Quote:
Originally Posted by username
Ya, I know that some people were getting mortgages that were around 25% back in the early 80's.
Think of all the people in the last 5 years that have 300K plus mortgages with rates below 5%. Now imagine rates rocketing up to 20% again what that would do? How many of these people do you think could afford 60K a year in interest on their house alone when they barely qualified for that initial mortgage at a rate below 5%?????
Scary stuff to think about......
|
Actually what's scary is that even just a 1-2% increase would put a lot of Canadians underwater.
Anyone looking for some excellent analysis of what's going on in Canada should really check out this blog...
http://www.edmontonhousingbust.com/
The title implies bias, but Kevin does a pretty great job of just using facts and figures to make his points. The amount of work he puts into it is incredible, and blogs like his should be the kind of info people are digesting as opposed to the drivel in say, the Herald, or any other publication that relies on real estate industry advertising.