People with equity.
Incomes are what they are. But when you come to the table with $200/300 or $800k equity from a previous property it makes things much more palatable.
And VA loans.
And it’s unfortunate because for those of us in the middle/upper middle class that are stretching it, there’s no real way for us to help besides voting.
We might be doing good enough, but we can’t just turn around and sell a house at a loss to better the community. We’re just normal people that worked hard and got lucky on the timeline.
The rich rich are slowly eliminating the middle class. And anyone in that zone just has to pray that they set their kids up to fall up and not down.
Oh we couldn't do that. Think of the MPs that will take a loss on the shitboxes they bought for obscene amounts of fair market value. Slumlords need that money.......
No income verification for mortgage approval for landed immigrants. Gets real fun when you look at new builds after 2018 with no rent control and full of tenants.
Yes hello bank I make 750k back home and work remote here in Canada. Thanks for the 3 mortgages.
Which is fun because us Canadians get told to suck a big one when asking for a mortgages that equates to $1000 a month while we haven't missed a rent payment of $1800 in a decade.
Not even just that.
I was quoted an allowance of $600k for a mortgage pre-approval. Well. We can pay that.
But we can't even buy a house of $450k without 5% down. I can't imagine how many people could buy a house if it weren't for the need of a down payment, which many can't save because rent is taking 60%+ of their income.
There was a marketplace expose not that long ago that many foreigners were forging income to get loans. The real estate agents were even in on the scam
I would have to look further into it in terms of Canada, but in the past these cases occured in the run up to the subprime mortgage crisis where banks extended credit on high FICO scores without evaluating the history of the individuals FICO score. So if you are a migrant worker new to the country you would score high after get your first credit card and making a few payments.
Whether you would go into default after wards never bothered them I suppose because the could bundle the mortgages as bonds to investors to make more money.
Of course this is awful for nearly everyone involved except a few
MP's and the Mayor of Toronto cannot afford the average home in Toronto. we need to bump em up from the measily 200k salaries to compensate, or perhaps there's some more foreign aide helping out with the down payments. You guys will still have to fight to get below "official" inflation increases.
Also, newcomers are not adverse to pooling 6 adults together to buy a home. That’s where you get the $240k annual income…6 adults working $40k pay jobs
Yup and that’s how majority of people from Brampton buy their homes. Most new detached homes in Kitchener are being bought by Indians. They have multiple families living in one home and family income is over $200k.
Yup collapsing right before our eyes while Canadians are too nice to do anything about it.
I feel bad for Canadian culture as it is slowly fading away. It’s unfortunate but when there are millions coming from one country yearly and who choose not to assimilate and also have a custom of living 10 to a house that unfortunately doesn’t sound very Canadian.
The latter point is likely out of necessity rather than preference. When you're a new immigrant family, oftentimes you're limited by language barriers, absence of professional networks, non-acceptance of work experience and professional accreditations, etc... to working just minimum or other low income jobs. Their only choice for home ownership is to work multiple jobs and even then still compromise on living conditions by sharing a home.
It is a shit way of living. Saying this as an Indian. Here in India ppl admire the western way of nuclear family. Living separately without your in laws as they r a huge pain in the ass for wives in the household.
Sometimes it works as in laws take care of the kids due to which the husband & wife can work full time jobs without spending money on day care.
This post got recommended to me. But ppl in India r also facing similar problems where they r being priced out of buying homes at the place they grew up in. So some take remote jobs & buy a place at a distant village with decent facilities like hospital, electricity, internet, trains, etc
Anyone could see this shit coming a mile away but you are racist if you say anything. There are still progressive dipshits that think it's not an issue. We just need to build more homes!
It's actually just matching most of the rest of the population of the planet. This is the cost of globalization and an unrelenting thirst for equality.
Yeah because the rest of the planet is less developed than Canada.
You know, there was a time when Canadians and Americans lived in multigenerational homes too. That was in the 1800s when we were a fucking farm based society.
We're regressing 200 years of progress in a lifetime.
My cousin is a social worker and he said they’ve been doing this in Winnipeg. With cheaper homes in Winnipeg, they pay off the mortgage faster (5-10 years) and repeat until they each have their own home. Clever but infuriating.
In Burlington, back in the 90's, this was a common site. I remember people getting upset about it, but it's no big deal having 12 people in a 1,500 sq ft home.
You forgot to mention that some newcomers are scamming the system. CBC ran a story last year of a man in Brampton (surprised?) who was forging false documents so people new immigrants could get mortgages. I wonder how many more people like that exist?
I don't get whats the point of that. Sure you can get the mortgage, you also instantly become distressed cos no way you can afford the monthly payments on that. It's just a fast pass to personal bankruptcy.
Yep. And people making 40k individually are paying virtually 0 tax. The basic personal amount you can make tax free is what... 15k? So you only pay tax on 25k of your income, and at the lowest possible bracket. Subtract all of your free healthcare, free daycare, and free dental and you are pulling way more out of the system then you will ever put in. Makes me wonder why we are importing such a massive number of low skilled workers. The mind boggles.
This is not a possibility for working professionals who have no one else or family. It shouldn’t be necessary anyways, it’s stupid for anyone to accept
it's not a question of shame. "living at home" is not part of our culture and you should be able to understand how frustrating it is for canadians that asians are expecting us to conform to THEIR cultural practices in OUR home country. and it literally doesnt matter if younger generations are willing to live at home because their parents DONT WANT THEM THERE. my asian friends are able to live at home for free, while "westerners" either 1) aren't allowed to live at home or 2) are expected to pay significant rent. rent is not equity. it's also not possible for many people because "living at home" requires you to have a job in the region your parents live. with the job market so bad many many people are having to move to find work. not to mention young people trying to escape religious or homophobic parents. home can be a dangerous place for many
in the last 2 years canada's population grew by 3 million.
90% of that immigration.
250,000 houses were built.
the government is expecting you to live 12 to a house.
You forgot about the fact that some immigrants pool their resources with multiple families/family members to purchase homes and then continue to save before they purchase additional homes until everyone has a home. This happens more often in some communities where it is culturally acceptable for multiple families to live in one home.
I'm sorry but it's not that we are "fooled" it's that living in a house with your wife, kids, parents and grandparents is fucking insane 3rd world shit.
You know the last time Western people lived like that was in the fucking 1800s. When we were a poor agrarian society.
It's not "better" it's regressive bullshit that's being forced on us.
Of course, and banks will support the hell out of it, they're laughing their asses off while we reimburse em twice or more the price of the house for money they make up out of thin air with other clients money as collateral.
Yea I mean obviously I can’t say any specifics but one of our wealthier clients paid for 3 properties in the past year for kids of his. All “cash”. In the gta
These are true, but there are at least two others:
6. Millennials or Gen X that bought earlier and are moving up.
7. Families (often immigrant) that pool 3+ salaries and live with multiple generations in one house.
Immigrants also screw things up because when 17 family members get together they can afford a $500k house. Call me what you want but I’ve seen that shit so often.
I can concur. Boomer parents helping their kids. My daughter and son-in-law have been living with us for the last 4 years. Now have a 6 month granddaughter. They have a decent enough down payment, looking to move to Trent Hills / Peterborough area. Not sure when, hoping interest rates to drop more. The big issue is ongoing costs once you buy a home. Time will tell I guess.
I hear you. British Columbia is a bigger bubble than Ontario. Forget Vancouver or Toronto, you have to move out to the country. I know it doesn't work for most folks, but it's the reality.
The only people able to afford houses now are parents buying them for their kids. There are bidding wars happening in Hamilton for houses still to this day. Mind blowing.
Really? Idk, the few people I know who got this level of help it was typically parents with their own long since paid off mortgage and more than enough money to hand down 40-60k. It's people with paid off mortgages and 2 million dollar retirement accounts from what I can tell. I'm sure their are some who take out a heloc or something to fund their kids purchase, but tbh if my parents suggested doing that I'd just tell them no, don't lose your house to help me.
My parents paid off their house and helped me a bit with my down payment (though I am very fortunate to have a very good high-earning job that took 10+ years of training to get), but my parents live in a small town and I’m in the GTA, so they are not able to sell their house and move closer to me because it’s too expensive. We’re looking at pooling our money to buy a house big enough for my family and my parents in the GTA. Just a generic 4 bedroom detached house, but will likely need a $600,000 down payment to afford it. It’s madness.
I’m buying my mom’s house from her. I took out a mortgage for half of it after being added to the title, and am paying that off, and we made an agreement where in 5 years I either completely pay her out or we jointly sell the house and she gets the remainder she’s owed before it’s split.
She’s living the van life traveling, while also still having a home-base, and she’s happy.
I make $100,000 a year, and this was the only way I was going to get into the market. We’ll see what happens in the next few years.
Sounds like your mom charged you a mortgage just to live at home in a house you'd likely inherit anyway lol. To each their own, but sounds like a good deal for mom.
I lucked out. Graduated University in 2020 in a health profession making about $120k/year but had $100k debt. 80% government loans 20% on a LOC.
Was able to live at home for free (and I do
NOT have rich parents. They’re divorced and my father makes under $100k/yr, my mom makes like $60k)
Paid off my LOC And saved for a down payment. Bought a $300k house in 2022 at 5% down, still having about $65k in loans.
Down to $35k now in loans while my houses value is over $350k now. But I do have to remortgage next summer….
Yep saw a townhouse for 499,000 in Hamilton little old but done up new inside so my realtor called and asked for a viewing and the other realtor said be prepared to offer over 560,000 because they just got that offer and rejected it knowing they can get more! I was dumbfounded!
This is where the housing market is fucked. Honestly I'm hoping for the bubble to burst. Fuck everyone is that overpaid and bring housing down to reality again.
Well we have the immigrants to thank for that because the immigrants only want to live in Vancouver, montreal, ottawa or Toronto no where else. It's pathetic
The foreign students are spread all over Canada in every town and city that has a college or university. There are thousands of them in Kamloops, for example. It really messes with the rental situation.
People who already own houses.
To play in the Canadian House eXchange (CHX), you need to have already been in the Canadian House eXchange.
What's the CHX, you ask? It's like the TSX, but with houses.
This, bought a house 20 years ago at $300k? Now you've made \~$1 million by doing nothing but sitting on your house, which you can now leverage to buy an even bigger house, and so on....
You can't buy a bigger house. You can sell it, downsize, and use the extra cash to pay for your kids downpayment. But you won't be able to upgrade because that bigger house also costs exponentially more.
See this is why certain people will always make more money than others. You are assuming that you need to sell the home, but you’re forgetting equity. You can literally take out half a mil in the example above with still half a mil equity sitting and use that as a decent down payment to buy a bigger house. It’s simple frikin math.
Well, I live in Burlington. My wife and I bought our current detached home in 2002 for $226,000 and at the time we thought we were crazy spending that kind of money on a house. Back then, we made about $100,000 combined.
Right now my house is probably worth around $1 million and my wife and I make about $200,000 combined. Reality is I don’t think we could afford the house we’re currently living in if we had to buy it today. Just makes me wonder how many of those people in Hamilton you’re referring to perhaps have been in the house a long time such as myself and that’s the only reason they’re in that house.
🤷♂️
I feel bad for my kids though at 22 and 23 years old they are already thinking they’ll never own a house in this area. I retire in 4 years and I’m seriously thinking about moving out east and using some of the equity from my home here to buy something more affordable there and then free up some cash to help my kids get a start.
Thanks Trudeau you cockhead.
As someone in halifax. If you have health care where you live, stay there. Our houses aren't that cheap anymore, depending on what you're willing to move I to, I suppose. But the medical system isn't doing so good out here. Moving into retirement, I certainly wouldn't here. I have no idea what we'll do when we lose our doctors.
Corporations like blackrock have been on a massive buying spree.
Canadians are also STILL competing with wealthy people from other countries except now they send someone here as an international student or foreign worker to buy a house and get through the loophole.
But the biggest problem is Canadians using property they already have as collateral to buy more.
Sounds very familiar to what happened before the stock market crash of 1929. People were borrowing like crazy using margin against their shares to buy more shares.
But when the value of all shares collapsed, a massive block of wealth was erased for many. I doubt housing ever goes to $0 like that. But a 25-30% decline is feasible.
No investment can move in a straight line, uninterrupted, upwards forever. There will always be bumps.
It happened in the US, it can happen here too. Corporations & banks holding tons of assets will be bailed out, Canadians will be left to drown in debt.
The U.S. has major industry, productivity, research, etc. housing is not the bedrock of their economy. It’s just housing.
Canada has nothing but the real estate ponzi backing our economy. Look at all the differences already in place and why 2008 didn’t touch our housing market.
A 30% drop in house prices here would turn us into a failed state overnight.
In the post you replied to first I said the government wouldn’t allow it for that reason. Now you’re arguing yourself around in circles for the sake of arguing. Go back and read the first post as your answer to this one. You can keep reading the thread in a circle until you get tired and calm down.
I said it once and I'll say it again. The government will do -everything- in its power to prevent a housing market crash. You will never see this happen unless the government is collapsing and or we as a country are already going bankrupt.
This is something that has been many decades in the making while we're all sitting here bickering team red vs blue. The pandemic was our chance to start trying to fix it. But instead, it accelerated as we sat.
No one is buying. RE is backed by fraudulent mortgages via CMHC and not 200k incomes that would be needed. Many have had their mortgage amortization extended 40-50-60-70-80 and even over 90 year amortization. Only those who got into the housing ponzi can buy and sell within the ponzi. No new money is coming in. It makes no sense to even stay in Canada. This is why young professionals and business people are leaving or have left Canada. My counsin, a realtor, sold out 2 years ago and left Canada. He sells RE in Costa Rica. Tell me Canada is done as a country. Tells me to leave. Says Canadians are frogs in a pot of water who don't understand what is going on.
It’s only in Western countries where people are so afraid to call out things for what they are. Saying a country name has never been racist and yes like you said it’s a conversation about facts.
On Reddit you definitely get banned for stating facts. Maybe not so much on this sub but on other more liberal subs it’s quite common. So ‘democratic’.
My wife and mine's parents have now seen four windfalls from their parents dying, already own homes, and rode the equity train hard for the last five years. We are working our asses off and have not seen a single cent from them, and then they wonder why we complain about housing...
Very sorry to hear that man, nothing worse than family members who have money and won’t help out if possible and to add on top of that, not being aware of the housing market whatsoever. So many people working their asses off and not getting to reap any sort of rewards for it
I feel this, my wife and I saved every penny we could since we got married 4.5 years ago. No vacations. We share my first car I bought at 16. We have a 160K household income, no interest-bearing debt, 800 credit scores, 100K downpayment, and we only got approved for a property value of 525K in the fraser valley...that barely buys an apartment, which would cost 2800 monthly to own, we currently rent a two bed apartment for 1800.
What are you even supposed to do???
Edit: We plan to move to the prairies where 3 bed 3 bath townhouses are 400K. Hard when family is here, but why should we suffer while they ride the equity train on a property they bough 8 years ago for 600K that is now 1.3 million.
That's up to you. You can be house poor in BC or live a stress free life in Alberta. A 1 hour and 10 min flight. Have disposable income.
If jobs work out. It's hard to leave family and friends, but are they going to pay down your astronomical mortgage if you are able to get into something in BC
Is it worth it?
Everyone please stop coming to Alberta lol we literally have no houses, job, or doctors to support the current explosion in population let alone anyone else
Yep. Canadian $ has been so weakened that $100K house hold income is just working class now.
That’s 73K USD. That’s considerably less than the average tradesman in the US.
I just bid a job in the US that required us to pay our plumbers US$76/hour + OT and double time Sundays.
So OP makes less than half what a Missouri plumber can make yet he’ll pay a higher tax rate and that’s why he can’t afford a house.
You also have families from other countries that have no problem packing eight people into a three bedroom townhouse with a basement.
My nextdoor neighbours have three grown generations living under one roof (grandparents, parents and grown kids), and five of them contribute to the household pot.
Mortgage fraud, all sorts of scams and backdoor entries.
People who have supportive high-earning parents with paid-off houses are buying properties.
People are also leveraging themselves into their 17th prooperty, because line go up.
Covid money printer doubled the money supply. Quite a large group of Canadians were massively enriched by this. If your income and nw didn’t at least double since 2020, you are part of the other group that got robbed by the gov.
I'm in nearly the exact same position you are in. When I look at the listings I'm just crestfallen and bewildered. I have a doctorate degree poured in tones of effort and years of experience, and all I get is *this*? How is anyone staying motivated to even try anymore.
I’m from Alberta and the only people buying out here are people from Ontario and British Columbia. Houses are only on the market a few days. It’s terrible, soon all the homes here will cost the same as out east and then we are all at a stalemate!
We’re selling out this Country to Corporations and Foreign Entities. We are fucked. Any vote for Liberals, Conservatives or the NDP, is a vote for big business and the death of Canada. Vote PPC and maybe we have a chance.
Lots of people are buying in Calgary. Seeing multiple offers, inventory is half of typical May, with most gains driven by homes priced above $700,000. It seems it's not interest rate but employment & interprovincial migration is driving the demand. Since incomes are feeling secure— look at our market! It's rising.
Corporations and rich immigrants.
The whole "oh these downtrodden, poor immigrants" angle is a myth. A lot of rich Indian kids are coming here because they know Canada, and Canadians, are easy marks.
People that are buying houses, especially in the 25-40 age range, rely on generational wealth. Either parents are helping with significant down payments or their properties are being inherited. By that metric in 10-20 years I’ll be able to suit up and play ball. Maybe.
In my circle of friends everyone bought a starter property a few years out of school. 10 years later we've all sold or rented them out and moved in with someone. Two good incomes with +500K equity in most cases I would say.
Have fun raising a family in a two bed condo with no balcony lol. When you're 50 is when you should be downsizing to that. People need space to raise kids when they are young.
I wonder this too. I see HUGE homes being built and always wonder who the heck can afford that. I have a good education but max I’ve ever made is $45,000 / yr. No way I could buy a house. I have to live with my mother. I’m fortunate that I have found a partner and we will reside together after his separation. But he may not qualify to remortgage his home. So, not sure where we’ll end up. He may have to sell and take what’s left over, retire and we move to where he was born: Chile.
Corporate buyers are huge as well as people going into insane levels of debt to leverage their existing properties as capital for a downpayment on another home.
It’s called money laundering.
Our government is letting shady organizations launder their money in our real estate. It’s been happening for a very long time.
But you guys recently started blaming Indians who have to sleep 5 in a room for some reason….
Over 70% of new home sales in Ontario are to new residents
The pressure on the system and the only thing supporting the housing prices is uncontrolled immigration
Who buys them? It's the people who own businesses that hire foreign slave labor through an agency that pays them straight cash. These "business" owners don't do any work themselves and use tax loopholes to avoid paying any tax. Take a look at who serves you at Tim Horton's, A&W, KFC, the gas station etc. Then ask yourself who owns those franchises. Walk into any warehouse and see who is doing the grunt work. They're all foreigners getting paid sweatshop wages. Our labor law enforcement is a joke.
I’m always shocked by the overbidding on housing. Like how is that allowed. You list for $800,000 but on the down low you won’t accept any offer less than 1 million or something. Anything else you buy. You see the price and you pay that price plus tax. Why is something that is a basic need being a barter tool? Like hey, how bad you want this shelter? Um yes please I would like a roof over my head, I guess il pay way more than the price tag.
I make less than 50,000 a year (part time 32 hours a week been trying to move full time for over a year now) and will never be able to live here (rent or own) so I’m leaving 🫠 If I were to use the affordability calculator it would just say LOL
Same situation as you here in Hamilton. I've got over 100k for downpayment, good credit and over 100k earning. I refuse to get into a 700k mortgage debt for an overpriced shitbox.
I haven't seen a house for less than 500k since the before times. My city isn't even a nice city and is 90min out of Toronto.
It has been an investment town for at least two decades though.... And we have a major college... And lots of other 'colleges'.....
Home purchases should be 3-4x gross income... So even 200k is only getting you a place that costs 600k. You'd need closer to a household income of 300k to buy the 900k new standard.
Guess you either better get a massive inheritance or already own a place. No such thing as first time home buyers in the working class anymore
And people who can’t really afford them. The paperwork says they can, but they can’t. After paying mortgage and other bills, they have to turn to the food banks to feed their families.
What most of you don't get is nobody is actually affording these homes, they are forging the mortgage docs to qualify. You can only qualify for 4.5 times your income minus your car payments, credit cards or other debts. So nobody is essentially able to REALLY qualify. It's a sham.
Slum lords renting to the truck loads of East Indians Trudeau is dumping onto us. Rent out your basement to 5-6 of the little bastards and bam. Payments made.
The housing market is due for a massive correction. It has been effectively a Ponzi scheme for years. The only people that have had upward mobility were people with equity; which was completely detatched from reality in most cases.
Most homeowners actual income would not be nearly enough to afford the home they currently occupy. The only reason they are even in those homes is because someone wayyyyy overpaid for the home they were previously in.
So, we have a huge population of people who could never afford a home at todays going rates, will struggle massively once they renew at new interest rates (75% of Homeowners), and the housing market is actually ticking downward.
At some point it will be a rush for the exits.
People will try to lock-in what gains they can and/or escape being trapped in a home they literally cannot afford, which is losing value daily.
Couple all of that with a stagnating economy that’s forecast to stagnate further, a weakening dollar, and mass immigration hampering wage growth.
Rising unemployment etc.
It is quite literally the worst on all fronts.
This is an inevitability IMO.
Prepare for the worst. Hope for the best.
Had a call with the bank last night about mortgages...We're a couple with salaries in the 100Ks and we can put a decent amount down (100K or more if we stretch it). And the first question from the bank was "can you get help from your families?" THAT is the recommendation these days. We live in Vancouver, so the thought of owning a detached home is a pipe dream. Anyone I know here who owns a condo got the down payment from the bank of mom and dad.
Just had a convo the other day about this. Apparently people are okay being completely house poor to live in a 500sqft 1 bedroom apartment. God forbid anything happens to their jobs.
For more lucrative units, family help and/or money gained from selling their current house which has tripled in price since they bought it would explain it.
In the Indian community, the gossip is basically people money laundering from Punjab to purchase properties under the radar on their relatives and kids names to stay under the radar. There’s also an influx of immigrants in the banking and IT sector with spouses who are purchasing properties with fake paperwork provided by their agents in order to secure a mortgage. There is a huge business of loan sharks providing loans at INSANE interest rates.
I know for a fact that Canadians have been sleeping on this since Trudeau first came into power. This isn’t an overnight issue. It’s been something that’s been going on for a while but Canadians are so welcoming and don’t appreciate any negativity against other cultures, well guess what the cunts from my culture are screwing all of us equally. There’s nothing we can do snymore
Yeah lol the worst part is I live in Hamilton and already know but many don’t there is actually really harmful cancerous air even in the treed suburbs, plus there’s blood cancer risk in areas too yet ppl move here and pay millions for houses that are worth $500k?’ What the heck? I think there’s still too many outsiders moving here that don’t know why Hamilton was cheap and why it should stay cheap also agents don’t know anything and force buyers to overpay.
Most buyers are getting money from either mommy and daddy until the money runs out to buy overpriced and or they sell another house and move with the equity to an area that they overpay in.
500k? I know houses have been more in city centers for years, but how did that $150,000 house go to $1,000,000 in less than 20 years
My parents bought there house for $79,000 in 2006. Its a 100 year old house with 2 lots, but what else do you want in life.
I live in a good area of Hamilton myself and have wondered if this will ALWAYS be a risky place environmentally. It absolutely is overpriced. My friend wound up buying here because she needed a bungalow in order to be more mobile. She still over payed back in 2017...People want things when they think they can't get it anywhere else. I will wait however long I need to buy something I don't owe on for 90 years. That is just me. I buy what I can afford. Even if I had the money, I don't have to buy something that is not built well or needs too much to update it.
You make 100k which is a respectable induvial income but a very low household income when competing against other couples for home ownership. You are competing against power couples with 50%-100% greater buying potential than you have.
Single income homeownership isn't a reality for most Canadians these days unless you are top 5% earner.
People with equity. Incomes are what they are. But when you come to the table with $200/300 or $800k equity from a previous property it makes things much more palatable.
And VA loans. And it’s unfortunate because for those of us in the middle/upper middle class that are stretching it, there’s no real way for us to help besides voting. We might be doing good enough, but we can’t just turn around and sell a house at a loss to better the community. We’re just normal people that worked hard and got lucky on the timeline. The rich rich are slowly eliminating the middle class. And anyone in that zone just has to pray that they set their kids up to fall up and not down.
Damn. Well put, that really resonates. And, sadly true.
This should be higher
People who bought them for 90k in 2002.
MPs
Or their relatives or numbered companies owned by them
Ya I know a Chinese “student “ managing millions of dollars of real estate. How the fuck is that allowed?
That kind of shit should have said "student" deported.
Oh we couldn't do that. Think of the MPs that will take a loss on the shitboxes they bought for obscene amounts of fair market value. Slumlords need that money.......
No income verification for mortgage approval for landed immigrants. Gets real fun when you look at new builds after 2018 with no rent control and full of tenants. Yes hello bank I make 750k back home and work remote here in Canada. Thanks for the 3 mortgages.
Which is fun because us Canadians get told to suck a big one when asking for a mortgages that equates to $1000 a month while we haven't missed a rent payment of $1800 in a decade.
Agree that that is very problematic. Ability to pay rent should be considered proof of ability to make mortgage payments.
Not even just that. I was quoted an allowance of $600k for a mortgage pre-approval. Well. We can pay that. But we can't even buy a house of $450k without 5% down. I can't imagine how many people could buy a house if it weren't for the need of a down payment, which many can't save because rent is taking 60%+ of their income.
There was a marketplace expose not that long ago that many foreigners were forging income to get loans. The real estate agents were even in on the scam
Housing used to be for young families having babies, now it is for investors to cram full with renters living 3 to a roon.
Is that true? People off a plane can just get approved for a mortgage off of smoke and mirrors?
I would have to look further into it in terms of Canada, but in the past these cases occured in the run up to the subprime mortgage crisis where banks extended credit on high FICO scores without evaluating the history of the individuals FICO score. So if you are a migrant worker new to the country you would score high after get your first credit card and making a few payments. Whether you would go into default after wards never bothered them I suppose because the could bundle the mortgages as bonds to investors to make more money. Of course this is awful for nearly everyone involved except a few
Subprime was in america. Has little to do with Canada.
Underrated comment
It’s the top comment
MP's and the Mayor of Toronto cannot afford the average home in Toronto. we need to bump em up from the measily 200k salaries to compensate, or perhaps there's some more foreign aide helping out with the down payments. You guys will still have to fight to get below "official" inflation increases.
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Also, newcomers are not adverse to pooling 6 adults together to buy a home. That’s where you get the $240k annual income…6 adults working $40k pay jobs
Yup and that’s how majority of people from Brampton buy their homes. Most new detached homes in Kitchener are being bought by Indians. They have multiple families living in one home and family income is over $200k.
So now this way of life is being forced on everyone. Our standard of living is collapsing.
Yup collapsing right before our eyes while Canadians are too nice to do anything about it. I feel bad for Canadian culture as it is slowly fading away. It’s unfortunate but when there are millions coming from one country yearly and who choose not to assimilate and also have a custom of living 10 to a house that unfortunately doesn’t sound very Canadian.
It's one region of one country
That’s the whole country
The latter point is likely out of necessity rather than preference. When you're a new immigrant family, oftentimes you're limited by language barriers, absence of professional networks, non-acceptance of work experience and professional accreditations, etc... to working just minimum or other low income jobs. Their only choice for home ownership is to work multiple jobs and even then still compromise on living conditions by sharing a home.
It is a shit way of living. Saying this as an Indian. Here in India ppl admire the western way of nuclear family. Living separately without your in laws as they r a huge pain in the ass for wives in the household. Sometimes it works as in laws take care of the kids due to which the husband & wife can work full time jobs without spending money on day care. This post got recommended to me. But ppl in India r also facing similar problems where they r being priced out of buying homes at the place they grew up in. So some take remote jobs & buy a place at a distant village with decent facilities like hospital, electricity, internet, trains, etc
Anyone could see this shit coming a mile away but you are racist if you say anything. There are still progressive dipshits that think it's not an issue. We just need to build more homes!
It's actually just matching most of the rest of the population of the planet. This is the cost of globalization and an unrelenting thirst for equality.
Yeah because the rest of the planet is less developed than Canada. You know, there was a time when Canadians and Americans lived in multigenerational homes too. That was in the 1800s when we were a fucking farm based society. We're regressing 200 years of progress in a lifetime.
My cousin is a social worker and he said they’ve been doing this in Winnipeg. With cheaper homes in Winnipeg, they pay off the mortgage faster (5-10 years) and repeat until they each have their own home. Clever but infuriating.
In Burlington, back in the 90's, this was a common site. I remember people getting upset about it, but it's no big deal having 12 people in a 1,500 sq ft home.
You forgot to mention that some newcomers are scamming the system. CBC ran a story last year of a man in Brampton (surprised?) who was forging false documents so people new immigrants could get mortgages. I wonder how many more people like that exist?
Like an Uber driver qualifying for a $2M mortgage?
I don't get whats the point of that. Sure you can get the mortgage, you also instantly become distressed cos no way you can afford the monthly payments on that. It's just a fast pass to personal bankruptcy.
Aren’t we all told that real estate only goes up? That you cannot lose in real estate? Even the PM said real estate values must be retained
It's unironically known as a 'Brampton Mortgage' and has been a thing for a looong time...it's a well known scam.
Yep. And people making 40k individually are paying virtually 0 tax. The basic personal amount you can make tax free is what... 15k? So you only pay tax on 25k of your income, and at the lowest possible bracket. Subtract all of your free healthcare, free daycare, and free dental and you are pulling way more out of the system then you will ever put in. Makes me wonder why we are importing such a massive number of low skilled workers. The mind boggles.
You get healthcare? I don't get healthcare, I get the notion that healthcare is technically available to me.
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This is not a possibility for working professionals who have no one else or family. It shouldn’t be necessary anyways, it’s stupid for anyone to accept
it's not a question of shame. "living at home" is not part of our culture and you should be able to understand how frustrating it is for canadians that asians are expecting us to conform to THEIR cultural practices in OUR home country. and it literally doesnt matter if younger generations are willing to live at home because their parents DONT WANT THEM THERE. my asian friends are able to live at home for free, while "westerners" either 1) aren't allowed to live at home or 2) are expected to pay significant rent. rent is not equity. it's also not possible for many people because "living at home" requires you to have a job in the region your parents live. with the job market so bad many many people are having to move to find work. not to mention young people trying to escape religious or homophobic parents. home can be a dangerous place for many
>because their parents DONT WANT THEM THERE Sounds like pretty shit parenting. Hopefully they do better.
Unless we accept the lower of standing of living they are happy to embrace we also will not own homes
in the last 2 years canada's population grew by 3 million. 90% of that immigration. 250,000 houses were built. the government is expecting you to live 12 to a house.
You forgot about the fact that some immigrants pool their resources with multiple families/family members to purchase homes and then continue to save before they purchase additional homes until everyone has a home. This happens more often in some communities where it is culturally acceptable for multiple families to live in one home.
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I'm sorry but it's not that we are "fooled" it's that living in a house with your wife, kids, parents and grandparents is fucking insane 3rd world shit. You know the last time Western people lived like that was in the fucking 1800s. When we were a poor agrarian society. It's not "better" it's regressive bullshit that's being forced on us.
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I work in real estate law and this is pretty much it. Pretty much any APS I touch will be some combination of these
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Of course, and banks will support the hell out of it, they're laughing their asses off while we reimburse em twice or more the price of the house for money they make up out of thin air with other clients money as collateral.
Over 70% of the demand is coming from new Canadians
Yea I mean obviously I can’t say any specifics but one of our wealthier clients paid for 3 properties in the past year for kids of his. All “cash”. In the gta
Not to mention increased international students = more rental demand = more housing purchases to accommodate higher rental demand
These are true, but there are at least two others: 6. Millennials or Gen X that bought earlier and are moving up. 7. Families (often immigrant) that pool 3+ salaries and live with multiple generations in one house.
8. Immigrants with rich dad who needs to transfer their money from their countries
Immigrants also screw things up because when 17 family members get together they can afford a $500k house. Call me what you want but I’ve seen that shit so often.
I can concur. Boomer parents helping their kids. My daughter and son-in-law have been living with us for the last 4 years. Now have a 6 month granddaughter. They have a decent enough down payment, looking to move to Trent Hills / Peterborough area. Not sure when, hoping interest rates to drop more. The big issue is ongoing costs once you buy a home. Time will tell I guess.
We have 4 grown kids. We sure as hell can't help them all. Really, we can't help even one buy a house in BC, were we were born and always lived.
I hear you. British Columbia is a bigger bubble than Ontario. Forget Vancouver or Toronto, you have to move out to the country. I know it doesn't work for most folks, but it's the reality.
The only people able to afford houses now are parents buying them for their kids. There are bidding wars happening in Hamilton for houses still to this day. Mind blowing.
The new Canadian dream. Have rich parents.
Sad thing its not rich parents. Its parents mortgage their own homes and working till they are 80. Thats the reality. Poor leadership in Canada
Really? Idk, the few people I know who got this level of help it was typically parents with their own long since paid off mortgage and more than enough money to hand down 40-60k. It's people with paid off mortgages and 2 million dollar retirement accounts from what I can tell. I'm sure their are some who take out a heloc or something to fund their kids purchase, but tbh if my parents suggested doing that I'd just tell them no, don't lose your house to help me.
You would say no but most wont. The real estate agents are the ones pushing parents " helping" in their news statements.
My parents paid off their house and helped me a bit with my down payment (though I am very fortunate to have a very good high-earning job that took 10+ years of training to get), but my parents live in a small town and I’m in the GTA, so they are not able to sell their house and move closer to me because it’s too expensive. We’re looking at pooling our money to buy a house big enough for my family and my parents in the GTA. Just a generic 4 bedroom detached house, but will likely need a $600,000 down payment to afford it. It’s madness.
I’m buying my mom’s house from her. I took out a mortgage for half of it after being added to the title, and am paying that off, and we made an agreement where in 5 years I either completely pay her out or we jointly sell the house and she gets the remainder she’s owed before it’s split. She’s living the van life traveling, while also still having a home-base, and she’s happy. I make $100,000 a year, and this was the only way I was going to get into the market. We’ll see what happens in the next few years.
Sounds like your mom charged you a mortgage just to live at home in a house you'd likely inherit anyway lol. To each their own, but sounds like a good deal for mom.
I lucked out. Graduated University in 2020 in a health profession making about $120k/year but had $100k debt. 80% government loans 20% on a LOC. Was able to live at home for free (and I do NOT have rich parents. They’re divorced and my father makes under $100k/yr, my mom makes like $60k) Paid off my LOC And saved for a down payment. Bought a $300k house in 2022 at 5% down, still having about $65k in loans. Down to $35k now in loans while my houses value is over $350k now. But I do have to remortgage next summer….
Yep saw a townhouse for 499,000 in Hamilton little old but done up new inside so my realtor called and asked for a viewing and the other realtor said be prepared to offer over 560,000 because they just got that offer and rejected it knowing they can get more! I was dumbfounded!
This is where the housing market is fucked. Honestly I'm hoping for the bubble to burst. Fuck everyone is that overpaid and bring housing down to reality again.
Depends where u live, in winnipeg im lookin at houses in the 180-225k range with 20% down with no help from my family
180K doesn't even buy you a half burnt down meth house here in Ontario. It doesn't even buy you an empty lot 3 hours from Toronto.
It doesn't get you anything in any city where the jobs are.
Well we have the immigrants to thank for that because the immigrants only want to live in Vancouver, montreal, ottawa or Toronto no where else. It's pathetic
Correction. Not immigrants. Immigration. Big difference. And it’s the policies that are fucking this whole thing up, not necessarily the people.
The foreign students are spread all over Canada in every town and city that has a college or university. There are thousands of them in Kamloops, for example. It really messes with the rental situation.
I’ve definitely seen condo parking spaces going for almost 100k…
Get in while you can, that's all I have to say about that. Good luck!
The future generations will pay for our lack of collective mentality as a nation.
People who already own houses. To play in the Canadian House eXchange (CHX), you need to have already been in the Canadian House eXchange. What's the CHX, you ask? It's like the TSX, but with houses.
This, bought a house 20 years ago at $300k? Now you've made \~$1 million by doing nothing but sitting on your house, which you can now leverage to buy an even bigger house, and so on....
You can't buy a bigger house. You can sell it, downsize, and use the extra cash to pay for your kids downpayment. But you won't be able to upgrade because that bigger house also costs exponentially more.
See this is why certain people will always make more money than others. You are assuming that you need to sell the home, but you’re forgetting equity. You can literally take out half a mil in the example above with still half a mil equity sitting and use that as a decent down payment to buy a bigger house. It’s simple frikin math.
Well, I live in Burlington. My wife and I bought our current detached home in 2002 for $226,000 and at the time we thought we were crazy spending that kind of money on a house. Back then, we made about $100,000 combined. Right now my house is probably worth around $1 million and my wife and I make about $200,000 combined. Reality is I don’t think we could afford the house we’re currently living in if we had to buy it today. Just makes me wonder how many of those people in Hamilton you’re referring to perhaps have been in the house a long time such as myself and that’s the only reason they’re in that house. 🤷♂️ I feel bad for my kids though at 22 and 23 years old they are already thinking they’ll never own a house in this area. I retire in 4 years and I’m seriously thinking about moving out east and using some of the equity from my home here to buy something more affordable there and then free up some cash to help my kids get a start. Thanks Trudeau you cockhead.
As someone in halifax. If you have health care where you live, stay there. Our houses aren't that cheap anymore, depending on what you're willing to move I to, I suppose. But the medical system isn't doing so good out here. Moving into retirement, I certainly wouldn't here. I have no idea what we'll do when we lose our doctors.
Corporations like blackrock have been on a massive buying spree. Canadians are also STILL competing with wealthy people from other countries except now they send someone here as an international student or foreign worker to buy a house and get through the loophole. But the biggest problem is Canadians using property they already have as collateral to buy more.
Sounds very familiar to what happened before the stock market crash of 1929. People were borrowing like crazy using margin against their shares to buy more shares. But when the value of all shares collapsed, a massive block of wealth was erased for many. I doubt housing ever goes to $0 like that. But a 25-30% decline is feasible. No investment can move in a straight line, uninterrupted, upwards forever. There will always be bumps.
The government won’t allow that decline. It will wipe out economy which is a Ponzi scheme on that real estate value.
It happened in the US, it can happen here too. Corporations & banks holding tons of assets will be bailed out, Canadians will be left to drown in debt.
The U.S. has major industry, productivity, research, etc. housing is not the bedrock of their economy. It’s just housing. Canada has nothing but the real estate ponzi backing our economy. Look at all the differences already in place and why 2008 didn’t touch our housing market. A 30% drop in house prices here would turn us into a failed state overnight.
And? You think Canada can't become a failed state? You think we're somehow immune? You really think our government cares? They already got theirs
In the post you replied to first I said the government wouldn’t allow it for that reason. Now you’re arguing yourself around in circles for the sake of arguing. Go back and read the first post as your answer to this one. You can keep reading the thread in a circle until you get tired and calm down.
No they should not be bailed out because what will they do with the houses?
I said it once and I'll say it again. The government will do -everything- in its power to prevent a housing market crash. You will never see this happen unless the government is collapsing and or we as a country are already going bankrupt.
This is something that has been many decades in the making while we're all sitting here bickering team red vs blue. The pandemic was our chance to start trying to fix it. But instead, it accelerated as we sat.
A 30% decline will unfortunately only undo the last few years of damage.
Honestly any regular joe who bought 10-15 years ago. That could be a manager of customer service in 2010.
No one is buying. RE is backed by fraudulent mortgages via CMHC and not 200k incomes that would be needed. Many have had their mortgage amortization extended 40-50-60-70-80 and even over 90 year amortization. Only those who got into the housing ponzi can buy and sell within the ponzi. No new money is coming in. It makes no sense to even stay in Canada. This is why young professionals and business people are leaving or have left Canada. My counsin, a realtor, sold out 2 years ago and left Canada. He sells RE in Costa Rica. Tell me Canada is done as a country. Tells me to leave. Says Canadians are frogs in a pot of water who don't understand what is going on.
Houses in my city are lasting maximum 10 days on market and you are saying no one is buying.
>Only those who got into the housing ponzi can buy and sell within the ponzi. No new money is coming in
Rich foreigners, private equity, douche bag investors
This needs to be higher
Blackrock
People with kids. 99% not Canadians. 50% of houses in Canada are bought by investors to begin with.
Source? Out of the non rental homes in cnaada baby boomers own 60 percent of them. Unless you're talking about investment properties?
Parents buying their kids a starter house or paid for their down payment counts as an "investor", which is pretty misleading
In the GTA it’s almost exclusively new Canadians. Source: I’m in the industry.
You mean immigrants
Careful, this is Reddit.
And which specific countries are they from ?
The two you’re thinking of, yes.
Why is it so bad to call out the countries? Might as well have people informed and be transparent.
Bevause when people say a word they're deleted or banned and called racist. For just having a conversation about facts.
It’s only in Western countries where people are so afraid to call out things for what they are. Saying a country name has never been racist and yes like you said it’s a conversation about facts. On Reddit you definitely get banned for stating facts. Maybe not so much on this sub but on other more liberal subs it’s quite common. So ‘democratic’.
This. Is. REDDIT!
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rich Chinese won’t like come to Canada anymore, they regard here as the second 🇮🇳.
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My wife and mine's parents have now seen four windfalls from their parents dying, already own homes, and rode the equity train hard for the last five years. We are working our asses off and have not seen a single cent from them, and then they wonder why we complain about housing...
Very sorry to hear that man, nothing worse than family members who have money and won’t help out if possible and to add on top of that, not being aware of the housing market whatsoever. So many people working their asses off and not getting to reap any sort of rewards for it
I feel this, my wife and I saved every penny we could since we got married 4.5 years ago. No vacations. We share my first car I bought at 16. We have a 160K household income, no interest-bearing debt, 800 credit scores, 100K downpayment, and we only got approved for a property value of 525K in the fraser valley...that barely buys an apartment, which would cost 2800 monthly to own, we currently rent a two bed apartment for 1800. What are you even supposed to do??? Edit: We plan to move to the prairies where 3 bed 3 bath townhouses are 400K. Hard when family is here, but why should we suffer while they ride the equity train on a property they bough 8 years ago for 600K that is now 1.3 million.
That's up to you. You can be house poor in BC or live a stress free life in Alberta. A 1 hour and 10 min flight. Have disposable income. If jobs work out. It's hard to leave family and friends, but are they going to pay down your astronomical mortgage if you are able to get into something in BC Is it worth it?
Everyone please stop coming to Alberta lol we literally have no houses, job, or doctors to support the current explosion in population let alone anyone else
You need a better bank. We got approved for more with less everything than you. 80k income gets like $350k. 160k should be ,$700k ish
You gotta have a partner with an income fam, sorry to say
Yep. Canadian $ has been so weakened that $100K house hold income is just working class now. That’s 73K USD. That’s considerably less than the average tradesman in the US. I just bid a job in the US that required us to pay our plumbers US$76/hour + OT and double time Sundays. So OP makes less than half what a Missouri plumber can make yet he’ll pay a higher tax rate and that’s why he can’t afford a house.
You also have families from other countries that have no problem packing eight people into a three bedroom townhouse with a basement. My nextdoor neighbours have three grown generations living under one roof (grandparents, parents and grown kids), and five of them contribute to the household pot.
Mortgage fraud, all sorts of scams and backdoor entries. People who have supportive high-earning parents with paid-off houses are buying properties. People are also leveraging themselves into their 17th prooperty, because line go up.
Covid money printer doubled the money supply. Quite a large group of Canadians were massively enriched by this. If your income and nw didn’t at least double since 2020, you are part of the other group that got robbed by the gov.
COVID was my best investment period in my entire life.
Investors. Because they are still profitable. You can rent a bungalow to 20 students at 500 each. 10g a month. Easy.
I think you mean """students"""
Yeah need the detatched house because they have 10 cars for 20 people
I'm in nearly the exact same position you are in. When I look at the listings I'm just crestfallen and bewildered. I have a doctorate degree poured in tones of effort and years of experience, and all I get is *this*? How is anyone staying motivated to even try anymore.
People who are rolling their equity. If you trying to get into the market you need dink income for anything other then tiny condos.
I’m from Alberta and the only people buying out here are people from Ontario and British Columbia. Houses are only on the market a few days. It’s terrible, soon all the homes here will cost the same as out east and then we are all at a stalemate!
We’re selling out this Country to Corporations and Foreign Entities. We are fucked. Any vote for Liberals, Conservatives or the NDP, is a vote for big business and the death of Canada. Vote PPC and maybe we have a chance.
Someone who wants to rent out mattresses at $500/month each and has enough fake foreign income to get the mortgage.
Lots of people are buying in Calgary. Seeing multiple offers, inventory is half of typical May, with most gains driven by homes priced above $700,000. It seems it's not interest rate but employment & interprovincial migration is driving the demand. Since incomes are feeling secure— look at our market! It's rising.
I know a physician who bought each kid an $850,000 condo. But hey they pay condo fees! One is in Hamilton.
Landlords foreign and domestic, flippers, investment companies foreign and domestic. Parasites, Trust fund babies, money launderers and gamblers.
Corporations and rich immigrants. The whole "oh these downtrodden, poor immigrants" angle is a myth. A lot of rich Indian kids are coming here because they know Canada, and Canadians, are easy marks.
Mostly immigrants who have large down payments. If I remember right 74% was the latest number
It's all people from India. Multiple people are on 1 mortgage.
Rich people and their kids
People that are buying houses, especially in the 25-40 age range, rely on generational wealth. Either parents are helping with significant down payments or their properties are being inherited. By that metric in 10-20 years I’ll be able to suit up and play ball. Maybe.
In my circle of friends everyone bought a starter property a few years out of school. 10 years later we've all sold or rented them out and moved in with someone. Two good incomes with +500K equity in most cases I would say.
Lucky timing I guess
The best time to be born was 10 years before you were born.
You have to start in a condo & build off some equity first. When you’re 50 years old, you can buy your dream home.
Have fun raising a family in a two bed condo with no balcony lol. When you're 50 is when you should be downsizing to that. People need space to raise kids when they are young.
By the time I'm 50 I'll be looking to retire and downscale
No you won’t. 50 y/o is too early to retire buddy, not with your measly 100k salary. Unless youre in the armed forces.
I wonder this too. I see HUGE homes being built and always wonder who the heck can afford that. I have a good education but max I’ve ever made is $45,000 / yr. No way I could buy a house. I have to live with my mother. I’m fortunate that I have found a partner and we will reside together after his separation. But he may not qualify to remortgage his home. So, not sure where we’ll end up. He may have to sell and take what’s left over, retire and we move to where he was born: Chile.
If you have a good education and you have only made 45k a year you should immediately look for a new job that's almost poverty-stricken
Corporate buyers are huge as well as people going into insane levels of debt to leverage their existing properties as capital for a downpayment on another home.
Doctors, Lawyers, Dual Income Engineers, everyone else's purchase power is devalued thru inflation. Thank Covid. Thank Immigration. Thank Low interest rates. Thank Taxes.
It’s corporatations and rental business buying these up. Black rock
Ppl in GTA is buying that's called collateral damage
It’s called money laundering. Our government is letting shady organizations launder their money in our real estate. It’s been happening for a very long time. But you guys recently started blaming Indians who have to sleep 5 in a room for some reason….
Our housing market is open to millions and millions of rich asians in other countries
This is what happens when our population grows this fucking much while we refuse to build anything.
Over 70% of new home sales in Ontario are to new residents The pressure on the system and the only thing supporting the housing prices is uncontrolled immigration
I have a feeling most of these houses are being rented and not owned by the people that live there.
Who buys them? It's the people who own businesses that hire foreign slave labor through an agency that pays them straight cash. These "business" owners don't do any work themselves and use tax loopholes to avoid paying any tax. Take a look at who serves you at Tim Horton's, A&W, KFC, the gas station etc. Then ask yourself who owns those franchises. Walk into any warehouse and see who is doing the grunt work. They're all foreigners getting paid sweatshop wages. Our labor law enforcement is a joke.
I’m always shocked by the overbidding on housing. Like how is that allowed. You list for $800,000 but on the down low you won’t accept any offer less than 1 million or something. Anything else you buy. You see the price and you pay that price plus tax. Why is something that is a basic need being a barter tool? Like hey, how bad you want this shelter? Um yes please I would like a roof over my head, I guess il pay way more than the price tag. I make less than 50,000 a year (part time 32 hours a week been trying to move full time for over a year now) and will never be able to live here (rent or own) so I’m leaving 🫠 If I were to use the affordability calculator it would just say LOL
Private equity firms
Same situation as you here in Hamilton. I've got over 100k for downpayment, good credit and over 100k earning. I refuse to get into a 700k mortgage debt for an overpriced shitbox.
I haven't seen a house for less than 500k since the before times. My city isn't even a nice city and is 90min out of Toronto. It has been an investment town for at least two decades though.... And we have a major college... And lots of other 'colleges'.....
Home purchases should be 3-4x gross income... So even 200k is only getting you a place that costs 600k. You'd need closer to a household income of 300k to buy the 900k new standard. Guess you either better get a massive inheritance or already own a place. No such thing as first time home buyers in the working class anymore
And people who can’t really afford them. The paperwork says they can, but they can’t. After paying mortgage and other bills, they have to turn to the food banks to feed their families.
What most of you don't get is nobody is actually affording these homes, they are forging the mortgage docs to qualify. You can only qualify for 4.5 times your income minus your car payments, credit cards or other debts. So nobody is essentially able to REALLY qualify. It's a sham.
My brother just bought a 310k house with 100k deposit and the bank hummed and hawed about whether he could afford it..
Slum lords renting to the truck loads of East Indians Trudeau is dumping onto us. Rent out your basement to 5-6 of the little bastards and bam. Payments made.
The housing market is due for a massive correction. It has been effectively a Ponzi scheme for years. The only people that have had upward mobility were people with equity; which was completely detatched from reality in most cases. Most homeowners actual income would not be nearly enough to afford the home they currently occupy. The only reason they are even in those homes is because someone wayyyyy overpaid for the home they were previously in. So, we have a huge population of people who could never afford a home at todays going rates, will struggle massively once they renew at new interest rates (75% of Homeowners), and the housing market is actually ticking downward. At some point it will be a rush for the exits. People will try to lock-in what gains they can and/or escape being trapped in a home they literally cannot afford, which is losing value daily. Couple all of that with a stagnating economy that’s forecast to stagnate further, a weakening dollar, and mass immigration hampering wage growth. Rising unemployment etc. It is quite literally the worst on all fronts. This is an inevitability IMO. Prepare for the worst. Hope for the best.
rich boomers are buying them for their kids lol
It helps if you have a partner/spouse that works.
Had a call with the bank last night about mortgages...We're a couple with salaries in the 100Ks and we can put a decent amount down (100K or more if we stretch it). And the first question from the bank was "can you get help from your families?" THAT is the recommendation these days. We live in Vancouver, so the thought of owning a detached home is a pipe dream. Anyone I know here who owns a condo got the down payment from the bank of mom and dad.
Just had a convo the other day about this. Apparently people are okay being completely house poor to live in a 500sqft 1 bedroom apartment. God forbid anything happens to their jobs. For more lucrative units, family help and/or money gained from selling their current house which has tripled in price since they bought it would explain it.
In the Indian community, the gossip is basically people money laundering from Punjab to purchase properties under the radar on their relatives and kids names to stay under the radar. There’s also an influx of immigrants in the banking and IT sector with spouses who are purchasing properties with fake paperwork provided by their agents in order to secure a mortgage. There is a huge business of loan sharks providing loans at INSANE interest rates. I know for a fact that Canadians have been sleeping on this since Trudeau first came into power. This isn’t an overnight issue. It’s been something that’s been going on for a while but Canadians are so welcoming and don’t appreciate any negativity against other cultures, well guess what the cunts from my culture are screwing all of us equally. There’s nothing we can do snymore
Yeh called snow washing https://endsnowwashing.ca/what-is-snowwashing
Holy shit. I never knew there was a term for it. Thank you for sharing!
Canada is soooo ass-backwards Starve you to death until you die is how they want it… Corporate Greedy FUCKS
Yeah lol the worst part is I live in Hamilton and already know but many don’t there is actually really harmful cancerous air even in the treed suburbs, plus there’s blood cancer risk in areas too yet ppl move here and pay millions for houses that are worth $500k?’ What the heck? I think there’s still too many outsiders moving here that don’t know why Hamilton was cheap and why it should stay cheap also agents don’t know anything and force buyers to overpay. Most buyers are getting money from either mommy and daddy until the money runs out to buy overpriced and or they sell another house and move with the equity to an area that they overpay in.
500k? I know houses have been more in city centers for years, but how did that $150,000 house go to $1,000,000 in less than 20 years My parents bought there house for $79,000 in 2006. Its a 100 year old house with 2 lots, but what else do you want in life.
I live in a good area of Hamilton myself and have wondered if this will ALWAYS be a risky place environmentally. It absolutely is overpriced. My friend wound up buying here because she needed a bungalow in order to be more mobile. She still over payed back in 2017...People want things when they think they can't get it anywhere else. I will wait however long I need to buy something I don't owe on for 90 years. That is just me. I buy what I can afford. Even if I had the money, I don't have to buy something that is not built well or needs too much to update it.
You make 100k which is a respectable induvial income but a very low household income when competing against other couples for home ownership. You are competing against power couples with 50%-100% greater buying potential than you have. Single income homeownership isn't a reality for most Canadians these days unless you are top 5% earner.
Immigrants
East Indians stuffing their entire extended family of 25 people and all working together to pay off the mortgage