Variable Mortgages Triggered After September Interest Rate Hike From Bank Of Canada: Up 75 Bps!

[@ElevateRealtyCa]

Mortgage holders: tell us ... how does this affect you?

[@chaosanity638]

Locked in fixed until 2026. Hopefully, rates and house prices are stable by then 🤞🏽

[@mitchreynolds9841]

Same here, i guess we will see!

[@firstlast4229]

Got a low 5 year fixed last year despite 'advice' from mortgage brokers that looked solely at the fixed/variable spread and put no thought to risk management, historical averages or expectations. Now I'm saving cash and hoping for some opportunities next year.

[@tssarkozi7413]

Awesome cash flow, give it to me.

[@cwx8]

1% discount on variable 1 year ago, was doing pretty good until this. Now upside down. But.. at least I have the discount.

[@HP-zc9cp]

Thank god I didn’t listen to any agent and made my own choice by locking for 5 years under 2.5% ….

[@amoosavi]

Extending amortization should be illegal. It's a ponzi

[@RealFahimReza]

everyone was a genius in the 25 year bull market, lets see how much appetite for mortgage payments are after a few months

[@2402zia]

Yup, still riding variable and still buying homes currently. The people who were complaining about not being able to buy are still complaining and the investors are still investing. Mindset.

[@hayhay_to333]

you're very quick for releasing this video, must have had everything prepared.

[@ElevateRealtyCa]

Haha 😇

[@Lifeisapartydresslikeit]

I’m very confused with the trigger rates. I know many people with a mortgage under 300,000. I’ve spoken to them - those on variable (fixed rate) and they said they are no where close to their trigger rate. Not many people have an $800,000 mortgage??!

[@richardli5530]

Don't forget those who had to renew their fixed mortgage. They too will likely find that their payment will go higher despite some small principle paydowns now that the rate is much much higher. It is about time for mortgage rate to normalize to 5 - 7% range.

[@ElevateRealtyCa]

Yup, we brushed through this quickly. It's similar to renewing variable mortgages but the spread difference is slightly less for fixed so we used variable as baseline.

[@RJ_331]

No one's talking about paying 100% interest lol. This isn't good.

[@ericachail9449]

Hi, In regards to trigger rate and interest rate hikes and inflation. Is this a good time to have a double mortgage or sell our property??

[@parkerbohnn]

It's a good time to sell a low end property but not a good time to sell a high end property.

[@ElevateRealtyCa]

Expenses are higher than normal now which means cash flows are tighter. It's not a good idea to increase your mortgage unless you can generate more income to make up for the difference (e.g. if you can compensate for it with higher rents). Selling is tough... prices are much lower, and it's a buyers market.

[@robertblue3795]

Feel lucky to have locked in early for a 3 year fixed at the beginning of 2022,, before the war and inflation start. Great video btw.

[@ElevateRealtyCa]

VERY LUCKY!!

[@brettthomas5605]

Well for me,I'm on the other side of the coin, looking for the best rates within my savings account and my GIC investments. Mutual funds (equities) are taking a beating so we'll concentrate on these Investments for now. A small return is better than getting nothing these days. I feel sorry for those of you that have mortgages because you have a current government that has created this mess. Now apparently they are blaming everybody else but themselves.

[@dontbefooledbyjumla7869]

Yes exactly. I was trying to wait till the rate hikes were over but made mistake of investing in housing. Now suffering... It's both gov n people like me made mistakes. Bse when the home prices went up people should not have bought period.

[@kevinn1158]

BOC base rate will go to 3.75-4% this year. And then the BOC will pause and see how the economy and inflation react. And because rents are running super hot, they will continue to raise next year. Those rent prices are part of the CPI inflation numbers. Prices will continue the drop through this period. Let the last 2 yrs of gains get wiped out. Most of the bigger volume buying was around 2018/19 levels.

[@therooster4426]

Welcome to Trudolfs great reset

[@tbird792]

Variable still the way to go! "what goes up, must come down!" and rates will not stay high for long, with very fast tightening by the BoC they're sure to adjust downwards in half a year to a year

[@NightFlight1973]

I'm torn between riding out my variable and going to short term fixed 1 or 2 year. No matter how you cut that its a flip of the dice. However, whatever decision I make - the universe will inevitably make me pay more. That's just how it works for me. :/

[@ravneetgill86]

$400 doesn’t seems right ???

[@ElevateRealtyCa]

Numbers don't lie.

[@cwx8]

Personally, I'm very glad that I and my fellow middle class citizens have been selected the sole method to deal with government-induced inflation. Would be nice if the Liberals met our efforts on this and curbed spending.

[@GuansCorner]

and tax the shit out of the rich

[@torontomunda]

real estate agents time to do uber eats

[@Jiggysaw]

I am very very closed to being "triggered", less than 0.5% away :/

[@GuansCorner]

how's your amortization doing lol

[@ryguy108]

Same lol, my amortization is over 40 years now lol. Thankfully in a couple years when it comes down I'll increase my payment when interest comes down and start bringing my amortization down.

[@nicholaserwin988]

Me and my fiance just got a house in January and we were talked into sticking with variable and that we would be get a message from our broker if something drastically changed and he would come to us and say sign here in his words. Well worse case scenario happened where the rate that has been almost unchanging for years started to move....now we are approaching a point where I don't know if we will soon be able to cover costs. I know inflation just started to show a decline but we're probably still gonna see rate hikes. So shouls we changed to fixed idk....I understand it will be higher than what it is currently but atleast it will stay as is

[@GuansCorner]

as long as inflation doesn't get out of control, most of the pain is over. there might be another .5 or maybe .75% left to go in rate increases. no point locking into fixed now. maybe 1 or 2 yr fixed if the rate is right.

[@Bigjohn928]

Oh no! Tooo much interest la! How am I suppose to buy a millions dollars home?😉

[@ElevateRealtyCa]

🙄🙄

[@InvestWithRishi]

More interest means more deductibles lol

[@ElevateRealtyCa]

As long as they can hang onto them ... watch the cash flows!

[@snowwoman2233]

where? in Canada? our mortgage payments are never counted here as deductibles. WHat country are you talking about?

[@baseline6786]

Ridiculous boc is being. Inflation is slowing, no need to drop it to near 2%. Took 3 yrs to spike homes 300k Took 5 months to erase it.

[@baseline6786]

@Market Prophet not really. Maybe if your sole purpose is to just buy RE at the bottom and ride it up. its falling without any pause to allow people to conduct business, forcing anyone who has to move this year to accept big losses.

[@mitchreynolds9841]

I agree Baseline. Going to be interesting how far they go.

[@thinkaboutlife5335]

@@baseline6786 you are completely clueless on what was artificially pumped in for a very long time... welcome to reality cheap money for over priced assets and sheep just blindly adding fuel to the fire... unfortunately much more pain is required to reset this monster... and it will come... should be awake up call for everyone.

[@parkerbohnn]

Inflation only fell because Biden cut the gasoline tax before the midterm elections and the gas tax got cut here. When the midterms are over this November gasoline prices will go back up to $2 a liter, CPI and inflation will come screaming back at the end of this year.

[@GuansCorner]

wut? inflation above 2% means price increases compound, faster. that's not the world you want to be in. and inflation feeds on itself if it's noticeable, ie above 2%. you're crazy if you think 7% inflation is fine and will just keep falling on its own. also, homes went up 300K in one year. prices are back to summer 2021 prices. what are you talking about? and 1.2M to 1.5M is 25% rise. 1.5M to 1.2M is 20% fall...which direction has a larger magnitude? the BoC is not being ridiculous

[@atarileaf]

Glad I did a ten year fixed. I'm good until late 2030

[@ElevateRealtyCa]

You're in the US?

[@666dynomax]

What rate did you get

[@andrewmccoll1582]

People literally renting their own homes to pay nothing back. LOL.

[@michaelsantucci3605]

What?

[@michaelsantucci3605]

I’m renting my own home and cash flowing. Think before you talk.. “LOL”

[@HP-zc9cp]

@@michaelsantucci3605 I think he meant to say whoever invested early this year on variable rate

[@ryguy108]

Lolol I'm renting my home from the bank right now!

[@snowwoman2233]

@@michaelsantucci3605 COuld you elaborate " cash flowing" in this case? Where is it flowing? away? in the drain?