4 ms·

Has to? Why?

• dragontamer 4y ago
  It is common to have adjustable rates in Canada, while the standard in USA is fixed rates. So in these times where rates go up, it makes Canadian homeowners suddenly have to pay more for their houses they're already living in.
  • roflyear 4y ago
    Well, I hope those people don't end up homeless. I don't see how the housing market crashing is going to be good for them.
    • _whiteCaps_ 4y ago
      IMO the best option for Canadian real estate is for prices to remain stagnant for a long time, allowing wages to catch up, and decouple the idea of your primary residence as being a good retirement plan.
      • lupire 4y ago
        Why would wages catch up? Wages can go down.
  • _whiteCaps_ 4y ago
    https://www.cibc.com/en/personal-banking/mortgages/resource-centre/variable-rate-mortgage.html https://www.cibc.com/en/personal-banking/mortgages/resource-... In variable rate mortgages, the amount going to principal vs interest changes. The monthly payments remain constant.
    • humanlion87 4y ago
      Until you hit a trigger rate (depending on the mortgage specifics) at which point you have to start increasing your payments.
    • lupire 4y ago
      OK, eventually they have to pay more. Still painful.