Canadian banks need to take steps to assist mortgage holders who are struggling to stay above water after a rapid spike in interest rates, according to new guidelines issued Wednesday.
First we have to go through one or two countries going through hypermilitarization and growing their armaments and stockpiling weapons … I know we have one country that is there now but we need it to do lots, lots more. Then we can start invasions and some totalitarianism, global crisis and many a genocide or two … then we can get into the meat of WW3
Or, hear me out, bail out principle residences and allow the banks/investors to eat there losses as is predicated in a free market capitalism system. They literally asked for it…
I still think the easiest way to solve the lack of housing issues would be to charge an override premium interest level for second homes and investment homes.
Make it unprofitable for landlords to carry the costs, and voila, more homes on the market.
That, or reverse the taxability of interest on homes. Primary residence? Interest is deductible against earned income. Investment property? No tax breaks on interest paid, only capital improvements. This would also be a huge cost-of-living improvement for lower and middle classes.
Would make for a lot of unhappy boomers with multiple rental properties, but honestly fuck em, they’ve had a good enough ride already.
there are loop holes for primary residency and they all know how to work around that. Because many legislators are landlords/business partners, they won’t pass a law that shot themselves in the pocket.
We need to treat primary residence mortgages like taxes. I get the increase in borrowing rates to prevent people from buying things to combat inflation, but it really doesn’t help the cost of living crisis when you price having a place to live out of many Canadians’ budgets.
Canadian banks have been seeing a rise in such negatively amortizing mortgages, with the expected time for a borrower to pay back the loan sometimes stretching past 30 years. At least one quarter of the Canadian mortgage portfolio at Toronto-Dominion Bank, Bank of Montreal and Canadian Imperial Bank of Commerce are now in that category. And nearly a third of Royal Bank of Canada’s domestic borrowers are are covering their interest only, so their amortizations are extending too.
Oh boy… 😬 At these proportions, the banks don’t have a choice but to stretch the amortizations.
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