Quote:
Originally Posted by OMG!WTF!
I think rates were around 4-5% in 2004. When I was your age, my first mortgage was 6.75% in 2001. But for sure we've gotten used to bigger houses and lower rates.
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Yeah, if those interest rates return then Calgary real estate would lose 20-30% overnight because of the way mortgages are structured here.
If you could lock in 2.79% on a 25 year term, then not that big of a deal, but based on what I was approved for, if I went for the top limit, 5% interest rates would make the payment tough.
I think a large increase is unlikely because it would cause a pretty large asset devaluation but who knows.
I find that much more worrisome than the cooling of oil. I don't think Calgary loses 15-20% based on oil.