Comments on: Canadian Banks Are Extending Amortizations Over 35 Years To Avoid Defaults

By: David

David — Mon, 08 May 2023 14:00:21 +0000

In reply to Bob Vila. Banks make more money because interest is higher. Why are the bank stocks dropping? As long as their clients don't stop payment, banks are making more money than before.

By: Terrance

Terrance — Thu, 04 May 2023 17:00:33 +0000

In reply to Nick. Incorrect. Double checked on Terminal and it's right there in the report to shareholders. You must be looking at the wrong year, it's 2023. Extensions were only permitted mid-last year from the regulator, so looking at the start of 2022 you might see something like 1.7%.

By: Frank Matchett

Frank Matchett — Thu, 04 May 2023 02:48:03 +0000

There was a time I rationalized that since most Canadians were prior to the new stress test on mortgage approvals, within 2-3 percent in interest rate increase of potentially losing their home. I felt that banks could not in any good conscience allow rates to increase

By: John Smith

John Smith — Wed, 03 May 2023 20:55:10 +0000

Employee’s freedom of mobility (ability to move for better work) cost employers (big corporations) lots of money (training/re-training for new place of work). …. Really lots of money. Owning and selling a house is very expensive (taxes, upkeep and commissions). House together with a new shiny 4×4 pickup truck anchors employees in place and restricts their freedom of mobility. After paying off the house and the truck average family might have 0 net at the end of the month. This is modern slave…

By: Darryl Vanacker

Darryl Vanacker — Tue, 02 May 2023 18:31:28 +0000

In reply to Financial Journalist.

Almost all housing is cash flow negative in Southern Ontario….so no, its not clear they would pay more renting.

It is painful for a heroine addict to get clean as well…..but it’s what is needed for long term health.

By: Darryl Vanacker

Darryl Vanacker — Tue, 02 May 2023 18:27:13 +0000

In reply to Jim. It's the act of lowering interest rates that HAVE fattened their wallets. Asset inflation has been very prevalent for a couple decades now...getting worse and worse.

By: Kim

Kim — Mon, 01 May 2023 18:40:33 +0000

In reply to J. When you sit back and think abot it, that may be the most logical solution.

By: Bob Vila

Bob Vila — Mon, 01 May 2023 18:36:13 +0000

In reply to Financial Journalist. It is also the investors who leveraged too much using variable rate and poisoned this system. If only the process was selective to those who purchased homes as end-users instead of flippers and speculators. But it is not... Financial Journalist with no critical thinking skills.

By: Bob Vila

Bob Vila — Mon, 01 May 2023 18:33:57 +0000

In reply to Abraham.

Canadian banks are an oligopoly and engage in soft price setting (interest rates provided to the public on savings accounts are not competitive). So they don’t have to worry about treasuries from years ago only yielding 1-2% interest because it is still more than they offer their depositors. Look at their short term ‘promotions’ now trying to keep their smart customers from fleeing to better rates of return.

They don’t lose much on these mortgages unless FCAC agrees that the banks cannot charge interest on the re-compounded interest added back to principle in the negative amortizations. People still paying is much better than trying to forced sell a house and dropping the market value of housing therefore dropping the value of all future forced sales (and there would be many by now if not for this intervention).

By: J

Mon, 01 May 2023 17:22:43 +0000

5,321,705.48 at the end of the 72.7mo term. No wonder realtors are screaming for interest rates to drop to 0% again.

The people who signed this loan must be smoking the hopium for a pivot if they’re not walking away from this loan and declaring bankruptcy.