Comments on: Canadian Banks Report 1 In 4 Mortgages Are 35 Years Or Longer

By: Kim

Kim — Wed, 07 Jun 2023 06:35:06 +0000

In reply to Bob Vila.

Bob (I used to watch your show and talked to you a long time ago)…
I know what you’re thinking, but this is only going to delay the inevitable.
The prices are still going to keep dropping unfortunately we probably would have been at the bottom in 2025, we may not reach it now until 2026 and then your pretty much guaranteed that we’re going to be looking probably at around 2040 before the prices go back to what people paid a year in a bit ago.
I advised somebody tonight that they’d be better off to sell today and sit on the cash for the next year and a half to 2 1/2 years and wait it out.
Anyone who thinks otherwise… it’s a pipe dream.
I have worked through four of these booms and busts and this bust is going to be the worst of all.
It’s going to match the boom part but in reverse, see you in 2026 and we’ll see what happens then.
Personally I see lots of upside for the buyers waiting to sit on the sidelines until the prices hit bottom!

By: Kim

Kim — Wed, 07 Jun 2023 06:20:31 +0000

In reply to Philippe.

They lose everything!
Equity is gone…and they owe the deficit.

By: Dan Pelanek

Dan Pelanek — Sat, 03 Jun 2023 05:04:26 +0000

In reply to Ike. That's where you're wrong. That "extreme correction" hasn't happened yet. We first need to enter into a recession and everyone and their mother knows that a recession is coming. The calm before the storm. Get the popcorn.

By: Ike

Ike — Sat, 03 Jun 2023 04:13:10 +0000

In reply to Bob Vila.

The extreme correction that was much anticipated by bargain hunters turned out to be mirage for various reasons .

More and more buyers are realizing this and returning to the market to buy the dip, adding even more support to the housing prices.

The longer you wait…

By: Kim

Kim — Thu, 01 Jun 2023 16:21:57 +0000

https://www.thestreet.com/technology/elon-musk-warns-homeowners-about-the-value-of-their-homes
Technically right now the government is preventing the inevitable. I extending all these amortizations it’s keeping people in houses that should be going into default and walking away. The prices are going to keep falling and a lot of these people would be wiser to walk away now then to walk away when the price is finally do drop more.

By: Adrian Ransome

Adrian Ransome — Wed, 31 May 2023 21:35:51 +0000

As mortgages make up a significant portion a banks balance sheet, this news is not just bad news for those who recently purchased, but for all those with deposits in the bank. I think that the only way to sort out this real estate bubble and keep the voters somewhat happy is to extend mortgage amortizations. Homes will be generational in nature, ie taking a couple of generations to pay it off. With that, house price can stabilize at their current values while new buyers can enter the market under a new paradigm. Lender defaults will help bring house values back down, but will also have very damaging market implications for lending institutions. In Canada, we are limited to 6 banks, a few credit unions, some alt lenders and that’s it. In the US there are over 1,600 regional banks. If some collapse like we have seen, there can be containment. Here, should any of the banks collapse, then it is game, set and match. Even for those who think they are safe.

By: Anonymous

Anonymous — Wed, 31 May 2023 18:46:19 +0000

Will Canadian banks and politicians never stop thinking of ways to artificially prop up the housing market? Literally everything they do just makes the problem worse in the long run. If they had just kept their hands off the situation for the last couple decades and allowed for some gentle pendulum swings we would all be better off. It wouldn’t have just helped the housing situation, but our economy and industry as well. Instead of investing in businesses and innovation, everyone with money just buys property, because why not? It’s been a never ending gravy train.

What do they think is going to happen in 40 years when everyone is still paying off their mortgages and no one can afford to retire?

It’s sort of ironic that so many people left Europe for North America because they were tired of extreme economic inequality. Now here we are recreating an inheritance based society. We’ll just be left with landowners and debt slaves.

By: Larry Canada

Larry Canada — Tue, 30 May 2023 03:15:15 +0000

There is nothing inherently wrong with 40 or even 50 year amortization periods. It more closely replicates the renting experience. If an 80 year old still has a small mortgage when he dies, his estate pays it off before collecting the proceeds. I do wish Canadians could access 30 year fixed rates like Americans can. Would reduce risk.

By: Kim

Kim — Mon, 29 May 2023 22:38:35 +0000

In reply to Philippe.

The reason for the banks taking this crazy unprecedented plan of attack, is that most of these houses are worth 30 to 50% less than what they paid.
The banks are going to get a lot of pain…..
By doing this it is going to delay the inevitable.
So if there is any common sense left it would stand to reason that what should be happening now is price drops.
But this is going to delay them so that this downturn is going to continue for longer.
People are going to be able to hang on longer before they finally come to the realization that it’s better to take the loss than to hang in there for the next 15 years hoping that the prices go back to what they paid 2 short years ago.
I see this is a stall tactic of the banks, inevitably I don’t believe it’s going to work. I just believe that instead of 2025 things might have turned around we might be looking at 2027 because it’s going to take longer.

By: Dan

Dan — Mon, 29 May 2023 20:36:19 +0000

In reply to Average Man. I want to congratulate and thank the writers and editors at Better Dwelling. This site is beyond any doubt the only site that tells things as they are with no sugar coating or hidden agenda. You guys are the best.