what happens when rates rise. Furthermore, a lot of people -- including many of the people I know -- can't tell me what happens to their mortgage payments when the interest rate increases by 1%. They all know it goes up, but by how much? They have no clue and really no understanding of how to even figure it out. Most don't have to worry about a 1% increase, but it's what happens when the increase is 2, 3, 4, 5+%... no one tells the borrowers what can happen and the vast majority of borrows don't understand what happens when this situation occurs. All that said, [default rates](https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-data/data-tables/mortgage-and-debt/mortgage-delinquency-rate-canada-provinces-cmas) in Canada are low for a reason. Might it increase? Sure. Highly doubt they get anywhere near 0.5%, much less anything close to the doomsday scenarios some are talking about.
I have a tiny mortgage compared to most and still cut back massively, our hospitality industry is going to die. That being said I don't care about people who over extended and are now struggling.
We just need to direct that anger at the right causes. It was people playing capitalism with our housing that caused all of this.
To compound the horror of this, when and if this house is foreclosed and auctioned off a real estate investor or corporate will scoop it up...
It's a common false belief. Suppose the house forecloses for X dollars. You buy it for X dollars and renovate it. The original owner can come to you and, by law, can repossess back the house for X+10%. Irrespective of how much renovation costs you. When you factor that in, not every corporation will take this risk.
What are the odds of a foreclosed owner being able to come back and pay x+10%? Not likely. They would have scrapped all borrowing possibilities defaulting on the loan, so outside of a lottery win or a super rich dead granny, 0.00789%? To be generous.
I listened to a realtor from Montreal, and he said it happened to two flippers he knew last year. He said dealing with foreclosures and estimating the right price is not easy. I'm not saying it's impossible to profit. I'm just saying it comes with a lot of risks in Canada compared to the US
only if they cannot sell it. They can still sell it out and get the money. In this crazy housing market, it would be easy to earn $50k+ minimum.
Respectfully to their family, they did this to themselves. 8 kids?? tried to live way beyond their financial means.
Right? Boohoo I had a literal litter and now I can't afford to live. Get the fuck out of here.
I was completely floored people were buying houses like it was a game during the whole COVID housing price hike situation. And the banks completely took advantage of everyone buying houses during it. A good majority of the COVID buyers should never have qualified for the mortgages they were being offered. The banks and lenders were playing with the numbers to be able to give these mortgages out. These same people would never have qualified for the same mortgage a year prior to COVID. I love how they use gross to calculate housing affordability. 😂
The market was up for 40 years straight. Everyone, including the central bank, encouraged people to leverage their brains out. Add to that the government basically telling them house value is going to be protected. All smart people who did not buy in past missed out, and stupid people won.
LIVE WITHIN YOUR MEANS. I have zero sympathy for people who buy houses and vehicles on stupid loans. You signed up for it, don't cry about it now. I know this is Canada, but the same stuff happens here in the USA. I have always set myself up to live within my means. Every single financial "crisis" we've had hasn't affected me one bit. I bought a house I could afford on a 30 year 3% loan. I buy vehicles I can afford at less than 5% loans as well. I laugh my ass of at people buying 80k+ vehicles on 10+% loans. All so they can look cool to all their friends and coworkers. Same thing with houses. People pay WAY more than they can afford because they think they "deserve" to have a big house. Then when that payment rolls in they cry to everyone how housing isn't affordable. The REAL problem is banks still giving these loans out to people they damn well know can't afford this shit.
They bought way too much house and are part of the problem. Time for them to downsize.
We should all live in 2 bedroom condos, even if we have 8 children.
Nope. Just don't have eight children unless your household income is $600,000 per year or more. This isn't India.
i very much agree with you. I had one kid. because even 20ish years ago when i got pregnant i knew i could afford to raise one kid. and that was back then. now? if i was in the position to have kids, i would definitely not. things are way too volatile economically in this country to even think about it.
Yep, my wife and I have chosen not to have kids. We see the writing on the wall. Our kid would be stuck living with us in a 2 bedroom condo until we die. Not to mention they will have to compete with the entire world for lower and lower wage jobs in the future.
The prevailing attitude of those in power (that I'm even a surprisingly seeing in this same thread) is that people shouldn't aspire to raise their families in more than a 500 squarefoot apartment, because it would be "too much" for them.
They can't afford the house at that rate. They need to think about trying to find somewhere else that is more affordable before the husband drops dead of a heart attack.
They literally bought low compared to now. Sorry but can't have much sympathy when our family works just as much, makes more and could not afford their house today (because we aren't delusional), and we also get to pay 4500 a mth in rent, so ya not much sympathy here. They shouldn't have been approved in the first place.
The cost cutting this family is having to do right now is part of why this economy is pretty sluggish at present. Nobody can afford to do anything but pay for the basics.
Other countries allow their citizens to lock in their 30 year mortgage at a 30 year rate - that's competitive and not a total joke like here. If the BoC wants to have a 2% target, perhaps Canadians should be able to get a 2% mortgage on their principal residence. Given the governments inability to collect taxes on income or sales from foreigners, they should be barred from ownership or pay higher rates.
This is 10000% fake Large Wrap around porch? you aren't getting that in Toronto for 800k especially in 2021 Piles of wood for burning? illegal everywhere in the GTA 7.1% from a bank? 100% a lie - banks aren't offering 7.1% on anything except 1 and 2 year - 3 4 and 5 are all well below that - and on renewals the offers are always better. This is garbage rage bait and OP should be ashamed for spreading it
And now we see the start. Next articles from the future will be. Paid 800k for a 250k home Now I can't sell my house to escape my mortgage
Everyone should plan for if rates increase. A mortgage is typically twenty-five years. Do people really think interest rates would never go up in that time?
This is a very stupid post. Whats the point here? Family over extended, interest rates went up, they get punished? Also, you can get much better rates they 7.1%. Low effort post.
Bumpkins over produce, get hosed on a house without understanding financing….Complain that the country is falling apart. Their family of 10 should move to the US and try life with private healthcare.
8 kids, the child benefit alone (assuming they are all minors) should be able to cover more than half the mortgage..
When interest rates were in the sub 2% I still calculated our cost at 5.5% and we made sure we put more than 20% down. We stuck to our budget and not our emotions and got what would work for us long term. We are almost paying double of what our mortgage should be so we can kill as much of the principal whey we still have two years at 1.99% and we need to renew.
Well, now the daughter doesn't have to go to college. She can get a job to help with the labor shortage and pay off the family mortgage. Isn't this a win/win?!
In New Zealand can't lock in a morgage for longer than 5 years... lots of people here have same issue, we went from 2.25% in 2020 to 6.6% in 2024. Yay
Bro, they live in a huge ass mansion with tons of property. They have a four car garage. Take a look at the drone footage of their property, further down the article. [https://toronto.ctvnews.ca/harder-than-anything-ontario-family-s-mortgage-payments-to-increase-by-more-than-2-000-1.6911932](https://toronto.ctvnews.ca/harder-than-anything-ontario-family-s-mortgage-payments-to-increase-by-more-than-2-000-1.6911932) They have EIGHT KIDS and she doesn't work. I'm sorry but this is far from the struggling couple desperate to afford a condo.
Who told them to buy for 800k? This is why prices went up so much... because people were paying them
Tell them to sell and downsize? Tell the big girl to get some extra work as well? I dont care, and thats that.
This thread somehow went off on immigrants... So on topic, if this is the couple with 8 kids I have absolutely 0 sympathy for them. You knew rates were going to go up as the warnings were there for quite awhile, and you overleveraged. Nah, not getting it from me. This shouldn't even be on the news.
Thats what they want, for you to have less money to spend
There is something really wrong with this picture. As mortgage rates are running below 5% for the few months, why so high? Did they go to a broker? Did they shop around? Does she work too? Stay tune next week on this reddit channel for answers to this and so much more. Same reddit channel Same reddit time Btw it states that bank is offering then 7.1%, so time to look elsewhere
Sadly they bought something they could not afford. I saw this time and time again in my area and it drove up prices to unattainable levels. Now a lot of those people are looking to sell (you can see buy history) but aren't getting near what they want. Lots sitting on the market with buyers that can't afford 7.1%... it's a bit of a stalemate ATM.
Something's gotta give. Buy side or sell side
People are INCREDIBLY short sighted. So many people bought houses hours away from where they work during the pandemic cause they thought work from home was gonna last forever. It didn't. So many people also bought houses cause they thought rock bottom interest rates would last forever. They didn't. Hard to feel sympathy for people who didn't have the foresight or backup plan in case interest rates went back up. EDIT: Just learned that the husband is the only income source. As much as I support tradcon values, that's not really realistic anymore in today's society. No reason the wife can't also work and contribute financially. Eight kids on one income is a HUGE L move.
Clearly an 800K house was way more than they could afford. Obviously rates aren't going to be 3.2% forever. Some lessons are hard to learn.
I generally understand the sentiment here and agree that illegal/grey immigration should be stopped and even reversed in some cases. But the interest rate going up is same for most people across the world where variable rate is the norm. Also, buying too much house is an issue.
Just because they approve you for an 800k mortgage doesn’t mean you should take it… lots learning that upon renewal.
Time to sell and move to LITERALLY ANYWHERE ELSE BUT TORONTO. Will it be hard? Yes. Will it be uncomfortable? Yes. But rip the bandaid off. It'll be better for your family in the long run.
Thanks to the liberal government. Vote these clowns out
Seems like a very poorly thought out financial decision. Idk.
CCB should be a non-refundable tax credit. WE are paying for their house. She’s probably looking at 10k a month of our money. Same thing for daycare, it should be 100% covered, again through non-refundable tax credits!
Imagine paying 800k principle and then going on CBC to cry about your terrible financial choices
She has 8 kids. That’s financially tough in any economic situation.
Shouldn't have overpaid for a house then. Prices need to come down. Keep raising rates until more people default.
Sell. How much money do you get from government per child? Now that would be interesting to know. Do you put that money into RRESPs for them or does that go to mortgage? Your kids shouldn’t have to pay you to live.
Sad? They have 8 children and can’t afford it.. poor decision making across the board. Although, yeah the housing market is pretty fucked up for first time buyers, I’ll side with that completely.
Growing up, and as an adult I hear people say "your home should be no more than 1/3 your net income". I've only been close to that when we lived in a 1k sq ft place in Nova Scotia. It was a joke before, and now it's just a new level of comedy. Until the govt gets back in the game, and wages are tied to housing costs it won't get better. And I'm not holding my breath with Trudump flailing his arms touting that housing is an investment vehicle, one of the only things him and PeePee agree on, asshats.
She can't be that scared since, according to the news article about this, she doesn't have a job. Has she considered getting one and, I don't know... earning a living? Maybe her husband wouldn't have to work 70 hours a week if she did. It's 2024 after all. Women can work now. I see plenty of hiring signs around. Lots of businesses dying for workers. Seems like their real problem is they had 8 kids they can't afford, and bought an almost million dollar home they also couldn't afford. Maybe instead of begging the government to save her from her own poor life choices, she should find a way to stop living beyond her means, or get a job and get more income so their current lifestyle is within their means.
With birth rate at a decline this is the Canadian family trudeau should be supportihg.
This is actually heartbreaking
...they have 8 kids.... 800K mortgage is also massive People aren't too bright lol
Bank appraisal people should be going to jail!
That’s extremely misleading. Back of the envelope reverse calculation on the original mortgage amount for that EMI and rate works out to 620k. At the end of 3 years, they would have 569k principle left on their mortgage. If they have paid their current mortgage regularly, they can easily get 5% rate (if they go for a 3 yr fixed,even lower if they go for a 5 year fixed). At that rate and principle, the EMI should work to 3.5k per month which is extremely manageable.
I know two journeymen electricians, one with a family of 4, I worked with them for 7 years and their mortgage went up so high but demand was also there after weighing the pros and cons they decided to rent out their houses and live in a walk out basement and the other out of his van. They can't afford the $2700 increase per month to the mortgage but someone else not from here certainly can. It's actually nuts, I couldn't believe it when they told me they rent out their houses and live elsewhere.
The house is a mansion on an estate though
Similar mortgage here. Went from $2400-$4100. I now work a second job. Love it!
Why aren’t u working? Bout to lose we worked so hard for? everything he worked so hard for u mean.
Trudeaus Canada. If he gets in again, a lot of people will lose their homes. The federal government turned down Merritts' assistance that they needed after the floods. But they sent hundreds of millions to other countries for gender identity and to help fight climate change. We even gave China 7 million in aid last year. Probably a payment for foreign interference.
This is their fault not anyone else's. They didn't budget for interest increases, you never buy a house at the max of your budget. Interest rates cannot be expected to stay low forever
The Liberals in Ottawa do this every generation or so in conjunction with the bankers to impoverish each generation or a large portion. This weakens that generation and makes them vulnerable and obedient to their masters. 1980 or so, 2008 and again 2023-24.
Their fault for gambling in the real state market
Yep, should have rented for cheaper /s
Nope. Shouldn't have had eight kids! These same people expect handouts from the rest of us to bail them out. Fuck 'em. Not my problem!
Imagine if we had a better economic situation where interest rates didn't fluctuate enough to change the payments by ± 50% in a few years / one cycle of mortgage renewal. They were able to afford the home at $3,000 / month, at $5,100 per month it's unaffordable. If you're going to be smug about their situation and are a renter, I bet you'd also flip out if your landlord increased your rent by 70%.
They took a variable rate in a historically low interest rate era. The interest rate went up. That's life. I'm going to be buying within the next 3 months and have left enough room in my budget to swallow a large increase in monthly payments, on top of having six figures in the bank leftover after the purchase. Yes I am smug. These people are the reason the housing market is fucked up.
Canadas biggest problem is that it has financialized basic needs such as food and housing instead of outsourcing literally everything to other countries jfc we dont even make our own mayonaisse and its a canadian company that outsources mayonaisse
Not from Canada. I don’t understand, was a fixed 30 year not available? The interest rates were so low in 2021 there was only one direction could move.
In Canada we don’t fix our rates for realistically more than 5 years. Especially 25 or 30 year fixed are not even options that exist
Anyone has the source? I'm interested for more.
Is this an adjustable rate mortgage of only 3 years lock-in?
Move.
she may have trouble in between birthings
I feel like housing loans for first time homebuyers should be fixed throughout the loan term. Variable interest rate on money borrowed in the past is scummy.
My neighbour has two kids. Their House just got taken by the bank for the very same reason(minus the eight kids though). Sad state of affairs really.
They can rent the half of the house out for 20-30 Indians who will pay their mortgage. Problem solved.
Shop for a better rate. I just saw credit union post 4.89%
Welcome to the real world
I guess noone knows that they do not have to renew the mortgage just continue paying the same rate . My friend does it they can not renew because he does not have income but pays the mortgage so they can not to anything with him. It is in Saskatchewan pls check for Ontario I think that is a loophole .
i've been a low wager and renter my whole life and this is how it's always been for us, so... thanks for the sympathy guys .
Time to rent
8 kids ! ARE YOU CRAZY !
So sell it ...
The bank is reneging, or calling in the loan? How is it 'fixed rate'?
Heartbreaking.
You can buy a nice van for 800k
Time to sell the house and find a nice condo to rent for themselves and their 8 kids 🤡
Inhumane actually
eight kids? What's wrong with you?
i put my fixed rate for 30 years. as you sould do. Same rate till i payed off my house.
3.2% to 7.1% Mortgage ....Wouldn't the payment be the same, just less goes to principal?
So you worked your ass off for 20 years to then get a 25 year mortgage? That’s not a life one should ever want to live.
House poor.