It doesn’t worry me personally, our mortgage will be paid off next Monday.🎉 I do feel for people who maxed out on their home purchase in the past year or two. Stick to a simple formula, spend within your means.👍🇨🇦
Buddy these homes were never worth that much anyways. The last 2 years is when homes went up astronomically-mind you the last 2 years were the most unproductive years in history of the world !! I’m sorry if you thought a home in Newmarket or Pickering was worth $1.3 Million.
Agreed, it's all relative unless you move from a high price market to low. But yeah, I'd rather sell my place for less and buy a place that has dropped in price
I think on the long run prices get more affordable as after 5 years it doesn’t matter the rates of today. On top of that, the down payment becomes less. Will the fix rate change because of that hike? If not we’re better off waiting for a better price I believe.
But if interest rates keep going up, which they are, there will be a point that people won't be able to make their payment on a variable interest mortgage. then what? foreclosures. this could wind up being a housing crisis.
Condo prices have not moved much. Easy upgrade to a semi for condo owners. They can also "port and increase" their mortgage rate so they only pay higher rate of extra $. i am still on the sideline waiting for major correction.
Prime is not at it's highest but the mortgage amounts are much larger than they were, say, 10 years ago. Let's hope that rates don't go high enough to trigger the deleveraging, which would hurt big time.
Before I watched this video I thought of what you might say, and the "are things going to be okay, yes they are" is exactly the spin I thought you'd put on this. Sometimes there is legitimately negative news, and we don't have to try and spin it into a positive. This was a terrible day for the housing market. Period.
I always appreciate your comments. Short term this will hurt, long-term it’s likely needed. BOC waited to long to do anything and then raised things to fast.
Tiff Maklem should lose his job. Not because of rising rates but because of him being irresponsible and reckless. Telling people to buy and invest and not to worry and that inflation was transitory was reckless. Then the money printing, holding rates low for too long, etc.. Just a complete rug pull. Those who sold in Jan and Feb and are waiting on the sidelines are in the best shape right now. But what does the future hold? I think prices will continue to fall and we will see layoffs going into a recession. We may see a rate cut sometime in 2023.
Are you kidding? You should be responsible for your own spending not Tiff Maklen. If you spent outside your mean why should that be anyones fault but your own. They only thing he did wrong was didn’t raise then earlier and he should be raising them faster. Should Paul Volker the market to get ahead of inflation.
@@cody709 This is a silly statement. I'm sorry. Yea, some people spent outside their means, but many did not and those are the people I'm more concerned about. Many of those people are going to get crushed and will learn that central bankers are liars, period. While you are holding spenders responsible, you do nothing of the sort for Macklem/BOC who kept rates too low for too long and on countless occasions encouraged people to buy homes, invest, etc. Printed a shit tonne of money which is directly related to inflation. He got it wrong and I hope he learns that he should not make those kinds of statements in the future because he painted himself into a corner and will forever be remembered (in a negative way). I know you're a bear, but you should at least have enough objectivity to understand why Tiff is being criticized. He talked too much. People listened. He was wrong and they got crushed. The end.
@@JaBlanche well you would be terribly foolish to put all your faith in tiff maklem to begin with. Your in charge of your own money your own financial decisions. The writing has been on the wall that Intrest rates have to go up, doesn’t take a rocket scientist to see inflation has been going up and only weapon the have to curb that is raise Intrest rates. Yeah it’s unfortunate people will get crushed from this but there has been alot of greed in the last 2 years expecially.
@@cody709 I didn't. I didn't buy anything. However, you can't blame people for taking him at face value. Not everyone can put their lives on hold. You seriously don't understand that, do you? From businesses investing to people buying homes, etc. Not everyone can "wait" for things to fall apart. You could also make the case that this was 20 years in the making. Should people have waited that whole time? Just weird the amount of excuses being made for Tiff. Likely bears.
It's important for investors to understand that this hike will be a catalyst for a recession and therefore jobs. So while u might be able to cover some negative cash flow from this rate hike, ask urself if u can cover the entire mortgage if ur tenant loses their job. Food for thought.
PAIN is necessary and unavoidable at this stage and after all these screw ups . We need a major depression for 10-15 years to reset things and markets. Working folk can't buy a house anymore ..
Mortgage rates could go up to 60% (up from the 3% they are now), and home prices in the GTA won't budge since the sellers will continue to refuse to reduce their prices. Home prices are 'sticky'.
Brampton, Mississauga detached home prices down by $200,000. Whole Durham region is down by over 100,000. Don't ask about kitchener, Cambridge, London, Hamilton.
Does this rate hike worry you?
not for me im hoping i can get a gic for 14% like i did in the 80s
We need a huge crash. Canada has become wayy to unaffordable. It will suck for us but better in the long run
It doesn’t worry me personally, our mortgage will be paid off next Monday.🎉 I do feel for people who maxed out on their home purchase in the past year or two. Stick to a simple formula, spend within your means.👍🇨🇦
@@KevalPrajapatiSS If true that Hamilton, Ont. is in the top 3 most expensive cities in North America, then something is very, very wrong.
Not really, i want the interest rates to go up even more.
Buddy these homes were never worth that much anyways. The last 2 years is when homes went up astronomically-mind you the last 2 years were the most unproductive years in history of the world !!
I’m sorry if you thought a home in Newmarket or Pickering was worth $1.3 Million.
@4:21 yes 🤚🏽
You sell low and you buy low…. Not sure why people can’t see that
Agreed, it's all relative unless you move from a high price market to low. But yeah, I'd rather sell my place for less and buy a place that has dropped in price
I think on the long run prices get more affordable as after 5 years it doesn’t matter the rates of today. On top of that, the down payment becomes less. Will the fix rate change because of that hike? If not we’re better off waiting for a better price I believe.
Beauty! Lets get another 5% increase
HURT: not the Banks and the Governments.
ALL: go to Interest Payments (ONLY).
But if interest rates keep going up, which they are, there will be a point that people won't be able to make their payment on a variable interest mortgage. then what? foreclosures. this could wind up being a housing crisis.
Condo prices have not moved much. Easy upgrade to a semi for condo owners. They can also "port and increase" their mortgage rate so they only pay higher rate of extra $. i am still on the sideline waiting for major correction.
Affordability is still horrible so it’s a mute point for those sitting waiting on sidelines waiting for a crash.
Prime is not at it's highest but the mortgage amounts are much larger than they were, say, 10 years ago. Let's hope that rates don't go high enough to trigger the deleveraging, which would hurt big time.
When his dad did this and rates went to 21 a new house at 68K sold for 31K
Before I watched this video I thought of what you might say, and the "are things going to be okay, yes they are" is exactly the spin I thought you'd put on this. Sometimes there is legitimately negative news, and we don't have to try and spin it into a positive. This was a terrible day for the housing market. Period.
I always appreciate your comments. Short term this will hurt, long-term it’s likely needed. BOC waited to long to do anything and then raised things to fast.
Tiff Maklem should lose his job. Not because of rising rates but because of him being irresponsible and reckless. Telling people to buy and invest and not to worry and that inflation was transitory was reckless. Then the money printing, holding rates low for too long, etc.. Just a complete rug pull. Those who sold in Jan and Feb and are waiting on the sidelines are in the best shape right now.
But what does the future hold? I think prices will continue to fall and we will see layoffs going into a recession. We may see a rate cut sometime in 2023.
100%. He was telling us in 2021 that rates will stay low for a long time? He really screwed the pooch on this one.
Are you kidding? You should be responsible for your own spending not Tiff Maklen. If you spent outside your mean why should that be anyones fault but your own. They only thing he did wrong was didn’t raise then earlier and he should be raising them faster. Should Paul Volker the market to get ahead of inflation.
@@cody709 This is a silly statement. I'm sorry. Yea, some people spent outside their means, but many did not and those are the people I'm more concerned about. Many of those people are going to get crushed and will learn that central bankers are liars, period. While you are holding spenders responsible, you do nothing of the sort for Macklem/BOC who kept rates too low for too long and on countless occasions encouraged people to buy homes, invest, etc. Printed a shit tonne of money which is directly related to inflation. He got it wrong and I hope he learns that he should not make those kinds of statements in the future because he painted himself into a corner and will forever be remembered (in a negative way).
I know you're a bear, but you should at least have enough objectivity to understand why Tiff is being criticized. He talked too much. People listened. He was wrong and they got crushed. The end.
@@JaBlanche well you would be terribly foolish to put all your faith in tiff maklem to begin with. Your in charge of your own money your own financial decisions. The writing has been on the wall that Intrest rates have to go up, doesn’t take a rocket scientist to see inflation has been going up and only weapon the have to curb that is raise Intrest rates. Yeah it’s unfortunate people will get crushed from this but there has been alot of greed in the last 2 years expecially.
@@cody709 I didn't. I didn't buy anything. However, you can't blame people for taking him at face value. Not everyone can put their lives on hold. You seriously don't understand that, do you? From businesses investing to people buying homes, etc. Not everyone can "wait" for things to fall apart. You could also make the case that this was 20 years in the making. Should people have waited that whole time?
Just weird the amount of excuses being made for Tiff. Likely bears.
It's important for investors to understand that this hike will be a catalyst for a recession and therefore jobs. So while u might be able to cover some negative cash flow from this rate hike, ask urself if u can cover the entire mortgage if ur tenant loses their job. Food for thought.
PAIN is necessary and unavoidable at this stage and after all these screw ups . We need a major depression for 10-15 years to reset things and markets. Working folk can't buy a house anymore ..
Mortgage rates could go up to 60% (up from the 3% they are now), and home prices in the GTA won't budge since the sellers will continue to refuse to reduce their prices. Home prices are 'sticky'.
It they already are no? Isn’t Oakville detached down around 500k?
Brampton, Mississauga detached home prices down by $200,000. Whole Durham region is down by over 100,000. Don't ask about kitchener, Cambridge, London, Hamilton.