Ownership & debt levels soar

Courtesy of todays Vancouver Sun and Statscan – Canadian home ownership levels are at their highest since 1971 but the rush to own has meant soaring debt levels and longer mortgage terms.  A growing number of ‘owners’ may never pay off their mortgages, essentially renting the debt in perpetuity.

The report also shows that British Columbians are paying the highest proportion of their income among all Canadians to housing costs, as nearly a third are spending more than 30 per cent of their income to keep a roof over their heads.

More than one-third of the new mortgages being taken out in Canada are now amortized for more than 25 years, a portion labelled by one expert as “phenomenal” for a relatively new mortgage product, and the expectation is that the percentage for B.C.’s homebuyers would be at least that high.

“From the fall of 2006 through the fall of 2007, 37 per cent of all new mortgages in Canada were for amortizations longer than 25 years,” said Jim Murphy, president and chief executive of the Canadian Association of Accredited Mortgage Professionals. “Of all the mortgage products that have been introduced, the ones longer than 25 years are the most popular.

“Thirty-seven per cent is quite high. It is phenomenal for a product that is relatively new.”

Among all outstanding mortgages last year, some nine per cent were pegged with payoff dates stretching more than 25 years all the way to 40 years.

“That number will obviously increase every year,” said Murphy.

…and a little further down:

The dream of burning the mortgage appears to be a more elusive one for Canadian owners, with the percentage of mortgage-free owners declining between 2001 and 2006, bucking an expectation that aging baby boomers would be paying off their mortgages by now.

“The share of owner households with mortgages has not been at such a high level in Canada since 1981,” the report said.

Huh. I guess a bunch of people must have paid off their mortgages right after 1981?  Or perhaps it was the foreclosures.

.. and in an unrelated example of how silly some of these loans have gotten, how about giving an 85 year old man a 4.8 million dollar mortgage on a 5 million dollar home?

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B
B
12 years ago

Those with a vested interest in RE always come here to gas themselves up by directing baseless, condescending insults to veteran posters of this board labelling them as: "chicken-littles" or "poor renters".

To those with vested interests, congratulations on your new-found fortunes over the past few years. Regrettably, it doesn't seem to have helped enhance your personal happiness as some of you continue to gravitate here to seek satisfaction through mud-slinging, name-calling, and rhetoric.

Not suprisingly, no factual information is ever provided. Again, to those with a vested interest in RE, perhaps veteran posters of this board will take you more seriously if conclusive evidence is provided to support your claims of bullet-proof Vancity RE, instead of flagrant demonstrations of your own insecurity.

scullboy
12 years ago

What the hell is turkey slop?

I have to say I raised turkeys back when I was growing up in Nova Scotia. They are really smart animals, and I suspect they're cleaner than our buddy krrish. For sure they are cleaner than his mom, but we all know she's a dirty, dirty girl.

Yeah my post has nothing to do with real estate but what the hell….

krissh
krissh
12 years ago

it is clear bdk is wisemans no more turkey slop!

browntown
browntown
12 years ago

hey nutslap! i've never known about this krissh, everyone like to talk krissh, usually turkey sloppers! maybe he was here when house was cheap! yeahh, read the friday news, no more cheap house for you rap star! bdk in the club!

Greymatter in the br
Greymatter in the br
12 years ago

Krissh are you calling yourself browntown now because you have shit in your brain and you know it? Or are you just so crazy that you like to post about yourself in the third person? Why is real estate going to turkey slop? Do you have any basis for any of your posts or is it just a gut feeling? Right you can't understand questions which is why you never answer them. Do you read the links on the Friday Free For All? Do you understand them? Oh right you don't read them you just post a bunch of unintelligible ramblings about how you think prices will go up and since your life is a self fulfilling prophecy it will happen. Way to go, keep living with your Mum and pretending you know more than a ten year old, if… Read more »

browntown
browntown
12 years ago

yeah maybe ndp will come back turkey, you can get hospital cleaning job back! real estate might come back for turkey slop! yeah!

browntown
browntown
12 years ago

hey, dracken and other kkk fuckslaps! yeah immigrants keep economy going and real estate market strong so you can keep renting! ha ha ha, yeah

Informer3
Informer3
12 years ago

Wrong, Jun is from the Phillippines and he might take off to Manila or Winnipeg when the market crashes

Uhhh-since when did janitors earning $10/hr start buying property and why would anyone care what they thought about prices?

Informer3
Informer3
12 years ago

My source tells me Krissh has tried to sell his Mums studio for more than he paid but cannot, this is why he is now posting under several different screen names.

You have to understand that Krissh lives in an adult daycare and his intelligence is on par with a cat.

This is why he never answers questions and has no common sense and it is not because he's actually an idiot pretending to be stupider than he is.

Krissh has never and will never own anything himself, he's not legally allowed because he's too stupid.

Tony Danza
Tony Danza
12 years ago

I thought Jaimie Bacon er… I mean Krrrish was in jail?

scullboy
12 years ago

Gosh Informer2, you must have been lurking for quite a while. I made that joke about throwing krrish quarters months ago.

Oh and I'm impressed…. you seem to know the intimate details of krrish's RE dealings! Did you get those while giving his mom a Guatamalan Hot Pocket? If you did, next time ask for the Gorilla Mask…. it's her specialty!

Big Crash
Big Crash
12 years ago

"Drachen Says:

Jun

Call me cruel and unusual but it’s people like you who I hope get burned down to the waterline when the market crashes. Tell me, when you have to declare bankruptcy will you stick it out here or run away to whatever country you come from? (I’m guessing China)"

Wrong, Jun is from the Phillippines and he might take off to Manila or Winnipeg when the market crashes…

exx
exx
12 years ago

This Richmond realtor has a lot of good links to recent news articles on his blog. Judging by his comments, he's not full of it. He even links to PaulB's blog in his May 25th post.

-A-
-A-
12 years ago

Informer2, as a regular and frequent poster I want to welcome you to this forum. It's nice to see new posters.

Informer2
Informer2
12 years ago

Ho HA – People are buying to live here in Vancouver it doesn't matter who they are Albertans,Americans,Euoropeans,Brit*ish*er and or Internationals. Ho Ha-BDK, Krrish2 has sold one of his unit to powered rest of his properties as planed -not to sell them unless trade is required. He was giving final touch to his unit while buyers jumped over to grab that before it was officially listed in mls. While subject removal dates are fourth coming still lots of buyers are eagerly viewing it to stand next in line. He is looking forward to take possession on three future projects and his brother with other family member will take care of SFH. he is going to reside in one of the future project- now his Sonika don't have to throw quarters on him,he said. "If 70% of the population owns then… Read more »

Drachen
Drachen
12 years ago

Finklebean

Don't forget the 3rd definition, "Misspelling of the word Chief – mistake typically made by idiots who read at the 3rd grade level" (I actually didn't make that up)

Anonymous 4:36

I didn't say anything about his spelling, if you review my full post and his I'm sure you can figure it out.

Anonymous
Anonymous
12 years ago

Beatstreet, I suspect most people buying right now don't know what a call option is.. learning tricky financial terms is not a prerequisite to getting a mortgage.

My Computer
My Computer
12 years ago

-A- I don't mean to offend or reveal any secrets, because I like the comments you post and find you very entertaining, but its rare to see someone so obsessed with another person as you are with Rob. I'm beginning to suspect that you are Rob and this is your way of promoting yourself, attempting to generate notoriety or increased name recognition.

stagnate
stagnate
12 years ago

slade:

find my prior posts in the archives. the information you are looking for is there.

-A-
-A-
12 years ago

krissh krassh /rob a/satv, kingii, is no recent immigrant.

He is a local realtor, and I give you 1 guess.

blueskies
blueskies
12 years ago

satv has a sense of humor?!?

finklebean
finklebean
12 years ago

cheif

109 up, 60 down

a mug or fool, a weak person. used primarily in west and northwest london

I'll be darned. You won't find it in the Oxford English dictionary but I imagine this online definition is what our boy had in mind. As I said earlier, too subtle for me.

Anonymous
Anonymous
12 years ago

… I think this is an excellent demonstration of your powers of deduction…

Not that such a collection of astute observers and deducers should stoop below their station to actually look something up, but "cheif" is in fact a word, and he is in fact making a joke.

bd
bd
12 years ago

I was just at Satv/Cheif/Krissh open house, he already reduced the price $50,000 and no one wants it!

He must feel really dumb now, which is probably why he's inventing new names.

Hey Satv, if 70% of the population owns then what does that say about the future demand? How will this impact renters for decades to come?

Satv you are the only one who thinks that you're wearing clothes!

Did you ever read the emperors new clothes or was it too complicated for you?

Ultraman
Ultraman
12 years ago

Very curious as well on how the new projects will be selling.

I think it's safe to say that Beasley has sold enough units so it will be built but I'm not so sure about 999 Seymour and the new Richard's Living project that is about to go on sale.