Comments on: Canadians Are Still Deferring Thousands of Mortgages At Non-Bank Lenders

By: J

Fri, 10 Jun 2022 15:46:29 +0000

Deffering payments for 4 months while it grows in size due to higher interest rates (coming in the future) – not a great plan my friend. If one had to differ, four months in the future won’t solve your liquidity issues unless you win the lotto, game the gambling system, or sell your business and make some money to cover your home cost… but now you’re out of a income stream and now back to square one. I see people walking away from their bad purchases and leaving the country. Like all those abandoned luxury cars in the Middle East.

By: Kim

Kim — Wed, 08 Jun 2022 06:26:55 +0000

In reply to BCGuy. Agree! Too many people are pretending that the inevitable is not happening.

By: BCGuy

BCGuy — Sun, 05 Jun 2022 20:31:28 +0000

A lot of worried homeowners and/or realtors in this comments section. Just treading water blathering on about how everything is going to be okay while trying to push down the terror.

We’ve barely begun folks. At least 4 more rate hikes. 4 months and 20 percent drop…..I wonder what the next 4 months will be as the newer hikes compound and put more and more people, investors, and corporations in the red…

Not to mention all the job loss..

By: RW

RW — Sat, 04 Jun 2022 18:21:55 +0000

In reply to Trader Jim. Yessir. People think the 2008-mortgage meltdown happens every price crash when in reality it was a global liquidity crisis. Asia, Europe, and the US all simultaneously needed cash injections. To head it off this time they bailed out before the issue began, the clueless blokes. Now we have soaring inflation and bad loans are still floating like a turd in gas station waiting for a flush.

By: Lou Chao

Lou Chao — Sat, 04 Jun 2022 18:19:05 +0000

New normal involves not paying any bills and just having the government bail every bad decision people make. People wonder why there’s no money for public services anymore when the cash is going to bail out dummies indirectly via banks.

By: Ethan Wu

Ethan Wu — Sat, 04 Jun 2022 18:17:24 +0000

Probably unrelated but the perception of non-bank lenders has bothered me for a while and I’m glad you touched on it. People sometimes pay thousands extra to their bank because it’s faster than asking a mortgage broker about the options.

Just make sure you go to a mortgage broker AND banks, since banks will sometimes present offers they don’t give to mortgage brokers but have in their back pocket for when someone has a lower rate at the broker’s office.

By: Trader Jim

Trader Jim — Sat, 04 Jun 2022 18:13:23 +0000

Thank you! The risk from the media about higher rates causing a mass default even is completely overblown. A lot of tools including deferrals and amortization extension, which the banks mentioned would likely be the outcome of variable rate mortgages. In 25 years inflation will have made your mortgage payment seem insignificant when extended for another 5 years.

The people who should be worried are tiny condo buyers since they don’t plan to live in the unit and 25 years later your condo maintenance costs will soar. Good condos cost a little more upfront and have a history of well managed books you can inspect. If your agent isn’t telling you to pull these documents, get a new one.