Quote:
Originally Posted by Azure
The amount of variable rate mortgages is stunning. Did people honestly not realize interest rates were going to go up again? Locking in at 2.2%, versus variable rate 2% and 'oh so much cheaper', but not thinking we are due for a big increase? Or am I missing something?
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The spread b/w fixed and variable rates was larger than that. I know for my clients that decided to go variable, I recommended setting their payment "as if they took the fixed rate" to mitigate some of the risk.
Not all of those 48% are going to be in trouble thankfully, and those that are, there are at least measures being taken by the Government and OSFI/insurers.