Canada CBC's Move Squeezing HomeOwners

Note: Remember how Adjustable Rates Mortgages played havoc with hard-pressed unqualified homeowners who only needed to leave a vapor trail from their nostrils over a mirror to seal their deals in 2007? Same thing happening in the former blistering hot Canadian RE market:

CBC headline: How the central bank’s latest big hike is squeezing Canadians with mortgages

Sub-headline: People with variable-rate mortgages or whose terms are set to expire are worried about what’s next

Thousands of Canadians carrying hefty mortgages are scrambling to balance their home budgets after the Bank of Canada raised its benchmark interest rate by a full percentage point to 2.5 per cent last week.…

“In January this year, I was paying somewhere around $1,920 and now I’m paying $2,500,” said Soni of his monthly mortgage payments.

In January, Soni’s interest rate was 1.54 per cent. Now, it’s at 3.79 after a series of hikes.

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I would also point out this inflationary mention of food prices for Canadian ARM holders too in this article too, with this bit about the same guy mentioned above in the OP:…

Soni works in banking and hopes his wife will soon land a job.

“So keeping my fingers crossed if she gets a good job or maybe a decent job, we’ll be able to survive. Otherwise it will be really difficult.”

The couple’s grocery bill has also nearly doubled in six months, said Soni, from $500 a month to $1,000.