The Bank of Canada’s efforts over the past year to hike interest rates are now at the point where you can call the policy utterly laughable, considering that whenever the policy threatens to have consequences, those consequences are speedily legislated out of existence. The government of Canada has just issued new mortgage measures whereby anyone who can’t pay their mortgage can simply make whatever payments they can afford. That’s a pretty sweet deal, if your goal is to turn homebuyers into blatant parasites.
…the government will allow 30-year mortgage amortizations for first-time home buyers purchasing newly built homes, effective August 1, 2024.
Third, the enhancements to the Canadian Mortgage Charter will also include an expectation that, where appropriate, permanent amortization relief will be made available to protect existing homeowners that meet specific eligibility criteria. Amortization relief means eligible homeowners can reduce their monthly mortgage payment to a number they can afford, for as long as they need to.
So more non-existent housing gets sold to those who can’t afford it. Not inflationary at all.
Banks as landlords. I’ll be watching their stock prices as defaults rates fall in Freeland’s economic dystopia.
Yup, banks as landlords, and the existing wealth of those who have scrimped and saved WILL BE CONFISCATED to support the useless, the improvident, and the uncaring.
The economy could take 35 years to recover from this — that’s what Japan has experienced — maybe worse. It was 35 years in nominal terms for their stock exchange : https://ca.finance.yahoo.com/quote/%5EN225 . The worst is yet to come!!!
Expect the Uniparty to get behind this.
“…homeowners that meet specific eligibility criteria”. Oh goodie. More handouts for the perpetually oppressed.
Just another step on the road to “You’ll own nothing (and perhaps be happy?).”
Permanent rentier class. Sweet.
Garth, I bought and sold 8 houses and one small apartment building in my life. I never really owned any of them. I lived in them, paid mortgages on them and taxes on them. To say one owns a home today means you no longer have a mortgage. Stop paying those taxes, let the property get run down and see how long you “own” it.
Governments at all levels are responsible for the unaffordable mess we find ourselves in.
PET was told by many people that he should put private property rights in his Constitution and he just shrugged them off and nothing more was said. Soon after it was implemented, the slippery slope of regulations began. Now you can’t even put up a shed on your property without permission, can’t cut down a dead tree without permission because the municipalities “own” the tree canopy in their jurisdictions, want to divert a stream because it floods your property think again because it has more right to your land than you do. All the groundwork for the totalitarian slide and practically every national ill that we’re experiencing was laid out by the Turd’s father.
Amen
“Permanent rentier class”
Oh goodie, a new pronoun for Serfdom.
Banks aren’t in trouble, they are part of the casino. Converting mortgages into infite rentals destroys homeownership because the real monthly payment is zero.
This does absolutely nothing to solve the problems that the government has created.
“Solve? SOLVE? What means this ‘solve’?”
Why would they want to solve them?
Nah, this won’t drive the prices of homes up at all!
More buying pressure and easier money, how could that affect prices?
Pure politics; If Poilievre says this is inflationary then the Liberal clowns will be howling about cuts and how Conservatives don’t want you to own a home.
With help from the multitude of slugs in their Liberal media who STILL don’t understand that backing Trudeau in 2015 was a terrible mistake.
Aside, we should stop referring to Ottawa and Washington as swamps.
Swamps are vibrant eco-systems.
Ottawa and Washington are more like sewer systems, full of rats and shit.
Keeps bankers from jumping out of high windows, and politicians running scared with their hands covering their a–, and people from saying oh that’s what happens if you forget how to say “That’s too damn much money”.
What a crooked mess, and they’ll do anything to keep it from playing out as it should, ANYTHING citizens will let them get away with, which it seems is almost anything.
Now if Pierre would drop the slogans and brow beat the banks, and others that turned capitalism into a crony mess I might see a shred of hope .
So if I can’t afford anything, I get a house for free? What’s not to like? /sarc off
This is exactly he sort of thing that causes the 2008 US housing crash. Nothing good can come of this.
Pretty much what I was thinking. The only thing missing is claiming mortgage interest as a tax deduction.
That is common practice in the united states, I almost fell off my chair when my usa relatives told me you can write off your mortgage interest in your taxes!
I did it the old fashioned way: get the best mortgage you can afford to 40% of your earnings, have a decent down payment to stay out of cmhc (vultures) pay bi weekly, make lump sum and principle only payments to the max allowed, every year, hope like hell you don’t loose your job, in the meantime!
I’ve been burden free for 10 years now, but looking back, I should have leveraged up more to get some land and house outside of the city, up until the 2020’s started and rates started going up.. To busy keeping my head above water!
I remember living in Edmonton in the late 70’s early 80’s rates were 20%, thanks to turdeau le 1st, NEP, etc..
The more things change, the more they stay the same!!
Good old liberals, making huge problems, then coming up with half assed solutions, rinse and repeat!!
” I almost fell off my chair when my usa relatives told me you can write off your mortgage interest in your taxes!”
On the other hand, you pay capital gains tax when you sell your house in the US. No capital gains tax on personal residence in Canada – so far.
Except a housing crash. That would be good. If there’s a housing crash my kids can one day have a house.
Ah, but you’re wrong. This plan will bring the coming recession much quicker than anticipated. You’re right the Liberals are taking a page out of Obambam’s book from 2008 and we are still trying to recover from that fiasco. Now we are going to see an accelerated financial crash as the government will use the cash held in tax free savings accounts and now tax free housing accounts to fund more green energy programs that are economically unfeasable. The government has already burned through the retirement savings funds, the unemployment insurance funds, the veteran disability funds, and who knows what other funds and we are all the poorer for it but have faith in the Canadian electorate to buy into this Liberal scam once again.
You get the feeling that they’re TRYING to crash the financial system on purpose?
Would they do anything different if they were trying to do that?
Yes. Something insidious is afoot here.
It’s pretty bad that the best case scenario I can think of is, many of the Liberals top supporters are boomer-aged champagne socialists that are heavily invested in real estate- if housing prices aren’t supported, as these people retire, sell off, and die off, the market gets flooded with previously unavailable inventory, their investments take a massive hit when the bubble bursts and prices hit the floor. I’m oversimplifying a bit here, of course.
“………..TRYING to crash the financial system on purpose?”
It does seem that a few people seem to be open to that possibility.
I wonder if it’s the Open Borders to unsustainable millions from the Third World, transitioning our children’s gender through chemical castration, taking away any possibility of personal defence, releasing criminals throughout society, allowing drugs & gangs to rule the streets, censoring free speech to the point of thought crimes, shutting down all resource extraction in a resource rich country?
Nah, that’s obviously all tin foil hat stuff. As Trudeau insists, people need to shut up and pay the Ukraine war Carbon Tax increases and stop bitching that bearded men are allowed to lap-dance with your children at the local education centre.
Trudeau and the CBC wouldn’t lie to you, ask them.
Cloward Piven.
If the Trudeau government deliberately tried to destroy the economy it would become the most successful, golden age of wealth creation ever seen in human history.
Never under-estimate just how easily government screws things up by sheer incompetence.
Well they willingly played with “capitalism” like the cronies they are and in the end they’ll use capitalism for an excuse , and what happens when that starts being bantered about louder and louder ? Your shiny stuff is my shiny stuff. And the disenchanted aren’t miserable any more, and those that can see it for what it is have to learn to keep their mouths shut and pretend they are cabbage.
Liberal Economic Practice
Theory: Free money fixes everything.
Apply theory: Free$ + ? = Prosperity
Results: Free$ + ? = Inflation and ruined economy.
Solution: Re-apply theory
Theory Re-applied: (Free$+?) x Free$ = Problem solved
Results: What do you think?
Freeland has been long enough as VPM+Minister of Finance to do serious damage. Waay over her head, since she’s low IQ + nowhere near required qualifications + always antiCanada/pro-WEF/ecoMarxist.
Dumb and Dumber/PM+VPM modus operandi is a 3-step approach: 1) inflict serious/bleeding damage 2) apply band-aid to the wound inflicted 3) boast how they are TheSaviours, problem solved.
The disaster from rental/landlords will come now to mortgages and bank loans for houses. The effect of ‘amortization relief’ will be that banks will be reluctant to allow for mortgage loans. Threshold will be even higher now. Plus, all house prices will go through the roof.
But no pb, they will tackle the pb of homelessness later, through some caucus retreat + a few media-praised announcements.
So…even more Free Sh*t?
Except NOTHING is ever free. I’m just waiting to see what the unintended consequences of this little stunt will be
I can’t believe a plurality of Canadians elected these clowns
.
To let people pay whatever amount they want to pay and never be evicted?
“permanent amortization relief will be made available to protect existing homeowners that meet specific eligibility criteria.”
AKA so long as you are not a white christian type.
This is about a stupid as a country can get.
Remember those “Pay what you think is fair” stores and restaurants, esp. in places like Portland and Seattle?
Not there, anymore, are they? Went broke, did they? Hmm.
Looks like the master plan by government, to control the whole show, cradle to grave, under their banner, when we know, they couldn’t even organize a two man rush on a three hole outhouse!
If anyone plans to take up the government on this offer read and re-read the fine print.
This will likely result in Banks selling fewer mortgages as they can no longer rely on the yields. Thirty year mortgages in the US are common as mortgage interest is tax deductible. The Spawn-Fuhrer is doing to the Banks and mortgage holders what the other Jacobins and Bolsheviks have done to land lords through rent controls and anti-eviction laws. The reality is the state is bankrupt and “high rates” (low rates for those of us who held mortgages in the 80s), which is the only way the Looney doesn’t crash, will eat up tax dollars in debt servicing, leaving relatively lower rates and therefore relieving debt through inflation (and lots of it) along with the other broke welfare states.
If you want a bellwether on how far removed from a free market capitalist economy we have devolved, housing prices are the perfect measure as the state at all levels is entirely responsible from the demand and supply side.
This will likely result in people upping their mortgages to more expensive homes than they would have otherwise purchased. i.e compounding the problem down the road.
In a narrow case yes, but in most cases, not really. There is still a $1 million limit on insured mortgages, additionally, it’s unlikely that you would be able to find a new construction SFD for under a million.
As near as I can tell, this “policy” is to help build new construction, which has been pretty jammed up in Toronto since the last “fix” the government implemented, as a result of their high interest rates.
The government is great at supply management.
Just ask Scheer the steer.
Harper at least did something with the Wheat Whord
How to buy an election with YOUR money!
If the Spawn-Fuhrer thought he could get away with it before the next election, he would compel all home owners to rent out any vacant rooms or basements at government rates to his Islamic mobs and other imports. If re-elected, count on it although he won’t campaign on it.
Well there is already the UHT, underused housing tax of 1% of value per year if the government decides how much of your property is vacant, or even underused. I received a postcard from the feds a few weeks ago about it hidden in the store flyers.
Indeed. One of those huge concerns, especially in NDPBC. This year, the mandarins from Assessment sent out a very detailed questionnaire, that, by law, required us to detail the house by number of bedrooms, levels, kitchens, and “upgrades” (not maintenance replacement).
They are after maximum tax grab, and, eyeing up our ‘empty’ rooms.
Mutherfockers got a plan alright!
All sound and fury, signifying nothing. Remember the stated goal of the government – 100 million people in Canada by end of this century. It is called “The Century Initiative” and there is even a website for those of you that have never heard of it, complete with all of the propaganda and irrational reasons for why you must want it.
https://www.centuryinitiative.ca/
As fine an offering of political bovine excrement as one will find anywhere including the WEF, the UN, the WHO, or the IMF to name a few. And it is policy not conjecture. Read it and weep for the next generations.
So these current statements are akin to using the German Deutschmark to wallpaper or insulate your apartment towards the end of the Weimar Republic
Know of it well. Sunlight is always the best disinfectant for these sort of things. So this Century Initiative needs to be discusssed more and widely-disseminated. The Sheeple still have no idea
My old classmate Mark Wiseman is involved with this clusterf*ck. ALL you need to know….
The ass kissing media is excited that Blackie is in Toronto today. He/She gave a speech on how he/she is solving the housing crisis and of course trashed the provinces and the federal Conservatives.
Unlimited mortgage amortization on top of 10-year auto financing for a Tesla which battery will become functionally useless at 5-years. What could possibly go wrong?
Rent to own in perpetuity.
1 Bank owns “your” home.
2 You pay “rent” to the bank forever.
3 You are still responsible for upkeep, repairs, taxes, etc.
4 In the end, many years and payments later, the bank still owns the home.
Why would the banks be against this????
Unfortunately, most people will be super happy with this arrangement.
The tyranny of “happiness” for sure.
Because it’s too narrow? the limitation is less than $1million, insured high ratio mortgage, and new construction. If you look at realtor.ca for toronto, and limit it to 2024 construction there is a total of 1 listing at $625k for a 520 sq ft 1 bedroom.
we pay the bofC a hellava lot for zero work.
This.
When you exclude property rights from any rights the citizenry are privileged to be allowed..
Long past Cull Time.
The Party of retribution needs you,for there is no political opposition to The Uni-Party of Can Ahh Duh.
Think back,the citizens are proud to fund Political Opposition,when we see some.
Because banks upping their interest rates, almost doubling monthly payment levels and foreclosing is a good thing.
I like this what I can afford deal. I can change my circumstances at will in terms of income, I think I’ll drop a few Mil on a nice place, and after a year reduce my income and show I can only afford $1,000 mth. Lower than the rent for a shitty one bedroom, and in perpetuity, or until I don’t care cause I’m demented or dead. Love it.
Designed to protect Rosedale Liberals with cottages and off shore accounts, much?
Are the accounts actually offshore from the cottages? Shades of Davy Jones’s locker…
L – “I am the Lord, thy God, which have brought thee out of the land of Egypt, out of the house of bondage.”
– K.J.V. Exodus- chapter 20, verse 2.
“I am the Lord of Canada, Justin Trudeau, forget that Exodus stuff; you’re back in the house of bondage!”
– P.M.O. Coward of the Cottage, Emperor on the Rideau, Tyrannus Rex of Ottawa, lapdog of Xi.
Are there special deals for Canada’s Indians?
https://i.imgflip.com/5d15n5.jpg