Canada’s “Bold” Mortgage Changes Update: Good for ALL Canadians?

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  • Опубликовано: 28 сен 2024
  • #canadianrealestate #bankofcanada #canadianeconomy
    The Canadian Government has released the technical details on what it calls the “…boldest mortgage reforms in decades” while the Mortgage Industry thanks Ottawa for measures that it calls good “…for all Canadians.”
    Links:
    Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians:
    www.canada.ca/...
    Federal government releases technical details of its latest mortgage changes:
    www.canadianmo...
    Mortgage professionals meeting on Parliament Hill:
    ottawa.ctvnews...
    Mortgage and real estate industry hit the jackpot with this trio of announcements:
    financialpost....
    Canada's new mortgage rules could make it easier to buy a home - Here's what you need to know:
    www.msn.com/en...
    Mortgage loan insurance and premiums:
    www.cmhc-schl....
    Market Watch Archive:
    trreb.ca/marke...
    Can the characteristics of new mortgages predict borrowers’ financial stress? Insights from the 2014 oil price decline:
    www.bankofcana...
    Financial System Review-2023:
    www.bankofcana...
    Real Estate, Mortgage Markets, and Monetary Policy:
    www.bankofcana...
    96 Month Car Loans in Canada: Are They a Good Idea?:
    www.northwayfo...
    Best Practices for Negotiating Car Loan Terms and Conditions in Canada:
    drivenation.ca...
    Policy interest rate:
    www.bankofcana...
    The impact of macroprudential housing finance tools in Canada:
    www.sciencedir...
    Toughest time ever to afford a home as soaring interest costs keep raising the bar:
    thoughtleaders...
    Bank of Canada rate cut now ‘a near certainty’:
    www.wealthprof...
    Residential Mortgage Industry Report:
    assets.cmhc-sc...
    Credit Conditions and Consumption, House Prices and Debt: What Makes Canada Different?:
    publications.g...
    Canada’s unemployment rate rises to 6.6% in challenging market for job seekers:
    financialpost....
    Indicators of financial vulnerabilities:
    www.bankofcana...
    Mark Mitchell - Mortgage Broker London Ontario
    920 Commissioners road east
    London, Ontario N5Z 3J1
    Phone: (519)860-2102 (Call or Text)
    MarkMitchell@LondonOntarioMortgages.ca
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    Commentary on this Channel should not be considered financial advice.

Комментарии • 191

  • @Kevriyal5654
    @Kevriyal5654 3 дня назад +39

    Allowing people to take out a $1.4M mortgage backed by the taxpayers is reckless and irresponsible l.

    • @lawrencehalpin6611
      @lawrencehalpin6611 3 дня назад

      No, it is planned destruction when prices drop. More destruction = more government. Planned by your wonderful wef. Media is complicit with it .

  • @rickyb8636
    @rickyb8636 3 дня назад +54

    Someone visits the doctor with a blood pressure of 170/100. The guidelines say it should be 120/80. Instead of prescribing the needed medicine the guideline for acceptable blood pressure is raised to 180/100. The patient is now in compliance but the bad news is the heart attack or stroke is still coming.

    • @batralawgroup6354
      @batralawgroup6354 2 дня назад +3

      Excellent example 😊

    • @NirtieDigger
      @NirtieDigger 2 дня назад +3

      And the doctor gaslights the patient and says he's the best doctor to ever live and ur much much healthier then last year

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      Hey rickyb,
      Long time time no so see - thanks as always for the apt analogy!!

    • @MrThogin
      @MrThogin 2 дня назад

      Portugal? Spain?

  • @bipolarpunt5721
    @bipolarpunt5721 3 дня назад +34

    Increasing Amortization term put the lender at risk, if there is a serious recesstion and a sharp decline in housing prices. People could walk away from their home, leaving the banks with big losses. In 2008, Canadian banks received 114 billion in bailouts. Who pays for these Bailouts? you guessed it, YOU!!! through taxes and inflation.

    • @stephzinsmeister662
      @stephzinsmeister662 3 дня назад +3

      Through “Bail ins”

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  3 дня назад +6

      Hey bipolarpunt,
      Yep - 100% - Taxpayers are on the hook for all of it (or, at minimum, 90% depending on the insurer).

    • @truthteller6743
      @truthteller6743 3 дня назад

      This isn't the US. Americans can and did walk away from their homes. In Ontario, you are on the hook. Declare Bankruptcy and 7 years with no one giving you a loan.

    • @markknox182
      @markknox182 3 дня назад +1

      Any way you look at it the banks take the risk , the taxpayers follow behind and pay for it !

    • @fyoo1484
      @fyoo1484 3 дня назад

      @@stephzinsmeister662 Not enough people care about this Act, the Bail-in Act.

  • @sale375
    @sale375 3 дня назад +23

    I just feel bad for our kids and whoever will stay here work their life away and pay for this due to mistake after mistake from this goverment.... Thinking about it, its not even mistake its designed this way, as greed knows no limits

    • @lawrencehalpin6611
      @lawrencehalpin6611 3 дня назад

      And the wef want to destroy the western way of life.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад +1

      Hey sale,
      Thanks for the comment :) Yep, if these changes do lead to price increases (which are not being matches by income increases), we're not setting ourselves up for success.

  • @zomgoose
    @zomgoose 3 дня назад +23

    Anything, except building a real economy. Politicians are so lazy.

    • @joserego9210
      @joserego9210 3 дня назад +3

      Why would they go into politics if they were not lazy?

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад +1

      Hey zomgoose,
      Thanks as always for the comment :) Sure seems like it - the governmetn looked at borrowers and thought "...you do it, I'm busy." lol

    • @zomgoose
      @zomgoose 2 дня назад

      🤣

  • @RichardPaton-kl2ee
    @RichardPaton-kl2ee 3 дня назад +21

    this is laughable this is what got people into trouble in the first place now the answer is just more of the same

  • @Joe-mz6dc
    @Joe-mz6dc 3 дня назад +16

    For those of you struggling with all of this, there are some great Coleman tents on sale at Canadian Tire as I write this.

  • @clydedufffyaway
    @clydedufffyaway 3 дня назад +17

    Thanks for clicking!
    Making payments lower doesn’t make anything more affordable.
    They’ve been unsuccessfully putting patches on housing affordability for decades. The standard of living of Canadians has been dropping right along side of housing affordability.
    Now I can’t afford food or retirement. What are the patches?
    How about we focus on incomes? No my government is more concerned with putting me tens of thousands of dollars in debt to house and feed illegal immigrants for a few years.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  3 дня назад

      Hey clyde,
      Thanks for the comment :) Agreed - ideally we would see the housing market stay stagnant while incomes caught up - but that doesn't appear to be the case (though time will tell).

  • @TJames69
    @TJames69 3 дня назад +7

    A responsible government wouldn’t purposely force Canadian’s into insurmountable debt. Tells you who they serve and it ain’t you and I.

  • @Prairieshutterbug64
    @Prairieshutterbug64 3 дня назад +21

    There is no interest at all three levels of government in Canada to fix the problems with residential real estate.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  3 дня назад +2

      Hey Prairies,
      Thanks for the comment :) I think that's probably the case - and all three would be needed.

    • @donm2067
      @donm2067 3 дня назад +3

      It's a cash cow, that needs to be kept alive at all costs

    • @lawrencehalpin6611
      @lawrencehalpin6611 3 дня назад

      One level can't fix it. Only the federal government can fix it.

    • @lynb1022
      @lynb1022 3 дня назад +2

      @@lawrencehalpin6611 no, all levels. Housing is Provincial jurisdiction (provinces like AB & SK will file lawsuits to block any federal legislation they disagree with), and Municipalities can do simple things like banning whole-home airbnb's to disincentivize "investors" from property-hoarding and forcing tenants to pay their bloated mortgages, but most municipalities won't do even that, because artificially-inflated rents = artificially-inflated property values = higher property taxes.

    • @lawrencehalpin6611
      @lawrencehalpin6611 3 дня назад

      @@lynb1022 Who sets the interest rates that dictate who and when people can afford a house. Who throws out all the money so we have inflation. So it is federal.

  • @rossmcd3703
    @rossmcd3703 3 дня назад +20

    I remember when Jim Flaherty, Harper Govt Finance Minister, made these rules:
    To qualify for a mortgage loan Canadians can spend a maximum of 39% of their gross household income on home expenses such as mortgage, property taxes and heating, and a maximum 44 per cent of income on housing expenses and all other debt.
    And the he lowered the amortization rate to 25 years. He did this to, well, protect homebuyers from themselves, and Canadians from backing high risk loans. Seems our finance minister wants to do the opposite. Not good. Not good at all.

    • @Stormshfter
      @Stormshfter 3 дня назад +3

      And on top of it, net income is less due to all the new taxes on everything.

    • @lawrencehalpin6611
      @lawrencehalpin6611 3 дня назад +4

      What would you expect when the clowns are running the circus.

    • @sneakywan
      @sneakywan 3 дня назад

      "As Prime Minister Stephen Harper tells it, Conservative policies have given Canada a stable banking system and made us a model of economic success for the world.
      In 1998, when the Royal Bank and the Bank of Montreal sought a merger that required banking deregulation, the Chrétien Liberals refused and suffered scorn from the Opposition who claimed it inhibited the
      financial sector's global reach.
      The Liberals believed Canada's banks first responsibility was to Canadians, and stood alone against other G7 countries calling for financial deregulation.
      One of the Reform party's core principals was unfettered markets increase wealth and they howled with disapproval at the Liberals. Countries like Iceland, Ireland, Portugal, Greece, Spain and Italy at this time were living the high life based on banking deregulations supported by Reform.
      If Reform was in power to implement their beliefs, Canada would have been pushed into the thick of the global crisis of 2008. For Harper to now credit his polices for preserving Canada's financial system is like Yoko Ono taking credit for the Beatles.
      In 2006, Canada was in a good financial position. When Paul Martin began as finance minister in 1993, Canada had the largest deficit of any G7 countries. When Martin left politics as prime minister in 2006, Canada had a surplus.
      As the Parliamentary Budgetary Office tells us, beginning in 2006, the Harper Conservatives blew through that surplus, bringing us back into a deficit, even before stimulus spending was introduced in 2009.
      After years of intense lobbying by U.S. financial giants to gain access to Canada's lucrative mortgage insurance market, they finally found a willing ally in the Conservatives.
      In Harper's first 2006 budget, Finance Minister Jim Flaherty invited "new players" into Canada's home mortgage insurance sector, that is U.S. financial corporations, and doubled the amount available by CMHC from $100 to $200 billion. The government claimed these innovations would help more Canadians become homeowners.
      By the end of 2007, responding to competition from new private lenders, CMHC started to insure more exotic varieties of mortgages: no-down payment, interest-only mortgages and 40-year amortization periods. A spokesperson for CHMC told the National Post, "We are merely the third player with these products; companies like AIG and Triad have been doing it for years."
      U.S.-style risky mortgage products seeped into Canada. By 2008, 40 per cent of new mortgages in Alberta were amortized to 40 years.
      New York Times columnist Paul Krugman observed, "With the opening up of mortgage markets introduced by the Conservatives, a dramatic decrease in the standards for mortgage insurance happened. This enabled Canadians to get into homes they otherwise could not afford, in many cases should not have."
      Mark Tonnesen , former CEO of U.S. insurance giant Triad Guarantee Inc., who spearheaded his company's push into Canada said, "The proliferation of high-risk mortgages could have been mitigated if Ottawa was more watchful."
      The Conservative government, eager to put its mark on Canada, borrowed the failed idea of George W. Bush, who in 2002 loosened U.S. mortgage lending rules. The logic was to increase home ownership by making borrowing easier. Free-market advocates believed lenders would scrutinize borrowers, thus protecting the system. However, profits from new loans were so lucrative, lenders paid scant attention to the borrower's ability to pay. This led to the U.S. sub-prime crisis in 2008.
      After the 2008 collapse, worried Canadian banks asked government to provide special funding through the CMHC to take shaky mortgages off their books.
      In the 2009 budget, the Conservatives provided emergency funding to buy these shaky mortgages from the banks and raised CMHC's limit to $600 billion; freeing private banks while putting more public money at risk.
      The natural inflationary effect from Bank of Canada's monetary policy of low-interest rates added steroids to the 2006 deregulation of the mortgage-insurance market. Together, they unhinged what was for decades a stable Canadian housing market.
      Finally, after six years of numerous warnings, Finance Minister Flaherty began to re-regulate the mortgage market back to where it was before the Conservatives altered it.
      Before a crowd of business executives at Toronto's Empire Club, Harper lauded his government's quick action to close the door on risky 40-year mortgage, but as one executive later quipped to a reporter, "This is essentially closing the barn door after the horses were gone."
      Conservative tinkering in Canada's mortgage market choked affordability and led to the largest growth in household debt in Canada's history. Â
      If the Tories really wanted to make home ownership more affordable for low-income Canadians, they could have reinstated CMHC's social housing program.
      The story of how looser lending practices that help create the U.S. housing crisis spread into Canada is a tale of carefully orchestrated corporate lobbying, failed public-policy promises and the Conservative government's inaction to numerous private and public warnings about what became reckless mortgage practices. This raises questions about Harper's claim of being the best economic manager.
      Jon Peter Christoff,
      West Kelowna"
      - I also remember Failurety never balancing any budget during their time in power, except the final one off the backs of veterans, right before being kicked out of government.

    • @lawrencehalpin6611
      @lawrencehalpin6611 3 дня назад

      @@sneakywan So what is your point. Things are better now that we line up for food banks. Wow call it like it is. trudeau screwed Canada over and it will take 20 years to fix it just like after his old man. Shame on you.

    • @spring4522
      @spring4522 2 дня назад +2

      Flaherty also warned Canadians repeatedly about the downside of taking on consumer debt. Obviously people weren't listening. If he had been Finance Minister over these past nine years we likely wouldn't be in as big a mess.

  • @timw-ON
    @timw-ON 3 дня назад +11

    Incentives should only be for building new homes. Incentives there will lead to increasing housing stock. Resale properties don't need any incentives. They already exist, and aren't going anywhere.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  3 дня назад +3

      Hey timw,
      Thanks as always for the comment :) Agreed - I thought the 30 year for new builds wasn't a bad idea - maybe a risk worth taking if it led to more stock.

    • @maggiemacaskill1037
      @maggiemacaskill1037 2 дня назад

      Good thinking

  • @spring4522
    @spring4522 2 дня назад +4

    Banks will reap the profits. You and I will be stuck with the losses. It was ever thus.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      Hey Chris,
      Thanks as always for the comment :) Yep - insured mortgages are risk-free returns for the banks!

  • @Dodoite
    @Dodoite 3 дня назад +6

    I regret going under 20% I didn't understand interest. I couldn't imagine going 5% for a $1.5 mil house

  • @hagbard72
    @hagbard72 3 дня назад +6

    Wait, the govt is insuring these loans 100 percent, yet they only insure my bank account to $100k. The world is gone nuts. Oh, btw, finally seeing some price drops in my area (Essex county) but also a few nuckleheads have raised the prices of their houses, and they just sit and sit.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      Hey hagbard,
      Thanks for the comment :) That's a good way to put it - your account as the bank is 100k, but a loan the bank makes is guaranteed over 1M. Strange times isn't it?

  • @hjs9td
    @hjs9td 3 дня назад +5

    Thank you, Liberals, for loosening the regulations on Amphetamines.
    Love,
    Your Mortgage Professionals.

  • @matthewsemenuk8953
    @matthewsemenuk8953 3 дня назад +5

    ..no early election declared. And I lost respect for that orange party.

  • @JanGoh-jb5ge
    @JanGoh-jb5ge 3 дня назад +5

    Okay, so what if we eliminated mortgage insurance? And then at the same time, allowed anyone that's bought a house that cost less than $1 million in the last 10-15 years write their capital loss from decreased home value off until they're finished paying off the mortgage? Insulating banks from risk has such bad downstream effects, but you can't cut them off without doing something to protect the buyers that will start losing value because of (likely) lower home prices. None of the political parties seem to have any plans other than give the banks whatever they want and pretend that unsustainable home values are good for the economy.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  3 дня назад +2

      Hey JanGoh,
      Thanks as always for the great comment! Agreed - were we to cut off the insurance values would plummet, and from the plans we seen, only more can-kicking is in the future.

  • @dirtlump
    @dirtlump 3 дня назад +5

    Inflating Real Estate valuations under false demand injected by low rate fueled speculative based sentiments that results in ever higher consumer DEBT levels does NOT an 'economy' make..... especially when you don't otherwise have a viable 'economy' to support those elevated Debt levels or valuations ???????????????????
    Eventually.... you end up with not just NO viable economy... but also NO viable currency !

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      Hey dirtlump,
      Thanks as always for the apt description! Are you suggest we can't just do this forever without consequence??

  • @dtownssqwe
    @dtownssqwe 3 дня назад +5

    What would the family income need to be to qualify for a 1.34M 30yr mortgage? Not sure that many first time home buyers would have that income?

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад +2

      Hey dtownssqwe,
      Very, very true - they would need to earn about 300k, give or take, depending on debt levels - So the top 1%.

  • @IAmTheSpruceMoose
    @IAmTheSpruceMoose 3 дня назад +15

    Cheap debt/ability to obtain more debt = increasing housing prices. We've seen this over the last 20+ years. This is what the government has decided is the best course of action because it makes housing more "affordable" (emphasis on the quotations) for young Canadians while allowing Baby Boomer's biggest asset (their homes) to retain its value. Essentially subsidizing the richest generation in history's retirement with increased debt burden for their children. Nice!

    • @JoseLopez-hp5oo
      @JoseLopez-hp5oo 3 дня назад +2

      Nailed it

    • @jethier3027
      @jethier3027 3 дня назад

      So true, Why are we worried about people that own houses, i’m a home owner and my house tripled in price since covid, what I’m worried about is my adult children that will never afford a first home! None of this affects someone that owned a house pre-covid so they should stop trying to help home owners and focus primarily on trying to get prices down or help first time home buyers

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  3 дня назад +2

      Hey IAmTheSpruceMoose (love the name lol),
      Definitely an apt way to put it!

    • @joserego9210
      @joserego9210 3 дня назад

      @@jethier3027
      And who will that be? The only ones I see being able to afford to buy homes is the illegals with the handouts from Justin.

    • @Kala12326
      @Kala12326 3 дня назад

      They don’t care about baby boomers. Politicians like Justin Trudeau have real estate investments that they are desperately trying to protect.

  • @John577
    @John577 3 дня назад +8

    Didn't the US do something exactly like this right before the 08 crash?

    • @mtrest4
      @mtrest4 3 дня назад

      The US introduced 40 year mortgages and the brainless govt economists in Canada advised the govt to do the same.
      Fortunately (?) the financial crash in 08 came shortly thereafter and both countries put an end to it.

    • @parkerbohnn
      @parkerbohnn 3 дня назад

      Bernanke cut interest rates and inflation ensued 13 years later. Quantitative easing destroyed the entire world as we once knew it. More countries will now end up just like Japan.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад +1

      Hey John,
      They did indeed - Fannie and Freddie (the most apt analogy to CMHC) loosened lending standards in 07.

  • @baseline6786
    @baseline6786 2 дня назад +2

    When that bull market starts we will see these changes adding 20% more premium fuel with no carbon tax to the bull run, pushing us into that white hot market faster and prices surging past 2022 peaks

  • @bedbac
    @bedbac 3 дня назад +4

    I don't think that the market needs any stimulus right now, because the "Usual suspects" will turn these stimulus' to their own benefits by increasing prices again!! The market needs measures that helps to clam down the ambition of 6 figures incomes of the "Usual Suspects" 🤑😁

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад +1

      Hey bedbac,
      Thanks for the comment :) That was my though, but, for some reason (unknown as of yet) there does appear to be a concerted effort to prop it back up. Agreed though - Range Rover dealers are licking their lips lol .

    • @bedbac
      @bedbac 2 дня назад

      @@MortgageBrokerLondonOntario the simple raison is that banks like profit, a lot of profite (30 years).... But they don't like risk (1.5M coverage)!

  • @Sandeep14736
    @Sandeep14736 3 дня назад +6

    Houses at current prices are super unproductive assets. Canadians thinking of housing as an investment today would burn. Houses were an investment probably in 2015 when JT and his company started pressing the wrong buttons on the immigration and policy dashboard.

    • @BoomBoomBoom2023
      @BoomBoomBoom2023 3 дня назад

      Most People who bought in and after 2017 are surviving because Canada flooded the country with international students, temporary workers and tourist visas ( who acquired a work permit here nd just stayed here ) and all these people flooded the rental market. Things should change very quickly.

  • @JoseLopez-hp5oo
    @JoseLopez-hp5oo 3 дня назад +4

    Savers ask about rate increases!

  • @whiskeyinthejarful
    @whiskeyinthejarful 2 дня назад +2

    At this point, this feels like watching a car crash while tied to the spot. Nothing any of us can do but stand and stare as our country, our future, our money (the CPP situation alone makes me ill) goes up in smoke? Why aren't we all rioting in the streets like France or something? Lol. And how is there so little information ANYWHERE for the average Canadian to realize that, duh, inflation massively benefits those holding most of the assets and of course they're going to work hard to keep it that way unless we beat them back in check?? Mark, your channel needs to be mandatory viewing for every Canadian, for real!

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  День назад

      Hey Whiskey,
      Thanks so much!! They really should teach this in schools - but, if they did, I think you're right - they'd be in the streets!

  • @pilotgirl5953
    @pilotgirl5953 2 дня назад +2

    What could go wrong? Prices always go up, so LTV of 95% is nothing to worry about ! Thanks Mark.

  • @smity25ca
    @smity25ca 2 дня назад +2

    Renter’s with the illusion of ownership 🤦‍♂️

  • @lawrencehalpin6611
    @lawrencehalpin6611 3 дня назад +2

    Thank you Mr. Mitchell. You are one of the top two real estate reporters in Canada. God bless you and your family for what you do.

  • @Buildituniversity
    @Buildituniversity 3 дня назад +2

    Government: Unrealized capital gains tax on houses over a million. Also government: let’s make all the houses worth over a million dollars.

  • @shanesteele778
    @shanesteele778 3 дня назад +3

    Mark you know better this is only good for the banks if you put 5% down on a 1.5 million dollar home you will pay alot more and have less equity and more debt and if you buy at 25 you will be 55 when and if its paid pay 200,000 to 250,000 more in interest

  • @Maguire-om9zd
    @Maguire-om9zd 3 дня назад +2

    When we were kids we played the game Monopoly. Everyone knew that if the kid who was the banker started changing the rules, cheating for better friend, and handing out money like crazy (inflation) then the game would be ruined and it would become a sh*t show.
    That is the world that we live in. And yet everyone just plays on. The only game in town. 😮

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад +2

      Hey Maguire,
      Thanks for the comment :) Not a bad analogy - Remember how bidding wars were more prevalent when Free Parking was in play? The mechanics don't change.

    • @Maguire-om9zd
      @Maguire-om9zd 2 дня назад +1

      @@MortgageBrokerLondonOntario
      exactly, the rules were changed so that you collected thousands$ when you land on free parking and before you know it rents are going through the roof and buying a propery costs multiple times the original price with no end in sight
      But that was just kids being kids. What's our excuse? 🤣
      what a world!

  • @ceasarwright7567
    @ceasarwright7567 3 дня назад +4

    They need new buyers in the ponzi scheme

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад +1

      Strange though - given that supply has been the problem the whole time?

    • @ceasarwright7567
      @ceasarwright7567 2 дня назад +3

      @@MortgageBrokerLondonOntario Dont look at the increasing supply ;-) If you dont buy now youll be priced out forrrreeeevveeeerrr LOL

  • @davidpayne1179
    @davidpayne1179 2 дня назад +1

    Must be an election coming, I hope Canadians can see through this

  • @s82002
    @s82002 3 дня назад +3

    If I was starting out as a young person I would just give up on home ownership completely these days. At these stupid high prices why would I want to be a debt slave forever? Rather take my down payment and invest it. Renting is not all that bad given the massive gap between the average mortgage payment vs rent in major cities so long as you invest the difference. The government thinks that giving access to more debt is a solution to affordability which is insane. Affordability means lower prices period.

    • @parkerbohnn
      @parkerbohnn 3 дня назад

      Not many places to invest it right now. The tail end of long term corporate bonds seems like the only thing left.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      Hey s82002,
      Thanks for the comment :) I think many young people are going that route - which isn't great for long-term economic development.

    • @whiskeyinthejarful
      @whiskeyinthejarful 2 дня назад +1

      If I was starting out as a young person, I'd leave. Educated perfect English speakers with Canadian passports have endless opportunities in this world. Far better quality of life to be had in dozens of places.

    • @s82002
      @s82002 2 дня назад

      I think money will likely continue to flow to the mag 7 stocks since literally the entire future of western economies are touched by those 7 companies in one way or another. Or just buy an S&P 500 ETF and bet on America. Long term it hasn’t failed.

  • @citizeng7959
    @citizeng7959 2 дня назад +1

    This is great for the banks. They will generate more mortgages. More interest paid on a given loan. More steady cash flow. Backstopped by the tax payer.

  • @Brian-dg3gh
    @Brian-dg3gh 3 дня назад +1

    People don’t really even think they will pay off their entire mortgage and are more concerned with generating equity so as much as a longer amortization will equal more interest paid overtime historically speaking it’s still far less than inflated home price increases over a decade and paying interest is no different than paying rent.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      Hey Brian,
      Thanks for the comment :) Definitely a good point - historically housing is a good inflation-hedge.

  • @ontariorob1400
    @ontariorob1400 3 дня назад +2

    Hey Mark, what is a good book recommendation? I see your book collection but can't read any titles.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад +1

      Hey Ontariorob,
      I really enjoyed Bernanke's book "21st Century Monetary Policy" - just for understanding monetary mechanics. Chancellor's "The Devil Take Hindmost" is really good for looking at the history of speculative bubbles. I really liked Lords of Easy Money as well (a good history of how we got where we are).

    • @ontariorob1400
      @ontariorob1400 2 дня назад

      @MortgageBrokerLondonOntario Thanks Mark.

  • @Womba1009
    @Womba1009 3 дня назад +2

    Gresham's law. But why follow the laws right...

  • @BRANDYMCMB
    @BRANDYMCMB 3 дня назад +4

    Thanks for clickiiiiiing!!!

  • @dinagallis2664
    @dinagallis2664 3 дня назад +2

    Thanks Mark, for them to come out with something like this means … they saw the iceberg ahead and had to do something this drastic in hopes of avoiding it. Realistically how many people will qualify and be brave enough to sign off on these terms not knowing what the future brings? .. if this isn’t gambling BIG I don’t know what is?

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      Hey dina,
      Thanks as always for the comment :) I tend to agree - I'm not sure that this is intended on helping new buyers as it is propping up prices.

  • @glenf4115
    @glenf4115 3 дня назад +2

    Move-up buyers in the 1-1.5m range used to be insulated from this craziness. Now they are competing with kids buying those same homes with the backing of their parents.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      Hey glenf,
      Thanks for the comment :) Very, very true - definitely a good point I hadn't considered - this will put more pressure on that upper-end as well.

  • @R.A.M_000
    @R.A.M_000 День назад +1

    you and my morning coffee are becoming an enjoyable habit sir!

  • @shadowknight140
    @shadowknight140 3 дня назад +2

    I though the economy has gone to the dogs... boy was I wrong. @Mark I have a question, If an investor registers a new company, under this new scheme would'nt that investor not get access to 30 year ammorizations? If that is the case would'nt this just backfire with just increased house prices? At the end of the day, the average person is still the looser. Appologies in advance if my assumptions are incorrect.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  3 дня назад

      Hey shadowknight,
      That's right - the investor would not have access to the 30 year (insured) amortizations - though they would still (as always) have access with 20% down, and gain in any value brought on by the introduction of buyers with new-found buying power.

  • @molinaser28
    @molinaser28 3 дня назад +3

    you’re welcome for my click

  • @rationalevidence9095
    @rationalevidence9095 3 дня назад +6

    Hey look everyone! Canada is copying the USA 2007 real estate affordability playbook. What could go wrong....

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      Hey rationalevidence,
      I had thought about that as well - often the loosening is the precursor to the downturn - From the loosening of rates, FHA secure program, Fannie and Freddie loosening - the parallels are mounting.

  • @islandaerial3414
    @islandaerial3414 3 дня назад +1

    My first mortgage was 30 years. I was like 50 at the time. I asked them if that was any concern to them. NOPE! (??)
    I began my journey to awakening around that time... Weird

    • @blakeacheson9387
      @blakeacheson9387 2 дня назад

      Why would they care if you croaked during the mortgage ?

    • @islandaerial3414
      @islandaerial3414 День назад

      @@blakeacheson9387 They get to collect on the bonds created and the insurance attached to it

  • @dev4statingx90
    @dev4statingx90 3 дня назад +1

    Bold strategy Cotton, lets see if it works out for em.

  • @makeitfuntv9768
    @makeitfuntv9768 3 дня назад +1

    More like "Jackpot" for the banks!

  • @fofal
    @fofal 3 дня назад +2

    Who ever gets that 30 year 1.5 million mortgage under lower rates soon will cry again in a few years when they are about to renew at a higher rate lol. Even 1% higher will be painful.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      Hey fofal,
      Thanks for the comment :) That's definitely the worry, especially with not much equity being paid off.

    • @blakeacheson9387
      @blakeacheson9387 2 дня назад

      Higher rate lol … have we learned anything….rates will be low unless they absolutely cannot (ie Covid)

    • @fofal
      @fofal 2 дня назад

      @@blakeacheson9387 How low is low?

  • @SquarishLink
    @SquarishLink 3 дня назад +2

    These rules coupled with a few rate drops will bring ferver back into the market. Im currently looking to buy but tbh this seems like a huge fucking trap. I would hope prices come down and not going up tbh

    • @parkerbohnn
      @parkerbohnn 3 дня назад +1

      Follow the Richmond Hill and Markham housing markets the lead the entire Golden Horseshoe.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      Hey SquarishLink,
      Thanks for the comment :) If the economy holds up I think you could very well be right! We'll see what happens in the Spring.

  • @Will-zc8cq
    @Will-zc8cq 3 дня назад +1

    As a variable mortgage holder as of 2022 I can say I’m happy atm

  • @Lifeisapartydresslikeit
    @Lifeisapartydresslikeit День назад

    And now existing borrowers can shop their renewal without the stress test!!! More changes coming 🍿

  • @jvalenti370
    @jvalenti370 3 дня назад +1

    "Boldest reforms in decades". Hmm.
    One thing for sure: this video is packed with great information and insights. Thank you!

  • @andrewvader9077
    @andrewvader9077 3 дня назад +4

    At this current rate of policies for housing. I could see in the future that it's just taxpayers who hold the mortgages. And then all the risk is on the taxpayer and not the homeowner so when they default the homeowner isn't underwater anymore.

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  3 дня назад +1

      Hey andrew,
      Thanks as always for the comment :) Don't give them any ideas! lol

    • @andrewvader9077
      @andrewvader9077 2 дня назад

      @@MortgageBrokerLondonOntario Thank God our Shadow Minister doesn't read our comment section 🤣🤣🤣. He's probably too old!

  • @Icecold0505
    @Icecold0505 3 дня назад +4

    A win. For lenders at large.

  • @rrush-ik4ih
    @rrush-ik4ih 3 дня назад

    30 years mortgage terms are the standard in USA. They even get to right off the interest against income. It might be a good time for young professionals to rethink their approach to home ownership.

    • @lynb1022
      @lynb1022 3 дня назад +1

      I think the US has a fixed-rate standard though, no? So if monthly payments stay affordable for 30yrs it'd be great, makes sense; but it doesn't in Canada when people have to renew every 5 years, at possibly much higher rates.

  • @KeatonDee
    @KeatonDee 3 дня назад +1

    THANKS FOR CLICKING!! 🎉

  • @darrinyo-mamakimble7002
    @darrinyo-mamakimble7002 День назад

    Nice

  • @Danilo-jimenez
    @Danilo-jimenez 3 дня назад +1

    Hyundai Dealers lol

  • @Info-r9y
    @Info-r9y 3 дня назад +1

    Thank you Mark

  • @justinaldrich1719
    @justinaldrich1719 3 дня назад +1

    BAHAHAHA

    • @MortgageBrokerLondonOntario
      @MortgageBrokerLondonOntario  2 дня назад

      lol Thanks Justin!!

    • @justinaldrich1719
      @justinaldrich1719 2 дня назад

      @@MortgageBrokerLondonOntario Let the printing presses turn on! teehehe Gold and silver have done great this year can't wait for next year!

  • @lostlandmarks8305
    @lostlandmarks8305 3 дня назад +1

    We're in big trouble.

    • @blakeacheson9387
      @blakeacheson9387 2 дня назад

      How? Too late … the trouble started a long time ago … this is now survival 😂

  • @ftrudeau
    @ftrudeau 3 дня назад +1

    Jackpot is a honeypot. Spin words make sheepeople feel fuzzy and warm.