Douggies ideas are now out on how to make housing cheaper. Some good, some not imo. It will allow a reduction in construction costs but some of these I would never want to live in (single escape route six storey) and some I would never want own (12 storey timber). Speeding up approval and substantially cutting back on "character" and nimby crap is good.
Historically variable is better. I have always been fixed and as I noted before in some cases I thought I was "smart"....yet variable would have always been a better choice for me in hindsight. I like the predictability of fixed, one less thing to worry about day to day even if variable would have saved some money (less day to day worry came at a small $$$$ cost and I am happy to pay it).
I very recently renewed fixed for five years at 2.84%. That again takes a lot of worry off the table but I bet variable would still be better money wise over the five years....
Historically variable is better. I have always been fixed and as I noted before in some cases I thought I was "smart"....yet variable would have always been a better choice for me in hindsight. I like the predictability of fixed, one less thing to worry about day to day even if variable would have saved some money (less day to day worry came at a small $$$$ cost and I am happy to pay it).
I very recently renewed fixed for five years at 2.84%. That again takes a lot of worry off the table but I bet variable would still be better money wise over the five years....
Historically variable is better. I have always been fixed and as I noted before in some cases I thought I was "smart"....yet variable would have always been a better choice for me in hindsight. I like the predictability of fixed, one less thing to worry about day to day even if variable would have saved some money (less day to day worry came at a small $$$$ cost and I am happy to pay it).
I very recently renewed fixed for five years at 2.84%. That again takes a lot of worry off the table but I bet variable would still be better money wise over the five years....
With the fixed the most you could lose is the 2.84% interest on the principle if rates dropped to zero. With a variable you could theoretically lose infinitely times the principle.
The first isn't actually absolute as there are discussions about negative interest rates. The logic escapes me.
With the fixed the most you could lose is the 2.84% interest on the principle if rates dropped to zero. With a variable you could theoretically lose infinitely times the principle.
The first isn't actually absolute as there are discussions about negative interest rates. The logic escapes me.
Sort of. You can lose 2.84% of the outstanding amount compounded for 20+ years.
On a 500k mortgage assuming constant monthly payments, 1% rate difference is close to a 100k less (or more) money to be paid back over the life of the mortgage. If you let monthly payment float, the comparison gets harder and fixed payments is not an unreasonable assumption as most people are near the upper end of their ability to pay.
Sort of. You can lose 2.84% of the outstanding amount compounded for 20+ years.
On a 500k mortgage assuming constant monthly payments, 1% rate difference is close to a 100k less (or more) money to be paid back over the life of the mortgage. If you let monthly payment float, the comparison gets harder and it's not a unreasonable assumption as most people are near the upper end of their ability to pay.
My payment floats with the rate. Last 0.25% rise caused a $22/biweekly rise in my payment. Another .50% will rise it again to $852. Still a while from the $980 I was paying before….but if the Reddit doomsayers are correct I’m going to 7-10% prime soon….
My payment floats with the rate. Last 0.25% rise caused a $22/biweekly rise in my payment. Another .50% will rise it again to $852. Still a while from the $980 I was paying before….but if the Reddit doomsayers are correct I’m going to 7-10% prime soon….
Is your bank tracking the rates or being pricks? When I used to have tangerine a 0.25 cut would cut my rate by 0.15 and a 0.25 raise would raise my rate by 0.35. Pricks.
Is your bank tracking the rates or being pricks? When I used to have tangerine a 0.25 cut would cut my rate by 0.15 and a 0.25 raise would raise my rate by 0.35. Pricks.
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This is the legacy of 15 years of Liberals neglecting the fundamentals of an important market. You don't need to be a rocket scientist to understand supply and demand -- choke off buildable lands, enable municipalities to overreach and under deliver provincial planning and build rules, enable NIMBY tribunals (heritage and Ontario Land) that serve no purpose other than delaying projects at the behest of wealthy patrons, then fortify the economy with 400,000 new Canadians a year.
It took a long time to get where we are, it's going to take time for supply to gain ground on demand. Hopefully, the increased value of homes in smaller centers will inspire builders to go there first --getting 10,000 houses built in London, Peterborough, or Barrie could reduce the local supply pressure (and ease prices) faster than the 416/905. Perhaps that would ripple outward and eventually thru the GTA.
Till then we're going to see high prices unless something else in the economy presses hard on house prices.
Not advocating anyone get married , but two folks shoveling into a bucket has a chance .
I did a just for giggles calc of where I would be with what I earned two decades ago and what houses cost now .
Large tent in a municipal park ….
Not advocating anyone get married , but two folks shoveling into a bucket has a chance .
I did a just for giggles calc of where I would be with what I earned two decades ago and what houses cost now .
Large tent in a municipal park ….
I did the same. I would be able to purchase the 1200 3br house in Keswick I was able to buy back then. I'd have to pay $3400K a month for my mortgage of 800K @2%. Back then I was paying $1400/mo on a 175K mortgage @8%.
I was in the tech game back then, made a lot more money than I do now so for me it wouldn't be a tent in a municipal park, but this is the only cookbook I'd need.
I know of some marriages (and relationships) where one person is shoveling money into the bucket, but the other one is emptying it out just as fast, or even faster...
I know of some marriages (and relationships) where one person is shoveling money into the bucket, but the other one is emptying it out just as fast, or even faster...
well yes. thats a whole other thread . Literally 95% of my social circle are 'second time around" with a couple on third attempt.
When its time to divide the bucket of assets it doesnt always work out quite the same as anyone thought.
well yes. thats a whole other thread . Literally 95% of my social circle are 'second time around" with a couple on third attempt.
When its time to divide the bucket of assets it doesnt always work out quite the same as anyone thought.
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