When people find themselves in financial difficulty, they tend to look for something or someone to blame, and because with rising interest rates, more of the news is directed at comments made by the Governor of the BOC. It follows that people start looking back to see what he said that may have influenced their decision to buy a house at the time.
Until recently the real estate market in Ontario was absolutely nuts inflation wise, for the past number of years. And I know it is hindsight to say, but it doesn't take a genius to know it was exceptional and could not continue indefinitely. Something had to give, and it wasn't going to be pretty.
As far as interest rate considerations are concerned, I don't see most people focusing on comments by the Governor of the BOC to make their decision, as to whether to buy or not to buy at the time. I think it was just a matter that the interest rates were low for so long that a whole generation just assumed that it would or could never change.
I experienced the inflation of the 70s and 80s, and have been telling my son for the past 10 years to pay off his debt as soon as he can. He would always say, "Why would I do that, Dad? I am only paying 2% on my mortgage and I can take the same money and make 10% on the stock market" And he was right. However, experience has taught me that nothing stays the same forever.
just the way I see it
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