Comments on: Canadians Took Out $2 Billion In HELOC Debt Over Just 28 Days, Most Since 2012

By: This Will End Badly

This Will End Badly — Sat, 30 Apr 2022 16:16:23 +0000

I think what most of us don’t understand is that a 20-30% drop not only means the value of our home will fall, it also means that when you renew your mortgage loan the bank/lender will only give you a amount based on the current value of of home. Meaning, if you have a 1mil home and it drops by 30% the bank will only give you 700,00K.

Let that sink in for a minute….

By: Maz

Maz — Thu, 28 Apr 2022 00:40:07 +0000

In reply to Alan. Working class should be able to get a line of credit with 5% rates, nobody should pay 20+% in interest

By: Alan

Alan — Thu, 28 Apr 2022 00:06:54 +0000

The property owning class get to take 2.5% HELOCs and 1% mortgages, while the working class have to pay 21% interest rates on credit cards and 500% payday loans, just to cover the rent.

They will own nothing, and live miserable—the Canadian working class. Now the homeless class are harassing the working class in the TTC by demanding $5 to $10 dollars as a donation, while the property owning class get the Toronto Police to kick the homeless people worse than stray dogs.

By: Ian Mellor

Ian Mellor — Wed, 27 Apr 2022 23:44:40 +0000

Swapping debt using a HELOC has never been so appealing. Marginal tax rates are high, nominal interest rates are still very low and land value keeps increasing. Prudent investors only should do this only over the long term!

By: Kate Wright

Kate Wright — Wed, 27 Apr 2022 21:30:06 +0000

In reply to Raging Ranter. There's actually a microdata analysis from the Bank of Canada showing the rise in unemployment led people to retire and draw on their home equity. Not really the same, but that being said I believe they were being sarcastic. m

By: Ron Bruce

Ron Bruce — Wed, 27 Apr 2022 18:29:03 +0000

A home equity line of credit HELOC makes the Banks the casino. House rules apply where the house wins the majority of the time. Hopefully, some of the equity is being used to create new businesses. But I wouldn’t count on that happening. Property speculation is much easier to monitor, where getting in and out of the game can change with each poker card drawn. Businesses don’t have the same luxury as it’s challenging to unload inventory, find new clients or tell your workers and administrators in the manufacturing plant to go home.

By: Raging Ranter

Raging Ranter — Wed, 27 Apr 2022 18:08:00 +0000

In reply to Raging Ranter. Clarification: Of course my second paragraph refers to February 2022, not 2009.

By: Raging Ranter

Raging Ranter — Wed, 27 Apr 2022 18:07:10 +0000

For some reason 2009 seems to have been a year everyone was in the mood to take out an exceptional amount of cash from their home.

It had absolutely nothing to do with interest rates cratering after the GFC, we know that for a fact. 🙂

I’m guessing it was a lot of parents borrowing against their homes to get Junior & Squeeze into a $1.1 million townhome in Hamilton. Another chunk was “investors” doing the same thing. Cuz rates are going up bro… and fortune favours the bold.