Comments on: Low Rates Helped Canadian Real Estate Investors Outcompete First-Time Buyers

By: Kim

Kim — Sun, 12 Jun 2022 16:17:16 +0000

In reply to Rob Turner. It is too late now, all the investors have gotten enough equity in an overblown market and will be just fine. There should have been more rules about lending to these people as they are operating homes as businesses. Try getting a small business loan in CA. Extremely difficult, a mortgage is just given away if you have breath on a mirror.

By: Lou

Lou — Sun, 12 Jun 2022 11:10:04 +0000

The measures were fine to help during covid in market falls and a necessity to help majority of people then and I m referring specifically to regular actual homeowners whom I assume should have known from the start that prime rate falling would be raising back and hit ike a boomerang twice or 3x+ for whatever it was. The stats point that most homeowners pay more capital. Who buy homes and what is unequal gauging price at market is not mandate of BOC or government to interfere with Canadian market the inequality is not link to interest rates it is linked with some people ability to foster wealth better than others.
Regulations is a blade that would only cut the potential of regular folks it would only make it more hurdles for regular Canadians to make it to a higher level if they may.

By: Rob Turner

Rob Turner — Fri, 10 Jun 2022 17:35:59 +0000

I’m a homeowner and it makes ME mad when I see how reckless these policies have been. Right around when Canada and America started to tell consumers lending their own money to a bank receives no benefit but they should take out cheap debt, people should have realized the plan was to make it up on volume as the rich sold people assets with more and more debt to buy them.

By: Ethan Wu

Ethan Wu — Fri, 10 Jun 2022 17:26:43 +0000

In reply to Trader Jim. People are clueless. They're worried about unrealized gains, watching businesses close, and then if home prices fall they think all of these people not spending money will stop spending.

By: Omar

Omar — Fri, 10 Jun 2022 17:16:30 +0000

It’s a real mystery why the homeownership rate peaked at the Great Recession and started dropping as the government “helped” by lowering rates. Elect real estate speculators get real estate speculator policies.

By: Trader Jim

Trader Jim — Fri, 10 Jun 2022 17:12:10 +0000

That’s not surprising. What’s surprising is how many people don’t understand liquidity and think IF I ONLY HAD MORE DEBT TO BUY THIS, I’LL BE ALRIGHT!

Why not focus on the other side of the equation? Make the competing buyers have less leverage and shrink their profits until they go somewhere else. Without a higher cost of capital, your perpetual rent payments are more profitable than the cost of borrowing and having you pay to carry their property.