• Funderpants @lemmy.ca
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      1 year ago

      You are screwed for sure if you shopped at the top of your approval range in one of the hotter high value markets or immediately ate up the rest of your GDS/TDS with truck/SUV loans, renovations or other expenses. However, There will be Canadians who are in a position to handle a rate increase from 2.3% to 6% or so, when their renewals come up.

      • ☆ Yσɠƚԋσʂ ☆@lemmy.mlOP
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        1 year ago

        The context here is that over half the population is 200 bucks away from not being able to make ends meet. So, clearly lots of people will not be able to handle large increases in mortgage payments. Meanwhile, those who do will be pushed further to the margins.

        • cheery_coffee@lemmy.ca
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          1 year ago

          The mortgage stress test should have helped with this, but I also think banks took advantage of locking people into obscene debt that they realistically shouldn’t have been able to do. The evidence of that is new private mortgage insurance that all the banks favoured because the CMHC thought too many buyers were too risky.

          Banks also took on a lot of correlated debt by turning a blind eye to buyers using leveraged assets to secure additional mortgages. Correlated debt is bad, it’s the thing that turns your risk analysis models into piles of dog shit.

    • SokathHisEyesOpen@lemmy.ml
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      1 year ago

      We don’t have to renew in the USA. Someone else explained the way they work in Canada and yeesh! That’s hella lame.