Comments on: Canadian Bank Regulator Readies To Reverse Extra Pandemic Mortgage Leverage

By: Ronald Murphy

Ronald Murphy — Sat, 10 Apr 2021 03:02:32 +0000

If the government is so interested in protecting Canadians from getting overextended in debt, perhaps there should be a qualifying process for credit cards and car financing. Mortgages at 2% pose less of a problem than credit cards at 20% with ever-increasing limits and car loans almost equal to annual income. They are chasing the wrong issue. In fact, the government is blocking people from refinancing their way out of the high priced debt by putting limits in place on housing debt but letting the horses out of the barn on all other more expensive forms of credit. Have any of you heard of a stress test on credit cards or car loans? Not likely, because they don’t exist. In fact, if you can fog a mirror you qualify for a new F150 pickup truck financing. Mortgages for shelter should be third in priority in the grand scheme.

By: straw walker

straw walker — Fri, 09 Apr 2021 14:40:14 +0000

A little late…the horse is already out of the barn..sounds more like a political move than one done on necessity.

By: Andrew Dold

Andrew Dold — Fri, 09 Apr 2021 11:58:56 +0000

Trying to engineer a market rather than allowing the free market to sort it out causes un-intended consequences. This will probably blow up in their face and actually cause the housing market to heat up even more.

By: Holton

Holton — Fri, 09 Apr 2021 09:33:26 +0000

This stress test does not apply to B lender aka small banks and private lenders. This only make it harder for people to buy through big banks.

Now with all the printed money all over the world house prices are going up everywhere not just Canada.

With vaccination the world is on its way to recovery, if Canada crash housing prices now we are screwed.

By: Bob Walter

Bob Walter — Fri, 09 Apr 2021 05:57:14 +0000

It makes perfect sense that during a pandemic we want to stimulate people frantically packing up their stuff, moving and shopping at the furniture superstore. I figured the smart thing to do is stay put, lay low and don’t take any unnecessary chances. But not for real estate.

Even before Covid the economy wasn’t doing that great (september 2019).

By: MR

MR — Fri, 09 Apr 2021 03:41:44 +0000

Many millennials, Gen Z’s, new immigrants are eagerly looking forward to give a piece of mind by their vote in the upcoming elections at all levels.

By: IthoughtWeWereSmarter

IthoughtWeWereSmarter — Fri, 09 Apr 2021 03:17:50 +0000

Left this on Turner Nation today, but thought I should share with as many as possible…..

We bought our 1st GTA house (townhouse condo) in late ’91 and we sold it in mid ’99 for $5k less than what we paid for it!!! No exaggeration!
We watched as places the same as ours started dropping 20-25% for the first 4 yrs we owned it. I heard much worse examples at the time.
Yes, the interest rate was 6% when we sold but right now, it costs more to sustain home ownership then it did in the late 80s when rates were over 10%. And right now, money is free!!
I knew a friend that started a Real Estate company in the late 80s with 3 other guys.
By mid 90s, they had to fold and were all broke, and each of them got divorced within a couple years. They were all in non-real estate jobs as well, following this.

By: Itchy Bear

Itchy Bear — Thu, 08 Apr 2021 23:58:31 +0000

In reply to Paul. Think boomers still agree the generation just avocado toasted out of the Canadian dream. This very much seems to be the least they can do.

By: youngjok

youngjok — Thu, 08 Apr 2021 23:17:32 +0000

What a joke. This won’t do squat to the market. Besides the damage is already done. We have approximately 4-5 years of price increases build into 1 year now.
They should have done the following:
-Scale back debt ratios to 30 GDS and 40 TDS with no exceptions.
-Cap amortizations to 25 years
-Cap refinances to 65% LTV for rental properties and 75% for owner occupied.

Because of their lack of courage to do the right thing to reign in this housing market prices will continue to soar and youngsters will continue to get screwed. We need lower prices that are affordable and not more debt.

By: Paul

Paul — Thu, 08 Apr 2021 22:29:17 +0000

In reply to Mortgage Guy. Or just national criticism. I guess you think they don’t listen to the narrative about an entire generation being priced out of the Canadian dream....