Posted at 5:00 am.
hell
“I just extended my mortgage. Hell. I signed a four-year term at 2.72% in February 2020, just before COVID-19. Two weeks after the signing, interest rates fell significantly. I renewed with my bank two weeks ago with a supposedly good interest rate of 5.98% for an exclusive customer. Still, there is a big difference in the monthly payment: with a three-year term, I go from $1,287.97 to $1,535.50. That’s still $247.53 more per month. My balance is only $150,000. I imagine ones at $300,000 and up. »
–Yvon Roger
Rising rates and wildfires
“We have had no shortage of surprises in recent years… With interest rates from 2% to 6.8%, it goes without saying that the mortgage budget has changed! And on top of that, we’re in the middle of a breakup! We had to pay off a mortgage for 20 years that could have been paid off in seven years to make ends meet. This does not take into account home insurance, which has increased following the numerous forest fires that have surrounded us this year. »
–Anick
The investment of a lifetime
“Two more months and my 2.8% loan will increase in line with current interest rates. What to do ? This is a three-unit investment property loan that comes with a $160,000 mortgage. The increase will result in an increase of about $500 per month, a loss of half of monthly pre-tax income. I’ve always been cautious about raising my rent. As proof, my rent is $810 for a 4.5 room house, $1085 for a 5.5 room house and $1310 for a 6.5 room house with a garage in a top quality building. So who has to pay for this increase? To fill it I would have to increase my rents by $150 each per month. My solution is to defer the building’s repayment over 25 years instead of the remaining 12 years and increase the rents by $50. And to hope for better days for the investment of a lifetime. Because I’m 69 years old now and my wife and I lived in this triplex for 25 years to have something special in retirement. »
– Rocks
Renovation projects demolished
“We are extending our mortgage in June 2024. With interest rates rising, not only are we worried about what awaits us next summer, but we also wanted to use our extension to renew the kitchen. We really don’t know if we’ll be able to do it. »
– Sophie
Don’t let it go!
“I had to extend my mortgage last month. Of course it hurt, but the good philosophy of living within one’s means served me well. I have a small mortgage. After a divorce, I bought a small condo (before the pandemic madness and crazy prices). On a $130,000 loan, that’s still an increase of $50 per week, or more than $200 per month. But I am proud to have negotiated with my financial institution and thanks to this I was able to reduce my three-year fixed interest rate to 5.99% instead of the original 6.50%. I still spent a good month searching for my rate, calling brokers, other banks, etc. This is my little story. It’s not all bad either. Even though it’s commonplace, I wanted to show others that you shouldn’t be fooled and shop around for your rates! »
– Stéphanie Gémar
Active with his assets
“My 55-month term […] expires in May 2024. It’s clear that my next change from 2.68% to 6% will have an impact on my budget. I need to withdraw from my investments to keep roughly the same monthly repayment amount. And this reality (using assets to reduce the mortgage) is increasingly becoming a reality at the bank and credit union level as well. »
–Charles Auger
Worried about their final years
“We are a couple, 67 years old. Due to a degenerative disease, my partner of 42 was forced to stop working, resulting in a net reduction of $1,200 per month in his salary. Things were going well until not long ago, but in the current context the task is becoming very difficult. Our mortgage will cost us almost $600 more per month. We went from a rate of 1.9% to 6%. Even if we wanted to pay back half of it, that’s not possible for tax reasons. In our 35 years of marriage, we have never really had to pay attention to expenses. The picture has changed somewhat and it is certain that we are worried about the years we have left to live. »