First of all, the federal gov will not be bankrupt. It will simply print money, so basically every canadian citizen will pay for the fallout of this bubble.
Second of all, you can gauge when the bubble will burst by looking at the interest rate set by the central bank, and the subsequent mortgage rate. As long as those rates are low, the game of musical chair will not end. HOWEVER, as soon as a rate increase start (inflationary pressure, for instance). Then it is GAME OVER.
@626718 it's going to take a lot more than inflationary pressure to get Mr. Carney to budge on the rates. They obviously realize the consequences of a rate hike. What's going to end this is a crisis in the economy and stock market leading to the loss of hundreds of thousands of jobs. So regardless of interest rates...no job means default on mortgage. This is going to be really ugly.
@mastaPh China. i think the Chinese real estate bubble will burst first, and then the domino will eventually lead to Canada. Since so many people from China invest in Canadian Estate.
Thanks for sharing your thoughts; I think your observations about the difference in rents versus mortgage+maintenance fee+ property tax is true. At some point it makes more sense just to rent a place.
Greetings assholes of the MIlky Way Galaxy. I just want to let you knopw i hate you all and think you are dog turd. On a lighter note, then Canadian housing market will crash and burn and you will all die in the streets. It will be funny. I will bring popcorn. If you dont understand that the fundamentals are not there, then you should take a day off, drive around town, and count all the min-wage payiong jobs. THEN tell me housing will go up. Not gonna happen shit-bags! Not. Gonna. Happen.
With respect my friend - you don't know what you're talking about. Canada has some of the most conservative mortgage lending guidelines in the world and the lowest mortgage default rate in the G8. Second - the CMHC is flush with cash - it charges insurance premiums to protect lenders on high ratio mortgages. Sub-Prime mortgages in Canada represent about 5% of the market compared to 33% in the U.S. when the bubble burst. Get your facts straight before commenting. Cheers...
@DollarsnSenseTV Hi, I think you listen to the madia because all of Canada will crash and the real estate will go soon I'm just suprised it didin't yet. Low interest rates are the cause of the buble I've been in real estate all my life
and made a killing but got out in 2009 . Look around the markets are now flooded and starting to be cheaper but
soon to crash just like every where eslse in the world Canada is no different . Don't be foolled we are going to crash sorry.
I completly agree with you I live in laval chomedey and the prices are insane I get into fights with most of my friends who work in real este and my bankers buddy they tell me theres no more land to build condos or houses or very year the prices goes up and a 400 000 dollars house is st-do laval is still cheap comprare to the rest of the world LOLOL I just keep laughing at them by I also feel sorry for them when the prices do crash its going to be painfull especially me telling them I TOLD SO ..
Harper is a joke . A complete double f___ up he massively lowered lending standards , and made the canadian government the largest sub prime lender . Harper is a douch bag .
@sprylama dont blame Harper... blame the greedy Canadian homeowners who are trying to sell their homes for 15 percent more than what they are worth. The market is out of control. You must be a Liberal... if we had a liberal government we would be paying out our asses in taxes. Anyways yah we are probably in a bubble. Most people agree when we say after March 18, no one will be buying homes which will cause a drop in prices. NEVER TRUST A REAL ESTATE AGENT!!!! NEVER!!!!!!!!
@16hypen3sp If i say something negative about a person who happens to be black , does that make me a racist ? I am not a liberal . But i believe in freedom , something that harper does not believe in . ,,,, why do'nt you go through my comments and see for yourself , canada (the tax payer) is backing these mortgages . Is that proper governence . If the banks were carrying the risk on these mortgages , they would be more prudent with thier investments , and prices would be lower .
@sprylama if harper doesnt believe in freedom, then wut does he believe in? communism? yah it sucks that taxpayers back mortgages but if banks did, then i would require more than a 5% downpayment probably more around 20%. and that would kill first time home buyers. and most people wouldnt qualify for a mortgage these days. the bank would just say no. prices would stay the same... nobody wants to lose money on an investment.
First of all, the federal gov will not be bankrupt. It will simply print money, so basically every canadian citizen will pay for the fallout of this bubble.
Second of all, you can gauge when the bubble will burst by looking at the interest rate set by the central bank, and the subsequent mortgage rate. As long as those rates are low, the game of musical chair will not end. HOWEVER, as soon as a rate increase start (inflationary pressure, for instance). Then it is GAME OVER.
626718 3 months ago
@626718 it's going to take a lot more than inflationary pressure to get Mr. Carney to budge on the rates. They obviously realize the consequences of a rate hike. What's going to end this is a crisis in the economy and stock market leading to the loss of hundreds of thousands of jobs. So regardless of interest rates...no job means default on mortgage. This is going to be really ugly.
TheRockToronto777 2 months ago
what do you think will burst the bubble?
mastaPh 3 months ago
@mastaPh China. i think the Chinese real estate bubble will burst first, and then the domino will eventually lead to Canada. Since so many people from China invest in Canadian Estate.
626718 3 months ago
Thanks for sharing your thoughts; I think your observations about the difference in rents versus mortgage+maintenance fee+ property tax is true. At some point it makes more sense just to rent a place.
slipstream010101 3 months ago
Greetings assholes of the MIlky Way Galaxy. I just want to let you knopw i hate you all and think you are dog turd. On a lighter note, then Canadian housing market will crash and burn and you will all die in the streets. It will be funny. I will bring popcorn. If you dont understand that the fundamentals are not there, then you should take a day off, drive around town, and count all the min-wage payiong jobs. THEN tell me housing will go up. Not gonna happen shit-bags! Not. Gonna. Happen.
chefshitpiece 7 months ago
With respect my friend - you don't know what you're talking about. Canada has some of the most conservative mortgage lending guidelines in the world and the lowest mortgage default rate in the G8. Second - the CMHC is flush with cash - it charges insurance premiums to protect lenders on high ratio mortgages. Sub-Prime mortgages in Canada represent about 5% of the market compared to 33% in the U.S. when the bubble burst. Get your facts straight before commenting. Cheers...
DollarsnSenseTV 10 months ago
@DollarsnSenseTV Hi, I think you listen to the madia because all of Canada will crash and the real estate will go soon I'm just suprised it didin't yet. Low interest rates are the cause of the buble I've been in real estate all my life
and made a killing but got out in 2009 . Look around the markets are now flooded and starting to be cheaper but
soon to crash just like every where eslse in the world Canada is no different . Don't be foolled we are going to crash sorry.
Greenlanegardens 8 months ago
I completly agree with you I live in laval chomedey and the prices are insane I get into fights with most of my friends who work in real este and my bankers buddy they tell me theres no more land to build condos or houses or very year the prices goes up and a 400 000 dollars house is st-do laval is still cheap comprare to the rest of the world LOLOL I just keep laughing at them by I also feel sorry for them when the prices do crash its going to be painfull especially me telling them I TOLD SO ..
dante7723 1 year ago
Harper is a joke . A complete double f___ up he massively lowered lending standards , and made the canadian government the largest sub prime lender . Harper is a douch bag .
sprylama 1 year ago
@sprylama dont blame Harper... blame the greedy Canadian homeowners who are trying to sell their homes for 15 percent more than what they are worth. The market is out of control. You must be a Liberal... if we had a liberal government we would be paying out our asses in taxes. Anyways yah we are probably in a bubble. Most people agree when we say after March 18, no one will be buying homes which will cause a drop in prices. NEVER TRUST A REAL ESTATE AGENT!!!! NEVER!!!!!!!!
16hypen3sp 11 months ago
@16hypen3sp If i say something negative about a person who happens to be black , does that make me a racist ? I am not a liberal . But i believe in freedom , something that harper does not believe in . ,,,, why do'nt you go through my comments and see for yourself , canada (the tax payer) is backing these mortgages . Is that proper governence . If the banks were carrying the risk on these mortgages , they would be more prudent with thier investments , and prices would be lower .
sprylama 11 months ago
@sprylama if harper doesnt believe in freedom, then wut does he believe in? communism? yah it sucks that taxpayers back mortgages but if banks did, then i would require more than a 5% downpayment probably more around 20%. and that would kill first time home buyers. and most people wouldnt qualify for a mortgage these days. the bank would just say no. prices would stay the same... nobody wants to lose money on an investment.
16hypen3sp 11 months ago