GiddyGap to News@lemmy.world · 7 months agoA Huge Number of Homeowners Have Mortgage Rates Too Good to Give Upwww.nytimes.comexternal-linkmessage-square150fedilinkarrow-up1369arrow-down110
arrow-up1359arrow-down1external-linkA Huge Number of Homeowners Have Mortgage Rates Too Good to Give Upwww.nytimes.comGiddyGap to News@lemmy.world · 7 months agomessage-square150fedilink
minus-squareCyborganism@lemmy.calinkfedilinkarrow-up3·7 months agoIn Canada, the mortgage has to be renewed every 5 years or less depending on your contract. They’ll never let you have a 30 years mortgage on a 2% interest rate the whole time.
minus-squareramble81linkfedilinkarrow-up3·7 months agoSo what happens if you go to renew and they’re like “screw you, 8%”, and you can’t afford that increase? Do they just foreclose your house?
minus-squareCyborganism@lemmy.calinkfedilinkarrow-up1·7 months agoWell if you can’t afford it, you take a temporary mortgage with the objective to sell. Otherwise you add a lump sum to reimburse the capital to reduce your payments. Different banks will offer different rates as well so you can shop around and negotiate.
minus-squareghost_towels@sh.itjust.workslinkfedilinkarrow-up1·7 months agoWe have to renew in Oct and we were looking at BMO and they have a 10 year fixed now.
In Canada, the mortgage has to be renewed every 5 years or less depending on your contract. They’ll never let you have a 30 years mortgage on a 2% interest rate the whole time.
So what happens if you go to renew and they’re like “screw you, 8%”, and you can’t afford that increase? Do they just foreclose your house?
Well if you can’t afford it, you take a temporary mortgage with the objective to sell.
Otherwise you add a lump sum to reimburse the capital to reduce your payments.
Different banks will offer different rates as well so you can shop around and negotiate.
We have to renew in Oct and we were looking at BMO and they have a 10 year fixed now.