Quote:
Originally Posted by BrownDrake
The problems in Canada are very similar to the US housing crash, we were just saved by a lowering of interest rates in 2008/9
Our home prices are out of control and going lower for the next 5 years even in a moderate oil recovery. Credit will not be easier to come by in the next 5 years as the previous 10. No more 40 year, zero downs, 35 year amortizations are now difficult. Down payment requirements going up and amortizations going down.
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You do realize that anything greater than a 25 year amortization requires a 20% downpayment?
Our residential lending is nothing like the US was. Their lending was basically a giant case of fraud with applications altered by brokers and lenders to make bonuses. HELOC's max out at 65%.
At worst we have a nation that's very house poor and a bunch of people with zero savings or retirement. Well, Vancouver could see some crazy implosion, but I don't know the market well enough to comment.
You're coming across as a little dramatic.