yonge city square condos toronto.The risk of a collapse in the Canadian housing market is rising. The Bank of Canada is considering raising interest rates in response to Canada’s rising proportion of risky loans, which experts fear could lead to the collapse of Canada’s rising real estate market. But optimists argue that the market is generally healthy, so there is no need to worry too much.Please Visit: yonge city square condos toronto to Get Your VVIP Registration Today!
There is a strange kind of lending that is often associated with the reckless and impulsive housing market that enveloped the United States around 2005. It only needs a 5% cash down payment and 3% can get it back. It can be even crazier. There is no need for a down payment at all. So when these products, and similar products, began to emerge in the normally cautious Canadian financial sector, it alarmed Ottawa policy makers.
This year is the 25th year of the Canadian housing bull market, which is an almost uninterrupted straight rise, and there is almost no similar situation in the world. Even as global real estate prices soar, New Zealand is the only major economy with a more prosperous housing market than Canada, according to Bloomberg Economics. After years of rising prices, including a 21% surge since the start of the epidemic, millions of middle-class Canadians have had no chance to scrape together the traditional, 20% down payment.
In Whitby, a thriving Toronto suburb nestled on the shores of Lake Ontario, this is the lament Sheri Corbett, a mortgage broker, keeps hearing from first-time buyers. More than half of them chose to allow them to borrow money to make a down payment, or to offer a loan that would be repaid in cash after the transaction.
A year ago, such products accounted for only a small part of her business.
Asked if this worried her, Corbett, who works with some of Canada’s biggest banks, came up with a statistic she was proud of. In her 13 years in the industry, not a single client defaulted on her debt: “it’s impossible here, and we’ll never see what happens in the United States.”