Mortgage Rates

[summit889]

Jacking up interest rates is a band aid fix IMO. Seems to be affecting people who already own homes more than anyone. Prices haven't gone done and renewals are hitting like Drew mentioned above.

I was reading an article saying that a target for the median house cost in a given location would be 2.6ish times the household income.
18% interest on something proportionality priced is better than 7% on something that is inflated on a bubble.
I have an couple years left on my current rate, but i don't know if rates will go up anymore at this point so if I was renewing atm I'd be looking at variable options I think.

I’m not sure it’s a bubble. CMHC is predicting a 3.5-4 million home shortfall by 2030. We need to slow immigration and start building a lot of homes

 

[Frosty19]

I’m not sure it’s a bubble. CMHC is predicting a 3.5-4 million home shortfall by 2030. We need to slow immigration and start building a lot of homes

Shortage for sure is driving up the prices, agreed. The problem is the emphasis will probably be put into rental properties, not so much single homes people can own which is why rates are going up in the first place.
If the rates keep going up though there will be an influx of sales and defaults as people need to renew, maybe bubble isn't the proper word.
I assume not many people would've guessed their mortgage payment doubling over their 5 year term.

 

[smokinD]

I’m not sure it’s a bubble. CMHC is predicting a 3.5-4 million home shortfall by 2030. We need to slow immigration and start building a lot of homes

Slowing Immigration would help but the pollie;s are not about to do that anytime soon. Bringing in plane loads of under educated and underskilled cheap labor for Co's to spin through the revolving door they have on the front of the building. Simply because young canucks do not want to work in skilled labor jobs and want to be tech nerds instead, you don't have to use your head the computer does it for you, (get my drift). I work within the CHBA and they are building single fam residentials just not anywhere near the pace they were 3-4 yrs ago. They have slowed somewhat and are building spec homes what they think they can sell, and moving towards building these big multifamily developments with multiple bldgs either for rent or for investors. I know of a lady from TO that bought 14 homes with legal suites in them and some with garden suites all to rent out in WE. There is also gonna be 2 or 3 more multi family complex's going up in St Alb, Spruce Grove, and in SW edmonton, some are for rent but some are for sale as well. Mortgage rates need to come down but doubt it, as i recently talked with a friend and was told that Trudummy has taken the gst off for builders lets see how that plays out.

 

[Lunch_Box]

Shortage for sure is driving up the prices, agreed. The problem is the emphasis will probably be put into rental properties, not so much single homes people can own which is why rates are going up in the first place.
If the rates keep going up though there will be an influx of sales and defaults as people need to renew, maybe bubble isn't the proper word.
I assume not many people would've guessed their mortgage payment doubling over their 5 year term.

This is 100% what they are doing, Freeland is giving incentives to big corporations to build rental properties (removing the gst on construction for one) but doing nothing to help the average family build a new house.

 

[ABMax24]

Pierre posted this today.

While I don't agree that he has all the factors nailed, labour shortages being a big one he missed. Certainly a stark comparison of our housing issues in border towns though.

 

[summit889]

Slowing Immigration would help but the pollie;s are not about to do that anytime soon. Bringing in plane loads of under educated and underskilled cheap labor for Co's to spin through the revolving door they have on the front of the building. Simply because young canucks do not want to work in skilled labor jobs and want to be tech nerds instead, you don't have to use your head the computer does it for you, (get my drift). I work within the CHBA and they are building single fam residentials just not anywhere near the pace they were 3-4 yrs ago. They have slowed somewhat and are building spec homes what they think they can sell, and moving towards building these big multifamily developments with multiple bldgs either for rent or for investors. I know of a lady from TO that bought 14 homes with legal suites in them and some with garden suites all to rent out in WE. There is also gonna be 2 or 3 more multi family complex's going up in St Alb, Spruce Grove, and in SW edmonton, some are for rent but some are for sale as well. Mortgage rates need to come down but doubt it, as i recently talked with a friend and was told that Trudummy has taken the gst off for builders lets see how that plays out.

Kinda skeptical that 5% less to the end user does much of anything, but who knows. Bottom line, need more supply

 

[turbo392]

Kinda skeptical that 5% less to the end user does much of anything, but who knows. Bottom line, need more supply

Take back every foreign owned housing property in Canada and block all future sales. Problem solved.

 

[smokinD]

This is 100% what they are doing, Freeland is giving incentives to big corporations to build rental properties (removing the gst on construction for one) but doing nothing to help the average family build a new house.

Yup, making it a rental market while the Corps own it all and you tow the line to what they say

 

[smokinD]

Pierre posted this today.

While I don't agree that he has all the factors nailed, labour shortages being a big one he missed. Certainly a stark comparison of our housing issues in border towns though.

There isn't a labor shortage with 450k+ flooding in and us paying for this on the backend. The shear fact is most sovereigns don't want to work in the skilled labor field and that right there is bad, now you end up with unskilled turnabouts or just shoddy work being done by by a guy who hired 6 of his hommie's to do the work with no recourse for workmanship/quality because every single sovereign decided to save 10c on a 10k job but yet complain about it on SM. Wow!

 

[ABMax24]

There isn't a labor shortage with 450k+ flooding in and us paying for this on the backend. The shear fact is most sovereigns don't want to work in the skilled labor field and that right there is bad, now you end up with unskilled turnabouts or just shoddy work being done by by a guy who hired 6 of his hommie's to do the work with no recourse for workmanship/quality because every single sovereign decided to save 10c on a 10k job but yet complain about it on SM. Wow!

If there is a skilled labor shortage, wouldn't that mean there is a labor shortage?

 

[pano-dude]

Lots of new faces in my area and they are not born in Canada.
I'm not sure where they live since there is zero long term vacancy here which is one reason why businesses can't get staff.
My kid can't afford or even find a place to live but others are showing up working here now????

 

[lilduke]

d they are not born in Canada.
I'm not sure where they live since there is zero long term vacancy here which is one reason why businesses can't get staff.
My kid can't afford or even find a place to live but others are showing up working here now????

10 of them will cramp into a one bedroom apartment. Lots more will be showing up in your area i can promise you that.

My city looks like africa now..

 

[smokinD]

If there is a skilled labor shortage, wouldn't that mean there is a labor shortage?

No, skilled and wanna try and do the job without schooling are very different. And many i encounter are not skilled at all at doing such work, just winging it. Also many of our young are not opting to take trades skilled courses so that leaves unskilled 5 people trying to skill up building a house and finishing it, you should see some of the work i have encountered by the unskilled cut corners to no end people i have seen on the job. Then as a builder have to try and call in skilled person to fix the mess to get it to pass code/inspection. But in essence yes i guess depending on how you look at it labor shortage yes, but skilled labor shortage absolutely, unskilled not so much.

 

[lilduke]

There is only one way to get skills. So train em up..

 

[smokinD]

Lots of new faces in my area and they are not born in Canada.
I'm not sure where they live since there is zero long term vacancy here which is one reason why businesses can't get staff.
My kid can't afford or even find a place to live but others are showing up working here now????

Business's are taking kickbacks from the gobbernment on the TFW designation and putting them up in houses and such so they can capitalize on cheap labor no body else wants. These new peeps do not have to pay taxes for 5 years, wish i could get a 5 year tax break. I see lots of builders putting up mexicans, etc.. in homes they own and stack them in there like cord wood and supply them with all the tools/truck and maybe sell them the house down the road with a 20yr mortgage, that is what is happening.

 

[summit889]

Take back every foreign owned housing property in Canada and block all future sales. Problem solved.

Would make a huge difference in a few markets, not sure overall if it would. But it’s a start for sure

 

[lilduke]

Taking properties away from people is total BS and very slippery slope if they are foreign owned or not.

 

[catalac]

Beyond pisses me off, 100,000 people a month immigrating to Canada basically the city of Red Deer every month, will not only make my retirement a further stretch my kids can’t buy a house on a $100K wages. Biden doing the same thing in the usa, not sure what the end game for these f‘rs is but has to be money rolling back to them somehow.

 

[freeflorider]

I’m trying to look beyond the cost of homes around us. Years ago no one wanted to be here, slowly we seen home prices climb. People started to move into our area. I watched and luckly bought up a few property’s to only watch it explode. Was this planed…nope. I’m seeing places out of reach for the most part for young families.
all I can say for an investment look out far and wide. Kid just bought a great home in consort alb for less then I paid for a half ac.. here. I’m thinking if we are seeing people move in sooner that later that crappy property will be worth something. may not work for our kids buying in a remote area but maybe we can help soften the burden when we cash in and flip the kids the profit.
Or get the hell out of Canada. It sucks now anyhow.

 

[jhurkot]

I’m looking at buying an acreage and the house is in pretty poor shape. If the house isn’t deemed livable you have to buy it as land and pay 9% variable rate. If the house is “good enough” for the bank you can get 5.95%. So between the 9% interest, 20% down payment, and huge cost of building a new house I think I’ll have to walk away.


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