Real Estate Crash thread

[lowsparkco]

Who knew that Canadian mortgages are often short in duration. Seems a 5 year mortgage is common for our northern neighbors. Seems that could soon be problematic.

[californiagrown]

Who knew that Canadian mortgages are often short in duration. Seems a 5 year mortgage is common for our northern neighbors. Seems that could soon be problematic.

...foreign investors licking their chops....

[frorider]

Who knew that Canadian mortgages are often short in duration. Seems a 5 year mortgage is common for our northern neighbors. Seems that could soon be problematic.

It’s a five-year mortgage amortized over 25 years. That means the loan balance has to be refinanced at the end of five years, exposing the borrower to any increase in rates that has occurred in the interim. Is that what you’re referring to?

It seems to come up often here thx to our Canadian mags eh.

As I recall, in Canada if you default the lender not only repossesses the house but can seize some of your other assets too.

[liv2ski]

Most countries allow a deficiency judgement in a foreclosure which really slows people down from just walking away.

[Core Shot]

5 year or even 3 year is common in us. But it usually is only the fixed portion. After that you float.
Are these five year Canuck loans really due and payable? What if you lose your job or get hurt. What if there’s a recession. That’s a dangerous gamble.

[XXX-er]

5 year or even 3 year is common in us. But it usually is only the fixed portion. After that you float.
Are these five year Canuck loans really due and payable? What if you lose your job or get hurt. What if there’s a recession. That’s a dangerous gamble.

you just ask for a hall pass

edit:
but seriously right now the problem in Canada is that rates were low for a very long time, so a lot of people who had never experienced higher mortgage rates chose the variable rate mortgage SO they could qualify to borrow mo money to buy a house they wouldn't be able to afford if/when the interest rates went UP.

Fast forward and either the rates were periodicaly adjusted during the mortgage or the fixed rate mortgages come due they can't afford to pay the higher monthly payment

its a mortgage on a house so of course they owe the money or the bank will have to foreclose, the bank should have had an appraisal done to make sure the house ( which they own but let you live in ) is going to be worth the money they lent you in the event they have to liquidate the house

the amortization rtime is getting extended so some people are livivng in houses they won't actulay own for a LOT of years , I've heard > 50 yrs

there are really only 5 banks holding the majority of mortgages in Canada so they are gona take a big hit

[paulster2626]

5 year or even 3 year is common in us. But it usually is only the fixed portion. After that you float.
Are these five year Canuck loans really due and payable? What if you lose your job or get hurt. What if there’s a recession. That’s a dangerous gamble.

After 5 years or whenever your term is up you can just re-amortize the remainder of the mortgage for a fresh new 25 or 30 years if you have to. So just keep kicking the can down the road and paying the bank forever.

Foreclosures as I understand are extremely rare here.

[XXX-er]

After 5 years or whenever your term is up you can just re-amortize the remainder of the mortgage for a fresh new 25 or 30 years if you have to. So just keep kicking the can down the road and paying the bank forever.

Foreclosures as I understand are extremely rare here.

yeah a lot of re-amortizations going on I've heard some of these people will be paying for the next 50+ years

yeah banks have to sell your house so pay off the monies owing and send you the difference if any and some low money down mortgages will be underwater

so they don't really want to foreclose they want you to keep paying

the whole situation is unprecedented

[skaredshtles]

Here's what $600K gets you in the 'hood-ish (formerly?) section of Lakewood, CO: https://maps.app.goo.gl/6ib7KhTQge3nw2DV9

[liv2ski]

Read San Diego is the most expensive price to income percentage in the USA. Prices are full on retard and need at least a 25% reduction.

[SKIP IN7RO]

Here's what $600K gets you in the 'hood-ish (formerly?) section of Lakewood, CO: https://maps.app.goo.gl/6ib7KhTQge3nw2DV9

Location x 3, only 1.5 miles to In-N-Out.

[rideit]

Read San Diego is the most expensive price to income percentage in the USA. Prices are full on retard and need at least a 25% reduction.

That's so cute.

[MontuckyFried]

Read San Diego is the most expensive price to income percentage in the USA. Prices are full on retard and need at least a 25% reduction.

Yup! I had a job interview for a top tier company in San Diego last year. Interview went well and then they wanted to talk salary. Ends up that even if it sounded good on paper, it was nowhere NEAR enough to pay for a decent home for a family there. Imagine having a six figure job and not even being able to afford housing. Only rich trust-funders (or DINKs) need apply I guess. Oh well.

[neckdeep]

Yup! I had a job interview for a top tier company in San Diego last year. Interview went well and then they wanted to talk salary. Ends up that even if it sounded good on paper, it was nowhere NEAR enough to pay for a decent home for a family there. Imagine having a six figure job and not even being able to afford housing. Only rich trust-funders (or DINKs) need apply I guess. Oh well.

I recently saw a report that the American dream is now out of reach for half of all Americans! Basically, any household bringing in less than $120K is effectively priced out of the current market.

[XXX-er]

same up here for decades in Vancover/ Toronto/ now even small town, are you folks really just hearing this now ?

[byates1]

It's called the American dream bc you have to be asleep to believe it."

-Carlin

[The AD]

same up here for decades in Vancover/ Toronto/ now even small town, are you folks really just hearing this now ?

I thought the Canadian dream was unlimited beer and hockey?

[XXX-er]

and the pot grows free range on the side of the road

[Todd Zander]

Slim pickins here in new england ski town most noted for its wintertime weekend infestations of new yorkers and jersey shore look-a-likes

https://www.zillow.com/homedetails/2...56328036_zpid/

[BCMtnHound]

you just ask for a hall pass

edit:
but seriously right now the problem in Canada is that rates were low for a very long time, so a lot of people who had never experienced higher mortgage rates chose the variable rate mortgage SO they could qualify to borrow mo money to buy a house they wouldn't be able to afford if/when the interest rates went UP.

Fast forward and either the rates were periodicaly adjusted during the mortgage or the fixed rate mortgages come due they can't afford to pay the higher monthly payment

its a mortgage on a house so of course they owe the money or the bank will have to foreclose, the bank should have had an appraisal done to make sure the house ( which they own but let you live in ) is going to be worth the money they lent you in the event they have to liquidate the house

the amortization rtime is getting extended so some people are livivng in houses they won't actulay own for a LOT of years , I've heard > 50 yrs

there are really only 5 banks holding the majority of mortgages in Canada so they are gona take a big hit

Another issue that has reared its head is that you can choose the option of fixed payment with either a fixed or variable rate mortgage. So when the rates go up, you may no longer be paying down on the principle - which can effectively raise the amortization period from 25yrs to (from latest reports) up to 49yrs. And when the term is up, with no money paying down the principle, and if the prices start to drop, you become underwater and can not renew a new term with your lender.

Some people that rushed into the market with too little down, got a fixed payment, and priced their new home way too high in an over-extended market, are going to have a very rude awakening at renewal.

[yeahman]

same up here for decades in Vancover/ Toronto/ now even small town, are you folks really just hearing this now ?

I read that fewer than 10% of Canadians can afford to buy a house at today's prices.

[ötzi]

Slim pickins here in new england ski town most noted for its wintertime weekend infestations of new yorkers and jersey shore look-a-likes

https://www.zillow.com/homedetails/2...56328036_zpid/

Looks like a good place to write a manifesto.

[BCMtnHound]

I read that fewer than 10% of Canadians can afford to buy a house at today's prices.

I would think that is new entries looking to buy their first home, but doesn’t sound far off.

Even without our equity in our current home, we could get back into our local market with our savings. But with about a decade left to retirement, no way would I enter into a 25yr or greater mortgage. We are still looking to upgrade to a bit more acreage, but the financing has to cap at a 15yr amortization. But so far everything is too expensive with too large of a house, or is a shit box that needs another $100k sunk in to bring it to our level of acceptable.

[XXX-er]

I was suprised to find a sophisticated TGR type asking if he really needs to pay off his mortgage in Canada ?

SO instead of getting a job & going full responsible on that mortgage I put half down and got the longest amortization/ lowest payment I could afford

so i could just ski/paddle/ bike/ smoke dope/ drink beer/ chase wimmen and wait for my 86 yr old mother to die and as expected ... she died

death and taxes are expected but you never know when you will get pow eh

[chicken feathers]

Location x 3, only 1.5 miles to In-N-Out.

Is that on Radford?