Bravo festival condos. Canadians’ concept of buying a house is changing! In any case, house prices are starting to fall, putting upward pressure on the loan-to-value ratio (LTV) of homeowners.Please Visit: Bravo festival condos to Get Your VVIP Registration Today!
In addition, it is unclear whether these loan portfolios pose an imminent risk to the financial system. Data from the Bank of Canada show that a large proportion of customers have relatively low debt levels. As of the first quarter of this year, 41 per cent of composite borrowers had a loan-to-value ratio (LTV) of 50 per cent or less.
The loan industry says OSFI is overreacting. They say HELOC makes it easier for borrowers to acquire housing equity at lower interest rates than other loans such as credit cards, personal credit lines and payday loans.
HELOC is often used to renovate houses, invest in rented houses, consolidate higher-cost credit card debt at lower interest rates, and provide emergency sources of funding when borrowers need cash.
For example, if a borrower loses his job and no longer has employment income to pay his mortgage, using HELOC is a low-cost expedient.
Robert McLister, a loan broker, said: “HELOCs prevents much more defaults than they cause. The reason is simple. When things get tough and you don’t have spare liquidity, a revolving mortgage allows you to continue to repay the loan. ” What worries regulators is that expediency will turn into a permanent solution, the lending cycle.
Rising house prices have led Canadian parents to quietly change their minds and are willing to subsidize their children to buy property.
“more and more Canadian families are using the wealth created by the previous generation as family assets and as a way to help their children or grandchildren lead a more financially secure future,” the report said in a statement.
Seventy-two percent of the respondents said they were willing to help their children buy their first home and offered an average of 145,000 yuan to each child in the face of soaring house prices in Canada.
A CIBC survey last month showed that nearly 30% of first-time buyers and about 9% of homeowners had received financial assistance from their parents to buy a house this year.
No matter where you live, housing is always an important indicator of the quality of life, and chic Western parents have begun to worry about buying houses for their children. I have to say, pity the hearts of parents all over the world.