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[Derek Sutton]

Originally Posted by Geraldsh

Global news had an bit on the housing / interest rate conundrum. Their anecdote was a senior who bought her house 34 years ago and still has a mortgage on which she can no longer afford the monthly payments due to recent interest hikes. Thirty-four years! And the problem is this month?

Here is the (incomplete) story none of us can make sense of. She would've originally purchased this house with a rate in the 10% range in 1986. And she wants ANOTHER 30 year mortgage.


https://calgary.ctvnews.ca/calgary-s...ewal-1.6198559

[Sliver]

Originally Posted by Johnny199r

I wouldn't go that far, but seniors who cry poverty living in a single detached home is annoying when they could sell the home and rent an apartment (and invest, generating income for retirement) quite comfortably with the proceeds.

Obviously, some of them refuse to consider that.

I hate when people don't let reality guide their decisions.

"I've lived here for 30 years and I want to finish out my days here!"

Yeah, well, if you can't afford to do that then move. It's that fataing simple. I don't think you need to call the news about it.

[Sliver]

Originally Posted by Derek Sutton

Here is the (incomplete) story none of us can make sense of. She would've originally purchased this house with a rate in the 10% range in 1986. And she wants ANOTHER 30 year mortgage.


https://calgary.ctvnews.ca/calgary-s...ewal-1.6198559

OMG she's so dumb. I bet that place was $100k at the time. Just basing that off the 1400sf bungalow my mom bought in 1988 in Dalhousie for $105k. So around there pricewise, anyway.

[tvp2003]

Originally Posted by Sliver

I hate when people don't let reality guide their decisions.

"I've lived here for 30 years and I want to finish out my days here!"

Yeah, well, if you can't afford to do that then move. It's that fataing simple. I don't think you need to call the news about it.

This is exactly it. From the article:

Willy says she never thought at this point in her life she'd be struggling to find a place to live."

"I've paid taxes in this country, I've worked since I was 16 years old," she said.

"They say they want seniors left in their homes, yet its getting to the point of how can we afford to stay in our homes?"

There are lots of places she can live. Struggling to stay in your existing detached single family home is a different story.

I wonder how many times she has borrowed against her equity over the years.

[Sidney Crosby's Hat]

This is another story of a similar ilk:

https://ici.radio-canada.ca/rci/en/n...gling-to-close

It's hard to believe this is real life.

First-time homebuyer Gurcharan Rehal agreed in October 2021 to pay $1.959 million, plus $90,000 in upgrades, for a single-detached home that would house himself, his wife, their two children and his mother.

We thought, if we live hand-to-mouth, we can still afford it, Rehal, an Uber driver, told CBC News.

But with his closing date approaching next month, he's so far been unable to secure a mortgage.

An appraisal recently estimated the home's value at $1.7 million — more than $300,000 less than what he agreed to pay for it. On top of that, he says the mortgage rate he was pre-approved for would have required monthly payments of $5,000, but now he's being quoted amounts between $12,000 and $15,000 per month.

Coming up with hundreds of thousands of dollars to cover the difference upon closing — in addition to the $260,000 down payment he's already made — and making exorbitant monthly payments is something his family simply can't afford.

An Uber driver in Toronto at the high high end is probably making $80,000 a year. How can they afford a $1.9 million home at any rate? Even 0%?? I can't even wrap my head around it.

[Torture]

First-time homebuyer Gurcharan Rehal agreed in October 2021 to pay $1.959 million, plus $90,000 in upgrades, for a single-detached home that would house himself, his wife, their two children and his mother.

We thought, if we live hand-to-mouth, we can still afford it, Rehal, an Uber driver, told CBC News.

But with his closing date approaching next month, he's so far been unable to secure a mortgage.

An appraisal recently estimated the home's value at $1.7 million — more than $300,000 less than what he agreed to pay for it. On top of that, he says the mortgage rate he was pre-approved for would have required monthly payments of $5,000, but now he's being quoted amounts between $12,000 and $15,000 per month.

Coming up with hundreds of thousands of dollars to cover the difference upon closing — in addition to the $260,000 down payment he's already made — and making exorbitant monthly payments is something his family simply can't afford.

*head explodes*

[Torture]

Originally Posted by Johnny199r

I wouldn't go that far, but seniors who cry poverty living in a single detached home is annoying when they could sell the home and rent an apartment (and invest, generating income for retirement) quite comfortably with the proceeds.

Obviously, some of them refuse to consider that.

Such a strange story for CTV/Global to run with.
Anyways, it seems financial literacy is exceedingly rare. She probably doesn't know how to invest and generate income, or what she was doing when she took out a HELOC. Probably trusted her banker teller saying that she's richer than she thinks.

[Derek Sutton]

Originally Posted by Sidney Crosby's Hat

This is another story of a similar ilk:

https://ici.radio-canada.ca/rci/en/n...gling-to-close

It's hard to believe this is real life.



An Uber driver in Toronto at the high high end is probably making $80,000 a year. How can they afford a $1.9 million home at any rate? Even 0%?? I can't even wrap my head around it.

Originally Posted by Torture

*head explodes*

You feel bad for a lot of people who end up in rotten situations, however who on earth thought this was a good idea? What bank/ mortgage company approved this mortgage?

[Cecil Terwilliger]

Originally Posted by Derek Sutton

You feel bad for a lot of people who end up in rotten situations, however who on earth thought this was a good idea? What bank/ mortgage company approved this mortgage?

Well, nobody did. That’s why he’s whining to the news about it.


I get that wages haven’t kept up to the cost of living and housing costs but that doesn’t mean the answer is to live outside your means.

[Torture]

Originally Posted by Derek Sutton

You feel bad for a lot of people who end up in rotten situations, however who on earth thought this was a good idea? What bank/ mortgage company approved this mortgage?

I mean, I guess he didn't get a mortgage and that's his problem but he should be thankful he didn't. Sounds like one income earner in the household and he wants to saddle himself with a $2M house? JFC.
There's so much pressure and marketing, average joe thinks you have to buy a house no matter what and "geT oN tHe ProPeRTY LaDDeR" but probably couldn't tell you what RRSP or TFSA even stands for.

[Sliver]

Meanwhile, they think guys in Slava's industry are scamming them out of their money, when in fact a few meetings with Slava would prevent all these financial woes from every coming close to happening.

[TheIronMaiden]

Originally Posted by Cecil Terwilliger

Well, nobody did. That’s why he’s whining to the news about it.


I get that wages haven’t kept up to the cost of living and housing costs but that doesn’t mean the answer is to live outside your means.

Housing cost is one thing, but at least it builds some equity. It is the folks who drive brand new cars I don't understand. A new truck as a commuter is the easiest way to waste money. The Folks on my beer league team like to tease be about my POS sedan, but I might be the only person who actually owns their vehicle.

[Slava]

Originally Posted by Sliver

Meanwhile, they think guys in Slava's industry are scamming them out of their money, when in fact a few meetings with Slava would prevent all these financial woes from every coming close to happening.

That's at least a piece of what I find so ridiculous. 30 minutes with a qualified advisor and they would tell these people that they're making huge mistakes. I realise that the industry hasn't done ourselves any favours, and that's another discussion, but when you see people saying that everyone should invest on their own and make their financial decisions without advice because it's so easy, just remember that the amount of financial literacy in this country (from various surveys and such) runs at something less than 20%. I also think that people would be shocked at the kinds of people who are financially illiterate (for all intents and purposes). There are some high-income earners out there with no idea about these things.

[The Fisher Account]

Originally Posted by Sidney Crosby's Hat

This is another story of a similar ilk:

https://ici.radio-canada.ca/rci/en/n...gling-to-close

It's hard to believe this is real life.



An Uber driver in Toronto at the high high end is probably making $80,000 a year. How can they afford a $1.9 million home at any rate? Even 0%?? I can't even wrap my head around it.

It's called a 'Brampton Mortgage'. Marketplace did a whole expose on this. Lots of falsifying incomes, mortgage fraud and multi-generational house dwelling happening. Wouldn't be surprised if they're also paying a 10% mortgage to a non big bank.

[Torture]

Originally Posted by Slava

That's at least a piece of what I find so ridiculous. 30 minutes with a qualified advisor and they would tell these people that they're making huge mistakes. I realise that the industry hasn't done ourselves any favours, and that's another discussion, but when you see people saying that everyone should invest on their own and make their financial decisions without advice because it's so easy, just remember that the amount of financial literacy in this country (from various surveys and such) runs at something less than 20%. I also think that people would be shocked at the kinds of people who are financially illiterate (for all intents and purposes). There are some high-income earners out there with no idea about these things.

Totally, I was just having a conversation with a friend who I thought was pretty well off and had a pretty "rich" upbringing. Good job, house, nice car, nice vacations, etc.
They were saying that they're not in debt aside from their mortgage...oh and their 8% line of credit that they rolled the credit cards into.....oh and the car payments.

[Sliver]

Originally Posted by Torture

I was just having a conversation with a friend who had a much richer upbringing than I did.

They were saying that they're not in debt aside from their mortgage...oh and their 8% line of credit that they rolled the credit cards into.....oh and the car payments.

I had a family member take me out for supper once to celebrate them paying off their mortgage. I was so stoked for them.

Turns out they paid it off with a line of credit on the house.

They were so proud of themselves, too. I couldn't fataing believe it.

[Izzle]

That Uber driver with a near $2 million mortgage. My eyes have started to twitch involuntarily. I don't know how to stop it.

[Locke]

Originally Posted by Izzle

That Uber driver with a near $2 million mortgage. My eyes have started to twitch involuntarily. I don't know how to stop it.

Just dont think about it. Its a clickbait article that generates buzz without offering any actual information, so any thought you might actually have about it is just inferring assumptions from incomplete information.

[Derek Sutton]

Originally Posted by Torture

Totally, I was just having a conversation with a friend who I thought was pretty well off and had a pretty "rich" upbringing. Good job, house, nice car, nice vacations, etc.
They were saying that they're not in debt aside from their mortgage...oh and their 8% line of credit that they rolled the credit cards into.....oh and the car payments.

Some people only consider bills they can't afford as debt... and a consumer proposal don't effect their credit rating. Oh and just lie and say you never declared bankruptcy, because there are no ways of finding this information out. 6 years in the car business and I can't believe how financially incompetent and illiterate so many are. Many others are just entitled and can't understand why they can't borrow $70K for a diesel truck because they are upside down $40k in their current vehicle they need a diesel truck!

Best was people who would got and finance a new R/V then come in to buy a truck to pull it, "sorry folks bank says no". This happened about once a month during the summer.

[Sliver]

Originally Posted by Derek Sutton

Some people only consider bills they can't afford as debt... and a consumer proposal don't effect their credit rating. Oh and just lie and say you never declared bankruptcy, because there are no ways of finding this information out. 6 years in the car business and I can't believe how financially incompetent and illiterate so many are. Many others are just entitled and can't understand why they can't borrow $70K for a diesel truck because they are upside down $40k in their current vehicle they need a diesel truck!

Best was people who would got and finance a new R/V then come in to buy a truck to pull it, "sorry folks bank says no". This happened about once a month during the summer.

Holy fata I imagine that's super frustrating for you. Talk about wasting your time.