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Mortgage rejections soar

Social, economic and environmental issues in our ever-changing world.

Mortgage rejections soar

Postby csm » Feb 5th, 2018, 10:20 am

Ever think that because most politicians are already rich ( and getting richer ), and because too many people are buying houses that certain "rental investments" may be suffering?

Well, the answer is simple - let's use political power to manipulate the state and make it harder to buy a house. That keeps the invested politician and his invisible wealthy supporters swimming in money, and the apathetic Canadian will never know, and those that figure it out won't do anything anyway - just *bleep* a bit and die off.

This is how you fix the rental crisis in Kelowna? Make it harder to buy a house, and increase the flood of renters into a market already oversaturated?

I guess that means more apartments and rental units can be built by more "connected" developers and the result is "More Money" for those who need it the least.

The church refers to it's congregation as a "flock". Well, the term could never be truer than it is today - we are all apathetic sheep and every day we lose more and more of our rights and freedoms, and new government fences go up regularly to "keep us in line".

We are nothing more than assets to be manipulated and milked by the corrupt elite. It's time for change. I don't know how we are going to change the corrupt political structure we currently have, back to what used to be freedom and democracy, but I will certainly support anyone that has that goal.
Apathy = the Death of Freedom - be accountable or be a slave!
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Re: Mortgage rejections soar

Postby youjustcomplain » Feb 5th, 2018, 12:08 pm

csm wrote:This is how you fix the rental crisis in Kelowna? Make it harder to buy a house, and increase the flood of renters into a market already oversaturated?


Uh, no. This is how we help to protect people from their own bad decisions. If you can't afford a house, then don't buy one. The rates we have no won't stick around forever, and what of those people who have a 25 year mortgage at 2.5% who are just barely squeaking by?

Making it a bit harder to buy a house by having to prove you can afford it, isn't such a bad thing. imo.

That said, I don't know what changes were actually made to the mortgage rules that lead to where we are now. I know of many changes, but not specifically the ones made recently.

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Re: Mortgage rejections soar

Postby Silverstarqueen » Feb 5th, 2018, 3:50 pm

First, for many years there were changes made to interest rates to make borrowing money cheaper and cheaper. To the point that people with very flimsy resources could buy homes they really could not afford, interest rates reached all time lows. Buyers were warned for years, not to over extend their credit. People continued to buy homes larger than they could afford, and vehicles because interest rates were low. Then interest rates begin to correct, they still are not even that terribly high, and already people are in trouble, in spite of all the warnings, for how long? the last ten years at least. So now, some regulations have been introduced to prevent people entering at this volatile time, when interest rates could continue to go up. A few years ago there was a warning that if interest rates went up only 1%, a lot of people would be in trouble. We aren't even there yet, but we could be with in a year. so the smart people are either going to get their finances in order, sell or stop buying so much stuff they don't need. Maybe even bake their own bread like the good old days. Cancel the way overpriced TV/cable connection. So they can afford their mortgage payment. Did anyone do the math when they signed up for the mortgage at a few percent, how much the mortgage would be at five or six or seven percent (the historical norm)?
Last edited by Silverstarqueen on Feb 6th, 2018, 9:26 am, edited 1 time in total.

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Re: Mortgage rejections soar

Postby Grandan » Feb 6th, 2018, 8:15 am

csm wrote:Ever think that because most politicians are already rich ( and getting richer ), and because too many people are buying houses that certain "rental investments" may be suffering?

Well, the answer is simple - let's use political power to manipulate the state and make it harder to buy a house. That keeps the invested politician and his invisible wealthy supporters swimming in money, and the apathetic Canadian will never know, and those that figure it out won't do anything anyway - just *bleep* a bit and die off.

This is how you fix the rental crisis in Kelowna? Make it harder to buy a house, and increase the flood of renters into a market already oversaturated?

I guess that means more apartments and rental units can be built by more "connected" developers and the result is "More Money" for those who need it the least.

The church refers to it's congregation as a "flock". Well, the term could never be truer than it is today - we are all apathetic sheep and every day we lose more and more of our rights and freedoms, and new government fences go up regularly to "keep us in line".

We are nothing more than assets to be manipulated and milked by the corrupt elite. It's time for change. I don't know how we are going to change the corrupt political structure we currently have, back to what used to be freedom and democracy, but I will certainly support anyone that has that goal.

I never read such horse-bucky in my life. Conspiracy theory.
Try being on the the other end of this where buddy keeps spending until the money is gone and then he walks away leaving someone else to clean up the mess. Buddy walks free.
With people piling on debt the way they are now, lenders need to weed out the garbage before they get stuck with it.
That is democracy in action, freedom to choose who you lend money to.
Waste not

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Re: Mortgage rejections soar

Postby Silverstarqueen » Feb 6th, 2018, 9:37 am

CMHC:Mortgage backed securities. This is the debt run up by Canadians and which the taxpayers have to guarantee, if the banks can't manage their mortgages.
In 2001, the total was 9 Billion.
In 2004, the total was 37 Billion.
In 2016 the total was 175 Billion.

That is YOUR debt folks, if the banks default. Which shows you how this country's "housing crisis" has been managed. Are canadians really earning that much more today to cover a mushrooming debt like that?
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Re: Mortgage rejections soar

Postby Jhunter199 » Feb 6th, 2018, 10:26 am

The new rules are a step in the right direction, problem is I fear it might be too little too late, a lot of people have spread themselves paper thin and may not survive a few rate increases by the BoC.
Then on the other hand 4 years ago when we purchased the home we are currently in our Mortgage broker went through a stress test with us. He not only increased our interest rate to 5.15% but increased our assessment value to $795,000 (property tax increase) and added 25% to monthly utility bills. This to us was a worst-case scenario, and he was very diligent in making sure that if this happened in the future we could still live our lives and with a few adjustments to our monthly budget make it work without going deeper into debt. I'm not sure how many mortgage specialists 4-5 years ago were already doing this, but I hope it was more than just my broker.
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Re: Mortgage rejections soar

Postby W105 » Feb 6th, 2018, 10:45 am

doubt it JHunter...your broker obviously cares about their clients..there's many people out there who took every dime they were approved for, then used their "instant" equity to either leverage more RE or buy stuff..

look at all the enticements to buy...use your RRSP's, use your child tax credits, use that stupid $37K downpayment that the Liberals introduced, use 100% rental income off suites etc etc..

then you got the Realtors pumping the market hard and pumping FOMO (the fear of missing out)

add LOW interest rates and you got yourself a ticking time bomb..

20% rejected in little over a mth of the B20 rules, speaks volumes..

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Re: Mortgage rejections soar

Postby Sige » Feb 6th, 2018, 11:32 am

Ummm, it's called saving people from themselves.
Non illegitimi carborundum est.

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