Comments on: Canadian Mortgages To See The Largest Rate Hike In 40 Years As Bonds Go 90s-Style

By: PatK

PatK — Mon, 04 Apr 2022 20:30:49 +0000

This has all to do with the mad rush to protect money. Thanks to the fiat $, government policy has allowed the value to sink and people are desperate to secure savings in tangible assets. Housing appears to be holding, while the buying power of the dollars is falling through the floor. Investors are banking on renter cash & airB&B opportunities to save their future, while the next generation has no idea how to pay.

By: gg

gg — Sun, 03 Apr 2022 20:12:12 +0000

My only concern is this government does anything it can to backstop this mess they’ve created. This of course is not fair for anyone who doesn’t own real estate because they thought even a decade ago it was overpriced, rightfully so too.

Dumb and Dumber will do whatever it takes to levitate the bubble as their policies are self serving.

By: Rob Ridley

Rob Ridley — Thu, 31 Mar 2022 17:24:03 +0000

Wow, some cold and heartless souls on here. The people who bought those homes qualified on stress tested approvals for rates well above what they were paying. It would be reasonable to assume the bank was comfortable with the stress test, so the buyer would be too.

Why would you wish a bad outcome on someone?

By: C.Rose

C.Rose — Thu, 31 Mar 2022 13:10:57 +0000

This can get pretty ugly really fast! Remember you can’t lose in real estate , repeat over and over and maybe your wish will come true!

By: Doomcouver

Doomcouver — Thu, 31 Mar 2022 02:43:01 +0000

In reply to Alan. Yeah when the sob stories start pouring in that people aren't able to afford the $1.5 million mortgage on their McMansion I'll be playing the world's tiniest violin. Nobody forced anyone buy, there were always alternatives to buying a house. During a housing mania, among other options, you can move away, live in a van, or suck it up and rent. 99% of recent homebuyers chose to buy out of house-lust or greed, I won't feel bad for them.

By: V

Wed, 30 Mar 2022 22:54:20 +0000

What goes up must come down!

By: Alan

Alan — Wed, 30 Mar 2022 21:55:21 +0000

A loan/mortgage is you borrowing your future income and cashflow at an interest. Stating the obvious again to all those who were high on euphoria. The BoC was forced to raise rates because gambling in houses was sucking the lifeblood out of consumption and the economy. Canada will be one of the slowest growing economies in the next decade or more unless housing prices crash drastically. And hearing the news about Epic Alliance collapse in Saskatoon, its just the beginning of the fireworks…

By: M W

M W — Wed, 30 Mar 2022 21:20:28 +0000

In reply to Alan. Agreed, looking forward to some foreclosures hopefully soon!

By: Mandrake the Musician

Mandrake the Musician — Wed, 30 Mar 2022 20:31:03 +0000

Crazy to raise interest rates as it penalizes everyone with a mortgage, not just flippers. They should place a cap on home price appreciation, let’s say something like no more than 40 to 50% a year. That should cool off the market without killing the golden goose.

By: Alan

Alan — Wed, 30 Mar 2022 20:17:25 +0000

Let the party begin!

Nobody forced them to pay over a mil for a cottage in Barrie, Kawartha Lakes or Wasaga Beach as if they were the new Miami Beach with warmer weather.

The government, federal and provincial froze or cut social safety nets for the poor while subsiding these greater fools and feudal investors.