Quote:
Originally Posted by nik-
I think we're past whatever it was going to cost. In Canada they're effectively dead. CMHC stopped insuring them 12 years ago, which means the highly leveraged ones have had a long time to build actual asset value. Now you need 20% down to get one.
I'm not 100% sure about the US details, but 40 year mortgages there are non-qualified and the lowest I can find is 10% down payment.
As long as the fundamentals behind giving out the mortgages are there (ex: debt service ratio), there's nothing inherently toxic about a 40 year mortgage from an overall economic health standpoint. They're just not widespread enough.
|
I don't think we've unwound the asset bubble low interest and loose lending policies created. I hope I'm wrong!