Any reprieve from the rate pain will depend heavily on four developments:
- Higher unemployment (Next jobs report: July 7)
- Slowing GDP (Next GDP report: June 30)
- Tumbling core inflation (Next inflation report: June 27)
- Easing home values (Next real estate board reports: first week of July)
The BoC interest rate announcement on July 12 is probably pretty significant too. 😬
I am very lucky that I got only 25% to pay left on my GTA suburb detached house - got it 12 years ago just before prices went cuckoo for cocoa puffs - but even then the variable payments are getting outta hand. Already thinking of doing some drastic changes to our lifestyle in order not to deplete our rainy day fund.
As someone with a renewal coming up in November, I guess I’m interested to see just how much danger I’m in. How exciting?
I had to go back and check. We are only 1 year into interest rate hikes. The maximum effect is probably going to be around year 3 or 4 when the majority of low interest mortgages have renewed into high interest.
Good luck for yours. Things are going to get expensive!
