Quote:
Originally Posted by username
Ya, I know that some people were getting mortgages that were around 25% back in the early 80's.
Think of all the people in the last 5 years that have 300K plus mortgages with rates below 5%. Now imagine rates rocketing up to 20% again what that would do? How many of these people do you think could afford 60K a year in interest on their house alone when they barely qualified for that initial mortgage at a rate below 5%?????
Scary stuff to think about......
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Hence why there's no way in blue hell this happens. You'll see the BoC raise rates to a manageable level (4-6%) at a very reasonable pace, so that those that mortgaged themselves to the ragged edge will have time to sell and
move on down.