Quote:
Originally Posted by DoubleF
The stat was for 2021. I was thinking the same thing at first. Someone taking a variable rate in 2021 doesn't seem out of the ordinary IMO. We didn't get hints of rate hikes until very late 2021 and early 2022. Anyone who took a variable rate any time in 2022 while maxing out their leverage is a complete buffoon though.
Someone in 2021 with a variable rate mortgage should be relatively OK though, even if they're annoyed. Enough down payment float and they bought at the lowest vs the 2022 housing FOMO spike.
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The other thing that boggles my mind, and this is really about grade 11 economics.
We had a red hot housing market before COVID.
Then COVID hit and the government had to spend a bunch of money to keep things going.
Grade 11 economics would probably tell you that about 1-2 years after that money is spent and the purse strings tighten up, we are likely due for major inflation. Which would equal interest rate increases.
Therefore it would make prudent sense around July of 2021 to think about going fixed rate.
I personally know people as well that had the ABILITY to go fixed rate 3%, went variable instead, didn't bother paying attention, and are now paying variable 5%+.
Crazy.