Everybody wants to talk about interest rates, mortgages, and inflation! Inflation, eh?
I never thought there would come a day when this is a common topic of discussion.
As promised, Tony Della Sciucca is here to answer your mortgage questions!
TRB Readers’ Questions For Tony:
- What is the spread between variable and fixed and when does it make sense for variable, when does it make sense for fixed?
- What is the spread between variable and fixed and when does it make sense for variable, when does it make sense for fixed?
- Not to get too far down the line here but what is your opinion on when quantitative tightening could end? Are we talking 3-5 years or is this just a short term shock to the system that will be followed by normalizing in the next 12-18 months?
- When rates are this high is it true that a variable rate is better than fixed over the long term? Or do you think people could still benefit from a fixed rate because rates are going to increase further and stay there?
- Pretty sure I already know the answer to this but I think I have to hear somebody say it: why does the Bank of Canada always follow the US Fed? Other than the same reasons: we have to, we always do, we should, our economies are tied, etc, etc, etc. are there any reasons other than we’re doing what we’ve always done? Much appreciated David and Tony!!
- Tony: does the mortgage stress test differ if you take a variable or a fixed or is the calculation the same?
- It has only been a week, but are you noticing any different behaviour from your clients as a result of the 1% rate hike?
Adam
at 5:15 pm
Great interview! Looking forward to part 2.