Quote:
Originally Posted by Slava
Well, so far, people have adapted and made it work. It might not be a huge issue, because presumably people with mortgages coming up know what’s coming and have at least thought about how to manage it. But it will be interesting to see if more houses start to hit the market because people are afraid that they can’t cope.
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Thanks Slava. I’m not saying anything one way or another but I didn’t quite understand why we’re worried about the other half of the population coming up for renewal when others have managed to adapt. Further, I’m in Toronto and the prices are still out of whack. Even as a home owner for a few years things need to come down for sustainability purposes.
Quote:
Originally Posted by calgarygeologist
That increase in mortgage interest drives up the inflation rate potentially making it more difficult for the Bank of Canada to combat inflation appropriately. In January, mortgage interest continued to be the #1 driver of inflation with a 27% growth rate. If the Bank of Canada is trying to hit 2% and one component of the calculation is going to be increasing at 20%, 30% or 40% that target could be out of reach.
That doesn't even touch on the issue that housing is the biggest part of a household budget and the upcoming increases could be brutal for household finances.
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The first part yes. The second paragraph I frankly hope continues. Too many real estate investors need to be shaken out of the market.