[Red]

Originally Posted by Sylvanfan

Surprised no one bumped this thread on last weeks news that they are going to cap the amount of CMHC backed mortgages.

http://www.google.ca/#bav=on.2,or.r_...s&ved=0CDMQqAI

Half way thru the year 66 of the allotted 85 billion has been tapped into. Would have to think rates go up, and that even non CMHC backed mortgages will see rate increases too. Seems like it's now a matter of when not if we start seeing price corrections, especially in the really overheated markets like Vancouver and Toronto.

I must say that I do feel for younger people wanting to get into the housing market with todays prices. Even if my house lost 40% of it's value...I would be 10 grand under water on my Mortgage and really only out my original 16k down payment. Crappy for me, satisfying for Red, but survivable.

Someone buying the same house today is out 20k on their DP and 150 underwater on their mortgage with that type of correction. I know a lot of people with a similar or even slightly lesser household income than mine who live in houses that cost close to double what mine did. I would have to think they would be in tough to handle a price correction/rate increase double whammy.

???