[allannienhuis]

I suspect many homeowners with a bit of equity would adjust their ammortization period to keep their payments affordable, and then re-adjust it again if rates drop a few years later. When it's time to renew your mortgage you usually have quite a bit of flexibilty.

The people that get hurt the most with increasing interest rates are new home buyers with high-ratio loans, with their amortization already at the maximum. There are definitely some people who get caught in that squeeze and are forced to downsize or right out of the market by those conditions.