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A comment on Canada bans foreign home buyers for two years. Parent comment

Re:Canada bans foreign home buyers for two years by TimPC on Tuesday April 19, 2022 @08:46AM (#31082359)
It’s still quite possible to stretch yourself. Variable mortgages are common and interest rates are going up at a rapid clip. It’s possible for them to rise further than the stress test numbers. Refinancing in five years may be painful if you got a mortgage at 1.5%, stress tested for 3.5% and refinanced at 5%.
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Re:Canada bans foreign home buyers for two years by jejeyyy77 on Tuesday April 19, 2022 @09:08AM (#31082575)
Stress test currently means you need to qualify at 5-6% if you have 20% down.

If you are putting less than 20% then the stress test is even higher.

I doubt we will see 5-6% interest rates in the next 5 years.

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Re:Canada bans foreign home buyers for two years by noirbot on Tuesday April 19, 2022 @09:25AM (#31082759)
Tell that to the 5.1% rate a friend of mine just got on a new home purchase with >20% downpayment. I dunno if rates are a lot better in Canada or something, but we're already in 5-6% range in the US for some properties. They had excellent credit too.
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Re:Canada bans foreign home buyers for two years by jdsully on Tuesday April 19, 2022 @11:25AM (#31084405)
US mortgages are 30yr fixed. In Canada you cannot get a fixed rate for that long and 5 years is the norm - everyone here effectively has an ARM. This is why rates are almost always higher in the US.
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Re:Canada bans foreign home buyers for two years by jejeyyy77 on Tuesday April 19, 2022 @10:26AM (#31083600)
Interest rates are still at 2.5% in Canada. Still a ways off from 5-6%.
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Re:Canada bans foreign home buyers for two years by freeone3000 on Tuesday April 19, 2022 @10:28AM (#31083619)
Rates are better in Canada. 2.3% is within the norm.
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