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

[StarstruckIllusion 53,563]

19 hours ago, Economy said:

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

 

I’m just waiting for tiny houses to become legal in Ontario so I can just build one of those and not have to worry about this scary market I’m supposed to care about when after I graduate 🤣🤪🤣🤪 

[Economy 52,842]

1 hour ago, StarstruckIllusion said:

I’m just waiting for tiny houses to become legal in Ontario so I can just build one of those and not have to worry about this scary market I’m supposed to care about when after I graduate 🤣🤪🤣🤪 

I've decided I'm just gonna keep living in my parents basement forever

[Economy 52,842]

20 hours ago, GagaSine said:

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

A severe recession wouldn't reset stuff in a positive way unless policies were changed too. It would just go back to the same idea

[Economy 52,842]

20 hours ago, GagaSine said:

Ahhh scary  I am honestly terrified for our economy 

The even scarier thing is that for like 10 years now they been talking about the housing bubble, the consumer debt and how it's much worse than it was in the US in 2007 right before their crash and how a collapse in Canada is inevitable too...

 

And it never happened yet. And it may not because there's some critical differences with Canada's real estate problems vs the US one and in Canada's case it wouldn't crash on its own weight like the US crash it would require a hard trigger

 

But the imbalances are still there so it's like this bomb that may or may not ever go off which is even freakier cuz u don't know what to expect 

 

Canada's Real Estate and consumer debt problem causing a crash is more like Russian roulette since it can't happen on its own the way it did in America... It may or may not happen, but by chance eventually it probably will with the right set of circumstances