Comments on: Canadian HELOC Debt Hits A 9-Year High For Growth, An Abrupt Surge In Borrowing https://betterdwelling.com/canadian-heloc-debt-hits-a-9-year-high-for-growth-an-abrupt-surge-in-borrowing/ Canada’s Fastest Growing Real Estate News Source Fri, 29 Jul 2022 04:04:32 +0000 hourly 1 By: Attila Gulyas https://betterdwelling.com/canadian-heloc-debt-hits-a-9-year-high-for-growth-an-abrupt-surge-in-borrowing/#comment-84828 Fri, 29 Jul 2022 04:04:32 +0000 https://betterdwelling.com/?p=21403#comment-84828 I’m 63 years old today. I owned a very nice 3 bedroom sidesplit in a lovely neighbourhood in Port Perry Ontario. It was 1989, and I had a 19.5% 5year mortgage. I made my payments just like everyone else in Canada that had 15-20% mortgages. We didn’t fill our diapers and run back to our parents basements… But we also weren’t dumb enough to pay Skip the Dishes $20 bucks for a 7 dollar Starbucks. I think the bubble wrapped generation flunked math. I didn’t have the bank of Mom and Dad to turn to. This generation does, and yet they are fiscally irresponsible in a rising rate environment.

I agree with Mark’s previous comments… I see foreclosures and a big bad housing crash in Canada. No more realtors signs on front lawns announcing
“SOLD $500,000 OVER ASKING”

]]> By: Craig https://betterdwelling.com/canadian-heloc-debt-hits-a-9-year-high-for-growth-an-abrupt-surge-in-borrowing/#comment-84816 Thu, 28 Jul 2022 20:42:33 +0000 https://betterdwelling.com/?p=21403#comment-84816 In reply to Vince.

Hate to break it bud, but if your HELOC is lower than your mortgage you just got screwed. Find a better broker.

]]> By: Mark https://betterdwelling.com/canadian-heloc-debt-hits-a-9-year-high-for-growth-an-abrupt-surge-in-borrowing/#comment-84769 Wed, 27 Jul 2022 03:13:20 +0000 https://betterdwelling.com/?p=21403#comment-84769 These delusional home “owners” will stop at nothing to maintain their financed fairy-tale lifestyles. The coming housing crash will be absolutely epic. Remember, 35% of GDP in this country is tied to real estate, directly or indirectly. Once this bubble bursts, there will not be an economy in Canada. Buckle up and prepare accordingly.

]]> By: J https://betterdwelling.com/canadian-heloc-debt-hits-a-9-year-high-for-growth-an-abrupt-surge-in-borrowing/#comment-84753 Tue, 26 Jul 2022 18:00:48 +0000 https://betterdwelling.com/?p=21403#comment-84753 In reply to Ron Bruce.

They cry to the poor house while the bank, gov, and big money laugh. That’s free market capitalism for you.

]]> By: Vince https://betterdwelling.com/canadian-heloc-debt-hits-a-9-year-high-for-growth-an-abrupt-surge-in-borrowing/#comment-84752 Tue, 26 Jul 2022 17:54:58 +0000 https://betterdwelling.com/?p=21403#comment-84752 You are missing an important point here.

I have significant savings and have an upcoming mortgage renewal. In fact, with this pandemic our investment portfolio essentially slowed us to pay off a 30 year loan in 5 years. Our mortgage broker suggested that we pay down the majority of the mortgage with our savings and carry a small HELOC until rates come down again. That provides the flexibility to pay less interest and limit total loan interest in the short term.

I think this is a savvy move for people with the means to do so. I suspect HELOCs will grow and mortgage balances will fall.

]]> By: Ron Bruce https://betterdwelling.com/canadian-heloc-debt-hits-a-9-year-high-for-growth-an-abrupt-surge-in-borrowing/#comment-84747 Tue, 26 Jul 2022 16:49:28 +0000 https://betterdwelling.com/?p=21403#comment-84747 Canadian real estate’s fast growth has lenders looking carefully at risk. For example, the Chief Risk Officer at BMO told the Bank’s shareholders that recent gains might “exaggerate” value. The collateral value of the home might not be reliable (worth as much as people think it is now). Consequently, they’ve had to up manual verification to determine if borrowers will pay, even if prices fall.
Who is regulating this Ponzi scheme? Banks make up their own rules and change their opinions at will. Where do home buyers go when the information given by the Bank can’t be relied upon but for a week or two?

]]>