These mortgage reforms will only add more strain to the housing market here in the HRM, by virtue of creating more potential buyers without actually increasing the inventory of "affordable" homes. Further to that as you continue to create a larger supply vs demand gap in the market, in tandem with lowering interest rates then housing prices can only go one way and that is UP. Just how I see it unfolding.
It may also create a generational crisis. That’s a lot of extra cash plus interest that you now need to make up in your retirement fund, not to mention the fact that you may not be done paying the mortgage before it’s time to retire - then what?
Honestly the more I think about it the more I realise that this is the way it will go. Inflation will always go up so we need these types of measures to ensure that the general public can feed into the system.
30 year amortization is crazy. Next week is my final mortgage payment, and the only way I was able to pay it off in less than 10 years was reducing my amortization and paying off as much extra as I was able along the way. Granted the market is a lot more difficult to get into now, but increasing the term just saddles you with more debt. I think if more people reviewed the amortization schedules interest/principal breakdowns choices would be different in large.
Price will raise? Yes, but who will buy home when people losing their jobs? Unlike gold etc.. Houses will Deteriorates with time, worse condominiums with monthly condominium fee. And by renting? Sometimes, good tenants will make you richer, but the bad ones will upsetting you for sure. So, buy as you ready and need one for yourself, but don't, to speculate the prices.
Hi Andrew, can you please clarify on changing the lander program. As I understand, I might change my lender (bank) at the end of my term without going through the stress test. Should I still bring all other documents like T4, employment letter?
The Liberals are inflating the real estate bubble and implicitly bailing out banks by raising taxpayer exposure to default on over priced real estate. Real estate already makes up a disproportionate 40% of Canada's economy, depriving other sectors of investment and growth potential. This is a root cause of Canadian GDP per capita falling farther behind US GDP per capita (by $12K since Trudeau took office). The wealth effect of rising real estate prices is not supported by underlying income and economic productivity. Further, real estate prices feed into worker wage demands making Canadian workers less competitive in world markets. Canada is innovating at 23% of the US rate on a per capita basis meaning that there are proportionately fewer and fewer well paid knowledge economy jobs and more low pay service economy jobs. This means that taxes will only rise on the few people left still doing well - causing them to leave and raising taxes further on those who remain. Wages are higher, tax rates are about 12% lower, and housing costs half as much in the US. In 2016 22K scientists and engineers left Canada. The Liberal "solution" was to stop Stats Can publishing the statistic and let wages fall $12K farther behind US wages. The last gasp Liberal policy only makes Canada less attractive for tech talent.
Bad idea. The economy's negative risks seem to be increasing as a result of rising consumer and mortgage debt, 2025-2026 renewals, and the current slowdown and employment losses. Any visit to the food shop reveals that it is far from 2%. Because of the increase in unemployment, the rates are declining. A liquidity trap has us here. If people get into debt at this present rates, this will not go well. I hope that during the past few years, people have learnt their lesson about the differences between buying a property and buying interest rates. The significant leverage in the real estate industry cannot be corrected without a proper correction, which we have not yet experienced. Even though the GDP per capita has been falling for the past six quarters, the real estate industry seems to be waiting to boom once more. And by correction, I mean that everyone has to suffer-developers, suppliers, governments, and investors included. It's going to be a decade or more of stagflation for Canada, including HRM, unless we get a thorough correction. Any time an economy get overly dependent on real estate, at the expense of other industries, the results are not usually good.
You need to be really stupid to consider buying right now. If the prices go up it is easier to move to another country that play into this game paying all your disposable income for the next 30 years just for the roof under your head. I am honestly hysterically laughing here.
I know right! Has anyone seen what 1-1.5 million will buy them in Vancouver, they're money pits, these houses aren't worth half of what is being asked for them. You would think that a FHB that could qualify for this mortgage would be smart enough to see through this scam!
Do you think this was a GOOD or BAD idea? 😬
These mortgage reforms will only add more strain to the housing market here in the HRM, by virtue of creating more potential buyers without actually increasing the inventory of "affordable" homes. Further to that as you continue to create a larger supply vs demand gap in the market, in tandem with lowering interest rates then housing prices can only go one way and that is UP. Just how I see it unfolding.
It may also create a generational crisis. That’s a lot of extra cash plus interest that you now need to make up in your retirement fund, not to mention the fact that you may not be done paying the mortgage before it’s time to retire - then what?
Honestly the more I think about it the more I realise that this is the way it will go. Inflation will always go up so we need these types of measures to ensure that the general public can feed into the system.
30 year amortization is crazy. Next week is my final mortgage payment, and the only way I was able to pay it off in less than 10 years was reducing my amortization and paying off as much extra as I was able along the way.
Granted the market is a lot more difficult to get into now, but increasing the term just saddles you with more debt. I think if more people reviewed the amortization schedules interest/principal breakdowns choices would be different in large.
I'm a homeowner in the suburbs of Halifax, and I believe we need a market correction. Housing is not affordable.
Price will raise? Yes, but who will buy home when people losing their jobs? Unlike gold etc.. Houses will Deteriorates with time, worse condominiums with monthly condominium fee. And by renting? Sometimes, good tenants will make you richer, but the bad ones will upsetting you for sure. So, buy as you ready and need one for yourself, but don't, to speculate the prices.
30 year amortization won’t save the condo market, just do the math and figure out how much interest payments. Absolutely stupidity
Hi Andrew, can you please clarify on changing the lander program. As I understand, I might change my lender (bank) at the end of my term without going through the stress test. Should I still bring all other documents like T4, employment letter?
we all know what happened thank you it's not rocket science
The Liberals are inflating the real estate bubble and implicitly bailing out banks by raising taxpayer exposure to default on over priced real estate. Real estate already makes up a disproportionate 40% of Canada's economy, depriving other sectors of investment and growth potential. This is a root cause of Canadian GDP per capita falling farther behind US GDP per capita (by $12K since Trudeau took office). The wealth effect of rising real estate prices is not supported by underlying income and economic productivity. Further, real estate prices feed into worker wage demands making Canadian workers less competitive in world markets. Canada is innovating at 23% of the US rate on a per capita basis meaning that there are proportionately fewer and fewer well paid knowledge economy jobs and more low pay service economy jobs. This means that taxes will only rise on the few people left still doing well - causing them to leave and raising taxes further on those who remain. Wages are higher, tax rates are about 12% lower, and housing costs half as much in the US. In 2016 22K scientists and engineers left Canada. The Liberal "solution" was to stop Stats Can publishing the statistic and let wages fall $12K farther behind US wages. The last gasp Liberal policy only makes Canada less attractive for tech talent.
40 year amortization 0 down payment was introduced by the conservatives in 2008
At that time, my house was 4X yearly gross. It's not the same as now.
Bad idea. The economy's negative risks seem to be increasing as a result of rising consumer and mortgage debt, 2025-2026 renewals, and the current slowdown and employment losses. Any visit to the food shop reveals that it is far from 2%. Because of the increase in unemployment, the rates are declining. A liquidity trap has us here. If people get into debt at this present rates, this will not go well. I hope that during the past few years, people have learnt their lesson about the differences between buying a property and buying interest rates. The significant leverage in the real estate industry cannot be corrected without a proper correction, which we have not yet experienced. Even though the GDP per capita has been falling for the past six quarters, the real estate industry seems to be waiting to boom once more. And by correction, I mean that everyone has to suffer-developers, suppliers, governments, and investors included. It's going to be a decade or more of stagflation for Canada, including HRM, unless we get a thorough correction. Any time an economy get overly dependent on real estate, at the expense of other industries, the results are not usually good.
these people are so fucking clueless. how do we solve the housing crisis? give more people access to more debt...that should help bring prices down.
Prices will go up when Justin T resign
You need to be really stupid to consider buying right now. If the prices go up it is easier to move to another country that play into this game paying all your disposable income for the next 30 years just for the roof under your head. I am honestly hysterically laughing here.
I know right! Has anyone seen what 1-1.5 million will buy them in Vancouver, they're money pits, these houses aren't worth half of what is being asked for them. You would think that a FHB that could qualify for this mortgage would be smart enough to see through this scam!
Tax the rich! Nothing else will help. Stop allowing the rich to own everything. Tax them and tax them hard!
all of the shit they do is just to benefit the rich and this is no exception.
😂🙄
Rich people will leave Canada .
@@NatasaJanser, not to mention brain drain.
Lol, kind reminder the Canadian governments view everyone who makes over $30k/year as "The Rich" so careful when you call for them to tax us more.