OK - but the ZH headline of "Canada's Housing Bubble Explodes As Its Biggest Mortgage Lender Crashes Most In History" is similar to the Bloomberg headline (to use just one example, it's likely there are others) of "Home Capital Slumps as New Loan Flags ‘Existential Crisis’". https://www.bloomberg.com/news/arti...ts-c-2-billion-loan-will-miss-financial-goals The ZH one is more flowery than the Bloomberg one - but the general message of both is the same. Either way - I didn't pay much attention to the headlines and just enjoyed reading both articles. .
Well, I dunno about you, but I personally find it difficult to enjoy reading articles which make statements which are obviously false. And in the title, no less.
In a world where many/most publishers use these tactics to generate clicks, I generally look beyond sensational titles and read them if they contain information that I might find useful. If I were to dismiss articles with misleading/inaccurate headlines, then I would have needed to ignore the Bloomberg article (amongst others) in addition to the Zero Hedge article. .
"Toronto Home Price Growth Slows in April as New Listings Soar" https://www.bloomberg.com/news/arti...ce-growth-slows-in-april-as-new-listings-soar "The average price of C$920,791 ($671,000) in April was just 0.5 percent higher than in March, according to figures from the Toronto Real Estate Board." http://www.trebhome.com/ .
http://globalnews.ca/news/3429209/w...oronto-real-estate-speed-dating-a-new-option/ There is a new service where you get to do a speed dating type event to meet with people to potentially buy a property together with in Toronto. Instead of being roommates under a landlord, you buy a place with a random person. This sounds like a legal nightmare should even the slightest thing go wrong. I would not lend a mortgage to this type of arrangement.
"Rating Action: Moody's downgrades Canadian Banks" https://www.moodys.com/research/Moodys-downgrades-Canadian-Banks--PR_366355 "Six Canadian Banks Cut by Moody's on Consumers' Debt Burden" https://www.bloomberg.com/news/arti...nks-cut-by-moody-s-over-consumers-debt-burden "Moodys Slashes Ratings On 6 Canadian Banks, Fears Asset-Quality Deterioration, Soaring Household Debt" http://www.zerohedge.com/news/2017-...-fears-asset-quality-deterioration-soaring-ho .
The canadian mortgage is somewhat similar to usa subprime mortgage when it existed. The difference is canadian qualification is tougher. The similarity is the term and variable rate. A canadian mortgage can renew when the term expires and the mortgage rate may increase depending upon market rates. For example, can mortgage rates increase to 7-8%, watch out! The mortgage payment will double. If someone loses their job, the affect on the inflated housing markets in TO and Van be similar to USA.
With the prime rate at projected 2.7% for 2017 in Canada, it's EXTREMELY unlikely that it would jump to 7-8% LOL. I don't know where you get this forecast. Tbh, I expect the Canadian prime rate to drop in 2017 given the soft state of economy and Trump busting our balls on the NAFTA agreement. And FYI, in addition to the qualification for Subprime loans to be higher (which it should be), it's also that there is no fraud or VERY little fraud in the subprime mortgage underwriting process. It's NOT the existence in the Subprime mortgage that caused the financial crisis in 2008; it's the extensive fraud in the subprime mortgage underwriting process and the deliberate cover-up of those fraud by those rating agencies that caused the collapse.
Whoever goes into this kind of arrangement is crazy, to potentially lose entire life-saving on somebody you barely know. What if the other person takes off and disappears on you and you are stuck with a high six-figure mortgage totally on your own and you can't pay it and the bank repossess the property? You will be instantly homeless in one second! Whoever thought of this idea should be shot or should pay for all the legal bills that comes out of any debacles because of this idea.