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Originally Posted by opendoor
Yeah, I think people will generally find a way to make it work, either through refinancing to longer terms or cutting out basically all of their discretionary spending. Selling a house is usually a last resort, though if we do see a recession with significant job losses, people may not have a choice.
But people with 2020 and 2021 mortgages were stress tested at the rates we're seeing now, so unless their income has materially changed for the worse, they should be able to afford the higher rates.
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I don’t even know about that. There are three year variable mortgages taken in 2020 and 2021 and those have come up for renewal and those were lower. I’m not pushing for high rates or lower rates. Certainly lower rates help all of us, but in many ways I question certain logic that’s mentioned in the media. Plus I don’t think bank of Canada’s major purpose is to appease the mortgage market. Isn’t it primarily around investing in the country and when to attract foreign capital around imports and exports?