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Mortgage Broker News | 21 Jul 2015, 08:50 AM Agree 0
The most recent Bank of Canada rate cut highlights the current risks to the Canadian economy, according to one organization, arguing the housing market is 20 per cent overvalued.
  • Where is my tylenol? | 21 Jul 2015, 11:29 AM Agree 0
    There is no slight correction when people lose ability to service their debt obligations due to job losses and/or rate increase (and that's all coming). Oil will not recover to levels we've seen in 2014 anytime soon if ever. Iran/US nuclear treaty will cause lift in oil embargo and ensures additional crude on the market, being a reason it fell below $50 in recent days. Negative effect of the oil collapse have not been completely addressed yet because of federal elections. Our economy is in shambles and articles alike are only to spread fake sense of security and hope.

    Vancouver and Toronto, meanwhile, are better safeguarded by strong economies and population growth, is yet another misleading statement. We build 2 houses for a single citizen entering the workforce as reported last night by Huff Post. There is a condo surplus and all you need to do is to drive through condo areas such as Sheppard and Yonge in TO to see that 60% of buildings are with lights off. And that is NOT because people are sleeping at 9:30pm.

    - Recourse mortgage = complete borrower responsibility. If you can’t pay on time, it’s all your fault. Bank will hunt you down to get back every last penny.

    - Non-recourse mortgage = shared responsibility. If you couldn’t pay, maybe the bank shouldn’t have lend that much to you in the first place.

    - Recourse mortgage => lend to anyone who can fog a mirror, especially with backing from CMHC, during the good times. Completely devastate borrower’s personal finance during the bad times. ==> more economic gyration.

    - Non-recourse mortgage => caution with lending during the good times, and borrower get a clean start in bad times. ==> more economic stability.
  • Vahid | 21 Jul 2015, 04:56 PM Agree 0
    Isn't Fitch the one that said US economy was hunky dory JUST before the Big Crash?
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