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Thread: Will the new Interest increase affect you?

  1. #1
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    Will the new Interest increase affect you?

    Just wondering what you guys/gals thought about the new interest hike on mortgages? Will it affect your home or lifestyle? If you recently bought a home and could go back in time would you buy cheaper/more?

    What's your view or future prediction?

  2. #2
    The hike on mortgage rates isn't my main concern, as .25% isn't going to put many people in the poor house. My concern is the bank of canada rate change also reflects on the national debt. Not only are your mortgage rates increasing, but your property taxes will also increase to service the added cost of our government borrowing money. They're also talking about another increase in 6 months.

  3. #3
    Personally, my mortgage is manageable. I think if rates were to go up 1 full base point and beyond ( which I don't think it will ) then, many could be up shit creek with no paddle. And I mean MANY!! Especially here in Vancouver, where the cost of living is at nose bleed level and many are living pay cheque by pay cheque. It's seriously crazy in Vancouver.

    .25 bases pts won't do much damage imo. Hence that, I have slowly stepped in and began to buy life insurance & banks stocks
    Last edited by luv 2 lick pussy; 07-15-2017 at 03:42 AM.

  4. #4
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    I think it would be wise for people to put down as much as they can on the principle each year before your term ends, since the current interest rate is so low now. Most people are allowed about 16% of their mortgage each year depending on your contract?

    It could be hard for some if you have a family or just life period.

  5. #5
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    Quote Originally Posted by giaebonyprincess View Post
    It could be hard for some if you have a family or just life period.
    But it will help a lot of us old geezers who benefit from investment income.
    My mortgage was paid off back in the last millenium so no worries there.

    The low interest rates helped create the current housing bubble. Easy money allows buyers to borrow more and pay more, so sellers will raise prices.

    It will be interesting if prices slump and people are stuck in mortgages greater than the value of their house. I have friends in the USA who are in this predicament.
    Two hands helping do more good than a thousand hands clasped in prayer

  6. #6
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    From a personal basis, no as I hold no debt. As a consumer and taxpayer there could be impacts with institutions and Govt debt servicing costs.

    But it's a first world problem and a bit of a wake up call might not be a bad thing.

    MG

  7. #7
    anyone here remember the 80s? 20% plus. this is nothing!!

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    Quote Originally Posted by steiln View Post
    anyone here remember the 80s? 20% plus. this is nothing!!
    True and not true, way way way back then the houses were not even close to the prices they are now.

  9. #9
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    Everyone's input so far is really informative, but it would be nice to here from people who are actually paying a mortgage or for the seniors (just kidding) what did you guys do to pay off your mortgage faster?

  10. #10
    Quote Originally Posted by giaebonyprincess View Post
    True and not true, way way way back then the houses were not even close to the prices they are now.
    sure true that, but wages were way less too. think minimum was was less than 3.00

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    Quote Originally Posted by steiln View Post
    anyone here remember the 80s? 20% plus. this is nothing!!
    I remember at least three friends in Airdrie handing over their keys to the bank and walking away.
    Very tough times for a lot of people.
    Last edited by westwoody; 07-15-2017 at 11:46 PM.
    Two hands helping do more good than a thousand hands clasped in prayer

  12. #12
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    Quote Originally Posted by giaebonyprincess View Post
    what did you guys do to pay off your mortgage faster?
    Prepay every cent you can!
    Especially right at the beginning when you are paying 95% interest and 5% principal.
    Biweekly payments. NOT monthly.
    I had a big amortisation graph printed and tried to stay ahead all the time.
    Two hands helping do more good than a thousand hands clasped in prayer

  13. #13
    Quote Originally Posted by westwoody View Post
    I remember at least three friends in Airdrie handing over their keys to the bank and walking away.
    Very tough times for a lit of people.
    were good times if you had money tho. had a friend who bought 25 houses in Calgary for a dollar down, rented them out for 25 years and is sitting pretty nice now

  14. #14
    Quote Originally Posted by giaebonyprincess View Post
    Everyone's input so far is really informative, but it would be nice to here from people who are actually paying a mortgage or for the seniors (just kidding) what did you guys do to pay off your mortgage faster?
    I'm still paying a mortgage, but its manageable as I stated earlier. I budget myself. What I make from work, then, less expenses. For expenses, I'm including a bit of entertainment as well. Not just " fixed " . Whatever I have left over, if any, I make addition payments. So yes, I try and put extra $$ towards my mortgage. The more extra money placed down, you will end up paying it off a lot quicker. Now that rates are still low....no better time than now.

    For me personally, I will be honest, since purchasing my higher end Condo, I haven't participated as much in this hobby compared to when I rented. Not even close. Home ownership is definitely costly in this city T.B.H
    Last edited by luv 2 lick pussy; 07-15-2017 at 09:52 PM.

  15. #15
    Senior Member LalaniElectrica's Avatar
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    This situation was mentioned to me years ago upon purchasing my first home.. That is the reason I choose a very low key, low overhead house with the proper zoning for a small business. It suits my needs and was not too expensive, therefore I could pay it off in a really short amount of time, so if there was a increase in interest and/or property taxes, it would be very easy to manage through it, and still keep the equity I put into it...I guess it was a good investment after all!

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