All posts by VCI Admin

Friday Free-for-all!

Here you are at the end of another work week and what do you get for all your trouble?

Just another lousy Friday Free-for-all, that’s what!

Let’s do our regular end of the week news round up and open topic discussion thread for the weekend, here are a few recent links to kick off the chat:

IMF: Canada at huge risk
The end of the boom?
Lifting the veil on corp owners
October rate hike?
1/3 money in Toronto market gone
Foreigners (Canadians) pump up US prices

So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments below and have an excellent weekend!

Rate hikes threaten the middle-class dream

In Canada ‘middle class’ currently seems to mean ‘deep in debt’ and rate hikes are a looming threat on the middle class :

For one view of Canada’s rate hike, consider the case of David and Neera. He can’t get a raise, is worried about retirement and they borrowed money a couple years ago to fix the roof. Interest costs will jump now, with vacations and kids’ clothes already out of reach.

Justin Trudeau’s entire economic agenda is aimed at David and Neera — we know, because he invented them. Their story anchored the Liberal government’s debut budget, tying together the impact of all the prime minister’s measures. Now they’re a cautionary tale.

“Canadian families are also taking on more debt to make ends meet,” the 2016 budget said. “For David and Neera, this debt is a constant source of worry.”

Read the full article over that the Financial Post.

OMG OSFI!

YVR pointed out this article by Rob Mclister about the OSFI B-20 bombshell:

The new OSFI’s stress test rules will make 20% of the mortgage market not qualify or they will have to reduce their mortgage by 18% to qualify. That is before recent and future mortgage rate increases are factored in.

Roughly 80% of new big bank lending in the richly valued Toronto and Vancouver markets is low-ratio mortgage lending

OSFI’s stress test, as proposed, would slash buying power for prime buyers by roughly 18%

For non-prime borrowers, qualifying rates would immediately rocket into the 6% to 7% range

Read the full article here.

Friday Free-for-all! July 14th 2017

It’s the end of another week and that means it’s time for another Friday Free-for-all!

Let’s do our regular weekend open topic discussion thread, but this time we’ll skip the news round up.

Sometimes admins like to take summer vacations too.

Post your news links, thoughts and anecdotes in the comments below and have an excellent weekend!

Good time to be sitting on a $800k down payment

With interest rates going up there’s good news and bad news for housing. It can make it tough for people who are stretched thin financially, but might be good news for people waiting to buy:

The people who will benefit are those who have a nest egg and have been waiting for the right time to buy a home, he said.

“The real winner here is somebody sitting on a $800,000 down payment who says I’m going to wait for prices to fall.”

Overall, interest rates will continue to rise, added Brander. He predicts mortgage-lending rates could increase by several percentage points in the coming years. But as long as those increases are incremental, like Wednesday’s announcement, the economy will be able to absorb it, he said.

Seems like it’s always a good time to be sitting on an $800k down payment, but maybe we’re just optimists. Read the full article here.