Quote:
Originally Posted by Dan02
I find it annoying when people try to use the US market to predict Canada, yes there are some of the problems are the same. But the elephant in the US is the subprime mortgages, which aren't nearly the same sort of problem here.
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Yep. We just bought a house in the states for our pending relocation. It is in an area that typically doesn't have the dramatic price increases or drops so we are sheltered a bit. It is also an area that has very few foreclosures and sub-prime, interest only, etc. mortgages are not abundant.
However, the owners of the house we bought had an interest only mortgage. They priced the house for what they needed to get to cover the mortgage instead of what it was worth. Needless to say they never got what they hoped for and on closing they will have to bring a cheque (i guess that would be check) for about $15k to close out their mortgage. They lived in the house for nearly four years and never paid down a dollar of the principle. We lived in ours for the same length of time and when we close on our house will will be getting a hefty bank account boost...most of which is not due to appreciation.