Around half of Canadian mortgages up for renewal in the next 2 years
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- เผยแพร่เมื่อ 16 ม.ค. 2024
- In the next two years, close to half of all Canadian mortgages will be up for renewal - many at higher interest rates than before. CBC's Lyndsay Duncombe gets expert advice about how to prepare for the financial hit.
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When you have people that make 100k-200k a year worried about even being able to afford a CONDO let alone a house, that says enough. Let's not even factor in groceries/food and vehicles yet.
200k even post tax is nothing in Canada especially if you are talking about Canadian dollars. High sales tax and high cost of living in general. with $200k post tax, you'll be doing okay but not well off compared to other countries.
I know...if you made low 6 figures 20 years ago, you'd be in upper middle class, 30+ years ago, you'd live like a king.
@@cgasucks Yeah man my parents bought their condo here in Vancouver for 200k 20 years ago, now valued at 900..
@@zlatkostevanovic5891 I hear ya. I bought a small starter house in 2012 for 430k...now its worth over $1M...fucking insane.
@@marryson123lol this guy knows how to live out of your means
I think this is a good lesson for people who bought houses for higher prices and who have multiple houses. Good Luck!
Fair point, but don’t count on getting a discount if you are entering the market. The million-people a year program benefits the people already in the market.
Greed fuelled home purchases will come home to roost sooner rather than later!
@@meh4770 how does it benefit the people already in the market?
@@chriswhynder8311There won’t be a harsh correction despite high debt levels because there are willing buyers on the sidelines waiting to jump in.
Good thing I paid off my mortgage two years ago 😅
This is the result of having let home prices skyrocket to the preposterous levels they have over the past decade +.
"Letting home prices skyrocket", listen friend, you need to understand that the federal government is the number one reason why the cost of production has gone up across this country. That means the higher costs of everything.
@@walperstyle Agreed, the current federal government is the main culprit behind the outrageous property prices (the cost of production being one factor in that).
this is a result of a stupid variable rate system
in part @@teebone2157
Vancouver market needs to crash hard. This idiotic habit of buying homes as investment needs to stop. 600K for a 1 BHK is ridiculous.
Posters have been saying that about Vancouver (a destination Port and International city) since I moved to BC in 1978. It hasn't/isn't going to happen. Almost all the BC HOMEOWNERS I know have NO mortgage on either their home residence OR their Whistler condo OR their cottage on the islands. NONE.
So does New York, Tokyo, Singapore, Hong Kong, Zurich, Los Angelas, San Francisco. Canadian cities aren't even in the top 25 most expensive places to live.
@@user-zp7jp1vk2i It's mostly the people bought properties with mortage after 2010s.
"change brands at the grocery store" LMAO
I think they come up for renewal every 5 years no? Stands to reason that at any time "about half" would be up for renewal during any given 2 year period no?
AND half the houses in Canada are CLEAR TITLE, no money owed. Canadians have always put their wealth in their home.
In Canada they dont have 30 yrs fixed mortgage
No and that absolutely sucks. I’m thinking to buy but I just can’t wrap my mind around how money hungry this whole thing is.
That is crazy. I am locked into a 3% 30 year loan here in the USA.
My friends and I make pretty great money (we have a 200k household income) but cannot afford a condo or townhouse in Vancouver. When we hang out, we always talk if we need to leave this country and move to the US..... Even though we love this city, we cannot afford....
Remember to budget about $2k US a month for healthcare insurance. It's efficient coverage; but it's not cheap.
@@alanmurtagh6675not true
Too bad, so sad. 600k mortgage? Lunatics.
Renewing mortgages can be stressful. Investing wisely during this time could provide additional financial security.
I'm considering investment options to supplement my income and cover mortgage payments during the renewal period
Any advice on balancing risk and return in such investments?
I don't know how many people are house poor, but suspect it is a large number. 53% living pay cheque to pay cheque and some of those are surely housing owners. This is going to be hard on some, but we have been living too long on cheap money, and it was going to change. Hopefully it won't be too tough, but I can't say I am optimistic.
foreigners from singapore asked why not import low-wage labors to build more houses for low-income people? those workers are also happy as they earn more than their home land. maybe union always want to protect all workers on this land and block the very limited opportunity to resolve the housing problem. I do not understand so I say no word to the singapore lady.
It sucks. But worst case scenario for my family is we get a few roommates in the spare bedroom in the basement. Most houses have empty rooms that could be paying down all or parts of the mortgage. Gotta do what you gotta do.
Having interest rates near 0 for over a decade was the dumbest thing to happen. Look at what it has created. Two decades of cheap money has created so much dumb money. All that dumb money creates high inflation, artificial housing market, etc...
so right!!! and they are educated people too...such a waste of education when they didn't see this coming.
you and I didn't GET that 0 percent money. It went to large corporations, investment vehicles, and people already WITH deep equity and cash. that kept the younger crowd OUT. and in the long term made things worse.
True
@@vailtonbeserra9408 Canadians have always put their money "in a mattress", their home. Most of the people I know over fifty have NO mortgage to worry about, and if they do, it's for a 2nd, home in the mountains, and the Scottsdale home is clear title, as many developments down there DEMAND it!!!
Reminds me of the early eighties: sky high interest rates detonated the young turk entrepreneurs and job creators. They went on to drive bus, work at the post office, and live their life,.....and the ALREADY Cdn. billionaires bought up their company/houses/equipment for pennies on the dollar, and make notanother billion. Worked for them.
The title of this clip is Renewal. Not a brand new mortgage every 5 years. You realize you owe less after 5 years right?
Not really...ever heard of negative amortization?
Not everyone is in the same boat. The news media makes it sound as bad as it can be. I also trade. Every single TH-cam channel talks about the next depression about to hit. Well $SPY just hit all time highs again Fri Jan 19. As well it’s not as easy to get a mortgage in Canada like it is in the states. In 2007-2009 Canada didn’t have nearly the housing crisis as the U.S. did.
@@Generic321
Canada is really going down 👎👇 it is just the beginning 😂
oh yeh?? so far we've avoided car jacking 101, handgun and unlimited ammo., and road rage is throwing a Tim Horton paper cup. so far, so good.
plenty of landlords have made their rent prices the same as their monthly mortgage payments
now that a lot of people have left and are still leaving, they're having trouble finding people to pay for their enormous mortgage
Soooooo.....you think they should rent for less than the bank wants? Do you own .....anything?
do you? you don't pass on the payment completely to the renter.
otherwise, if we could all get a mortgage, we would have rented it out and move in later.
@@garettdoornwaard4822
happened in LA, too. my mom's caregive had the same landlord for 25 plus years. he just jumped their rent 1,000 a month, so she qualified to BUY for less than rent. NOW find a renter you don't know that can pay that higher premium. NOT.
Right, so why would you continue to vote in politicians that drive up the cost of production/repairs/taxes that hurt the owner? I wish I could easily provide cheaper housing, but you can't when you have activists in the federal office, slaves to a central banking system that wants the entire nation in debt. There is no pool of tax money, you understand this, right?
These are facts: BoC rates increase, job losses increase, people need to sell homes or take out second mortgage. People will lose their houses or lose their future (ie retirement). Life is full of risk and reward and the risk is just coming into play now. We are in a cycle of interest rate hikes and higher for longer. I would not be surprised if rates do not drop this year as inflation is sticky and the BoC can't afford to drop them unless the US Fed does. Brace for major pain everywhere.
Im scared. Hold me.
The next 20-30 years the rates will stay high. It's a cycle. Even the US rates drop ours won't because US is in better shape and they will start recovery sooner. This way our dollar will get stronger and we will have the Americans coming to CANADA for shopping, just like the old days. It's a cycle.
These cycles can be avoided if we stopped allowing the federal government to leverage tax money they don't have with the central banks, while issuing and spending on foreign policy that they never asked us our opinion on.
Couldn’t be happier for you ppl. Finally I may be able to get a home.
This makes me so happy
Wow ur so excited!
"2030 you'll own nothing and be happy", living in a box and going nowhere.
Soon we will have one meal a day
That was an abrupt ending .. anyone monitoring the editor?
Higher mtg payments will lower inflation. Less money available for discretionary spending is the plan.
So after 25 years the house is not yet paid. So it’s true that they would say you own the house but in reality it doesn’t belong to you.
ipso facto many Canadian don't HAVE a mortgage on ANY of their three or four homes. including the one in Scottsdale.
Wishing g the best for those fools who bought homes and condos in their peak prices and couldn't realize things about to get bad.
LMFAO What kind of mortgage system is that? Here in the US, the mortgage rate is good for your entire term, fixed rate for 30years usually. That means if you get a good rate, you get to keep the same rate till the end. If rate goes down, you can always refinance to get a lower rate. Things like that is why Canada SUCKS!
It keeps banks strong and safe. In USA. Banks goes down with low interest rates. That’s why wars are required
Well if it's so good in the usa for mortgages, then why did it crash in 2008 with you guys having great mortgage system.
@@gottasay1157 HAHAHA!!! it doesnt sound like you even know what happened in 2008. Go read it up. Regardless, at the consumer level, its better to have a fixed 30year rate as opposed to the ever changing rate that you Canadians have.
Locked in a 2.75% fixed rate for 30 years. I cant imagine having to renew rates every 3-5 years at current rates, sounds like a terrible system especially during a financial downturn. A note about 08 crash it had nothing to do with fixed rate mortgages, but with banks giving variable rate mortgages to anyone with a pulse. Luckily majority of mortgages in America are on fixed rate now vs 08, but we are starting to see the banks get desperate and offering them to move mortgages.
If you don't need a car for your job in order to remain employed like a construction worker then sell it and take transit. That will cover the rate hike. You can't have it all when you live in a rich city and you're not rich. That's the price of living here. The other solution is work weekends or better yet, move to Calgary like which is what I plan to do.
Or introduce 30 year fixed rate mortgages like in the USA. Sad that people have to sacrifice their quality of life just because Canada makes you renew your mortgage rate every 3-5 years.
I said ir before and I'll say it again pump those rates!!! No pain no gain baby !!
My wife and I bought our home in 2002. 5.3% Rate. Paid it off in 11 years. We have never made more than 50K/year. We never lived beyond our means. Because of the inflated housing market, our home will now sell for over 800K. WHO can buy it? Another young couple with 20% down at the new rates? Practically impossible. Hopefully, our 2 children will benefit from our financially responsible habits. Unless of course the liberal tax and spend ‘party’ screws things up even more.
Rich people who live overseas will buy it. Housing market is money londering business too
When a real estate market stagnates, it is because of high interest rates or a financial collapse.
Which all come back to banks and lending. When you have a mortgage by law you don't own your home. The bank owns your home.
So when people get mad at the bank for interest rate increases, or defaulting and being forced to sell, the reality is why? You don't own it, and the banks are protecting themselves. Why should they take a loss to protect you when they already took a risky bet to on whether or not you can pay it back? Do you think you shouldn't have to pay the cost of inflation or a weakening dollar?
Absolutely insane that people blame the BOC.
Yup and all while holding their nose and looking down on people that are paying down the mortgage on their “investments”. Hard lessons incoming and it needs to happen to reintroduce risk and squash the stupid RE obsession in this country.
BOC is an ENABLER of all that overseas "kash" coming in when interest rates were high (remember 1990? and the Taiwan cash invasion?) BOC is very much part of the problem. The Big Banks follow and EXCLUDE Canadians that would qualify easily in other countries to buy (higher standards and yes, that kept us OUT of a lot of issues during the credit crunch, so it' not ALL bad), but the downside is once rates came down (finally) Cdns. were paying and cashing out the money that picked up cheap when KASH was KING.
Good. I hope rates stay at 5% for the next five years.
My mortgage is up for renewal in 2026 but when it's up i will owe 20k and it took me 15 years to get thier paying bi-weekly and increasing payment yearly and cutting back on everything except food no vacations looking back I think I made the right decision good luck to those who didn't follow my blueprint God bless Canada 🙏
😂👌 Canadian property values has been changed past 10 years $350,000 houses became almost $1 million. Actual Canadian real estate marketing was booming in 2003 by real estate agents, around that time, whoever permanent resident in Canada and citizens with full-time employment or income, they can’t buy a house with low down payment and interest but, what happened was most real estate agents make their biased to buy more than two property or three properties with investment properties. After that Canada federal government fight out fraud was going on in real estate market. There was a record at that times in 2004 and five after this tied up the law the way to buy the properties. Suddenly 2014 and 15 GTA and Ontario properties values are started to go up but whoever bought the properties in the first time they are millionaires and Canada’s value millionaires and billionaires with poor
Ah yes. Plan Ahead. That’s the key. You mean all I have to do to buy a yacht is plan ahead? Awesome!
Plan ahead? Too die sooner? Or eat dog food in retirement?
this is why they need a second ammendment
Quebec have higher rates then other provinces somehow that's like a scam :(
This is the feeling when the scale starts to tip,,,,a stable economy In Canada means a balanced budget not what we have.
Well, too bad, so sad😢😢😢😢😢
Don't expect prices to drop.
Enormous amounts of immigration from a historic perspective combined with a huge pull back from developers in acquiring land for future projects means the same old lack of supply issue will continue or even worsen despite these other factors.
The vast majority of immigrants lack the credit, money and work history to buy a house. Please stop lying. Immigrants certainly have an impact on the cost of rent and rental units, however. The banks and BOC are to blame for this massive increases in so called home values. Thus they have raised rates not to combat inflation, but to destroy the highly indebted Canadian. They seek to own everything.
Black Rock won’t buy up everything
Hang on for the ride canada is a big trouble
Ok, you are not paying more for your home,,,you will pay way more for your mortgage interest not the principal. The best thing government can do is listen more to what people are saying. Put a cap on strata fees.
Some Canadians were out of work earlier, so they didn't qualify for covid handouts
We are going to pay a 50k lumpsum when renewing our duplex's mortgage (current on a fixed 1.49% rate) in May 2025, so that the monthly due won't go from 2.2k to 3k+ but stay within the 2k~3k range which is a comfortable zone for us considering the monthly rent income is 1.5k.
How many units does it have?
@@theflowpowa42oshow it's a small duplex and has only two units, one of which, a 7½, is occupied by my own family.
@@Viroulu your making monthly rent income of 15 k on the other unit?
@@theflowpowa42oshow sorry for the typo, it'd be 1.5K . 15k is probably the rent in 2044...
@@Viroulu PUMP THOSE RATES!
We all knew this was coming. If you haven't prepared yourself by now, that's on you.
Don’t you guys have 30 yr fixed mortgages like the US does so your not at the mercy of the bank every 5 years?
Is that a jock ❤
This was the cause of the 2008 housing crash in the United States.
There was a Conservative PM in-charge during that crisis.
If Pierre doesn't win for some reason and We have another 4 years of Trudeau, this housing crisis going on here will blow up in everyone's face because of decisions made by a very dumb and or ignorant Liberal PM.
We may not have the luck this time coming that We did last time.
Where can I find 300k or 600k in this entire country? lmao
How odd that the MSM "news" outlets across the West have ALL jumped on the bandwagon of the background "bing bongy" music.
Give low income earners a break! let them deduct mortgage interest on their tax return, it will help.
I believe us property investors will be good as the government is bringing more immigrants to keep the demand high .
This mortgage increases shouldn’t be a great deal for many homeowners as we have lots of equity to play with not mention some of the drooling Canadians waiting to buy in with their comical down payments 😂.
Sorry if they don’t like it they should move let the newcomers do their thing 😂.
Other option is that they sell their houses .....
🇨🇦🇨🇦🇨🇦
Why do "homeowners" need to pay for their homes. Haven't they already paid. Don't they "own" it?
“Building back better”
Hey if the bank ALREADY owns ya FOREVER...They can't own ya longer than THAT can they?!
Getting a mortgage is basically making a deal with the devil... did you read the fine print? 😈
And they shouldn't budge on interest rates everything has already inflated now we need deflation!! Oooooor if they want inflation to continue... Also speed up wage inflation everywhere all at once !
please stop the ping pong noise
You guys made a woman who has a child and a dog walk in a puddle in the rain 🤣
Not my problem. Maybe immigrants and poor people shouldn't have loaded up on debt they couldn't afford which drove up inflation for the rest of us responsible borrowers.
The economy is growing fast under Trudeau That's why high interest rates.😅
Its will be a gong show due to scammed housing market😂😂😂. Not having 30 years fixed morgages like many other countries does is the biggest scam Canada central bank practice!
Now apply that math to the debt Trudeau has run up in the last eight years.
This is what happens when you buy stuff you can't afford and are not smart enough to understand the long term effects of your actions.
Enjoyed free money borrowing for decades, time to pay.
If someone took out $600k mortgage, that means they probably bought a house in $1M range 5 years ago.
If you were able to get approved for $600k mortgage, you clearly have decent paying job, you can afford additional $1200 a month.
$1M house 5 years ago, is easily worth over $2M now.
If you truly can't pay higher rate, sell the house and you'll have $1M cash in the bank. No one's crying for you.
it's only worth 2 million IF SOME ONE IS WILLING TO PAY FOR IT.
Dead!terrible
It is come to Jesus for all the overextended homeowners who bought in the last 10 years and think they are sitting on a fortune of paper equity.
Justin t is worse PM of CANADA . shame on puppy college two bedroom
Too many international students and refugee in canada. home crisis
Slavers from 🇮🇳🇨🇳 villagers welcome to 🇨🇦👎👎👎
Another reason to leave canada
Remove the stupid background music
Gee...what happened? Everything was fine 10 years ago.....what could have caused all this havoc in Canada...what event? And I'm still waiting for the budget to balance itself...don't understand...Justin has such cute hair and he is pretty.... who is going to help me with mortgage shock.... Justin give us more of your sage advice. Could I get some of my carbon taxes back so I can keep my home....Justin? Justin....?
Somebody needs to tell the greed leash, get it together, if you don’t, don’t be here when civil war starts, the plan is not working, and even the nicest is going to want blood for wrongdoings
Why many countries Nationialized its resources, currency onto gold. Did you know poverty alleviation completed in China now Modernization-BRI-BRICS. CGTN The Point-Hub-Heat, RT International family friendly policies are amazing...... Reporterfy Media-Cyrus Janssen-The Duran-George Galloway MOATS