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Its a trap , Toronto Condo Buyers Beware ! , Major Financial Impacts ahead as they will raise Rates

1,823 views · Published 27 April 2018 · 5:41 · Indexed 23 September 2026

Channel: Mike Martins · 2018 · People & Blogs

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High Mortgage Rates: A significant number of Toronto condo buyers who took possession in 2017 are paying high mortgage rates. The discussion highlights that despite record-low interest rates, many new condo buyers are not benefitting from favorable lending terms.

Closing Fees and Interest Rates: The concern is raised about closing fees, interest rates, and the overall financing costs. The discussion suggests that when considering all these factors, some buyers might end up paying more in interest over the mortgage term than the actual cost of the condo.

Lack of Deals for Condo Buyers: According to CIBC, only 15.7% of borrowers who took possession of a new condo in 2017 are paying less than 2.5% interest. The majority, 55.6%, are paying more than 2.5%, and a significant 30.6% are paying above 6%.

Unusually High Interest Rates: A notable concern is the revelation that 17.4% of borrowers are paying a staggering 9% interest on their mortgages, which is considered surprisingly high.

Financial Impact: The discussion breaks down the financial impact of different interest rates on various mortgage amounts. It emphasizes that even a 6% interest rate could result in substantial annual finance charges, questioning the financial feasibility for many families.

Questioning Borrower Awareness: The speaker questions whether people take the time to understand the financial implications of their mortgage terms or if they blindly trust their banks and real estate agents. The concern is that families may not fully grasp the long-term financial commitments they are making.

Risks of High Mortgages: The speaker expresses concern about families signing up for high-interest mortgages, especially those at 9%, and suggests that such financial commitments could put individuals and families in significant financial jeopardy.

Call for Comments: The audience is invited to share their thoughts on the situation, and the speaker leaves a link to the article for those interested in reading more.

Predictions:

The discussion implies a potential risk of financial hardship for a considerable number of Toronto condo buyers.
There might be a growing awareness or discussion about the need for more transparent and fair lending practices.
Increased scrutiny or criticism of lenders and lending practices in the Toronto real estate market.

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