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Most of my mortgages are variable.
Wait, you have several mortgages?

Why do you have several mortgages? You can probably live in just one house.

Or are you one of these guys who's making homes unaffordable in Canada by buying several properties, all of it debt financed.

Maybe you should strongly consider selling all your properties except the one you live in. Look at how high home prices still are... probably better to sell now than before interest rates go sky high.
 

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Individual property investors are far from tipping the scale to "making homes unaffordable in Canada".
I strongly disagree, Mr Mortgage Underwriter. Boy talk about bias. You worked your whole career in the mortgage industry and got rich off this.

Many individuals in this country are involved with hoarding property portfolios. @Letran appears to be one of them, but there are tons of others. It causes harm to other Canadians and deprives them of home ownership.
 

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If you still feel like throwing accusations I would suggest you to educate yourself with the actual facts and study the cause and effect of the policies that created this crisis. ;)
Hey I'm just sharing my warning. You can justify anything you want to yourself... the human mind is amazing.

Your Mortgage Underwriter friend, and others like you, can all pat each other on the back and tell yourselves that what you are doing is fine.

Go get another mortgage, buddy. Teach me a lesson. Get two more mortgages. Are you really going to let some stranger on the internet make you feel bad about what you do?
 

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Just a friendly reminder that interest rates continue to go up on the spot market, and are setting new 10+ year highs pretty much daily or every second day, as they did today and yesterday. I believe it will take an actual recession to cool the economy, or much higher interest rates. Recent estimates of global growth are slower but still well into positive growth.
Indeed, interest rates are going up dramatically. As I mentioned in my Public Appeal post, this is something property investors and speculators should think seriously about. Do you really want to hold onto all those properties and debts if interest rates go to 6%? How about 7% mortgages in your future?

My recommendation to property investors is: it would be smart to deleverage. Considering liquidating, and reducing your mortgages.

As an additional benefit you'd be selling at an all-time high. Surely that's better than waiting for a disastrous decline and liquidity crunch.
 

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Yup very high inflation reading. The probability of a large BoC rate hike just went up this morning.

I think it won't be very long before the bank prime rates are roughly 5%
 

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2%-5% is about a 30% increase in mortgage payment, I think at that point we'll have risk of destabilizing the market.
So what?

The housing market was already destabilized by low interest rates and a "crash" in mortgage payments. Or do you call a 25% single year price increase normal?

As a nation, if we tolerated mortgage payments halving, we also should tolerate mortgage payments doubling. It's not exactly capitalism to say that loans must always get cheaper... in fact that's a pretty twisted way to approach financial markets and debt markets.

Sometimes loans get more expensive. We aren't children who always need Daddy to make mortgages cheaper and sweeter for us.
 

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I took a mortgage on my home in November to use as a down payment on a home for our son ,the rate was 1.3% and 30 years
Many people don't seem to realize that this is quite common. Borrow against one property, use it as a down-payment on another property.

I was astounded when I first learned that people did this. Really shows you how real estate prices (buying pressure) is fuelled by the easily availability of credit.
 

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James I owed $124,000 on a property worth $1,300,000 and have seven figures in the bank .YES We took the money gifted to our son and he has not bought yet
I know we're getting a bit off topic here but I'm very curious. With seven figures in a bank account, why take out a new mortgage and not just use your existing cash? Seems like unnecessary use of debt to me but maybe I'm missing something.

Or maybe I'm misinterpreting what you mean by "have seven figures in the bank".

I think it's great that your son has the cash ready to go, and is waiting. I'm just trying to figure out the mechanics of this mortgage activity.
 

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That's how the corporate world works. You secure a loan against an asset, invest the borrowed funds and grow your business. Nothing new.
Boy is that glossing over the details or what.

The insane levels of leverage available to amateur property people are not available anywhere else in the financial world. Companies can't do that with their various assets. Even banks are not allowed to use that much leverage on their own balance sheets.

As a society we've created a system in real estate that allows stratospheric levels of leverage to even amateurs and nobodies. This is a unique situation to real estate and mortgages.

The leverage amounts are dangerous and not permitted anywhere else in society. Only in RE.

You don't think it's a problem when Joe Sixpack can built a hyper-leveraged real estate portfolio, using leverage multiples that even banks are prohibited from using? And when banks use leverage, there are strict rules about available capital and liquidity.

Well you're a mortgage underwriter during Canada's real estate bubble. You probably do think it's normal. Yikes.
 

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Stop assuming.....just like you assume I'm a mortgage underwriter.
You're not a mortgage underwriter? I guess I misinterpreted your user name.

And real estate does allow insane leverage. Even buying a property with 5% down is pretty nuts, but when people borrow using multiple properties and play HELOC games, that leverage can go even higher.

There's far too much leverage allowed in real estate. That, combined with chronically low interest rates, are big reasons we have a national housing bubble.

Real estate people think this is normal, though. I think that's what happens after a generation-long debt binge.
 
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