Here Come 30 Year Mortgages

[Frosty19]

Nice and backwards - when they say make housing more affordable that doesn't mean let people borrow more money to pay for inflated prices. Let's push the bubble even closer to bursting

 

[LID]

Imagine how many people would be beyond screwed right now if it hadn’t been for the stress-test they were all complaining about

 

[acesup800]

If someone wants a 30 year mortgage, let them. Who are we to decide they can't? Bubble burst? I have heard that for the last 5+ years here on this site by the gloom and doom crowd. Meanwhile, those who elected not to buy into that, are doing pretty good in real estate.

 

[ABMax24]

If someone wants a 30 year mortgage, let them. Who are we to decide they can't? Bubble burst? I have heard that for the last 5+ years here on this site by the gloom and doom crowd. Meanwhile, those who elected not to buy into that, are doing pretty good in real estate.

There's 2 sides to this though, there's the real estate speculator (investor) and everyone else who is struggling to afford a home. And this decision puts their objectives at odds.

Allowing longer mortgage terms plays into the hands of those holding real estate, as the buyers can now leverage themselves higher to purchase homes at ever increasing prices. At the cost that the typical home buyer now needs to pay more for longer on that same home. Making housing more unaffordable.

It's certainly un-wise at best to have an economy that relies on Real Estate and Government to be the primary economic drivers. But that's the Canada we live in today.

Does this house of cards topple? Who knows, but looking at other housing crises of the past around the world the conditions are set for a crash to occur if a large enough catalyst occurs to trigger it.

 

[Bnorth]

There's 2 sides to this though, there's the real estate speculator (investor) and everyone else who is struggling to afford a home. And this decision puts their objectives at odds.

Allowing longer mortgage terms plays into the hands of those holding real estate, as the buyers can now leverage themselves higher to purchase homes at ever increasing prices. At the cost that the typical home buyer now needs to pay more for longer on that same home. Making housing more in affordable.

It's certainly un-wise at best to have an economy that relies on Real Estate and Government to be the primary economic drivers. But that's the Canada we live in today.

Does this house of cards topple? Who knows, but looking at other housing crises of the past around the world the conditions are set for a crash to occur if a large enough catalyst occurs to trigger it.

Unfortunately there is no housing crash coming in Canada. Builders have been under building the last couple years since rates climbed so we are falling behind in housing stock and that is exacerbated by the current immense immigration levels. While many on here cry recession the BOC looks like they are in the midst of pulling off a soft landing after reigning inflation back in to their 2-3% target. Real Estate will start selling again come the 2025 spring market.

 

[LennyR]

Real Estate is selling very well in many places, some not so well. Some areas housing prices are restrictive and supply is high, some areas prices are more reasonable and no supply exists. Some areas development and costs to bring residential lots to market is relative , some areas there is no lanfpd available to develop.
But as usual the government will make a rule to fix a problem in one small area , (where the most votes are) and create even bigger problems sometimes in that area , sometimes in others.
There really is no wonder there are issues, CMHC is notorious for taking actions at least 2 building/buying seasons behind . When they should be raising the allowable insured value, they are reducing , and vice versa. Plus imagining that setting insured mortgage limits or mortgage term limits or max terms can be applied as a blanket fix all across Canada is just a really naive concept.
My thoughts , the recent changes are not a good thing for anyone. Typical government solution , if there’s an issue you can’t manage, move the finish line , then crow and beak that you’ve solved the problem. Moving it to another administration isn’t solving it .

 

[pano-dude]

Have 3 different friends trying to sell their houses, one in Radium, one in Invermere one in Wilmer. Two on the market for 30 days and one for 90 days. 2 are million dollar homes one is average home $500k.
These houses would have sold in a week in the past.

 

[LennyR]

Have 3 different friends trying to sell their houses, one in Radium, one in Invermere one in Wilmer. Two on the market for 30 days and one for 90 days. 2 are million dollar homes one is average home $500k.
These houses would have sold in a week in the past.

You folks in BC are in an even tougher spot I think. You have the greater Vancouver area screaming for help from the feds, also the waterfront resort/retirement areas with the volatility they create , plus your provincial government seem destined to destroy the province .

 

[lilduke]

Times are tuff. Buddies guest house is only 2000 square feet

 

[pano-dude]

You folks in BC are in an even tougher spot I think. You have the greater Vancouver area screaming for help from the feds, also the waterfront resort/retirement areas with the volatility they create , plus your provincial government seem destined to destroy the province .

It's not looking great, BC has the fastest growing debt of any province I believe. Lumber and pulp mills shutting down and other industries don't seem to like the idea of first Nations having to be consulted for projects. Will see what happens with the October election.
New rules for landlords are making it more difficult to sell and make a profit on rents due to increase caps.

 

[pano-dude]

Times are tuff. Buddies guest house is only 2000 square feet

View attachment 287515

There are people with lots of money and people with none. Not much for middle ground anymore.

 

[lilduke]

Bunch of cheap 3rd world labour and 100 year mortgages should help widen the gap

 

[Mike270412]

Bunch of cheap 3rd world labour and 100 year mortgages should help widen the gap

I think we should also send much more of our hard earned tax dollars to third world chit hole countries.

 

[ZRrrr]

Was speaking with a neighbourhood realtor last nigh while out walking the dog. I asked him for his opinion on what he sees happening as he has been in the business for a long time. Short story is Clagary's market has traditionally been stronger than Edmonton's, but that has been changing quickly as investors pull out of Calgary for cheaper Edmonton. He is seeing investors pay 10's to 100's of thousands more for houses here just to secure them. Realtors are quite busy in Edmonton right now. Alot of these investors are from BC he said, where the investment market is too expensive. He figures BC is going to start seeing house prices drop.

Take it for what it's worth.

 

[smokinD]

Was speaking with a neighbourhood realtor last nigh while out walking the dog. I asked him for his opinion on what he sees happening as he has been in the business for a long time. Short story is Clagary's market has traditionally been stronger than Edmonton's, but that has been changing quickly as investors pull out of Calgary for cheaper Edmonton. He is seeing investors pay 10's to 100's of thousands more for houses here just to secure them. Realtors are quite busy in Edmonton right now. Alot of these investors are from BC he said, where the investment market is too expensive. He figures BC is going to start seeing house prices drop.

Take it for what it's worth.

That may well be very true what he is saying, on the other hand i know of a few investors from TO area that bought up a few homes here in Etown. 1 for sure bought 14 homes on 1 side of an avenue and has them all rented out, others were doing the same in other area's i have worked as well. (Same style of home and all on 1 side of the street with some on the other side being bought by another investor) Sheesh crazy chit. Renting comes with big risks as the tenant Imo has more authority than the actual owner. Smh.

 

[snopro]

I had a buddy that bought a $30000 holiday trailer off the lot and they loaned him the money on a 20 yr term. We tried to explain to him he was buying the trailer for closer to $60000 if you figured out the interest. He didn’t care. He had to have a trailer to camp in.

 

[smokinD]

I had a buddy that bought a $30000 holiday trailer off the lot and they loaned him the money on a 20 yr term. We tried to explain to him he was buying the trailer for closer to $60000 if you figured out the interest. He didn’t care. He had to have a trailer to camp in.

I heard you can do 20 or 30yr on boats as well.

 

[snopro]

I heard you can do 20 or 30yr on boats as well.

It’s crazy. Thats how people go sideways on their credit rating. The boat costs more down the road than you paid for it.

 

[The big greasy]

I had a buddy that bought a $30000 holiday trailer off the lot and they loaned him the money on a 20 yr term. We tried to explain to him he was buying the trailer for closer to $60000 if you figured out the interest. He didn’t care. He had to have a trailer to camp in.

Trailer won’t last 15 year lol. Was at bass pro 15 years ago just looking around. To but a certain boat it was 37000. If done on a payment plan it was over 120000. The salesman said to my father if he was ready for a payment plan. My father laughed as a joke and said people actually do this? The salesman said everyone does. We just shook our heads and laughed and walked away.

 

[smokinD]

It’s crazy. Thats how people go sideways on their credit rating. The boat costs more down the road than you paid for it.

I think you should be able to "Lease" boats, RV,s and including houses that way you can just give it back and move into something newer instead of trying to sell the lease off or sell the property. ( Win Win for the consumer ) I know a guy who only had 7yrs left on his mortgage, but his wife wanted a change of view, so he sold the house and for 110k more he had a new 30 yr mortgage and a new home.