To start, I would like to note that I am not a homeowner myself.
There’s been a lot of aggression towards landlords recently due to the housing crisis. I would just like to remind people that many landlords are simply renting unneeded space in their homes and may be in dire straits themselves with recent interest hikes.
I would like to put a few hard numbers out for monthly mortgage payments (for a 25-year mortgage). This increased interest does not go to building their equity either: $2,063 at 0.25 per cent ($618,900 total); $2,540 at two per cent ($762,000 total); $3,156 at four per cent ($946,800 total); and $3,838 at six per cent ($1,151,400 total).
It is a sad state of affairs, but please keep in mind if these resident homeowners are forced to sell, their tenants are likely to suffer for it as well. Communication and understanding are key to minimizing the damage to both parties here. I hope both the lower and middle class can work together, rather than drag the middle class down to the lower.