Slump in new mortgages....

Slump in new mortgages....

Postby dle » Dec 12th, 2018, 11:35 am

https://www.castanet.net/news/Canada/24 ... -mortgages

The report says those between the ages of 35 to 44 years old had the highest mortgage payments with a monthly average of $1,380.


I find it odd that they report $1380.00 per month average as being a "high" mortgage payment. That is way lower than most rentals - around here anyways!
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Re: Slump in new mortgages....

Postby Even Steven » Dec 12th, 2018, 1:49 pm

I don't think this figure includes just new mortgages but more overall. So, if somebody has a mortgage of $200 from 30 years ago, then they skew the numbers down.

My guess.

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Re: Slump in new mortgages....

Postby Jonrox » Dec 12th, 2018, 1:55 pm

New mortgages were supposed to slump... it's what the entire goal of the new lending rules was. That new mortgages are down and prices are no longer skyrocketing shouldn't surprise anyone. Everything needed to cool down... things had gotten a little out of hand.
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Re: Slump in new mortgages....

Postby Vacancyrate » Dec 12th, 2018, 7:52 pm

Large percentage of new home buyers get their down payment from the bank Mom and Dad HELOC.

House sales down 30-40% across BC, price drops in Vancouver -8.5% and the B20 mortgage and HELOC qualifying rules means Mom and Dad are more cautious about hawking the house for a downpayment for Johnny and Jenny.
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Re: Slump in new mortgages....

Postby dle » Dec 13th, 2018, 6:15 am

the new rules are definitely slowing the market and the number of scary size mortgages some were taking on. It was just a bit too easy to get in over your head. Also, it now it looks like Poloz might have a few other things to worry about in his quest to take rates higher at an ongoing clip. GM, Alberta oil, the sinking markets, Trump on any given day, the extradition order for the Huawei exec etc etc....all this has us on a ship without ballasts right now. Still I wouldn't say there won't be those rates hikes he wanted, maybe just not quite as quickly. Maybe March instead of January? Anyway, it's a rocky road right now for decisions regarding home buying.

Funny how the economic report one day says full steam ahead, then a week later all hell breaks loose and now he's all dovish and saying might not be a good idea to raise anymore for now. Things happen quickly!

I still think a mortgage rate of $1350 is a really good one and you have to live somewhere and you sure won't find rent for that. I know many people whose mortgages are in the $2500/month range and that would scare the bejeezus out of me but they think it's quite normal! Course, I don't know their income levels but I don't think they are government job sized! I'd never get a wink of sleep....life is just too uncertain.
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Re: Slump in new mortgages....

Postby Vacancyrate » Dec 13th, 2018, 9:20 am

dle wrote:Funny how the economic report one day says full steam ahead, then a week later all hell breaks loose and now he's all dovish and saying might not be a good idea to raise anymore for now. Things happen quickly!


Things happen quickly...

...or the so called experts are nothing more than medieval meteorologists.

"The gods say it will rain today".

"It did not rain today, the gods are unhappy"

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Re: Slump in new mortgages....

Postby Glacier » Dec 13th, 2018, 11:16 am

dle wrote:I find it odd that they report $1380.00 per month average as being a "high" mortgage payment. That is way lower than most rentals - around here anyways!

For sure. I'm guessing that it includes people with no mortgages. I'm in that age group ad my mortgage is well above the average. Of course, I bought less than 5 years ago, so will be taking the brunt of the increases. Those who bought in the past two years are really going to be screwed though. Prices have jumped over $100,000 in two years.
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