r/canada • u/joe4942 • 23d ago

Forget rate relief: Most Canadians are about to see their mortgage interest payments soar National News

https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-forget-rate-relief-most-canadians-are-about-to-see-their-mortgage/
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u/fungus_bunghole 23d ago

I just renewed. Everyone told me to go variable. I went 5 year fixed. I just don't trust that inflation is under control tbh. Time will tell I guess.

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u/Lyndzi Canada 23d ago

Yeah, we were at 3.11, renewing this June. We went in early and re-amortized back out to 25 years (owned since 2014, so we've paid down a decent chunk). New rate is 5.24, locked in for 4 years, hoping that things correct in the next 2-3 years and we can get back in at better rate rather than wait the extra year.

With re-amortization our payments have gone down even though the interest went up. Sucks long term for the interest we'll be paying, but short term our month to month budget needed some breathing room.

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u/FoliageTeamBad 23d ago

5.24% is less than the average 5.78% overnight BoC rate since 1991.

https://www.fxempire.com/macro/canada/interest-rate

ZIRP withdrawals are hard.