The significant rise in interest rates has had serious consequences for some homeowners in Canada.
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The most vulnerable are those who have chosen a variable mortgage.
In Canada, 35% of owners have this type of contract and the majority have opted for a fixed monthly payment.
As a result, their payment per month is no longer sufficient to repay part of the capital.
“We see it in Ontario and British Columbia, I saw a mortgage amortization of 135 years and nine months, it’s terrible that we fall into negative amortizations. It’s completely ridiculous!” says Stéphane Bruyère, mortgage broker at Les Architectes Hypothécaires.
This extraordinary case shows that many homeowners are beginning to lose control of their mortgage payment.
“When you look at mortgages at TD and at RBC, there are 23% of loans that have an effective amortization of more than 35 years, that’s a lot, that’s almost one in four people who have more left over. 35 years old,” he said.
The situation is more serious in Ontario and British Columbia, but the current period remains urgent in Quebec.
“What we experienced in 2022-2023, we also experienced in 1981 and before that in 1936. The years that followed, there were recessions and depressions. It’s not something very happy, what we are experiencing at the moment, ”he underlines.
Watch the full interview in the video at the top of the page.
2023-09-06 11:11:32
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