About one-third of mortgage holders have already seen their rates increase, and the Bank of Canada forecasts that just about every borrower will experience the same in the next three years.
By the time his loan was up for renewal this year, he was on track to pay it off in as little as 15 more years, after having made a few extra payments along the way.aggressive campaign of rate hikes "It's a couple grand a year more," he told CBC News in an interview. "But I went fixed again because with the chaos, I don't think it's getting better any time soon."
"We take calls from some people who are actually in tears," he said. "They've got a renewal [and] they don't know what they're going to do." "We hear these stories about 70-year amortization, 90-year amortization — instead of paying off your mortgage, these people's mortgages are actually getting bigger," Butler said."At renewal … those rates, those payments are going to go up," Butler said.‘Mortgage prison’: Trigger rates and negative amortization explained | About ThatVariable-rate mortgages can be high-risk and high-reward.
That's going to add about $400 a month to their mortgage costs — and comes with another catch: In order to keep the payments comparable, they've had to undo the diligent work they've done to get their original loan down to 16 years, and re-amortize at 30 years.
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