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Near-empty office buildings, already a problem plaguing US cities, are becoming a worry for mortgage bondholders as landlords fall behind on repayments at the fastest rate in five years and the difficulty of refinancing the loans grows.
Former chairman says fellow director asked him to get “those two women” off the board. Director says he disagrees with many assertions.
As millions of workers gaped at the thick haze enveloping the Northeast US this week, they faced yet another remote work conundrum: Should they commute in a smoky haze to a well-ventilated office or is it safer to stay home?
Welcome to Social Buzz, a daily column looking at what’s trending on social media platforms. I’m Caitlin Fichtel, an editor on Bloomberg’s Breaking News team, which monitors everything from company statements to tweets from some of the most prominent people in the financial world. Here’s your daily look at what the internet is talking about.
An influx of people and a jolt of federal aid juiced the Sunshine State’s growth — but high housing costs and rising inequality could haunt the governor’s presidential bid
Nov 25, 2022
, BNN Bloomberg
A homebuyer in 2022 could be paying around 250 per cent more in interest during the first year of their mortgage when compared to a buyer in 2021, according to an analysis conducted by Ratehub.ca.
In October 2021, a homebuyer would have paid $12,310 in interest during the first year of their mortgage, according to an emailed statement from Ratehub.ca. In this scenario, the buyer has a $600,000 mortgage with a five-year fixed mortgage rate of 2.09 per cent and an amortization period of 25 years.
According to the statement, a buyer in October 2022 would pay $30,819 in interest during the first year of their mortgage. This scenario assumes a $600,000 mortgage with a five-year fixed rate of 5.24 per cent and an amortization period of 25 years.
“A homebuyer will now be paying 250 per cent more in interest in the first year of their mortgage alone. It is unsurprising that this has turned off many potential homebuyers in 2022,” James Laird, the co-chief executive officer of Ratehub.ca and president of CanWise Mortgage Lender, said in the emailed statement.
The calculations were based on the best five-year fixed mortgage rate available to homebuyers at each respective time, according to the statement. Additionally, the analysis was based on an uninsurable rate, meaning homebuyers would be getting this rate or better for each scenario.
“I have seen year-over-year change in mortgage interest costs quoted as between 10 to 20 per cent. I don’t know how these calculations are being done, but I know with certainty that both fixed and variable rates have more than doubled over the past year,” Laird said.
According to the Canadian Real Estate Association, the average home price across Canada was $644,643 in October of 2022, representing a 9.9 per cent decline from the previous year.
The conventional mortgage lending rate in Canada for a five-year term was 5.75 per cent in October, according to Canada Mortgage and Housing Corporation.
According to RATESDOTCA, the current top rates in Ontario for a five-year variable and fixed rate mortgage are 4.8 per cent and 4.89 per cent, respectively.
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