Buying a house

I have been hearing a lot lately about how people bought houses in the last couple of years with variable rate mortgages and are now hurting with the interest rates going up. Everyone is yelling at the Bank of Canada and the government to stop raising rates. Yes it sucks but that's how interest rates work. The fact that the Bank of Canada rate has been at 1% or lower for the last 12 years is unprecedented, guess what, bank rates go up eventually. Hell, I'm old enough to remember when rates hit 20%, my parents (and a lot of other people) ended up foreclosing on their mortgage. That's why I have never seen housing as a very good investment. I feel bad for people who wanted a place to raise their families or got too caught up in FOMOism during covid. But to all those folks who decided to mortgage their property to buy more properties so they could flip their investments, I can't say I'm feeling your pain too much. Me? Bad credit stopped me from buying in in the 90s and early 2000s and not making enough money stopped me from buying later on. Luckily I do not rent from an investment property owner who is probably desperately trying to figure out how to have me evicted so they can jack the rent for the next person or turn it into an Airbnb to meet the rising mortgage/property tax rates. Real Estate is a mess in this country and it's about to get a whole lot messier.


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They're gonna get mad at you

Sep 7, 2023 at 8:39am

They don't like reality. They like socialist hand-outs now. It's not just millenials. It seems like everyone who moves here has an expectation of free handouts from the government. This society is in trouble. Productivity is low and everything costs an arm and a leg, and they kept on spending money like they had it. Now look at them. Not fun, is it? Will this reality check comment allowed to be posted though? Haha probably not. Thought police!!!!

6 7Rating: -1


Sep 7, 2023 at 9:40am

People hurting from interest rate increases had no business owning to begin with. They speculated on having low interest rates while home prices continued to rise, and seem to expect renters to pay the price to guarantee this. Zero sympathy for them.

8 5Rating: +3


Sep 7, 2023 at 4:06pm

Wayyy back in the day 7-8 hippies could easily rent a perfectly tolerable Victorian style 5 bedroom shack in Vancouver for 150 dollars per month. No problems with landlords who were happy to have their properties rented to anyone.

It is not a coincidence that back in those days Canada was stable, prosperous and successful as a nation.

Since then governments have cashed in real estate like a casino - allowing foreign interests to basically colonize Canada's real estate for their own nefarious reasons.

And now, after greed and self congratulations and money love the ship is starting to sink. I'm personally fighting fit and have no particular worries about the upcoming nightmare to come. The sooner the real estate bubble bursts and all of the wailing and knashing of teeth from the property owners starts, the better.

9 3Rating: +6

That's Why

Sep 7, 2023 at 9:12pm

You should GTFO of Canada if at all possible.

I did a few years ago,and my life has improved 10x in every single way

6 6Rating: 0

Perhaps but look at it this way

Sep 8, 2023 at 8:31am

I guess the problem with our real estate market is that ordinary people like you and I can't get ahead leveraging their property investments. The system is gamed against us and we have every right to yell at the Bank of Canada and the government. George Carlin was right.

4 3Rating: +1

Locked in for now, but...

Sep 8, 2023 at 9:27am

By some miracle, 7 years ago I was able to leave the city for a rural area, and buy a very humble house (smaller than most apartments). I have 2 years left on a fixed mortgage rate that's pretty low. The banks were wanting stress tests at the time to see if buyers could handle 5%. On a tiny pension, that raise would be possible but very difficult, a life of poverty. Remortgaging with a longer amortization period would be the solution, like to 35, 40 years, but for the most part, these aren't an available option. I'll never pay off the mortgage in my lifetime so I don't care about that. I just want to keep a roof over my head. Others may feel the same. Time to loosen up the rules. CMHC doesn't do a lot to help homeowners, but ends up as part of the problem. This is a housing crisis. Mortgage rates need to be capped, and the Bank of Canada has to figure out some new economics instead of creating homelessness.

9 2Rating: +7

@Perhaps but look at it this way

Sep 8, 2023 at 12:19pm

Ha, ha, ha, ha, ha, ha, ha, I guess you didn't read my post properly. What property investments? I'm also pretty sure you weren't paying attention to George Carlin either.

2 4Rating: -2

@They're gonna get mad at you

Sep 8, 2023 at 3:46pm

The federal government and the four largest provinces in Canada collectively spend about $29 billion a year on business subsidies — delivered through the tax system, spending programs and government businesses enterprises. It seems that everyone loves a hand-out. Canada is after all a Social Democracy.

3 1Rating: +2

I'll say this AGAIN

Sep 8, 2023 at 4:01pm

People are bad at history and math,no matter where you are in the world just like 100 years ago the same thing is happening now.
The math is exactly the same and the results will be too.
I own I don't rent and have no mortgage at 50 because I understand math,nothing more nothing less.
I understand history.
I empathize with stupid and also understand that a lot of people are there by circumstance not bad math or history if it were we would not be in this mess together,enjoy the ride everyone and good luck

3 2Rating: +1


Sep 8, 2023 at 8:18pm

That although many Canadians hate US
- 30 year mortgages are common no rate change payment locked in for life
- no penalty to terminate or refinance 30 year etc if rates go down or you win lottery
- mortgage interest is tax deduction major benefit to buy create community

Banks in Canada are screwing canadians.

5 4Rating: +1

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