Homeowners who will have to renew their mortgage in the coming months will probably not have a miracle solution to avoid a significant increase in their monthly payments, whether they opt for a fixed or variable rate.
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“Mr. and Mrs. everyone, currently, with their house, will suffer, still suffer, and I don’t know for how long. There is no answer, there is no escape, there is no short-term solution”, admitted without detour Stéphane Bruyère, mortgage broker at Les Architectes Hypothécaires, during a interview granted to LCN on Wednesday.
For many, the mortgage hike promises to be steep, with fixed rates oscillating between 5 and 5.5% and variable rates offered between 5.5 and 6%.
“The variable rate is higher. It is something that is very unique to see that a variable rate […] is higher than a fixed rate,” said Mr. Bruyère.
Homeowners who currently have to renew their mortgage must therefore choose between a high fixed rate, but without surprise, or bet on a variable rate which might just as easily go up or down, depending on the next decisions of the Bank of Canada on the key rate, summarized the broker.
However, the latter does not expect a large number of repossessions of houses by banks, since lenders are already reaping the profits thanks to the rise in rates.
“If you’re in trouble with your mortgage, talk to your bank, talk to your creditor, talk to another lender to just check out the different scenarios. It is possible that you have one or two bad years of bad luck in your financial situation and that the climate will then recover, ”said Stéphane Bruyère.
