I just got my mortgage discharge documentation last week and in the letter from my bank they said to contact the insurance company to tell them the mortgage is discharged.Congrats! 20 years on in Cabbagetown and we’re about done too. I just wish I’d bought some investment property with the equity.
It might indicate that prices *are* based on fundamentals, whether you like those fundamentals or not, they're certainly enduring.Funny how this thread has been alive since 2009, yet every month people are 100% sure that the bubble is going to pop
https://www.theglobeandmail.com/investing/markets/inside-the-market/article-canadas-roaring-housing-market-is-a-global-anomaly/There are mountains of opinions about where Canada’s home prices are headed next. Let’s not add to the pile.
Rather, let’s examine a less-appreciated aspect of the debate – just how unusual Canada’s housing obsession is by international standards.
Whether you measure the housing boom in relation to fundamentals, or simply by our dedication to investing in bricks and mortar, Canada stands out against its global peers.
It’s easy to argue that our long national devotion to housing means home prices must take a nasty plunge at some point. That is certainly possible. On the other hand, it’s also possible there is something special about Canada, some force that keeps home prices levitating higher. But, if so, we should try to identify what it is, because much of our household wealth depends on it. [...]
Perhaps, definetly a lot better to do proper research than to look at the current price and think "man this is too high, must be a bubble"It might indicate that prices *are* based on fundamentals, whether you like those fundamentals or not, they're certainly enduring.
Subscription article from Globe and Mail, so will only quote the first paragraph. (the whole article is probably available on Press Reader if you Google)
I'm loathe to post more than a paragraph of the Globe's subscriber copy, but here's one of the studies the article is based on:Perhaps, definetly a lot better to do proper research than to look at the current price and think "man this is too high, must be a bubble"
The paper studies the evolution and key drivers of residential investment in 15 advanced economies since the 1970s. It also analyses how residential investment growth affects overall economic activity and the likelihood of recessions.
Most previous research on housing markets has focused on house prices, whereas research on housing quantities - ie residential investment - has been scarce. There has also been little cross-country analysis of the determinants of residential investment. This paper partly fills this gap. It studies the key drivers of residential investment across countries and the impact of residential investment on the broader economy. We provide novel evidence on the effects of monetary policy on the residential investment cycle, highlighting the asymmetric effects of rising and falling interest rates.
We find that the key drivers of residential investment in advanced economies are house price growth, net migration, the size of the housing stock and nominal interest rates. Importantly, rising interest rates have stronger effects on residential investment than falling ones. This could result from downward rigidity in house prices, which forces housing construction rather than prices to fall as interest rates rise. We also show that declines in residential investment are a good predictor of economic recessions.
Oh ya for sure, I wasn't saying it wasn't real research. Just referring to people I've talked to in the past while in general who say "man prices are so high, must be a bubble"
Indeed, and a lot of research supports your intuition.Oh ya for sure, I wasn't saying it wasn't real research. Just referring to people I've talked to in the past while in general who say "man prices are so high, must be a bubble"
Ya affordability sucks, definetly a negative factorIndeed, and a lot of research supports your intuition.
Something a lot of people were stating in UK forums at the height of their 'housing bubble' over a decade ago (it's still intact) is "Every bubble eventually pops". It became lore, and next to none had checked the research or the history to realize that *many if not most don't*! More deflate in a controlled way than 'pop'. An example I often referenced to them, since Brits tend to relate to Aussie's more than Cdns, is that the Australian housing market 'bubble' of two decades ago not only slowly deflated, it did so at the rate of inflation. Prices stood still for close to a decade while 'value of investment' deflated at the rate of inflation. Most of Canada (Toronto is a prime example) is doing very similar. The market is in a time of stability, albeit on a plateau, and demand alone underpins it staying there.
Affordability is another issue, but that's another discussion.
I'm tending to agree. My neighbour in prime Cabbagetown had his semi on the market for over a month at about $980K and after multiple open houses finally got a single offer. 2-3 years ago he would have got over a million. I think the LTT, new mortgage stress test rules and rising interest rates are slowing the market. Plus, as the Boomers get older, there's less money to fund your kids' housing dreams.The glory days of Toronto Real Estate are long gone. A few years ago, any fool could make money with their eyes closed.
You need to be very careful & make sure you have the right people working with you.
Hmm... I have TD insurance on my house, and a TD LoC against the house, with maybe $10K on it. I wonder if I pay off the $10K or remove the property connection if I'll reduce my insurance rate? I already got a significant discount by moving from Cooperators to TD as my wife gets a TD group rate through her employer.I just got my mortgage discharge documentation last week and in the letter from my bank they said to contact the insurance company to tell them the mortgage is discharged.
So, I did, and guess what? My insurer has a huge discount for mortgage-free owners. I got almost a 20% discount! This was with my TD Meloche Monnex Primmum group plan. I was completely unaware of this discount, but apparently it's actually a common thing... that nobody advertises. That discount alone will save me hundreds of dollars a year (which BTW, is something nobody here ever factors into the calculation when doing financial projections regarding prepayments for mortgages). Definitely check that out once your mortgage is fully paid off.
Paid off your home in full? You’re entitled to more than a pat on the back. A number of the country’s top home insurance providers offer steep discounts to mortgage-free customers—in some cases as high as 20% off your premiums.
New Zealand is facing a housing affordability crisis which has left home ownership out of reach for many.
Low interest rates, limited housing stock and immigration have driven up prices in recent years.
https://www.cbc.ca/news/business/toronto-vancouver-housing-bubble-1.4842272Swiss investment bank UBS has deemed Toronto and Vancouver to have among the world's biggest housing bubbles, with mispricing that's even more pronounced than it is in expensive cities like Paris and San Francisco. They looked at 20 cities around the world that are considered to be financial centres, local metropolises that are hubs for their regional economies.