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Mortgage Broker News | 07 Jul 2015, 08:50 AM Agree 0
Growing housing prices are drawing more broker attention to HELOCs, especially in the wake of ever-increasing household debt.
  • Michael | 07 Jul 2015, 10:26 AM Agree 0
    It's not HAVING a HELOC that's the problem. It's just a facility. It's what people *do* with the facility that can (potentially) become a problem. If 22% of Canadians have a HELOC, how many of them use it irresponsibly? Probably a fairly small percentage.

    When you consider the HELOC LVR cap of 65% on top of that, I see much ado about nothing. Remember also that we don't have no-recourse mortgages in Candada like they do in the USA. People can't just walk away if prices drop and their house is overfinanced... Canadians have to ride it out, and thus most people stop selling, and prices recover. A few more than usual will go bankrupt, yes, but that's always happened in any correcting market.

    I totally agree that unsecured personal debt represents a much greater problem. It's barely regulated, compared to real estate backed lending, but PLOC's are entirely the lender's decision to extend credit and should remain the lender's problem if it goes wrong.
  • Tony Romano | 13 Aug 2015, 09:06 PM Agree 0
    What Michael???? Yes a gun is just a "tool", but in the hands of people, it can cause a lot of damage because of you can't change human nature. These companies and banks no this fully well. Hell, they bank on it!
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