Personal Finance

Locked: Why aren't more people panicking about the rising interest rate? Did I overextend myself?

  • Last Updated:
  • Nov 26th, 2018 12:51 pm
Deal Fanatic
Apr 5, 2016
6116 posts
4613 upvotes
Calgary/Vancouver
That's why to get a mortgage, the qualifying rate is 5.34% or your rate + 2% to minimize interest rate shock.
Member
Apr 2, 2016
482 posts
318 upvotes
Troll thread.

/thread
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
To be honest OP is probably one of those bears on the real estate forum -- probably signed up with a new nickname to try to cause "panic" but clearly the guy ran away.
Deal Addict
Apr 14, 2017
1967 posts
621 upvotes
DT Calgary
It amazes me how many made up stories of success there are on RFD.
Deal Guru
Aug 14, 2007
12807 posts
3837 upvotes
--
I think I’d be much more worried about my other half not working... I’d be really angry about it to be honest and while school is important, so is providing for your own family...

But what do I know I’m separated...

As for asking if you over extended yourself. I would say no, if your wife was working when you bought your home, then decided to go back to school then I’m sure you were fine. If after the fact then for sure I’d say your on a fine line of that.

It’s going to be pretty interesting to see what happens over the next couple of years. There’s tons and tons of people who are right on that edge and are so house poor they can’t afford to do anything but pay their household bills.
Member
Sep 9, 2012
372 posts
120 upvotes
TORONTO
heynayjk wrote: Should've said you're a refugee. Trudeau would've paid your mortgage for you.
Wut.
Deal Expert
User avatar
Dec 11, 2005
20136 posts
2964 upvotes
"Did I overextend myself?"

Yes. </thread>

For reference, I make a significant amount more than you do and my mortgage when I got it was for ~ 300K. Much higher than that I would not have been comfortable.

My mind boggles at someone who makes $120K / year household getting a 620K mortgage and thinking that's a good idea.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Deal Expert
May 30, 2005
49009 posts
10302 upvotes
Richmond Hill
I think many people have already chimed in on the overextending yourself, but one thing I wanted to add is, if your mortgage is only 2.09%, why are you paying it down aggressively (over the monthly payments) when a bland savings account pays more than 2.09%? You should be investing that money instead of doing lump-sum payments. EQ Bank is doing 3.33% on 3-month GICs right now.
Tons of things for sale!
Silver Coins and Numismatics | Heatware
Deal Fanatic
User avatar
Dec 27, 2009
7941 posts
5483 upvotes
Victoria, BC
mkl38s wrote: I haven't read all the pages but was wondering why OP got so many downvotes.
Go back and read the thread if you want to know. The answer will come to you - I promise.
Moderator
User avatar
Sep 30, 2001
30160 posts
10147 upvotes
Toronto
op has 'signed off' on this topic. locked
Be kind and civil with one another

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