Comments on: Mortgage Defaults Don’t Indicate A Real Estate Bubble, A Lack of Defaults Do

By: Mortgage Delinquencies Are Flatlining In Toronto and Vancouver Shows CMHC Data | Better Dwelling

Wed, 08 Aug 2018 14:35:11 +0000

[…] and maybe even make a profit. Consequently, there’s few delinquencies in a bull market, and even less in a bubble. A lack of delinquencies says less about borrowers, than it does about […]

By: Canadian Mortgage Growth Plummets To The Lowest Levels Since 2001 | Better Dwelling

Wed, 01 Aug 2018 13:58:51 +0000

[…] a loan are greatly reduced. If a borrower can’t make their payments in a booming market, they can always list and sell before defaulting. The easy access to credit makes it cheap, especially for things like real estate. That’s the […]

By: The Leverage Used For Canadian Real Estate Might Be Higher Than We Think | Better Dwelling

Tue, 03 Jul 2018 14:25:00 +0000

[…] all fine and dandy when prices expand, but that’s not the case when liquidity dries up. Nearly 1 in 10 mortgage dollars borrowed in Greater Toronto are now from private lenders. […]

By: CMHC Finds Millions Worth of “Ineligible” Mortgages At A Canadian Bank | Better Dwelling

Wed, 30 May 2018 14:02:26 +0000

[…] Once the bank became aware of the issue at the end of last year, they took steps to reform the borrowing process. The bank believes the mortgages “do not represent a credit issue as they are all performing in line with the Bank’s overall mortgage portfolio.” Defaults are always low in a bull market, but that’s a lesson for another day. […]

By: Canadian Mortgage Defaults Haven’t Been This Low Since 2006 | Better Dwelling

Wed, 25 Apr 2018 13:31:13 +0000

[…] Record low levels of arrears are often observed when markets are overheating. Some people argue low levels of arrears are a better indicator of a bubble, since it represents an overly liquid market. There’s little reason to default in these markets, […]

By: Canadian banks could be putting customers at risk – THE Politico Post

Canadian banks could be putting customers at risk – THE Politico Post — Thu, 12 Apr 2018 02:15:01 +0000

[…] Few people complain when they’re making money, so both are scarce while prices are rising. Default rates are always low during an up cycle as well, even when the buyer can no longer afford the home. These types of specialists haven’t been […]

By: Canadian banks could be putting customers at risk | Android Lover

Canadian banks could be putting customers at risk | Android Lover — Thu, 12 Apr 2018 00:42:27 +0000

By: Canada's mortgage market might be a cesspool, the federal government just warned • realestate.10ztalk.com

Fri, 06 Apr 2018 17:33:57 +0000

By: The Government of Canada Just Pointed Out The Mortgage Market Might Be A Cesspool | Better Dwelling

Fri, 06 Apr 2018 12:29:57 +0000

By: Impaired Mortgages Soar At Canadian Banks, As “Standardized” Reporting Hits | Better Dwelling

Thu, 05 Apr 2018 12:35:24 +0000

[…] You’ve probably heard Canadian banks have some of the lowest impaired mortgage rates in the world? That’s because we used our own special method to account for them. In Canada, loans securitized by a private insurance company, aren’t considered impaired until 180 days of non-payment. Loans securitized by the government backed Canada Housing and Mortgage Corporation (CMHC), aren’t considered impaired until 365 days of non-payment. That’s a lot of time to screw up on payments, list your home, and even make a profit during a bull market. This is a big part of why Canada’s default rates are low, even as unaffordability reaches new highs. […]