Canadian Housing Crash?
Mortgage Payments To Go Up By 40% as most mortgages adjust automatically with higher rates.🚨🚨🚨
Most countries don’t have 30 year fixed rate mortgages like the USA. Most countries have 5 years before rate adjusts.
— Wall Street Silver (@WallStreetSilv) June 26, 2023
via theglobeandmail
The Bank of Canada estimates that mortgage borrowers who renew their loans over the next few years will see a spike of 20 per cent to 40 per cent in their monthly payments.
So far, the bulk of borrowers have not felt the sting of higher interest rates because their mortgages have fixed monthly payments. But the bank said that by 2026, nearly all borrowers have to renew their mortgages, resulting in higher payments.
“In light of higher borrowing costs, the Bank of Canada is more concerned than it was last year about the ability of households to service their debt,” the central bank said in its annual Financial System Review. “More households are expected to face financial pressure in coming years as their mortgages are renewed.”
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