this post was submitted on 05 Oct 2023
61 points (91.8% liked)

Canada

7204 readers
336 users here now

What's going on Canada?

Communities

🍁 Meta

🗺️ Provinces / Territories

🏙️ Cities / Local Communities

🏒 SportsHockey

Football (NFL)

  • List of All Teams: unknown

Football (CFL)

  • List of All Teams: unknown

Baseball

Basketball

Soccer

💻 Universities

💵 Finance / Shopping

🗣️ Politics

🍁 Social and Culture

Rules

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

https://lemmy.ca/

founded 3 years ago
MODERATORS
otter@lemmy.ca
61
A 47-year mortgage? They're out there — and even longer ones could be coming (www.cbc.ca)
submitted 1 year ago by RandAlThor@lemmy.ca to c/canada@lemmy.ca
22 comments fedilink hide all child comments
 

About one out of every five home loans at three big Canadian banks are now negatively amortizing, which happens when years get added to the payment term of the original loan because the monthly payments are no longer enough to cover anything but the interest.

you are viewing a single comment's thread
view the rest of the comments
[–] Frederic@beehaw.org 9 points 1 year ago (1 children)

> variable rate loans with fixed payments that lead to negative amortizations shouldn’t be allowed at all

I agree with that, it does not make sense really

[–] Rocket@lemmy.ca 9 points 1 year ago* (last edited 1 year ago) (1 children)

You have to be mindful of ending up underwater, but otherwise it's not much different than renting – without all of the baggage of renting that sees people want to own.

[–] CaptainFlintlockFinn@lemmy.ca 3 points 1 year ago (1 children)

Unless monthly payments on renting from the bank are lower than renting from someone else it’s a worse deal. If you rent you don’t need to worry about things like replacing roof, windows, etc.

Also, if you rent you’re more free to pick up and leave vs. being tied to a mortgage.

[–] Rocket@lemmy.ca 1 points 1 year ago (2 children)

Renting is usually a better deal, but that's not why you might choose to own.

[–] Frederic@beehaw.org 1 points 1 year ago

It can, if you make good money, says 6000$ after taxes per month, you can rent at 1500$ and invest 2 or 3k per month and it can be better than having a mortgage for a big house and paying like 4k/month, I think.

[–] karlhungus@lemmy.ca 1 points 1 year ago

In the past when. I've done this calc renting was worth it till you'd lived at a place for about 5 years. Don't think this flat statement is true even now