https://preview.redd.it/m4z1ppeuavw91.jpg?auto=webp&s=ee0bfd286f4b05fb8d02ef661663ad4fd25200df
PUTs on the whole housing market, they’re letting anyone buy at this point
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“We asked but they gave us a variable rate and we signed anyway” Lmao, RIP.
“we asked…but….so”
L M A O
In Poland virtually everyone has mortgage an no one has fixed rates, it’s like a unicorn, niche product. Variables everywhere.
Letting anyone buy? 2008 would like a word with you.
Who was giving out loans at 1.55%? I thought my 2.375% was good.
In the UK we tend to buy mortgage products for 1-10 years. At the end of each product, we purchase a new one or move to a variable rate. You can also move to another supplier. The mortgage term tends to be 25 years, but again you can change this. So, with rates in the UK, you could increase the term to help keep your monthly payments more manageable, but it’ll mean that you are paying more on the interest payments and less in reducing the capital.
My favorite part was op’s post history is his gold that he buys and stock piles
Wasnt there some European country where you could get essentially a negative mortgage rate? This was a few years back I remember reading about it. I believe it was Denmark where government paid you to take a mortgage.
Aren’t all mortgage loans ARM loans in Canada? How tf do people not know what they’re signing up for?
Wish Australia had a federally backed mortgage market where we could lock in rates for 30 years.
This is Canadian. In Canada about 50% of mortgages are fixed for 5 years on a 25 year amortization. Another 30% are completely variable. Most of the rest are fixed for between 1-4 years and a small amount for 10 years. The amortization remains normally 25-30 years.
Canada has a freer housing market – less government intervention then the states – so those 25-30 year fixed mortgages in the states just don’t exist in Canada.
If you just bought a house for an average price in Vancouver at today’s prevailing rate and price in a 5 year fixed you are paying around $6800/month. At the prevailing rate from the op’s image the mortgage payment would be $4623/month.
In USD that means $3500USD/monthly to $5100USD/monthly.
(Edit: lol. In Vancouver the median household income is like $90k/yr. My guess is after tax that mortgage payment is like 130%+ the median household income in Vancouver)
The first lender I went with offered me a fixed rate of 6.75%, which I signed back in 2007. The day before signing, the loan officer called me up stating that they needed to increase my APR to 7.75% stating that the $1000 “gift” (a loan deal between me and my mom) for home down payment was the reason. I told her up front, that’s not the agreement that I signed and I’m not agreeing to a change in terms a day before signing. She went off and hung up the phone.
I then learned that she called the seller and got him riled up. He called me an threatened to sue for backing out of the deal with my lender. Told me to just accept the deal and refinance later. I told him to go to hell, and that I’m backing out of buying the house altogether on the legal grounds of not receiving the HOA packet by the due date. He calmed down and we worked out a side deal while I dropped the initial lender and found another that gave me a better rate.
I learned 3 years later that the first lender that tried screwing me was sued and bankrupted for toxic lending practices. If I had the money and knowledge I would have sued them too, but I just wanted to be done with them. It was my first home purchase, and a complete headache and all around pain in the ass. I refinanced and got 3.75% some time later. Anyone that’s reading this and looking to buy a home, never let anyone coerce you into accepting and signing terms you don’t like. F that sh….
For the people saying that this is different from the US because the US Federal government props up the mortgage bonds/notes by buying them, someone explain to me how I can buy an airplane or a boat with a 10-15 year fixed rate, a loan the Federal government is not buying?
Fannie/Freddie activity alone doesn’t explain the absence of 15 or 30 year fixed rate loans in Canuckistan
People love to shit on American health care being expensive but for fuck’s sake Canada is free shots really worth everyone having to live behind the Tin Horton’s dumpster (I don’t know if Canada has Wendy’s)?
lol canada
Currently at 2.75% for 2 years, expecting double that soon, in New Zealand.
Other news: water wet.
This is standard. In the advent any of you might have missed 2008 when the prices for a home skyrocketed to historic highs, everyone was buying, then got left holding a bag for 15 years underwater in a modified 40 year loan that no one wants to touch. Do you really think this is any different than ish* coin pump & dumps? It’s a pattern. It’s skimming equity from the populace. Where do you think the cryptosphere got the idea? Monkey see, Monkey f*kcs a whole truckload of footballs while sucking exhaust pipe…
Markets can stay irrational than you can remain solvent
Canada doesn’t have fixed rate just like UK its only fixed for certain amount of years and then you have to refinance
Didn’t the 2008 crash also have to do with the fraudulent rating agency rating garbage debt as AAA when it could have been more like CCC or DDD?
What’s the situation on the stripper market? Do they have several house mortgages + one flat?
Most people that can buy a house aren’t this dumb
2.75% fixed rate for 30-yr term, USA. Refinanced and locked in this rate end of 2019 and was one of the best decisions ever made.
Sell low buy high
Oh I’m expecting the biggest drop in housing prices in history.