Canada's Banks Receive Long Formal Letter To Stop Risky Lending Immediately

[Economy 52,842]

https://www.bnnbloomberg.ca/cmhc-head-pleads-with-canadian-banks-to-avoid-risky-mortgages-1.1478723

 

Canada's Government backed CHMC (Canada Housing Mortgage Corporation) wrote a long formal letter to all the big banks begging them stop risky lending and to stop it immediately

 

Serious concerns about very high debt levels and a never ending housing boom that has been going on for 20 years now uninterrupted have sounded alarms for over a decade now yet housing prices and consumer debt have continued to rise even among the pandemic as home prices in markets like Toronto continue double digit price appreciation

 

Consumer debt of 80% of GDP is considered dangerous to a Nations financial stability and Canada is now approaching 115%

 

CHMC has attempted to tighten lending several times within the powers of its jurisdiction in addition to Government regulations but the housing market remains stubbornly on fire

 

 

 

[Economy 52,842]

@OBEY @JustinTrudeau @juicyjuicy @Teal Ambition @Sine From Above 

 

Edit: "sine from above" wrong user I was tagging Canadians but I can't remove the tag

[Fish 6,259]

here in Ottawa too the housing market has been NUTS 

[Economy 52,842]

44 minutes ago, Fish said:

here in Ottawa too the housing market has been NUTS 

Still one of the cheapest large cities in Canada tho

[plumbing 75]

16 hours ago, Economy said:

Still one of the cheapest large cities in Canada tho

whats an average house price in Toronto? or GTA?

[Economy 52,842]

1 hour ago, plumbing said:

whats an average house price in Toronto? or GTA?

Toronto is about $1M but of course it depends on the neighbourhood

 

My grandparents have an old 120 year old house not that huge but is worth $1.4M but their neighborhood is above average

 

I love in the suburbs so a lot of decent houses you can still get for $800,000 or sometimes a little under if ur lucky

 

My parents house is like $650,000 or maybe even a little less but we kind of live near the slums of my city

[plumbing 75]

1 hour ago, Economy said:

Toronto is about $1M but of course it depends on the neighbourhood

 

My grandparents have an old 120 year old house not that huge but is worth $1.4M but their neighborhood is above average

 

I love in the suburbs so a lot of decent houses you can still get for $800,000 or sometimes a little under if ur lucky

 

My parents house is like $650,000 or maybe even a little less but we kind of live near the slums of my city

Omg houses in Toronto are that expensive ... Suburbs will give you more space but you have to commute so no for me especially in winter. My aunt and uncle live in GTA, they love it coz its very close to airport where they are working now..

OT 

 

[Economy 52,842]

3 hours ago, plumbing said:

Omg houses in Toronto are that expensive ... Suburbs will give you more space but you have to commute so no for me especially in winter. My aunt and uncle live in GTA, they love it coz its very close to airport where they are working now..

OT 

 

Not everyone has to commute lol. Toronto suburbs are not like the suburbs Ottawa probably has

 

The biggest suburb Mississauga has like 850,000 people and my city Brampton like 620,000

 

So we have jobs and industries where ppl who live here may also work here. Yes some commute to Toronto but likewise some ppl from Toronto also commute to suburbs for work too. My family used to do that but eventually we left Toronto and moved to Brampton cuz of the commute plus it's cheaper anyway

 

Most Toronto suburbs are solid cities. It's not little towns that only have houses and everyone has to commute to the main city cuz there's no work. Only the very small cities on the outer outskirts of the suburbs are like that

[plumbing 75]

2 hours ago, Economy said:

Not everyone has to commute lol. Toronto suburbs are not like the suburbs Ottawa probably has

 

The biggest suburb Mississauga has like 850,000 people and my city Brampton like 620,000

 

So we have jobs and industries where ppl who live here may also work here. Yes some commute to Toronto but likewise some ppl from Toronto also commute to suburbs for work too. My family used to do that but eventually we left Toronto and moved to Brampton cuz of the commute plus it's cheaper anyway

 

Most Toronto suburbs are solid cities. It's not little towns that only have houses and everyone has to commute to the main city cuz there's no work. Only the very small cities on the outer outskirts of the suburbs are like that

i just google search Mississauga and Brampton... my oh my Mississauga looks nice but still expensive 

[Economy 52,842]

13 minutes ago, plumbing said:

i just google search Mississauga and Brampton... my oh my Mississauga looks nice but still expensive 

Mississauga is almost as big as Ottawa lol. But because it's right beside Toronto u don't see in in map so people outside Toronto area often haven't heard of it

 

Actually Toronto Pearson Airport is actually in Mississauga not Toronto even tho it's called Toronto person. In fact I work like 2 minutes from airport

[StarstruckIllusion 53,563]

Canada’s Gov being smart and actively speaking out against the tho that caused the 2008 Great Recession?  We love to see it. Hopefully they do some action if the banks don’t listen. 

[Economy 52,842]

On 8/13/2020 at 9:34 PM, StarstruckIllusion said:

Canada’s Gov being smart and actively speaking out against the tho that caused the 2008 Great Recession?  We love to see it. Hopefully they do some action if the banks don’t listen. 

They've done tones of action so many times but nothing is working

 

- max amortizations lowered from 35 years to 30 years

- max amortizations lowered again from 30 to 25 years

- minimum downpayment 20% if mortgage not insured

- then they lowered max number of insured mortgages under 20%

- then refinancing limits on equity were imposed

- last tightening was in 2018 when a 2% interest rate stress test was introduced to simulate higher rates than what people were actually getting

 

But the 19-20 year old housing boom remains unbothered

 

Also found this meme and it's so true

 

[GagaSine 7,464]

Ahhh scary  I am honestly terrified for our economy 

[Doot 2]

Oh goodness. Does anyone else think the world just needs to start over? 

[GagaSine 7,464]

1 minute ago, Doot said:

Oh goodness. Does anyone else think the world just needs to start over? 

Wipe the slate clean pleeeeaaaase. I guess a severe recession would technically do that on some level but it would come with a lot of suffering for working & middle class ppl