Sarah and Graeme Dueck in front of their home in Langley.When borrowing rates fell to record lows in recent years, about three out of every five Canadian mortgage holders chose variable rates, up from the typical average of about one-third, said Brendon Ogmundson, the chief economist with the B.C. Real Estate Association.
Real estate sales boomed in the early years of the pandemic. Many people, who were suddenly working remotely while their kids were doing school from the kitchen table, used access to low lending rates to buy a bigger home with, perhaps, room for an office and a big backyard. “There’s no shame in having to take a second job. We need to do what we need to do to survive for the next little bit. There will be better days but we just have to get through the next year or so.”Lending Solutions in 2017, said over the lifespan of a 25-year mortgage, variable rates aremore beneficial to consumers.
The other more popular option is static, which means there is a set payment each month but how much goes toward the principal will fluctuate based on how much money is left over after paying the interest rates. But, a “trigger clause” is hit when the static monthly payment isn’t high enough to cover rising interest costs, and then the borrower has to start paying more or stretch out the amortization of the mortgage.
The husband told Postmedia they can no longer save money for a detached home or put money in RESPs for their kids’ education. “That’s all taken a back seat now,” the husband said. But the couple is staying resilient and hoping interest rates fall soon.in which he predicted the average variable mortgage lending rate, currently at 6.35 per cent, could start to go down in about a year, by the second quarter of 2024, to about 5.85 per cent.
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