Loading ...The state of Canadian Mortgages in 2026
Ask your Bank Branch how rates compare between 2021 and 2026. The answer I got was shocking.
There is a difference between fixed term and variable but what I was told was that the majority of the mortgages that come due next year will most certainly double the interest component on the monthly amount. I believe that the most people are expecting a drop in rates by the time they renew. The lenders can get creative but it’s usually not in the borrowers long-term favour.
Many young families who got on the housing ladder then got funds from the Bank of Mommy for the down payment in 2021 and were hovering close to the wire. Is the Bank of Mommy going to bail them out again at expense of their retirement funds? I have met complete strangers who have had to advance hundreds of thousands just to pay down an adult child’s mortgage so they can renew.
There used to be a financial stress test before someone received financing from a lender in Canada to protect the system. You had to prove you had the income to support said mortgage.
What happened?
It’s going to get nasty out there very soon in Canuckistan. All facets of life appear to be failing here.
All the Boomers here should count their blessings for being born at the best time in the past 100 years or so. It is pure luck on our part.
Cash is King, big deals ahead for the patient…generation gonna come to realization that 3-4 bathrooms in a home have consequences.
“Pure luck” — 100% agree!
I’ll take luck over skill any day…
I hate it when people say ‘ oh you so lucky to have that nice car, house or whatever, luck my ass! pure hard work ,risk,stress, sleepiness nites , all shit that the other side is not willing to endure. How many do you know that could, would be willing to put in 12-14 hrs a day if the opportunity looked them right in the face?
What I was referring to was that housing was very affordable especially after the high rates leading up to 1983. High school buddies went into jobs at the tire companies or other factories right after High school and could easily afford these homes in their early 20’s. I’m talking about 3-4 bedroom, two story brick homes. Get short-term financing realizing the rates were coming down after the damage had been done.
In my area as in others, homes could be purchased for a deep discount for quite a few years. If one bought a couple of these discounted homes you could rent them out and make it pay. Especially if you duplexed them. Many of us did and this set us up for monthly income as the loans were paid off by the renters. Remortgage at the increased value every 10 years and a great tax shelter until sold. We were born in the right era for real estate.
The same individual today a few years out of High School does not have the opportunity to get a job at a union plant paying well enough to buy one of these homes I was referring to. They now go for $800,000+ when you could purchase one for $60,000-$80,000 then and do some minor repairs yourself.
Yes, hard work and risk pays off but starting out in life with the above mentioned opportunities gives one a huge boost.
Our generation was lucky in real estate. Many under 40 can never afford a home now unless their parents leave them money.
Absolutely, it’s better to be lucky than good!