Looking to leave the west*

That’s because 2/3 of Canada’s mortgages are insured. The government doesn’t want that on their books.
For the banks, they don’t need to book impairments (I work closely to large FI and can see their books, that’s another conversation).
For borrowers, they dont need to pay mortgages.

Win win win situation. Except to those who have been financially responsible. Tbh, I’m looking to the West in general just because these governments act like socialists and give the populace drugs to get by the day. No wonder Asia is catching up.

Re: the multiple unit owners.

They were given deferrals on ALL of their mortgages if they requested. No questions asked. This policy was imposed on the banks by the government and CMHC. Investors requesting mortgage deferrals were not required to prove that their tenants were not paying rent.

The result is that these multiple unit owners, the vast majority of whom had tenants dutifully paying rent, pocketed the extra cash flow and put it towards a down payment on ANOTHER property.

For a lot of Canadians it’s fear of missing out on ever being able to buy a home…..hence the rush to buy now at exorbitant prices. Many have been waiting for some sort of rate hike and correction or softening, but came to the conclusion that the government, BOC will do everything in their power to stoke perpetual increasing prices. So they finally jumped in….and it sucks…..

I hate to be critical because I understand. In my opinion, anger should be directed at the BOC, and the Liberal Government (and I can’t stand social conservatives). Even real estate agents, speculators, money launderers and foreign investors shouldn’t be blamed….vultures will go wherever theirs roadkill. It’s the Liberals and BOC that left Canadians bleeding in the ditch to be preyed upon.

The middle and lower income earners deserve to be screwed over for participating in the game of buying overpriced houses. They should have stayed in their parents’ basements or rallied in the streets. Now they will pay as their overpriced housing will lose value in real terms over the next 10-30 years.

Ya, 0.25% won’t do anything except begin to change sentiment. But FOMO is WAY to strong right now for 0.25% to matter. Rates would have to pop 100 basis points to accomplish anything. That’s not happening this year at all.

Yes, window guidance. The Japanese built their entire economy through this socialist measure but on productive industries like manufacturing, construction and anything under the sun Involving R&D. The US threatened Japan to kill their economy in 1985 because they were going to control everything. The BoJ and ministry of finance pivoted their window guidance to their housing market and we all saw where that went. Canada is doing the same except the government and central bank never bothered helping build the fundamentals of a proper economy like the Japanese. Canada is a sick country and doesn’t deserve to be one at that.

1) that unexpected growth is totally fake as is the whole world economy since 2008
2) corporations are now doubling down on automation which will have a stagnate effect on growth, on the one hand Corpos will get rich from lower costs making the economy better for it, on the other hand many people won’t have a job which will negatively effect the economy
3) the bank of Canada and Canadian government has shamelessly since 2015 used window guidance measures to prop up the housing market via making it easier for rich people to invest and immigrate here, it’s surprising that they’re planning on hiking rates which will kill the market in the long run, it seems somethings a foot and that they can’t keep lowering rates because as I theorize Canada has no economy without housing and oil so they’d rather crash things now (too late) than in the future