• ☆ Yσɠƚԋσʂ ☆@lemmy.mlOP
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        1 year ago

        Having signed up for 6.1%, you’ve presumably budgeted so that you can actually pay it going forward at that rate. The problem for people who signed up at around 2% is that they budgeted to pay at that rate. And since a lot of people have no savings, they can’t afford a large rate increase now. So, when mortgage renewals start coming up, a lot of people are gonna end up being insolvent.

    • SokathHisEyesOpen@lemmy.ml
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      1 year ago

      Why on earth would anyone sign an ARM when rates were lower than at any previous point in history?

        • Funderpants @lemmy.ca
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          1 year ago

          You are screwed for sure if you shopped at the top of your approval range in one of the hotter high value markets or immediately ate up the rest of your GDS/TDS with truck/SUV loans, renovations or other expenses. However, There will be Canadians who are in a position to handle a rate increase from 2.3% to 6% or so, when their renewals come up.

          • ☆ Yσɠƚԋσʂ ☆@lemmy.mlOP
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            1 year ago

            The context here is that over half the population is 200 bucks away from not being able to make ends meet. So, clearly lots of people will not be able to handle large increases in mortgage payments. Meanwhile, those who do will be pushed further to the margins.

        • SokathHisEyesOpen@lemmy.ml
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          1 year ago

          We don’t have to renew in the USA. Someone else explained the way they work in Canada and yeesh! That’s hella lame.