paperchopper
New Member
Wow. Delusions. Save this thread for a couple months from now, ROFL
"It is however here less likely that it is not a NINJA loan, falsified paperwork, mortgage teaser rate for 2 years and then ARM kicks in."
Your logic didn't make sense there, I'm taking you're trying to argue that we didn't do NINJAs, Falsified Paperwork, Mortgage Teasers, etc?
False, false and false.
We have NINJAs here, Xcreed Mortgage Offered them, as did some other subprime lenders (actually, nearly 9% of Canadian mortgages are subprime). But it's hush hush. So shhh. Tons of private investors also offer private mortgages at ridiculous interest rates (we're talking 15-30% or higher), knowing that the mortgagee will default and they can take the house (ever seen one of those Why rent when you can own? ads?). And all the big banks work with mortgagees to pump up their loan amount as much as possible, ie adding a basement suite at an inflated price, factoring in condo fees and so forth at obscure multiples, blah blah blah. Point is, he got a freaking $400K mortgage on a 55K/year salary. He said he'd have two roommates, who'd each pay $800, he understated his condo fees, yadda yadda yadda...
Scotia has a liar loan (self-employed) mortgage. You state your income. They don't check. (NINJA!)
We have 0% (ALL banks offer 0% mortgages still-- they lend you the $ through a LOC). Virtually all new mortgages are 35 years (much like the states at the time). In fact CIBC offers 102% mortgages, TD offers 125%, etc etc etc.
Canadian mortgages are by default ARMs-- they reset after a fixed interval. American mortgages are typically 30-year mortgages-- the interest rate never changes, it's locked in for 30 years. In fact, ARM's are just Canadian mortgages, where as in the states its 2/28's, in Canada it's 1/24's, 5/20's, 10/15's, etc.
And, ughmmm, Canada does have variable rate mortgages, or teasers, which offer hilariously low interest rates as 1.75% or 2.15%, which are clearly not sustainable.
So yes, we do have teaser rates, ARM's (we invented them), subprime, NINJAs, liar loans, etc. It's out of control.
Anyways, here's something most of you probably don't understand or want to understand too well, but it's macroeconomics and the prime rate. Carney has set prime at rock bottom, historically unprecedented 50-year lows-- 0.25%. He's already cranked it up 3 times in quick succession as a warning. He's warned COUNTLESS F*CKING times that CANADIAN CONSUMERS HAVE TO BE CAREFUL ABOUT TAKING ON UNMANAGEABLE AMOUNTS OF DEBT BECAUSE LOW INTEREST RATES WILL NOT LAST! Like seriously, he's said that at LEAST 10 times in the last few months. How many times have you heard Carney bitching and moaning about our debt-to-income levels, exceeding the Americans during the height of their bubble?
Inflation was 0.6% last month in Ontario. That's 0.6%-- in one month. That annualizes to nearly 8%-- third world level inflation. Another month and Carney will have no choice to but to drastically up prime, you could easily see him jacking it up in a bunch of double takes (+0.5%).
Anyways, since most of you are brainwashed and closed to anything that doesn't conform to your viewpoint, let me explain one thing: You do not generate wealth by buying a concrete tomb in some tower, placing a few ads on Craigslist, cashing a few cheques, and then making a profit of $125K in a year. That's how a Ponzi scheme works, yes, but eventually the last fool gets shafted.
Food for thought sheeple.
"It is however here less likely that it is not a NINJA loan, falsified paperwork, mortgage teaser rate for 2 years and then ARM kicks in."
Your logic didn't make sense there, I'm taking you're trying to argue that we didn't do NINJAs, Falsified Paperwork, Mortgage Teasers, etc?
False, false and false.
We have NINJAs here, Xcreed Mortgage Offered them, as did some other subprime lenders (actually, nearly 9% of Canadian mortgages are subprime). But it's hush hush. So shhh. Tons of private investors also offer private mortgages at ridiculous interest rates (we're talking 15-30% or higher), knowing that the mortgagee will default and they can take the house (ever seen one of those Why rent when you can own? ads?). And all the big banks work with mortgagees to pump up their loan amount as much as possible, ie adding a basement suite at an inflated price, factoring in condo fees and so forth at obscure multiples, blah blah blah. Point is, he got a freaking $400K mortgage on a 55K/year salary. He said he'd have two roommates, who'd each pay $800, he understated his condo fees, yadda yadda yadda...
Scotia has a liar loan (self-employed) mortgage. You state your income. They don't check. (NINJA!)
We have 0% (ALL banks offer 0% mortgages still-- they lend you the $ through a LOC). Virtually all new mortgages are 35 years (much like the states at the time). In fact CIBC offers 102% mortgages, TD offers 125%, etc etc etc.
Canadian mortgages are by default ARMs-- they reset after a fixed interval. American mortgages are typically 30-year mortgages-- the interest rate never changes, it's locked in for 30 years. In fact, ARM's are just Canadian mortgages, where as in the states its 2/28's, in Canada it's 1/24's, 5/20's, 10/15's, etc.
And, ughmmm, Canada does have variable rate mortgages, or teasers, which offer hilariously low interest rates as 1.75% or 2.15%, which are clearly not sustainable.
So yes, we do have teaser rates, ARM's (we invented them), subprime, NINJAs, liar loans, etc. It's out of control.
Anyways, here's something most of you probably don't understand or want to understand too well, but it's macroeconomics and the prime rate. Carney has set prime at rock bottom, historically unprecedented 50-year lows-- 0.25%. He's already cranked it up 3 times in quick succession as a warning. He's warned COUNTLESS F*CKING times that CANADIAN CONSUMERS HAVE TO BE CAREFUL ABOUT TAKING ON UNMANAGEABLE AMOUNTS OF DEBT BECAUSE LOW INTEREST RATES WILL NOT LAST! Like seriously, he's said that at LEAST 10 times in the last few months. How many times have you heard Carney bitching and moaning about our debt-to-income levels, exceeding the Americans during the height of their bubble?
Inflation was 0.6% last month in Ontario. That's 0.6%-- in one month. That annualizes to nearly 8%-- third world level inflation. Another month and Carney will have no choice to but to drastically up prime, you could easily see him jacking it up in a bunch of double takes (+0.5%).
Anyways, since most of you are brainwashed and closed to anything that doesn't conform to your viewpoint, let me explain one thing: You do not generate wealth by buying a concrete tomb in some tower, placing a few ads on Craigslist, cashing a few cheques, and then making a profit of $125K in a year. That's how a Ponzi scheme works, yes, but eventually the last fool gets shafted.
Food for thought sheeple.