Variable Mortgages Triggered After September Interest Rate Hike From Bank Of Canada: Up 75 Bps!

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Variable Mortgages Triggered After September Interest Rate Hike From Bank Of Canada: Up 75 Bps!
If you got into a variable mortgage when interest rates were at their lowest, you’re probably going to be hearing from the banks soon because monthly payments are going up after September’s rate hike.
RBC tells us that they have approximately 80,000 variable mortgages that will be affected in the next couple of months, so if there are six big banks out there, and four of the six big banks offer these types of mortgages with trigger rates, then we’re looking at at least 320,000 variable mortgages where payments will start to go up.
So in this video, let’s take a deeper dive into how rising interest rates will affect existing home owners in Toronto.
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0:00 - Intro
1:00 - What Is A Trigger Rate?
2:43 - How Much Will Variable Mortgages With Trigger Rates Go Up By?
4:15 - Increase In Payments On Mortgage Renewal
6:07 - Takeaways
7:00 - How We Can Help
#torontorealestate #torontorealestateinvesting #torontorealestateinvestors #torontorealestateinvestors #realestateinvesting #realestateinvestors #investmentproperty #investmentproperties

Пікірлер: 61

@ElevateRealtyCa Жыл бұрын

Mortgage holders: tell us ... how does this affect you?

@chaosanity638 Жыл бұрын

Locked in fixed until 2026. Hopefully, rates and house prices are stable by then 🤞🏽

@mitchreynolds9841 Жыл бұрын

Same here, i guess we will see!

@firstlast4229 Жыл бұрын

Got a low 5 year fixed last year despite 'advice' from mortgage brokers that looked solely at the fixed/variable spread and put no thought to risk management, historical averages or expectations. Now I'm saving cash and hoping for some opportunities next year.

@tssarkozi7413 Жыл бұрын

Awesome cash flow, give it to me.

@cwx8 Жыл бұрын

1% discount on variable 1 year ago, was doing pretty good until this. Now upside down. But.. at least I have the discount.

@HP-zc9cp Жыл бұрын

Thank god I didn’t listen to any agent and made my own choice by locking for 5 years under 2.5% ….

@Lifeisapartydresslikeit Жыл бұрын

I’m very confused with the trigger rates. I know many people with a mortgage under 300,000. I’ve spoken to them - those on variable (fixed rate) and they said they are no where close to their trigger rate. Not many people have an $800,000 mortgage??!

@amoosavi Жыл бұрын

Extending amortization should be illegal. It's a ponzi

@hayhay_to333 Жыл бұрын

you're very quick for releasing this video, must have had everything prepared.

@ElevateRealtyCa Жыл бұрын

Haha 😇

@RealFahimReza Жыл бұрын

everyone was a genius in the 25 year bull market, lets see how much appetite for mortgage payments are after a few months

@2402zia Жыл бұрын

Yup, still riding variable and still buying homes currently. The people who were complaining about not being able to buy are still complaining and the investors are still investing. Mindset.

@richardli5530 Жыл бұрын

Don't forget those who had to renew their fixed mortgage. They too will likely find that their payment will go higher despite some small principle paydowns now that the rate is much much higher. It is about time for mortgage rate to normalize to 5 - 7% range.

@ElevateRealtyCa Жыл бұрын

Yup, we brushed through this quickly. It's similar to renewing variable mortgages but the spread difference is slightly less for fixed so we used variable as baseline.

@RJ_331 Жыл бұрын

No one's talking about paying 100% interest lol. This isn't good.

@robertblue3795 Жыл бұрын

Feel lucky to have locked in early for a 3 year fixed at the beginning of 2022,, before the war and inflation start. Great video btw.

@ElevateRealtyCa Жыл бұрын

VERY LUCKY!!

@kevinn1158 Жыл бұрын

BOC base rate will go to 3.75-4% this year. And then the BOC will pause and see how the economy and inflation react. And because rents are running super hot, they will continue to raise next year. Those rent prices are part of the CPI inflation numbers. Prices will continue the drop through this period. Let the last 2 yrs of gains get wiped out. Most of the bigger volume buying was around 2018/19 levels.

@ericachail9449 Жыл бұрын

Hi, In regards to trigger rate and interest rate hikes and inflation. Is this a good time to have a double mortgage or sell our property??

@parkerbohnn Жыл бұрын

It's a good time to sell a low end property but not a good time to sell a high end property.

@ElevateRealtyCa Жыл бұрын

Expenses are higher than normal now which means cash flows are tighter. It's not a good idea to increase your mortgage unless you can generate more income to make up for the difference (e.g. if you can compensate for it with higher rents). Selling is tough... prices are much lower, and it's a buyers market.

@tbird792 Жыл бұрын

Variable still the way to go! "what goes up, must come down!" and rates will not stay high for long, with very fast tightening by the BoC they're sure to adjust downwards in half a year to a year

@NightFlight1973 Жыл бұрын

I'm torn between riding out my variable and going to short term fixed 1 or 2 year. No matter how you cut that its a flip of the dice. However, whatever decision I make - the universe will inevitably make me pay more. That's just how it works for me. :/

@brettthomas5605 Жыл бұрын

Well for me,I'm on the other side of the coin, looking for the best rates within my savings account and my GIC investments. Mutual funds (equities) are taking a beating so we'll concentrate on these Investments for now. A small return is better than getting nothing these days. I feel sorry for those of you that have mortgages because you have a current government that has created this mess. Now apparently they are blaming everybody else but themselves.

@dontbefooledbyjumla7869 Жыл бұрын

Yes exactly. I was trying to wait till the rate hikes were over but made mistake of investing in housing. Now suffering... It's both gov n people like me made mistakes. Bse when the home prices went up people should not have bought period.

@therooster4426 Жыл бұрын

Welcome to Trudolfs great reset

@cwx8 Жыл бұрын

Personally, I'm very glad that I and my fellow middle class citizens have been selected the sole method to deal with government-induced inflation. Would be nice if the Liberals met our efforts on this and curbed spending.

@GuansCorner Жыл бұрын

and tax the shit out of the rich

@nicholaserwin988 Жыл бұрын

Me and my fiance just got a house in January and we were talked into sticking with variable and that we would be get a message from our broker if something drastically changed and he would come to us and say sign here in his words. Well worse case scenario happened where the rate that has been almost unchanging for years started to move....now we are approaching a point where I don't know if we will soon be able to cover costs. I know inflation just started to show a decline but we're probably still gonna see rate hikes. So shouls we changed to fixed idk....I understand it will be higher than what it is currently but atleast it will stay as is

@GuansCorner Жыл бұрын

as long as inflation doesn't get out of control, most of the pain is over. there might be another .5 or maybe .75% left to go in rate increases. no point locking into fixed now. maybe 1 or 2 yr fixed if the rate is right.

@stephenr6194 Жыл бұрын

Oh no! Tooo much interest la! How am I suppose to buy a millions dollars home?😉

@ElevateRealtyCa Жыл бұрын

🙄🙄

@torontomunda Жыл бұрын

real estate agents time to do uber eats

@Jiggysaw Жыл бұрын

I am very very closed to being "triggered", less than 0.5% away :/

@GuansCorner Жыл бұрын

how's your amortization doing lol

@ryguy108 Жыл бұрын

Same lol, my amortization is over 40 years now lol. Thankfully in a couple years when it comes down I'll increase my payment when interest comes down and start bringing my amortization down.

@InvestWithRishi Жыл бұрын

More interest means more deductibles lol

@ElevateRealtyCa Жыл бұрын

As long as they can hang onto them ... watch the cash flows!

@snowwoman2233 Жыл бұрын

where? in Canada? our mortgage payments are never counted here as deductibles. WHat country are you talking about?

@ravneetgill86 Жыл бұрын

$400 doesn’t seems right ???

@ElevateRealtyCa Жыл бұрын

Numbers don't lie.

@atarileaf Жыл бұрын

Glad I did a ten year fixed. I'm good until late 2030

@ElevateRealtyCa Жыл бұрын

You're in the US?

@666dynomax Жыл бұрын

What rate did you get

@baseline6786 Жыл бұрын

Ridiculous boc is being. Inflation is slowing, no need to drop it to near 2%. Took 3 yrs to spike homes 300k Took 5 months to erase it.

@baseline6786 Жыл бұрын

@Market Prophet not really. Maybe if your sole purpose is to just buy RE at the bottom and ride it up. its falling without any pause to allow people to conduct business, forcing anyone who has to move this year to accept big losses.

@mitchreynolds9841 Жыл бұрын

I agree Baseline. Going to be interesting how far they go.

@thinkaboutlife5335 Жыл бұрын

@@baseline6786 you are completely clueless on what was artificially pumped in for a very long time... welcome to reality cheap money for over priced assets and sheep just blindly adding fuel to the fire... unfortunately much more pain is required to reset this monster... and it will come... should be awake up call for everyone.

@parkerbohnn Жыл бұрын

Inflation only fell because Biden cut the gasoline tax before the midterm elections and the gas tax got cut here. When the midterms are over this November gasoline prices will go back up to $2 a liter, CPI and inflation will come screaming back at the end of this year.

@GuansCorner Жыл бұрын

wut? inflation above 2% means price increases compound, faster. that's not the world you want to be in. and inflation feeds on itself if it's noticeable, ie above 2%. you're crazy if you think 7% inflation is fine and will just keep falling on its own. also, homes went up 300K in one year. prices are back to summer 2021 prices. what are you talking about? and 1.2M to 1.5M is 25% rise. 1.5M to 1.2M is 20% fall...which direction has a larger magnitude? the BoC is not being ridiculous