4 ms·
Specifically, those who bought a house to live in in the last 3-4 years. Also those who renewed in the last 3-4 years. Which realistically means most of those
by btilly 4y ago
Specifically, those who bought a house to live in in the last 3-4 years.
Also those who renewed in the last 3-4 years. Which realistically means most of those who bought in the last 20-25 years.
That's likely over half of all homeowners - not so small a fraction after all!
- kspacewalk2 4y ago>Also those who renewed in the last 3-4 years. No. Those who paid the exorbitant prices of the last 3-4 years. I've renewed recently, and borrowed the ~$100k remaining on my mortgage at a historically low rate. If I had to renew at twice that rate it would not make a huge impact on my finances, because I'm currently paying interest on a five-figure principal.
- btilly 4y agoBut it still would impact you. Across all Canadians, we're talking about $1.5 trillion (CAN) in mortgage debt. That's on par with the GDP. If you hike the interest rates to match your inflation, that's like sucking 5% of your GDP into interest payments. This will be a pretty dramatic event, no matter how it is distributed.
- kspacewalk2 4y agoIt will certainly be a dramatic event, but it still matters how it is distributed. To make up some numbers by way of example, if 4 million people have to pay $50/month more, I believe it has a significantly smaller effect on the economy than 1 million people having to pay $200/month more.
- davidgay 4y agoYes, but interest is front-loaded on mortgages, so the impact is much lower for those 20-25 years in.