• crystalmerchant@lemmy.world
    link
    fedilink
    arrow-up
    6
    arrow-down
    1
    ·
    5 months ago

    I don’t understand. If they get a fixed rate at the time of purchase what difference does it make that rates have gone up?

    • WoahWoah@lemmy.world
      link
      fedilink
      arrow-up
      10
      arrow-down
      1
      ·
      5 months ago

      Very often these aren’t traditional fixed-rate mortgages. That’s what they probably have on their “primary” home, but when you’re buying homes with the explicit purpose of using them as income generators, the landscape of available loans changes.

      • whoisearth@lemmy.ca
        link
        fedilink
        arrow-up
        4
        ·
        5 months ago

        Thank you for a very well explained response. Also in countries like Canada mortgage terms are redone every 5 years on average making us much more susceptible to rate changes than in America.

        • Ragnarok314159@sopuli.xyz
          link
          fedilink
          arrow-up
          1
          ·
          5 months ago

          That’s pretty disgusting. Would do nothing but make you move every five years, and banks are going to screw you over every five years.