Comments on: Canadian Real Estate Prices Increased So Fast They Eliminated The Benefit of Low Rates

By: buy low

buy low — Thu, 07 Oct 2021 20:55:00 +0000

In reply to Dorian. There are even better investments compere to real estate. Give you more financial freedom. Tesla, Facebook, Costco and Amazone shares and even more profitable. During pandemic crash on average in one year up to 65% gain. Long term investments are the best.

By: Joanne O

Joanne O — Thu, 07 Oct 2021 18:14:52 +0000

As a retired realtor, I remember when interest rates accelerated to 21%. The result was catastrophic! For all those mortgagors, CAUTION. When a mortgage is renewed, you may have lost control.

By: Olivia

Olivia — Thu, 07 Oct 2021 17:50:06 +0000

In reply to Dorian.

Not mine. It’s a joke to see people blame BD (when they started in 2016 they weren’t negative about the market at all, they were just pointing out the money laundering in Vancouver). If you felt that was a reason not to buy, then that’s on you.

If you missed that opportunity, Toronto’s detached market dropped 30% in 2018 as did Vancouver. It was back to 2015 levels, but the same people blaming everyone else didn’t buy then either — they missed the opportunity again. Meanwhile, they didn’t try investing in any other areas, they just waited and said too much risk to do anything.

By: Zesnen Yuskavich

Zesnen Yuskavich — Thu, 07 Oct 2021 16:02:53 +0000

This is a big win for canada. Canada is back!!

By: MD

MD — Thu, 07 Oct 2021 14:38:12 +0000

In reply to Hannah Goodman. Canadian house prices are inflated in Vancouver especially by foreing investors most of whom are hiding money from. their own countries government taxes and illegal buying procedures. See Global news article "Secret CRA study has shocking information on Metro Vancouver real estate market" How does a working family needing to qualify to borrow for a home compete with people paying cash and declaring 0 to negative income? Like some other countries we should not allow foreign ownership of housing.

By: Dorian

Dorian — Thu, 07 Oct 2021 01:06:23 +0000

Not buying a home a 4-5 back is one of my biggest regrets. I had the cash for a downpayment, but then decided to stay on the sidelines as I didn’t want a large mortgage to limit my ability to take chances – and given how fast the market was moving, it looked irrationally exuberant to me back it. I have been fortunate that my income has doubled in the past 4 years, but the amount I make after taxes is puny compared to what a real estate invested would’ve yielded. Despite being high income, I’m forever shut out from owning a decent home in Toronto.
If I didn’t analyze the decision quite as rigorously (which included perusing BD), then I would’ve been much much better off. As it turns out, not only is ignorance bliss, it’s also be very very profitable.

By: Hannah Goodman

Hannah Goodman — Wed, 06 Oct 2021 18:09:35 +0000

Oh, Canada. My home and bubbley land.
True mortgage love in all of us command,

By: Derek

Derek — Wed, 06 Oct 2021 18:08:33 +0000

In reply to Travis Hunter. Macklem did one better at the last meeting. He told everyone the stimulus would continue into the foreseeable future. Even as rates increased not on the prospect of the economy growing, but due to inflation concerns becoming crushing.

By: Travis Hunter

Travis Hunter — Wed, 06 Oct 2021 18:04:41 +0000

Sloppy, sloppy Canada. Meanwhile New Zealand’s killed their MBS program, QE, and hiked the policy rate to stop home prices from rising.

By: Jason Chau

Jason Chau — Wed, 06 Oct 2021 18:00:35 +0000

Lowering rates should be 100% about increasing demand, not improving affordability. The market has more access to capital than people do. It’s a small benefit to some people, and a huge benefit to those with more capital than they know what do with.