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Mortgage Broker News | 15 May 2015, 07:41 AM Agree 0
Some households are carrying too much mortgage debt even if the housing market remains stable.
  • Keith | 15 May 2015, 11:43 AM Agree 0
    What does Mr. Harper define as having too much mortgage debt?
    It is the governments very own 5% down program that puts home buyers in this situation. They tell you you can buy with 5% down then tack on a CMHC fee of 3.15% leaving the buyer with a mere 1.85% equity.

    If this is what he is referring to then he needs to look at his own government policies as to why he thinks Canadians are over mortgaged.
  • Bill | 15 May 2015, 05:37 PM Agree 0
    Keith, nothing wrong with 5% down, do people have to borrow 45% TDS! Maybe Canadians should lower our expectations of where and we live in.
  • Darr Robbins | 19 May 2015, 08:08 AM Agree 0
    Keith, I agree. There's too little equity in homes which is the government's own doing. Anecdotal evidence suggests that the minimum down payment in 1974 was 10%. However, the norm was 25%.
    Today, there's just too much debt out there. Debt service will become an issue if investors price-in a higher risk premia, inflation or both. It would not take much to put low equity home owners underwater.
  • Darr Robbins | 19 May 2015, 09:50 PM Agree 0
    There's also a flip side to what I wrote namely: If the banks and the politicians panic in the face of a housing pull-back, the BoC will accelerate their bond buying initiative to flood the market with loonies putting a bid under all asset prices.
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