Economy 52,864 Posted June 1, 2016 Share Posted June 1, 2016 http://www.financialpost.com/m/wp/blog.html?b=business.financialpost.com/personal-finance/mortgages-real-estate/oecd-warns-of-rapidly-rising-houisng-prices-in-canada-as-scotia-takes-foot-off-the-gas-on-mortgage-growth-in-hottest-markets&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+FP_TopStories+%28Financial+Post+-+Top+Stories%29 Canadas 4th Largest Bank "Scotia Bank" has started to refuse many mortages in Canada particularly in Toronto and Vancouver After prices went up another 16% over last year the large bank has stated that lending in many housing markets in Canada simply isnt safe anymore. 1 in 5 Canadians now have a debt load equivalent to 500% of annual income, an all time record. Link to post Share on other sites More sharing options...
TiphEret 1,320 Posted June 2, 2016 Share Posted June 2, 2016 So would you say it's good of them to be careful or that it could create more trouble if people can't take loans? I mean, of course you shouldn't give loans to people that can't pay them back, but also Vancouver and Toronto are known to be super expensive so could this limits people the access to property? Sur le sable sur la neige, Sur les images dorées,Sur le front de mes amis, J’écris ton nom Link to post Share on other sites More sharing options...
Economy 52,864 Posted June 2, 2016 Author Share Posted June 2, 2016 7 hours ago, TiphEret said: So would you say it's good of them to be careful or that it could create more trouble if people can't take loans? I mean, of course you shouldn't give loans to people that can't pay them back, but also Vancouver and Toronto are known to be super expensive so could this limits people the access to property? Well, if loans start to be refused, it could trigger the bubble to burst by killing demand. But only 1 bank is doing this so far Also in Toronto CIBC isnt a big lender its mostly TD, RBC and BMO so it shouldnt impact mich unless other banks follow suit Link to post Share on other sites More sharing options...
jylee 66 Posted June 2, 2016 Share Posted June 2, 2016 Uhm, since we're talking about it, what's a good range for a house in relation to income in Toronto? I thought 5 times was okay... Link to post Share on other sites More sharing options...
Economy 52,864 Posted June 3, 2016 Author Share Posted June 3, 2016 14 hours ago, jylee said: Uhm, since we're talking about it, what's a good range for a house in relation to income in Toronto? I thought 5 times was okay... 5 times is maybe average in some cities where its cheaper but the average house in Toronto is now over $800,000 (some more some less depending on neibourhood median household income in Ontario is $68,000 a year... So were looking at 12X income... hence big downpayments needed and explosive debt most cities are no where near that high tho my city in suburbs average is $490,000 Link to post Share on other sites More sharing options...
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