General A thread to discuss the incoming housing bust

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BeardOfKnowledge

BeardOfKnowledge

The Most Consistent Motherfucker You Know
Jul 22, 2015
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Lars said:
www.theglobeandmail.com

Canada’s banking regulator to tighten mortgage-HELOC rules to curb rising homeowner debt

The trendiest type of home equity line of credit is in the crosshairs of Canada’s banking regulator, which is looking to curb risky borrowing as rising interest rates put added pressure on heavily indebted homeowners
www.theglobeandmail.com www.theglobeandmail.com
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Some of these things I read are mind boggling. My wife and I both lease our cars, because salt belt, and we have a mortgage. Otherwise we're debt free and I'm like "Oof. This could get bad." I can't imagine how these people that are hyper leveraged are going to survive.
 
BeardOfKnowledge

BeardOfKnowledge

The Most Consistent Motherfucker You Know
Jul 22, 2015
60,549
56,270
Splinty said:
If they don't move it'll all be okay
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In Canada most mortgages renew every 5 years. Sometimes the rate is lower on renewal and you win a little, sometimes its up and the lender wins. Sometimes the interest rate triples in 3 years and you can no longer afford what your new mortgage payments will be.
 
Splinty

Splinty

Shake 'em off
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Dec 31, 2014
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BeardOfKnowledge

BeardOfKnowledge

The Most Consistent Motherfucker You Know
Jul 22, 2015
60,549
56,270
Hauler

Hauler

Been fallin so long it's like gravitys gone
Feb 3, 2016
45,616
57,955
Splinty said:
Don't worry as our houses become unaffordable we are moving the same way More buyers opt for adjustable-rate mortgages as rates rise | Federal News Network
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Not unwise. That usually locks you in at a rate for 5 years - usually lower than current rates - then after 5 years it flips to adjustable. Most folks likely intend to refinance to a fixed rate before if flips to fully adjustable.

The danger here is if they are tight on budget and can barely afford the lower fixed rate in the first 5 years. If the rates don't come down and they can't refinance for a lower rate, they could be in trouble. And if the loan is upside down - they could be in a lot of trouble.
 
Hauler

Hauler

Been fallin so long it's like gravitys gone
Feb 3, 2016
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BeardOfKnowledge said:
I'm referring to 5 year fixed, which means your rate is locked in for 5 years at a time. We also have variable rate mortgages where your rate changes with the prime rate. Mortgages are so fucked.

Also, hey @Lars your dad thinks housing in America is expensive. Lol!
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Canada is whack. I can't imagine a 5 year reset on a mortgage. And fines for paying off early before the rate increases.

Insane.
 
BeardOfKnowledge

BeardOfKnowledge

The Most Consistent Motherfucker You Know
Jul 22, 2015
60,549
56,270
Hauler said:
Canada is whack. I can't imagine a 5 year reset on a mortgage. And fines for paying off early before the rate increases.

Insane.
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There's a 0% chance you would take a 30 year term if you were given the option to get a lower rate using your ability to predict the market.
 
Hauler

Hauler

Been fallin so long it's like gravitys gone
Feb 3, 2016
45,616
57,955
BeardOfKnowledge said:
There's a 0% chance you would take a 30 year term if you were given the option to get a lower rate using your ability to predict the market.
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But you aren't predicting anything. It's a 5 year reset, right? Every 5 years. That's gambling and pretty tough (impossible) to budget for.

I'd much rather lock it in for 30 years, then pay extra towards principal to minimize interest commitment. If the market turns in your favor, refinance to a better rate if it makes sense.
 
BeardOfKnowledge

BeardOfKnowledge

The Most Consistent Motherfucker You Know
Jul 22, 2015
60,549
56,270
Hauler said:
But you aren't predicting anything. It's a 5 year reset, right? Every 5 years. That's gambling and pretty tough (impossible) to budget for.

I'd much rather lock it in for 30 years, then pay extra towards principal to minimize interest commitment. If the market turns in your favor, refinance to a better rate if it makes sense.
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No, you can vary your term length from 6 months to 30 years. No one takes 30 years because the interest is ridiculous.
 
Filthy

Filthy

Iowa Wrestling Champion
Jun 28, 2016
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BeardOfKnowledge said:
Who ever could have predicted such a thing.
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" Despite the recent signs of a slowdown, historically high savings rates and unprecedented government stimulus efforts helped ignite a home-buying frenzy during the pandemic."

i love how they try and paint it like it was a bunch of $2k checks that drove the boom, and not the gov't giving trillions to investment banks and keeping rates in the dirt...if it didn't happen every 10 years, I'd say it was UnFucking Believable
 
M

member 1013

Guest
www.thestar.com

Cost to rent 1,000 sq. ft. unit in Toronto now over $3K, says new report

Unsurprisingly, Toronto saw one of the biggest jumps in rent prices in the GTA, and experts warn a cooling housing market could mean high rental costs are here to stay.
www.thestar.com www.thestar.com

www.acto.ca

A new poll shows the majority of Ontario renters are having to choose between food and paying their rents. When it comes to housing affordability, this province is on fire. - Advocacy Centre for Tenants Ontario - ACTO

Decades of austerity driven policy are forcing renters to continuously try to make do with less. Enough is enough.
www.acto.ca www.acto.ca
 
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