canada
canada
Out of context: Reply #262
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Holy fuckin housing bubble
- it's been a bubble for the past decade_niko
- really driven by Vancouver and Toronto, which has tons of new people coming in. and no place to put them. so I don't think it'll burst_niko
- No room for new homes in Toronto really because of the greenbelt and Vancouver is just sea and mountains so land is at a premium. plus Chinese and Iranian $$_niko
- but the bank of Canada put a pause on rate hikes and lenders use all kinds of tricks to still keep mortgages reasonable like super long terms._niko
- 20% of borrowers are paying a mortgage that doesn’t even cover the interest!!! I understand variable rates & recent rate changes. But this is still insanity.********
- https://www.theglobe…********
- Also, when the banks got called on it, their response wasn’t “this is fine”. Instead they refuse comment or “we’re under no obligation to disclose this”********
- So let’s assume this 20% is all just the variable rate mortgages in the country. Another 60-70% are due to refinance within 4 or 5 years.********
- Let’s hope all the Canadian homeowners have a ton of extra cash on hand. Oh wait, they don’t.********
- The $1T question: of those 20%, how many are choosing to pay the maximum lump sum payment each year?********
- Unless they want to refinance for a longer period or can afford a huge monthly increase, they’ll be forced to sell or walk away from the mortgage********