this post was submitted on 28 Jun 2023
68 points (86.2% liked)

Canada

9980 readers
504 users here now

What's going on Canada?



Related Communities


🍁 Meta


🗺️ Provinces / Territories


🏙️ Cities / Local Communities

Sorted alphabetically by city name.


🏒 SportsHockey

Football (NFL): incomplete

Football (CFL): incomplete

Baseball

Basketball

Soccer


💻 Schools / Universities

Sorted by province, then by total full-time enrolment.


💵 Finance, Shopping, Sales


🗣️ Politics


🍁 Social / Culture


Rules

  1. Keep the original title when submitting an article. You can put your own commentary in the body of the post or in the comment section.

Reminder that the rules for lemmy.ca also apply here. See the sidebar on the homepage: lemmy.ca


founded 4 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 15 points 2 years ago* (last edited 2 years ago) (5 children)

This is a variable mortgage issue. No one is lending new mortgages at these amortizations. Fixed payment variable mortgages vary their amortization period as interest changes. The monthly payment stays fixed, unless it hits a threshold when the bank increases the monthly payment to bring the amortization period closer to reality.

[–] [email protected] 2 points 2 years ago (1 children)

I didn't realize this was a thing. I like this way better than letting the monthly payment fluctuate.

[–] [email protected] 10 points 2 years ago (1 children)

Except at a certain rate your entire payment is going towards interest and your principle doesn't go down at all so its basically throwing money away.

[–] [email protected] 2 points 2 years ago (1 children)

It depends. If your payment is less than rent would be you're still coming out ahead. And the alternative could be a payment you can't afford. At least this way you can choose to sell or ride it out and wait for rates to come down instead of getting foreclosed on.

[–] [email protected] 2 points 2 years ago

More accurately:

Mortgage payment + maintenance + tax < rent

load more comments (3 replies)