Is the housing bubble about to burst
- Thread starter K Douglas
- Start date
What is the average rate of those mortgages and what rate do they renew at? From what I am reading payments for those renewing in 2025 will be up 10% and in 2026 6%. That should not be problem unless you lost your job.
If there is no induced Trump-tastrophe, I see things going along as they have been. There is a possibility of a temporary slow down in housing sales and stagnant prices when the Ukraine war ends. Refugees will be streaming back to Ukraine from countries around the world. No matter what kind of shit hole people are from, home is home and it is what they know. Ukraine is not such a bad place, so many would prefer to return. With the majority of the 300,000 just from Canada returning home. There will suddenly be a temporary housing glut. Most effected will be rental properties, less so for single family houses.
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Pre-pandemic, 5 year was ~3%, in 2021 5 year was as low as ~1.4%, right now it is probably ~3.75%. With 3 rate cuts, I can see ~3% for 5 year in 2026.
If you already have a home paid off and a decent stock portfolio, can you get a loan at the same interest rate as a mortgage if you put up your home and stock portfolio as collateral? If interest rates get to near 2% that is cheap money, I would want to take out a 50% loan on my assets just to invest it.
If you already have a home paid off and a decent stock portfolio, can you get a loan at the same interest rate as a mortgage if you put up your home and stock portfolio as collateral? If interest rates get to near 2% that is cheap money, I would want to take out a 50% loan on my assets just to invest it.
thats leverage at its best. My HELOC is about 4.75% which is generally 2 points above the bank rate. i use some of it to invest. late last year when it was 8%, i rebalanced to pay it off.
Many of these mortgages were at rates of 2%, some even lower. Even with the recent decrease in the BoC prime lending rate mortgage rates will still be around 4.5%. On a $700K principal amount, payments would rise from $2,965 to $3,875 per month. That's a 31% increase.
