Tuesday, 12 October 2021
By Mortgage Outlet
Why variable-rate mortgages rule in the pandemic housing market – and maybe afterward, too
Mortgage-industry estimates of the percentage of people who break a mortgage before maturity range from 33 per cent to 60 per cent. “People underestimate how much life circumstances can change in five years,” said Leah Zlatkin, mortgage expert for LowestRates.ca and principal broker at Brite Mortgage Inc. “There could be a relationship issue, there could be a job issue, there could be bad health. You might need a different school for your toddler.”
The pandemic just adds to the uncertainty of staying in a home five years. If you move to a small town to take advantage of remote work, might your employer want you back in the office at least part of the time? If you’re moving to a smaller town, will the fit be right for you and your children? In the pandemic, people have made snap decisions about housing under stressful conditions.
