Here Come 30 Year Mortgages

[ABMax24]

Just what the first time homebuyer needs, a longer amortization period so they can bury themselves in more debt.

Canada to Allow 30-Year Mortgages for First-Time Homebuyers

Canada will relax the rules on mortgages to allow first-time buyers to take out 30-year loans when they purchase newly built homes.

www.bloomberg.com

 

[Trashy]

My 3rd mortgage was 35 years, so I wouldn't be cash broke. That was in 2008 as the economy started to tank

 

[papajake]

What do you expect an older house in town here just listed for over 400000 and new ones for over 750000 just total stupid

 

[snopro]

Didn’t they reduce mortgage term limits and implement stress tests after 2008. You know why they are doing it is because of the costs for a new house now and no one can afford to buy. I hope this doesn’t backfire on them.

 

[1200]

I think lots of people are in 30 to 40 year mortgages after they refinance a couple of times nothing new .

 

[ABMax24]

Didn’t they reduce mortgage term limits and implement stress tests after 2008. You know why they are doing it is because of the costs for a new house now and no one can afford to buy. I hope this doesn’t backfire on them.

The issue is supply though, home prices are high because there's more people trying to buy one than exist in the market.

Prices are also high because people have had access to almost free credit allowing them to outbid one another on the limited supply of houses.

All this effectively does is allow first time home buyers to buy more expensive houses, without actually addressing the supply crisis.

 

[ABMax24]

 

[Lem Lamb]

Hard to belive my friend built his house on a lot for under $10 k many years ago and sold it for $2 mill... kind of ridiculous if you ask me...

If you had a $200.000 dollar home back in my day you were most likely a millionaire,,, my other friend just finished building a nice normal home and it was $$$...

Just under a mill...

Lots of folks in my folks day raised their families in grainerys,,, maybe those days will be the new norm...

 

[ctd]

That telss

My 3rd mortgage was 35 years, so I wouldn't be cash broke. That was in 2008 as the economy started to tank
[/QUOTE

Ugh! I could never have done that. The difference in payment would have been very small between a 25yr vs 35. I would fight with the banker for a fifteen year term on a approved 25yr. I'm not a saver, so having a 15yr term was the way I made it work.

 

[The big greasy]

You will own nothing and be happy.

 

[smokinD]

You will own nothing and be happy.

That is exactly what the name of this thread should be. "Or build back better and own nothing" while trying to enjoy your voluntary servitude while living an illusion lol! Japan is like that familys never own a house just gets passed down gen by gen as it is way to expensive. Just think on a 600k house 200k of that is interest wow!

 

[Trashy]

At the time, it was a big difference for me from 25 to 35
I tried 25 for a couple of months and I was cash broke. I didn't like it, so I switched over to 35 year to having a little spending money.
I've always done weekly payments, which is great for the long term, but not the short term. When I still had sleds and quads

 

[ABMax24]

Just think on a 600k house 200k of that is interest wow!

You're off a bit there, at todays interest rates on the first 5 years you pay $160k in interest, it's closer to $550k over a 25 year term.

 

[Rjjtcross8]

You're off a bit there, at todays interest rates on the first 5 years you pay $160k in interest, it's closer to $550k over a 25 year term.

That’s insane the amount of interest.

 

[snopro]

And another Trudeau setting the rate with out of control spending

 

[Chump]

And another Trudeau setting the rate with out of control spending

And hes not done yet. I'm sure there some kids in Ethiopia that need lgbt garbage shoved down there throats

 

[The big greasy]

The Canadian government can hand out money over fist with no interest collected back and the debt never intended to be collected, unless you are a Canadian citizen.

 

[lilduke]

For top G's

 

[Lem Lamb]

Canada is the most deted of the G7 at 80% now...

this is not good...

 

[ABMax24]

Just wait until fixed mortgage rates go up, they did already a little yesterday. Canadian fixed mortgage rates are tied to bond yields, not the BoC rate (although they have been essentially tied to the BoC rate for the past while). Persistent inflation and increased bonds yields in the US are going to decouple Canadian fixed mortgage rates from the BoC rate.