My monthly mortgage payments have almost tripled: Dealing with Debt
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- čas přidán 2. 05. 2024
- Doug Hoyes, co-founder, Hoyes, Michalos & Associates joins BNN Bloomberg, to answer viewer questions on managing their mortgage payments.
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May I ask which investments are good? I've been looking at a few different ones but want others' opinions as well.
What I think everyone need is a Financial Adviser, who can help you get in and out of any investment at any time and you'd sure be in Profit..
Have been in need of an Adviser for long now..
It alright Angela Lynn Schilling look up on that and thank me latter..!!
Thanks... This Was Helpful!!... I found her page..
Thank God we never listened to these "experts" about borrowing money, oh you have equity? take a heloc, renovate your home, or buy a rental, rates are low. LOL We've decided to just pay off our mortgage and we did it before we turned 40. Now we can save more money and pay cash for everything, even renos.
Same here! It’s almost as if any sort of borrowing comes with an inherent risk that the future might not turn out as planned.
Same story here, since turning 40 with paid off house. Well done mate, it’s called basic financial management.
Many people overbid to buy these over inflated tiny homes .take responsibility instead of blaming someone else
Here is a smart man!
if theirs a bidding war im walking away and saving myself the stress
@@rochester3 And continue living under the overpass.
@@jimmason8502 I’ll continue renting while you live in a ditch✌🏾
It's not the interest rate that's the issue; it's the housing prices. Twenty years ago, people could afford a decent house despite high interest rates, but now, it's a nightmare as housing prices have skyrocketed five to tenfold over a period of 15 to 20 years. As a middle-class individual, I'm working hard, but I don't think I can afford a house simply by working.
The interest rates weren’t high 20 years ago. Yes, they were higher than today, but they were on the decline overall compared to 20 years prior.
@@DB-bw5fz 1998 interest rate was around 5 % but housing price was low comparing to today and people can afford it . If you want to compare apple to apple. And at 1990, interest rate was 13% up, people was able to afford for a house since a semi-detached was around 270k and now it is 1.5 mils around my area .
@@animeloverfan18 You’re missing the point. Mortgage rates in 1998 were in the range of 7%, but that was down from around 10% at the beginning of the 90s, which was down again from the nearly 20% interest rates in the early 80s.
That 7% interest wasn’t seen as high…it was seen as finally being back to normal. It’s the subsequent 20 years of constant rate declines, coupled with pandemic era stimulus and the ability to work remotely anywhere in the country that drove a lot of demand and has led to prices becoming far too high in the first place.
20 years ago the interest rates were higher than today still...
To afford a house, for 3 years, I worked a full time job plus 2 part time jobs, I averaged less than 4 hours sleep per night that entire time. I sacrificed any extras, personal time , health, sanity that is what it takes.
The people on TV need to be asking the question "Why did Tiff and Trudea both in tandem say rates were staying low when they both knew they wouldn't be?" This is the most important and troubling question.
Because the WEF ultimate goal is a population on walfare...
The BoC rates and Tiff have to closely be aligned with US Federal Reserve (otherwise CAD will go to shit). BoC likely thought Powell would not raise rates as much but he did. Hence even Canadian rates had to go higher and stay higher for longer.
No one thought rates were going to go up, not a single human knew that, stop pretendin you're God.
@@prao4603 It was still irresponsible of him to say rates will stay low when he knew there was a possibility of them going up.
@@nocucksinkekistan7321 You can't be serious...
All I see here is people not taking responsibility for their financial choices. "The bank told me this", "Tiff said that". People are over-leveraged, period. It feels like this is only the tip of the iceberg in what could be a troublesome couple of decades for Canadians.
@@codechartreuseThat’s true, but they had no risk tolerance and chose a variable rate. I was paying 2.9% fixed while other people were paying 1.5% variable. Now I’m paying 2.9 fixed while other folks are paying 5.5%. “Variable is the way to go” is always gambling. On the other hand, who can predict a 400% increase. Ridiculous.
Tiff is the BOC chairman he should have been responsible not to say that.
More on @@codechartreuse
When this rediculous governement started spending trillions - that's when haha. No sympathy for variable raters - even though it's gonna eventually be ALL our problems to bail out and fix...
@@TRANSPORTCANADAGURUthe government didn’t spend trillions. The bulk of inflation comes from private debt.
A lot of people bought beyond their means during COVID and they opted for the variable rate for the lower payment. No one opted for the variable rate at .99% and made payments as if the rate was 3.99% or 4.99%. No one put down extra capital - NO ONE.
Today, most of, if not all of them are feeling the crunch.
Human nature...😢
Well there was that one guy. He’s such a legend.
“She’s making monthly payments on her car and has no debt” 😂😅😂
She probably means no other debt apart from the car payments
Why would this guy recommend that old couple to sell their home and THEN GO RENT? Has he not seen how expensive rents are these days, and landlords are so awful about it these days? I would NEVER EVER SELL my home and then be at the mercy of some landlord. So that's some crazy recommendation.
you rather get foreclosed and kicked out and homeless? At 85 find a place in a Govt. Nursing home and spend the rest of your Money
@@berry1669 it's harder than EVER to find a bed in govt retirement housing. Folks are now getting thrown out of those housing all over this country. I would stay in my own home, and rent out rooms to single females or students needing a place to stay. In today's Canada I would never advise an older person to sell. Renting is simply too horrible to deal with at this time.
You don't understand economics.
@@nocucksinkekistan7321 I don't have to know or "understand economics" to know it would be a crazy thing selling that house. And then to be at the mercy of an annoying and corrupt landlord. No, thanks,
I'm the 80s mortgage rates were as high as 21%. 5% is pretty normal really
I remember it. Lots of people who had to renew near 20% where forced to sell. Many for sale signs in front of many homes.
But that was the US where your rates can be fixed and you can always refinance to a lower rate The UK and the rest of the Commonwealth countries have adjustable rate mortgages That's why they have increases in payments they don't have a fixed rate like we do
Sell your damn house!
@@codechartreuse Can't find a buyer? Lower the price. You should have equity unless you were a literal top buyer.
Unemployment's going up, people will be forced to sell eventually, I would opt into doing it before its popular.
You sound like someone who made a bad financial decision and doesn't want to live with the consequences.
Trust no one, listen to everyone
The writing's been on the wall for at least 10 years...
If people are in such dire straights, sell your million dollar McMansion and rent.
They might be underwater if they did that. The first 5 years of a mortgage is practically all interest.
@@jonathanandrew2909 House prices went up drastically in the last 5 years. If they don't have equity they speculated and overpaid.
@@richardtracy5588 have house prices gone up more than closing costs, taxes, insurance, utilities? House prices have gone down the past two years.
lower your standard of life so we can all be equally miserable- communist
@@jonathanandrew2909 That's just how it goes. It's like losing money on the stock market.
Find family members who can move in and pay some rent to help with the seniors.
How someone in their 80’s are not mortgage free, one may think that many bad decisions have been made.
Life is not the same for everyone.
They gave everything to their kids….thats how. Have some respect for elders.
Many people are dumb , I know people in their mid 50s buying 800k home with 5% down. They either expect their kids to pay for their mortgage or will be working until 70-80 yrs old.
"don't know what to do", he knows what needs to be done. Sell the bungalow and move into a condo. They just don't want to.
Greed
The writing is on the wall. Mortgage renewals here we come ! boc didn’t do thier job and kept interest rates too low for too long
My fixed mortgage rate was 7.95% in 1994. Prior to that in 1979 it was about 6.5% with an assumption of a mortgage with 3 1/2 years left. Soon after the mortgage rate went up to almost 19%. I can still remember so many people in Calgary either walked away from homes or sold them to real estate companies for $1. People who currently have variable mortgages should have known the risks they were taking. There are winners and losers who chose to play this variable rates game.
You’d expect a flood of homes to be on the market at this point as more people renew. Instead they are re-amortizing for 70+ years and paying only interest to keep the payments as manageable as possible
The crunch is happening but slowly. Still many people haven't needed to re-finance. The rates only started going up two years ago and many were in 3-5 year fixed terms.
Fixed payment variable rate mortgages are the reason why we haven’t seen the flood of homes you’re expecting to see. That will come in 2025 and 2026 when the fixed payment variable rate mortgages come due for renewal. Of course that’s all dependent on whether interest rates stay where they are.
I'm 67 my first mortgage was I believe 17% Later I had 9% and 7% only on my fourth mortgage did I have something in the range of 5-6%.
But I get it if you became accustomed to one or two or 3% interest and you mortgaged yourself to the max If you're in a position to be paying down your mortgage great.
What was the average home price when you first purchased a home? What was your income vs home price? I hear the same things from every 70 year old. "I had 17% when I bought my first home!". Yeah, well you forgot to mention that you bought a home for 120k and you were making 45k a year, in which you paid less taxes on, groceries prices were cheaper, etc.
@@BigCheese150young generation thinks they are entitled to their dream home immediately, your not. There are plenty of crappy homes in crappy areas that are affordable. Work your way up like every other generation did, you guys have it no harder then anyone else did. Legal working age is 16, you should be moved out by mid 20's latest, that 10 years to save money
@@BigCheese150 BIIGG FACTS
@@bdegrds AHH shadddaap. Wages have not inflated like everything else has. You are talking out of your ass
@bdegrds you don't realize how much the economy has changed. You really don't. It's not the same at. All.
I was lucky. I bought in 2020 apr. I paid 2000 a month. And 20% went to paying the principal. Now the payment has doubled. And the percentage going to pay to principal is dismal. At least the home has gone up a lot in value.
Variable rate mortgages are extremely risky - buyer beware.
Not really. Most have fixed monthly payments. Short term mortgages are riskier when stretching yourself thin in a low interest rate environment.
@@jbmop fixed rate isn't that much better anyway because of our 5 year term as opposed to the 30 year in the US
the bank would only give us a variable. it was a forced trap.
The US has fixed 30 year mortgages, if rates go up your payments are the same for 30 year. If rates go down you can refinance at a lower rate. Also mortgages there are non-recourse loans. Canadians get the worst case scenario. The more you know, the worse it is.
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
in my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five aiyears now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
The sole reason why these fools cannot pay the mortgage is the greed and speculation. If they took lower loan to ensure they could handle it, they wouldn't have a problem now. Sick of these fools.
never ever ever every get a variable rate mortgage ever ever ever especially on the LIBOR index..ever....they tell you don't worry they will refi you...BS..just do not.
Just get a second job like me. Work your life away to pay the renewed mortgage at sky high rates. We need 15 and 30 year terms.
I have a question: when BoC raise interest rates, where does the extra money from mortgage payments end up? Who benefits?
I don't think it's not the lender because if it was, then we should see super record profits in the banking sector.
Lol the bank of Canada / govt treasury bc they lend the money to the banks
Now this will be reflecting in weaker gdp due to more money spent on interest payments instead of going into the real "productive" economy. This will then result in lower interest rates that will crash our dollar and send inflation higher. Either way this country is screwed.
Why would you get a variable rate when it is at 2% more risk of it going up then not he could of locked it in for 5yrs at that point for 2.5% and been fine
For our first home in the 80s we had a second mortgage from a private lender, the builder. I was never so glad to get that paid off. But it did allow us to start a family and we had equity after that.
I like this guy
I’m mortgage free in 2023 15 years of biweekly , stayed on variable at the start went from 7.5% all the way to -0.75 then eventually closed out last term was 2.75% , damn good luck on those 9-18% you missed the low rates, now expect decades of higher rates
My mortgage 25 year 150k at 2.99% was 60$ cheaper biweekly then my current 4.99% rate.
Thats crazy!
That title is the future I saw when the landlord asked me to move out for $5 000 4 years ago.
I said, "no, $25 000 would be enough though".
Could've put a down payment on a mobile home and they could've doubled the rent for this unit, like they did the other 6.
I love how cruelly judgemental folk are here in the comment section of these types of videos. Everyone thinks they know better about a complete strangers circumstances and they always have some highly simplistic miraculous solution!! It's like they've done everything perfect in their lives and they cowardly get on here behind their screen and type nasty remarks...oh what a world this has become....
Canada should drop the rates on mortgages not other consumer debt. You need a house to live in but you can cut down on other consumption.
The current government has already presented a solution to the old Canadians and it's called medical assistance in death (MAID). Starting in March 2027, Canada plans to make medical assistance in death (MAID) available to people with mental illness (I wonder if depression consider a type of mental illness), expanding a program that was already accessible to patients with terminal or chronic physical illness.
Mine doubled only and tenants say. I can't raise rent more than 2.5%.
here in the same boat
I had to google what a mortgage renewal is to understand what was happening lol
Australia and the UK have adjustable rate mortgages as well every 2 to 5 years It's never a 30-year fixed like the US
Bought a home they couldn't afford.
Rent is super expensive and rentals hard to come by. Selling a house to start rent seems riskier than staying put and pinching pennies.
pennies?
Harper cancelled them because he said they cost too much to make, which said our money is under valued to me.
Bad enough people can earn tenths of a cent in the stock market without a physical tenth of a cent in the real world, now there isn't even a cent in the real world.
I will never stop calling for the return of the penny.
costs 1.03 cents to make one.
K, does it cost $1 to make a loonie?
$2 to make a toonie?
Why did those nearly 30 000 counterfeit toonies come in from China at $0.58 ea. then?
Hard to pinch pennies if they do not exist.
Axing the penny cost me $10 - $25 in saving a year, which might not seem like much, but when I tell you the maximum I can save in a month is $140, if no emergencies arise, and the average is $15-$20, when I account for those emergencies, you might think more.
Canada allowed illegal money launders in real estate. Please see the TD bank fasing penalty for allowing illegal money and has no restrictions on foreign property buyers
What is your point !
@@stephenmorris8557 point is simple Canada should have restrictions on property buyers from outside country they should remove the Freehold title from property and have strict rules on where the money is coming from today you can make a shell company and buy as many property illegally
Its capitalism and a free country suggesting anything otherwise would be communist. Either you are a successful capitalist or you are a victim of ignorance
Building more homes is the primary solution.
@Knowledge.to_Come
That makes no sense. If he's a capitalist, he'd love the money laundering (Snow washing they call it).
And ya, they say they have a massive wage in China that the lenders fail to verify. Chinese wages are about 25% of ours, so making $10 grand a month would Xi's wage.
There's a top secret doc "Project Sidewinder" that the Creitien Liberals shredded pre Harper much like justin archived Harper's internet history.
3.69% signed March 2022
Wonder what the rates will be in 2027?
The same because I have a GIC due July that year so rates have to fall a lot.
What the average family takes in 5000 monthly and the mortgage is 3500 that doesn't leave much to spend in the economy or save for retirement. Canada brought in newcomers and made them spend their life savings to come to Canada trapping them in poverty. This is wrong
Banks = NO Refuse.
Audit = Mortgage Loan Application = FRAUD
I damn damn damn agree.
Sucks for people who fell for the trap and bought beyond their means. Maybe started a family and now the shit hit the fan. I personally dont see any growth in the market for a decade. Hope everyone is ready to ride this out as the BOC is trying to cash in on baby boomers wealth transfer
The multitude of people got shafted the bad news is Banks don’t grease shaft the people have to grease their bom or take it dry.
@@pauls5819 😆 🤣 😂.
Rich indians srilankans russians Chinese have dumped lot of money in real-estate
Me thinks its just the latter.
At this present moment 4th may 2024 there are so much Canadians in denial
Feeling pinched, gutted or assaulted? Im not 👻
Home owners can always get a third job if their mortgage is this high. What do they expect anyone to do? Tax other people to help them with their mortgage? Have these people ever thought of getting a better job or a second job? Complaining or taxing other people doesn't get anyone anywhere.
100%.,homes are costly today because these more ons overbid and with no conditions
None of the home owner in the video talking about taxing other to help them. Homeowners are actually the one being taxed to help others like roads etc in the city. They all just asking for advice. Some are even at old age. Simple way to solve it is to sell something you can't afford anymore. Owning a home is nice, but not a must. Owning a home is getting more and more expensive. Higher property tax to help the city, higher insurance, mortgage is just part of it.
@@cinpeace353 Who are the home owners helping by being taxed?
@@JessT-vg7ib Part of city funding are from property tax.
@@JessT-vg7ibevery step of the way homeowners get taxed, they pay tax on buying it selling it property taxes when u build a new house you pay the city hundreds of thousands for permits creating hundreds of jobs for people and labor workers basically your whole economy is running on homeowners
5:09
"Now he has no monthly payment"
Of course he does. He just took out a reverse mortgage for $250K.
People cant so easily sell a home if they have penalties. Some penalties can be $50k
Tough luck better then going bankrupt
Canada is weird. So they don't do fixed rate mortgages?? You have to "renew"......Basically "ARM"??!!
It's like that because their financial system is not big enough to offer the rates that America has the UK and Australia have similar characteristics when it comes to housing financing
@@enhancedutility266 So I guess this is the price paid for "Free Healthcare".
@@Charlesbjtown not exactly there's just not enough money to go around in those countries I mentioned they're going to get you one way or the other is simply window dressing
I think it’s a lesson for some who treat their house like an ATM.
The talk here is nonsense. The bank WILL certainly seek to renew the mortgage as the bank has no choice. If they let the mortgage default then they are stuck with a house the sale of which won’t cover the loan. The bank is screwed. The guy is screwed too, but wait till rates go up another 1.5% …wow it’s going to blow up!
If the bank is "stuck" with the house, they should be able to sell the home to cover most, if not all of the loan. That's why they don't loan on 100% of the home value.
@@aman888 Explain to me the term “short sale”…
@@aaronsullivan1628 Yes, but you're assuming the value of the house is below the mortgage amount. Why are you jumping straight to that conclusion?
@@aman888 Experience. I started studying economics in 1979. I lived through Volkler. And I know and understand the numbers now. When the housing market turns hard, and it will… the number of underwater mortgages will soar. The subprime iceberg is hiding its true mass just under the surface.
Sure it will cover the loan. That's why they want a down payment - to provide that buffer. If the down payment was small then the mortgage is insured.
Got a headache
AAAA yes the famous credit line,,,,,,,,don't ever use it never...youl be glad u did.... cannot afford it sell the house or don't by it that's it...
It's amazing to me that everyone who quotes the infamous "lower interest rates for longer" statement from BoC has never actually watched that 45 minute press conference. Tiff was referring specifically to the next several quarters and that took place in 2020. In the time since then, all throughout 2021, 2022 the bank of canada was repeatedly warning people not to over leverage. The Bank of Canada is a convenient scapegoat for mortgage investors who gambled and lost.
What a novelty! "Do your own stress test"!, 🤦♂️ almost like making people accountable for over- leveraging them selves!! I've been wanting to buy a home for 8+ years and thought the market was over inflated in 2015, I make a good income 100k + a year, have a plenty of a downpayment but still not willing to buy because noone should be putting 40+ percent of their income into their dwelling!! And did you really think that intrest rates would not go up!?!? Never in Canadian historyhave they been below 2% ..people need to start taking accountability!! If your not responsible enough to look to the future and recognize what you CAN REALLY AFFORD, it's your own doing.
Interest rate aren't even high, they are just in the low range of normal. The problem is that the banks were far too willing to lend you more money when rates where low, and too many people foolishly took them up on that. If you were maxed on on monthly payments when the rates were at historical lows then you've set yourself up for failure.
This is the first news clip/article that really helps me sympathize, empathize eve, with people who were “foolish” to over borrow when interest rates were low.
I do believe some of the people with some knowledge of the economy and interest rates that led ignorant people to choose variable rate over fixed were silly. I was semi-skeptical in he pandemic that these lower rates were a bad idea and
That these rates won’t stay so low.
What is going on here? How many times can your face change when you talk? Is the interviewer related to the Addams Family? LOL Where is the thing? LOL
simple sell home take profit LEAVE canada and work part time to keep busy... economics 101
Not my problem?????
0:02
The daughter does have debt, she has a car loan
I am on mortagage 2 percent interest now , in 2 yrs I am renewing , how should I manage , currently I am having 900k and paying 4K monthly . I am really worried how can I manage and how much I need to pay when I renew in 2 yrs .
Fill your house with roomers in every room, sometimes two or three to a room.
What do i do about my adult child 🤣
Get comfy. They aren't moving out nor should they.
Encourage them to buy a house now at all time highs with putting down the minimum.
If you can't afford your house, SELL!
3.69% to 5.69% increase 43% increase in monthly payment?
his math doesn't add up.
I agree. The only way that makes sense is if it was originally a fixed payment adjustable rate term that negatively amortized for a while, and has now reset.
Sell your house to a corporation Robert
Or just don't buy what you can't afford. Do you really want to buy the most expensive house possible and not able to afford furniture, travel, or anything else?
Yes.. cause the most expensive house typically has the best investment upside
Hello, this guy is clueless rent in BC and Ontario is as much as a mortgage, if you can find a place to rent!
Yes, but you don’t have to worry about fixing the roof or HVAC if they break down.
My tenants will never leave! I wish they would….
Fools. The answer is simple. Cancel Disney plus😂
A fool and his money will soon part, that's in the bible!
The issue is not the mortgage. It that you have no idea whatsoever how to manage money. That's it.
😂😂😂
Canadians are so spoiled with interest rates. We were paying 22% in 1980. Why people are freaking out over interest rates of 7% or 10% is ridiculous comparatively. I had to take on two part time jobs to keep our house. Ya gotta do what ya gotta do.
Yes . When the house price was 70k .2 , max 3 times your income.
Nice comparison pops .
Yeah boomer small interest of a big number is greater than high interest in small number- go back to sleep
@@bathombre9739 in the 80s if you had to borrow 10 times your income to buy a house , we would never hear the end of it from their generation.
Ya....our current interest rates aren't actually 'high'......but really just average in the historical sense. We're simply not accustomed to paying average interest rates after paying artificially low ones for so long
Goddamn man...at no point between the mortgage rate going up from 2 to 7 did you think "better lock in?"...gtfo with blaming the BoC governor, and inflation, look in the mirror. Also why are you writing in to this show, you think this dude has a silver bullet to help you? The answer is either you and your wife are getting second/third jobs or you do what everyone has to do when they bought something they can't afford and SELL. You don't have a god given right to live in whatever house you live in at sub-2% rates forever. Sell it and count yourself lucky that prices also happened to go up because if they went down then you'd extra boned, all of which would still be your fault.
Sad but true.
This guys a fool
It's no one's fault but his if he is financially illiterate and have to rely on what other people say. I have no words to describe how stupid he is to rely on what politicans say to make decisions. Financial literacy is as important as knowing how to read and knowing how to take care of yourself. When interest rates are historically low why gamble and go with variable rate ?!!? Then he loses everything on the stock market. Poor decisions after poor decisions is what got him in trouble. His financial illiteracy is what makes him unable to apply critical thinking to advices given to him. Not all advices are good advices.
Lost all their savings in the stock market? Wasn't the past year a super bullish run for NA markets? Those must have been some absolutely terrible bets 😂
haha
Cry me a river
Madeup stories, madeup solutions