US and CDN are so different, they can deduct interest on a mortgage and can have stupid low rates on long terms . To say nothing of most average houses are so far under the GTA .
Maybe some of the HELOC hero’s that almost lost a house get to live another day with the rate drops .
US and CDN are so different, they can deduct interest on a mortgage and can have stupid low rates on long terms . To say nothing of most average houses are so far under the GTA .
Maybe some of the HELOC hero’s that almost lost a house get to live another day with the rate drops .
Agreed. It'll give some breathing room to a few...but in my instance of circle of friends...
House - currently 2.39% and renewing next year at potentially 3-4%
Rental - currently at 2.79% and renewing next year at potentially 3-4%
HELOC - maxed to the absolute limit with a variable rate
The pain will be there for quite some time still. And I'm sure they're not the only ones.
Agreed. It'll give some breathing room to a few...but in my instance of circle of friends...
House - currently 2.39% and renewing next year at potentially 3-4%
Rental - currently at 2.79% and renewing next year at potentially 3-4%
HELOC - maxed to the absolute limit with a variable rate
The pain will be there for quite some time still. And I'm sure they're not the only ones.
Back to Choices meet consequences. I havent put depreciating purchases on my LOC. If I don't have the cash, I can't make the purchase. That avoids me getting bent over when rates rise and I have no ability to pay down capital.
Having been in that position, it's not always easy to sell. I know a lot of small-time real estate investors who are emotionally attached to their properties. They are willing to hold at all costs, partly because they think they can find a way, and partially because they fear humiliation in having to unwind the charade of wealthiness. "Aren't you the real estate guru? How many houses do you own now?"
A long time ago that was me. At some point things break and it can be costly. At least today lenders are working with underwater buyers, 20 years ago they called mortgages if the LTV fall too low. Perhaps the kinder approach from lenders is just delaying the inevitable.
Most banks don’t want to be in the real estate business, they want to be in the money business . Foreclosing was a pretty common thing years ago and people would take thier lumps and move out . Now you fight to get them out and they smash all the fixtures before going . Banks don’t want the hassle or bad press being foreclosure kings . They want you to sit in big green chairs and feel happy about what they are doing to you .
My payment comes out in two days. I wonder if they wait to notify borrowers until after a payment. That may avoid thousands of annoying calls about "the rate dropped but my payment didnt". Almost the entire period I am paying for was at higher rate. Next one should be lower. Now, they could send the message now with an explanation, that would be best but since when do banks strive for excellence?
My payment comes out in two days. I wonder if they wait to notify borrowers until after a payment. That may avoid thousands of annoying calls about "the rate dropped but my payment didnt". Almost the entire period I am paying for was at higher rate. Next one should be lower. Now, they could send the message now with an explanation, that would be best but since when do banks strive for excellence?
Moderation no longer exists. We were living in lala land. However a lot of people living paycheck to paycheck will have trouble adjusting to the extra $75 to $100 a month.
It's also harder when those amounts don't get split over twelve months like 95% of our bills. The six yearly payments are $150 to $200 seem to have a greater impact. Big lumps are harder to swallow and some people choke.
The massive increase should have been phased in over three years. Additionally if this increase doesn't set the city on fire will they go for another big hit next year?
Moderation no longer exists. We were living in lala land. However a lot of people living paycheck to paycheck will have trouble adjusting to the extra $75 to $100 a month.
It's also harder when those amounts don't get split over twelve months like 95% of our bills. The six yearly payments are $150 to $200 seem to have a greater impact. Big lumps are harder to swallow and some people choke.
The massive increase should have been phased in over three years. Additionally if this increase doesn't set the city on fire will they go for another big hit next year?
Phasing in over three years works if you only need 5% a year. Toronto property tax is so far behind the curve that they need more like 15% a year for quite a few years to catch up. If you wanted to phase, I guess they could do 5% a year for a decade but I'm not sure if a mayor could impose such a long term plan.
Toronto is terrified of pushing old people out of their homes. They need a strategy to allow people to stay while also addressing the reality of tax rates that are too low. They are going with bend over and pay. Other options are allowing an interest accruing tax account (don't hit their credit, register a lien, charge something like 7% interest and only allow the increase to be part of the loan the base 2023 tax rate is due in cash in perpetuity) or having a split tax regime where existing owners pay close to existing rate (maybe track inflation?) and upon transfer to any other owner tax immediately resets to prevailing rate which is likely 50 to 100% higher. The new owner is paying seven figures for their dwelling and goes into it knowing that tax will be more. Existing owners will complain that split regime will reduce the value of their property. Boo hoo. Returns aren't guaranteed and like many condo corps, they haven't paid their fair share yet and are attempting to punt liability for things they used to future owners. This functionally allows existing owners to catch up on the tax they should have paid (existing owner gets about 50K less for dwelling, new owner pays a sustainable rate).
Year over year increase on my bill is 7.35%
It looks worse on the current bill (just arrived a few days ago) as the first three instalments for 2024 did not include an increase (were at last year's levies) so the increase per instalment on the current bill (last three instalments) is 14.7% to make up the difference, regardless year to year was/is 7.35%.
But I am pretty sure I am not getting anything more for it....
1800 sq.ft home is running me just about 7K a year in PT.
Year over year increase on my bill is 7.35%
It looks worse on the current bill (just arrived a few days ago) as the first three instalments for 2024 did not include an increase (were at last year's levies) so the increase per instalment on the current bill (last three instalments) is 14.7% to make up the difference, regardless year to year was/is 7.35%.
But I am pretty sure I am not getting anything more for it....
1800 sq.ft home is running me just about 7K a year in PT.
I'm surprised...I'm paying $6700/year on a similar sized house in Mississauga. My parents have a 1200-1300sq ft bungalow in Etobicoke and their property tax was considerably less than mine.
I'm surprised...I'm paying $6700/year on a similar sized house in Mississauga. My parents have a 1200-1300sq ft bungalow in Etobicoke and their property tax was considerably less than mine.
Toronto still seems to be neighbourhood dependent. Rosedale is really low (~13k for a 4M house). They should be close to double that. Ideally, politicians would spend half as that's crazy but they are incapable of restraint (see cops already spending millions on preparation for world cup dumpster fire).
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