Bank of Canada expected to continue raising interest rate as inflation sits at record highA new survey from Manulife found that one in four Canadians say they will have to sell their home if interest rates continue to rise.
Wasn't like we warned you. But you didn't listen and screwed our kids from their economic future. So. I ask . now that your still alive what are you going to sacrifice ? I think cbc is giving you a little hint what that will be. This life is greater then you. Now act like it.
Incorrect. Over 30% of Canadians own their homes with no mortgage.
The reality is half the population is below average intelligence and these people will be losing their homes. Don't spend more than you can afford is a simple concept.
Increase in homelessness
It’s a cycle. I have lived through a few recessions, double digit interest rates with mortgages etc. the lesson I learned is to go AGAINST what everyone else is doing! When everyone buys, sell. When everyone is selling, buy but never, ever work on a shoestring budget.
The real estate market has become a form of legalized gambling; it has to correct, and a lot of people are going to lose out. But we shouldn't be at ALL surprised; even if we were wearing masks for the past 2 years, we've been turning a blind eye to this nonsense.
And where are they going to live after selling with the rental increases out of control? Too expensive to buy and too expensive to rent. And no powers at be to help better this dire situation.
What an awesome leader we have
Thoughts and prayers to all those who used debt to help drive up the prices of cottages over the last few years.
can someone explain how interest rates would affect existing mortgages unless they're just talking about variable rate? i get how they burden ppl trying to *get* a mtg but maybe something works differently in Canada than in the US? you don't lock in rates there?
Of course.. this is what Manulife would say..they sell mortgage insurance. TruthMatters
What I want to know is: Will responsible Canadians be compelled by the government to bailout reckless borrowers and lenders if this all comes to a bad end?
All good Loblaws Rental Corp Inc will be there to grab them all up
I call BS.
They just have to save rather than splurge. People here have become ridiculously bad at saving over the years
Probably not.
This is messed up. Now do we have to worry about lenders failing? How do people get approved for mortgages that they cannot afford? Are Canadian taxpayers who were going to have to bail out reckless borrowers and lenders?
That’s because they were not smart! I always lock my rate for five years, never take variable rate plans and do my best to shop for the best rate available and renew when it is low! Never go for the variable rate!
That was the whole point! Just like 2008. (Oh right…nothing happened in 2008)
Never borrow what the bank says you can... it's like following the advise of a loan shark. People forget what a real interest rate is... the average rate for past 22 yrs is 5.79% with a high of 16% in 1991...
Defundcbc and give the money back. 1.6 billion a year for fakemedia CdnMediaFailed so many people.
I’m surprised to see a lot of “they had it coming” on this thread. Banks were loaning on 4.5x salary. When you have brokers and bankers encouraging you into debt, telling you that with what they see means you can afford it, is the homeowner to blame?
Yeah but the realtor got her commission and end of year bonus, the mortgage broker got his fees and bonus, increasing as the market got hotter, the investment managers of the banks who bought the mortgage to package into an MBS got his bonus. Everyone won except 90% of humanity.
Not 'if,' but 'when.'
Thank a liberal
They will get what they deserve
CRASH ALREADY GOD DAMN IT
So…Trudeau will preside over the COLLAPSE of the Canadian housing market and the deflation of ALL housing investments across Canada…
Government Just weeding out the most vulnerable so the corporations can buy more homes.
bankofcanada I predicted this after your first oversized increase then you did a second. Are you listening now?
Maybe this will properly adjust the overinflated market?
And all of a sudden!!!!!
Good. Maybe lots of people will be able to buy at a reasonable price.
oh now they be if 4 over mortgsged n stillowe maybe soon be find themselves be 1 of 'em tenter in parks be harassed bullied around by police ohh now shoe be other foot welcome 2 club u abelist
I am holding a home mortgage that does not have a fluctuating interest rate. Be careful when you buy a house and know exactly what you are signing.
Why?
Big corporations are ready to buy. You won't own anything and still vote Liberals.
Those people must be really dumb to have bought a house with such a tight budget that they can’t afford a hundred dollars per month of extra payments.
I don't understand how people didn't see this coming!
Stress tests ought to have eliminated anyone who might not be able to afford a rate increase. If I were deciding these things there’d have to be a 30 or 40 percent downpayment. If this had been the case, the real estate market would not have skyrocketed in the first place.
Quiet part out loud. The industry knows it gives folks too much rope: 'I know I can get approved for a mortgage at this particular level, but what can I actually afford?'' said Lysa Fitzgerald, vice-president of sales at Manulife.
In last 2 years people bought houses while on EI/CERB, and bribed 1% of finance as commission and everything is taken by mortgage broker it’s all because of Real estate boards, CMHC and OSFI
A repeat of the 2008 foreclosures?
Now would be a very good time to be talking out major policy decisions regarding foreign and corporate home ownership. A lot of foreclosures in the future, but will it allow the market to correct or will corporations buy up cheap properties and charge big rent?
Trudeau's plan for home affordability. Make everyone homeless.
Are we still criticizing Poilievre for wanting to make the BOC more accountable?
Saw this coming. People shouldn't have been engaging in senseless bidding wars over homes. Now they're likely to lose their homes...or at least lose some of their investment when/if they're forced to sell for less than they paid.
Selling? We can move you into retrofit residential units within the closed down city center offices. Rent will be deducted automatically from your UBI payments.
Judgement day in the Canadian real estate market is coming…and has been coming for a long time. It has been weighed in the balance and found wanting.
What a crock.... Most mortgage are locked in 5yrs. And those that have mortgages coming up for refinancing had months to lock new rates in.... Just another slow news day... So might as well bring this up AGAIN
i'm a renter and i never fell for the bank schemes for condo buying
Should’ve been around when rates were 22%. I purchased my 1st place with the bank knocking it down to 16%. If you can’t afford doubling your payments, you’re in too deep.
But...but...but....Trudeau said he was making housing more affordable. He could not have been lying now, could he
I mean it's not like these interest rate increases came out of nowhere How did these people pass the stress tests?
Rents just went up
Canadian banks did not learn anything from our USA neighbours. So eager to tie people into mortgages that they could barely afford in the first place. I wonder how much it would have effected the inflating home prices if million $$ weren’t given to anyone.
Sorry for the people who dragged themselves by the hype of real state agents and place bids as highly as 500k or more above asking price. Agents collected all these profits and now buyers are on the hook to payback the interest of these unrealistic prices
Aww geez. They bought on speculation, low rates, yearly housing increases. What goes up must come down. Arrows, Stocks, and houses.
Banks are going to own a lot of homes.
Downsizing is not a bad thing . Stop spending what you don’t earn 🤷🏻♀️
Hope all the renters that claim they want to buy actually do because lots of exhome owners are about to go back to renting or buying up starter homes. Good luck.
Hopefully liberals will defund the CBC and reduce the burden on taxpayers
Sunny ways folks, sunny6 ways. Brought to us all by a corrupt & fake Liberal government, & fed to us all by these lying Liberal media hacks. It won't balance itself. UpisDown
Anecdotal evidence? Great job.
Time for me to wait to purchase more investment properties.
That means 1 in 4 homeowners are living beyond their housing means. Who approved their mortgages?
You’ll own nothing and something something something…
Would be nice if a polling company did the survey as opposed to an insurance company. Why not also share the data statistics and how the survey was done etc.
Yeah right...
MarieG888 The one on 4 who bought the top of the bubble 😂
Lot of young people taking on big mortgages for first homes because they could get the money. Hard lesson to learn early in life. Banks only care when you are paying them back. The minute the payments stop they are not your friend.
Sounds about right
Canada 10 Year Government Bond is going parabolic. Rates ARE going up whether you like it more not.
Freecanuck1 Don't worry, Trudope has their backs
I think this should more accurately read 'one in ten' as only about 40% of Canadian homeowners hold a mortgage.
This is a very bad sign considering much higher interest rates are almost a certainty at this point.
Market forces at work. Course some forgot about up and down.
Very misleading lead, nowhere in the article does it reference 1 in 4 saying they will sell their house. More than one in five Canadians expect rising interest rates to have a 'significant negative impact' on their overall mortgage, debt and financial situation, the survey found
Manulife is by no means eagerly watching us descend into poverty and despair, by no means at all!! 🤔
OMG, how is this news to people? Interest rates have nowhere to go but, UP.
Blackrock loving this!!!
More like walk away from their homes. It’s going to be hard for a lot of people to sell homes for less than they owe on them.
I always assumed mortgage rates were going to return to 8% again some day.
So what were the stress tests for
Well, that’ll bring down house prices like everyone has been asking for.
So they are following the advice of buying high and selling low
one in four have to sell, but only one in five say rising rates will have negative impact. gotcha
Do Canadians even have homes anymore? I thought JustinTrudeau and theJagmeetSingh had snatched everyone's homes !
That’s because way too many people either made the mistake of leaving themselves house-poor from day one, or were really stupid and bought during COVID at falsely inflated prices.
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