Canadian mortgage holders are a growing vulnerability: Bank of Canada
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- čas přidán 10. 09. 2024
- The Bank of Canada says financially stressed mortgage holders will not have a very big safety net to absorb any financial or economic shocks down the road as mortgage payments could increase substantially for some Canadians. The BOC has identified this as a growing vulnerability.
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People stretched their budgets to get nicer houses and now they left holding the bag. Simply greed and poor financial decision making.
BOC should increase interest rates accordingly to 10%. Let's continue to cheer for these over asking folks who paid 2m for 0.5m houses.
Looking to buy a house I presume 😂
Seems more renter going to be kicked out sooon
@@jimgaston9863 if they didn't buy at 2%, not shot at 10%. Booming population and no new construction push the market up
@@XxMusclecarsxX exactly right,my point to the poster was if rates keep going up those renewing mortgages can’t afford to creating a cascade of sellers to no buyers. This results in prices dropping and a long term opportunity for those waiting in the wings.
I sold my house around covid time. I saw how much the world was printing money, and all the red flags in the Canadian economy. I found a great rental in the same area for 40% less than my mortgage payment, and now I'm sitting on my money, waiting for a big correction. Higher food costs, interest rates, mortgage payments etc, mixed with the coming recession is a perfect storm to potentially pick up a house at a major discount. It's a gamble, and it may not work out, but I decided it was worth the risk.
If I didn't have a family to house I would do the same. We will be one of the ones that rode the equity wave up and then back down again. We didn't cash out via HELOC like so many did - it is unrealized gain and future loss.
I did the same
Hopefully you stashed your cash in a safe place, I don't trust banks or fiat currency. If I ever believed Trudeau it's when he says you'll own nothing and be happy. I sold at start of covid and reinvested in foreign real estate, tangible assets in growing economies has yet to disappoint.
Who didn't see this coming....
CBC sounds shocked at our gambling society.
I don’t feel bad for these people who made housing situation so bad for rest of is. These people should suffer for their actions and greed. They’ve made our lives miserable. 2500 dollars is rent for a single room tiny bird box apartment in Vancouver lower mainland region. I want to ask you all who makes that much of money to pay 2500 a month in rent? Quality of jobs in Canada is so bad that you would hardly find a job paying you over 50k a year.
Why do you hate on home owners? Their loans are renewed with massive increased rates, making families homeless. Why won't you feel bad for them?
Now, everyone that loses their home, will be pushed to the rental Market since loans aren't an option. So the 2500 rent you're talking about, will go up to levels you'd never Imagine.
This isn't good for the people. House owners or not, you are on the same side.
@@dropj3 I don’t hate anyone. I can’t even afford to have a family. At least they have family. I make 50k a year. I don’t save a penny because of how expensive rentals are. This country is completely broken. I am on verge of leaving the country and move to Australia.
@@aditsum1 a i see. You're suffering because of the f*ckers that really pull the strings. Know that almost everyone (specially the lower and middel class) in the west will suffer in the coming time. Very sorry to here that 50k a year isn't enough to make ends meet.
Just know that Australia, New Zealand, Europe etc. are all facing the same. Not only the us, but he western block is crumbling.
Just bought a run down property in no man's land, on the border of Germany and the Netherlands. If they increase the tax, I'm out of luck to.
Stocking up on real portable assets at the moment. Might drop it all in a year or to and head to Asia.
Good. The Canadian housing market has to come down to earth eventually. Government should not step in.
So much for that Stress Test!
Helping to solve the problem of inflation is to take money out of our pockets so we can't afford a living. What about regulating the greed of the corporations that are having record profits?
Hear hear! It’s pure ignorance to think the inflation hasn’t been near entirely driven by crony capitalism, corporate greed, market collusion, and industry monopolies!
Raising interest rates will calm inflation and record profits will settle. Everyone will pay the price for the Trudeau’s Covid spending except the corporation’s
Need governments to stop printing money.
Don't buy on credit. And if you do, don't buy if you can't afford to pay it back. And don't use the excuse you thought interest rates would always be low. The last decade was an anomaly. Interest rates aren't high, this is what they should be normally. Don't blame others when you bought more than you can afford. People buying home beyond their mean with normal interest rates are what drove up housing prices. They are the ones who created this mess.
@@billrosmus6734 and handful of people I know and myself are this way. However, looks like the vast majority of the country didnt get the memo
What an absurd.
Wasn’t being homeowner an ultimate goal.
Poor ppl, their payments getting higher but home prices getting lower.
Too bad
Or a 75% increase...
She didn't mention that fixed payment VRM mortgage holders (not Scotia bank's ARM) could be in a situation where nothing is paid towards principal, and/or their principal owing may be growing:
800k mortgage at 1.5% for 25 yrs was $3,200 per month.
Interest rates rose 425bp so new rate is 5.75%, the interest alone is $3,800 per month
After five years principal is still 800k but at 5.75% for 20 yrs is $5,586 per month.
The truth is who inflated the prices of housing market...
God bless the home buyers, more hikes coming!
I am autistic make $10k a year and own 2 houses, i think im good, bud
Good. Wipe out the mortgage holders and reset the housing industry.
Make the mortgage holders live in tents for a bit.
@@theehans $
She reading from the Bank of Canada 2023-2026 playbook: 'housing prices drop, job market stumbles, massive layoffs, banks get tougher with lending and economic slowdown.' Saying the quiet part out loud, thanks, we'll plan accordingly.
Thanks, sir. You've explain the points of this news 🤒😔🙏. But, I don't agree if 2026 we will playbook because no one could tell or predict the future especially more than 1 year, sir 😔🙏
If you over leverage, that's your own fault.
They are not over leveraging. The rate pigs have raised the rates.
@@thethricegreat if you can’t afford rate hikes sorry to tell you, you can’t afford it. Reality is hard I know.
@@thethricegreat still at historic lows. Are you suggesting borrowing money that’s not yours should be free? Lol how entitled
BMW...Mercidiots....AudismOOOO....are the first to go
I don’t get it, why is this news today , didn’t the news figure this outcome 14 months ago lol, this is to funny they think the normal public is that far out of the loop in understanding cycles hahaha
Single parents, the disabled, students, seniors, new immigrants and all others with limited means are required to suffer more by those in power who have assets to absorb such structural changes. Is a leader a leader if they are unwilling to share the suffering of the people they are supposing to lead? Really liked how CBC has made lite of this situation for our most vulnerable peoples.
As Thomas Jefferson said :a rebellion now and then is a good thing.
He probably wasn't talking about mortgages. lol
Yeah what he said has nothing to do with mortgages. These are adults that took out too much debt they can handle. Has nothing to do with anyone but them.
He also owned slaves!
What the bank will demand more interest.
Trudeau has F this country up
" you shall own nothing, and be happy" - World Economic Forum, Klaus Schwab aka "girly socks" boss
You shall be able to afford what you buy and not buy on credit when you can't afford to pay it back.
@@billrosmus6734 ya, because most Canadian homeowners bought their houses on credit cards, after a long bender at the bar....
@@billrosmus6734 Hey, Bill! Did YOU pay cash for your home or, like everyone else, do you have a mortgage? Because unless you’re a spoiled trust fund baby, like our Prime Minister, most of us have to get a mortgage to own a home.
Don't worry go borrow more money $$$ make sure $2,000,000 Million Dollars, as the Bank Of Canada - will PRINTING CASH
One of the points of raising interest rates is to stop frivolous borrowing.
I know somone in Canada right now, owns a house and started going under… someone actually gave her a loan to pay her bills. So now she thinks she super intelligent again because she used that money to rebuild her basement and rent it out and get her bills up to date
or they choose to sell is another option that's happening
Or downsize
“Interest rates are at historic lows Glen.”
- Justin Trudeau 🤬🤬🤬
Let it fail😊
@greglejacques1094 I can’t i got too many loans for my woke degree I was given a life vest good thing though I don’t know how to swim
Don't give a sh!t about banks or multiple investment property owners. You pay, not us, please vote accordingly.
Profits belong to individuals and the payment of damages belongs to the taxpayers
Every country has an 08 moment.
And is the exact reason affordable rental units are being erased from the market. Banks are forcing landlords to evict to rerent at market value to qualify.
What did Tiffany say this time?
Watching the show🍿and looking for a good entry point, BOC we need more aggressive interest rate hikes!
who the hell buys a tiny 2Br townhome for 1.5M or an apartment for $500k to pay $800 of maintenance fee!!
Fingers crossed for a total and complete housing crash. I was '08 to look like a scratch. Reset the housing industry.
Just saw a diner scetch with W.C. Fields in it. Two eggs over easy with toast and coffee cost him $00.35. Inflation now is beyond insane.
We paid off our house aggressively, it can be done
I am not worried. I dont need a mortgage I can learn to chop wood and build my own house.
Instead of selling bonds why not mortgages
This in time will pass. There are some unforeseen forces at play. Just because we can't see them doesn't mean they aren't there. Some people have two homes, one of which they no longer use. The one they do use or the one not being used they are taking out 2nd mortgages or paying the original one or staying constantly in credit cards debt to pay for their lifestyle. All the while homelessness takes place and the market says there is a shortage of homes. This is going to force some of them into selling their unused homes creating new homes for people and when they do, realize they have actually saved money by not having to pay insurance, taxes, travel to go make sure the home they never used is okay thus allowing them more money to pay off debt. There are far more empty homes out there then the market tells. Vancouver realized this and raised taxes for the empty homes trying to force them in to either renting to someone who needs or selling to someone who needs. People will eventually wake up to the realization of selfishly owning two homes, one not being used while there is so much homelessness. When they do, they will become better people.
God bless.
Bless them with your knowledge.
Defund the cbc.
I’d rather ban misinformation and extremist propaganda!
Would you rather not know what's going on?
@Winston Smith So mortgages aren't going up? Sweet.
RE-FUND the CBC. NATIONALIZE CTV and GLOBE & MAIL.
@@citypavement Watch the CBC to find out what's going on??? Your only going to find out what Trudeau wants you to " believe " is going on...... live and learn.......
Shocker
Let them eat cake
Thank you Toronto, Montreal, and Ottawa for voting Liberal no matter what.
This crisis is the product of all governments at every level for the last 40 years for getting out of home building. It’s a real estate bubble that the private sector is more than happy to let inflate by building too little new housing stock. Brutally simple supply&demand that anyone for at least the past 15 years should have seen coming. Investors did and steadily bought up housing and turned it into rentals. Every government loves a bubble, everyone gets rich under their watch.
What had to happen to prevent this crisis was government at all levels, municipal, provincial and federal, raise taxes to fund non-market housing. It should have been going on steadily for the last 40 years. But now that we’re in crisis mode we still need gov’t to massively tax the real estate wealthy and plow all of those revenues into housing. And we might as well build them right, mid-rise, mixed-use, to promote walkable cities.
@@CarFreeSegnitz I’ll also add that to think the Conservatives, who have been shown every time to cut social programs, arts grants, science investment, and provide tax cuts for the wealthy, would be anything but a greater harm to us now is pure ignorance. I wish they were fiscally conservative and socially progressive like has been there marketed image for the last few decades, but they are nothing but the opposite!
@@CarFreeSegnitz actually since we’re only talking about Canada, housing has spiked out of control in the past 7-8 years because of someone’s policies but no one wants to take accountability.
Politicians they all are the same hypocrites doesn’t matter if liberal or conservative in Power
Too much home, too little salary. Not anyone’s problem but theirs.
But the crazy wage growth in recent months should have offset the impact from higher interest rate.
Why worry? Just sell your house and take the huge profits and rent. Lots of people rent.
there's a term for these homeowners .Bagholders
From 2600$ to 4030$ I pay 55% more
Without considering the property tax insreases
@Canadian Government, WE WANT THE ABK DEAL APPROVED.
Canada needs recession to fix housing bubble.
honestly can we stop worrying about the record high "values" of homes and fix our inflation issues please? The homes will go back up in value in a couple of years. If the banks were to stop creating money out of thin air every time the write up a mortgage... that'd probably help drop inflation no?
growing? you are late with that story
The rental prices still high .... Da faaak
Working really hard to sound optimistic and agnostic
Maybe tony Soprano has a way to solve this problem.
Tony Soprano's rich. He doesn't have a problem to solve. He's also dead.
Don't worry, the BoC won't let the value of any of the housing minister's and other members of government's investment properties from collapsing. It's fine guys.
Keep thinking that. These people own thier home 10x over from corruption they don’t care about the price like you do
Why would someone renew their loan for a higher rate? Why would anyone get a variable rate? Before I lose my house I'll sit here in the damn dark eating cracker and peanut butter.
You are clearly ignorant of Canadian mortgages.
When your term is up, you have to renew at whatever rate is available, you can't choose your own. Your first question doesn't make sense. Some people get a variable rate mortgage because the interest rate is usually lower but they're taking more of a gamble.
... because they don't have hundreds of thousands of dollars sitting in the bank to pay off their mortgage? Strange question...
@@citypavement what do you mean term is up? If someone locked in a low rate wouldn’t that hold for 30 years? They won’t have to worry about these recent rate hikes?
@@CaptureCat88 When I got my mortgage the maximum time for a fixed rate was 5 years. It might be different at other banks but I don't think you can lock your rate for 30 years.
Nothing will happen. Mr JT will print more bills 💵 and hand over to lender to survive 😅
Welcome to the 80’s
The sales are coming bring on those high interest 😂😂😂😂
Yeah, so about 2015 a Toronto area Real Estate big wig got on tv and was asked if he thought house prices were becoming way to high for people just entering the housing market...He answered no, that the market is healthy and home sellers are in a good spot right now. He didn't see any problem at all with housing prices going north of $500,000. I gave up on the idea of owning a home in Toronto at that point. I saw last month, one of the small original row houses in old downtown Toronto, the two story ones, tiny as hell, go for $870,000...
Gee I wonder why that would happen 😅boc are gangsters
#trudeaumustgo🇨🇦
I love all the maybes' put forward. Maybe we ALL win the lottery.
Oh, sweet capitalism 🤑
We read news in the media that doom and gloom is coming and we just accept it, doom and gloom doesn’t always have to be coming, I’ve read numerous success stories of people that are pulling off tremendous gains of up to $250K within weeks in this crazy market and I just want to learn how to achieve such figures.
Woop woop 🎉🎉😂😂😂😂😂😂
lol
Put all home owners in tent city. Down with the rich. Collapse the housing market and the economy.
Banks should be banned from raising rates on existing loans.