If you calculate the monthly payments on this mortgage, the numbers don’t add up. If Sarah is renewing the mortgage at this higher rate, her payments would be less than she quotes.
Shame on the CBC for not doing the math. I suggest HELOC and other debt repayments are included.
Others in the national press and local blogs have mentioned this. Owning a home is an asset (and a potential financial liability). Sarah needs to understand this. I have empathy, but no sympathy.
‘Sarah’ and her husband would have to find someone willing to take on her house with similar debt as she has now but if she’s forced to sell likely needs a haircut. Maybe all her down payment. Or more. What she will gain from this experience is a healthy distrust of the banksters and fear of leverage. She needs to look at what her current house would rent for vs mortgage/tax/repairs.
Those with the power to impose higher liabilities on the rest of us do so and call that inflation. Then central banks increase interest rates to allegedly reduce those liabilities -- inflation -- eventually signalling to the private banks to increase liabilities on as many people as possible. Thus increasing inflation further.
Then people have to scramble to transfer assets --money -- to those people with the power to impose higher prices and higher interest rates.
If you calculate the monthly payments on this mortgage, the numbers don’t add up. If Sarah is renewing the mortgage at this higher rate, her payments would be less than she quotes.
Shame on the CBC for not doing the math. I suggest HELOC and other debt repayments are included.
Others in the national press and local blogs have mentioned this. Owning a home is an asset (and a potential financial liability). Sarah needs to understand this. I have empathy, but no sympathy.
‘Sarah’ and her husband would have to find someone willing to take on her house with similar debt as she has now but if she’s forced to sell likely needs a haircut. Maybe all her down payment. Or more. What she will gain from this experience is a healthy distrust of the banksters and fear of leverage. She needs to look at what her current house would rent for vs mortgage/tax/repairs.
Those with the power to impose higher liabilities on the rest of us do so and call that inflation. Then central banks increase interest rates to allegedly reduce those liabilities -- inflation -- eventually signalling to the private banks to increase liabilities on as many people as possible. Thus increasing inflation further.
Then people have to scramble to transfer assets --money -- to those people with the power to impose higher prices and higher interest rates.
And inequality grows still more.