Quote:
Originally Posted by AFireInside
There will be a number of people who will be in trouble when interest rates rise however. I believe the historical average for interest rates is 8% or so. I would not be surprised to see interest back at 7% within a couple years, that could cause MAJOR problems for many owners.
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I can't see interest hitting 7% within a couple years unless things are really good again.
Unless people are making a lot more money in 3-5 years when all of these ultra low fixed mortgages come up, there is no way the BoC will raise prime high enough that were at risk for another huge round of foreclosures.