🚨OSFI Warns🚨 of Financial Risks to Canadian Economy with Impending Mortgage Renewal Crisis.

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Find the Right Home for You in Victoria or anywhere on Vancouver Island with Personalized Listing Recommendations. rb.gy/racph0
Welcome back to Patrick and BJ Talk Real Estate! In this episode, we dive into the recent warning from OSFI, Canada's banking watchdog, about the top financial risks posed by mortgage renewals and real estate loans to the Canadian economy.
Are you facing an uncomfortable increase in mortgage costs? We'll explore practical strategies to help you manage and navigate through these financially tight times.
Key topics we cover include:
The potential impact on the real estate market.
How increased mortgage costs could affect discretionary spending.
The number of Canadians likely to be affected by these changes.
Whether this could lead to a wave of mortgage delinquencies and foreclosures, or if Canada will experience a soft landing due to stringent lending policies.
Join us as we discuss the nuances of the Canadian real estate market and provide valuable insights to help you stay informed and prepared.
If you're in the Greater Victoria area or anywhere on Southern Vancouver Island, we're here to assist with your next real estate sale or purchase. Not in our market area? No problem! We can connect you with trusted real estate professionals from our national network.
Don't miss out on this important discussion! Like, comment, and subscribe for more updates and expert advice on the real estate market.
Contact us below for personalized assistance and stay tuned for more updates on real estate trends and policies with Patrick and BJ!
Patrick Novotny, Realtor, exp Realty
📱 Call or Text: 250-858-0288
📨 Email: pn.wesellvictoria@gmail.com
BJ Brahmacharie, Realtor, The Agency
📱Call/Text 250-415-8667
📨 Email: bj@victoriahomesell.com
#InterestRates2024 #RealEstatePredictions #MortgageExpert #EconomicAnalysis #mortgagerenewal #realestatenews #realestateanalysis
#RealEstateInvestment #bchousing #canadianhousingmarket #housingmarketcrash #condomarket #HousingMarketChanges
#CanadianHousingMarket #RealEstateTrends #HousingMarketCrash #Investing #RealEstateAnalysis #bnnbloomberg #ctv #ctvnews #cbcnews #cbc

Опубликовано:

4 окт 2024

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Комментарии : 60

@patrickandbjtalkrealestate 4 месяца назад

Search Vancouver Island and Victoria Homes for Sale rb.gy/racph0

@bryankerr9174 4 месяца назад

We've all heard how bad rates were in the 1980s. But 12% on a $100,000 house is about $1,300/month. But 5% on %700,000 is more than $4,000/month. What's coming to an end is the era of "I can afford it if I can make the monthly payment". This is also coming to the auto-sector. Easy credit has driven up prices to the point where few can afford anything without near-zero interest rates, and there is so much debt that few want to lend at such low rates. This is hitting fixed rates most - because the bond market, not the BoC controls those rates.

@walterpen371 4 месяца назад

You mentioned the 80's and this was the era of wages beginning to be stagnant. The era of ME! ME! ONLY! FREE TRADE was just looked at and then passed. The common labourer got brainwashed by the CORPORATIONS & THE UNIONS. THE FUTURE WILL BE VERY PROSPEROUS! FOR WHO??? Get used to the RICH are getting GREEDY RICH and the rest will be suffering forever.

@patrickandbjtalkrealestate 4 месяца назад

You're absolutely right-the comparison between interest rates in the 1980s and today highlights the significant impact of home prices and borrowing costs on monthly payments. The era of "I can afford it if I can make the monthly payment" is indeed facing challenges as easy credit and low-interest rates have driven prices up across various sectors, including real estate and automotive. The influence of the bond market on fixed rates is a crucial point, and it's important for consumers to understand the broader economic forces at play. We appreciate you sharing your perspective and contributing to the discussion. It's these kinds of thoughtful insights that help us all navigate the complexities of today's financial landscape. Thank you!

@AnitaSridhar 4 месяца назад

They were all qualified at 5.45 % though

@hughgodau 4 месяца назад

a lot of belt tightening, and some will lose their homes. prices will adjust to the market and a new cycle begins. buy low sell high has always worked for me. im following buffets lead. right now im debt free with lots of cash just waiting for the reset to get a deal. savvy investors dont believe main stream media because they are reactionary. that means by the time you read about it the ship has sailed. think for yourself

@AG-hl1ni 4 месяца назад

no one can time the market

@hexxlaxx2992 4 месяца назад

With so much immigration coming in and as many people waiting on the side to buy the housing market may slow down but won't collapse. The Banks will extend those mortgages for 50 yrs.

@municipalplumbing1717 4 месяца назад

sound critical thinking

@hughgodau 4 месяца назад

@@AG-hl1ni wrong. years of historic low int rates meant lots of cheap money. historic debt on all levels means historic remedies and none are easy. the can is at the end of the road, lets be adults and do the right thing for future generations.

@dirtlump 4 месяца назад

@@hexxlaxx2992 NOT happening. And immigration doesn't matter when added into stagnant 10+ years GDP that was only being maintained level through massive Real Estate/Consumer DEBT instrument expansion now unsustainable..... intending that stagnant/FINITE GDP and more importantly the equally stagnant /FINITE "GDI" or Gross Domestic Income Canadians derive in wages....merely gets divided into smaller pieces for all in reduced standards of living. Think about it.... you can't 'push on a string' ? adding 1 million devoid of growth just makes everyone poorer/working harder competing for the finite income.

@jupitereye4322 4 месяца назад

How do they think they'll achieve reducing consumer spending if EVERYTHING is getting more expensive? How??? What they have been saying for some time was plain self-contradictory! They want to reduce the housing cost, yet all of the variables in house construction have been increasing, from labor, materials, gas and electricity, taxes... Their statements are generic because they have to say something so they go with something that sounds good.

@patrickandbjtalkrealestate 4 месяца назад

Absolutely, I completely agree with you. It's incredibly frustrating to witness the disconnect between what's being said and the reality of rising costs across the board. It's as if there's a lack of awareness or acknowledgment of the factors driving these increases. The contradictions in government statements about reducing housing costs while everything else becomes more expensive are glaring. It's clear that there needs to be a more comprehensive approach to addressing the root causes of these issues. Thank you for sharing your perspective-it's essential to keep questioning and holding those in power accountable for their actions and policies.

@Chima4289 4 месяца назад

Sounding the alarm… Hmm, so, what this alarm is sounded for? What Canadian Regulator expects Banks to do about this warning? And what Canadian Regulator was doing when this enormous housing bubble has been blown in the past 16 years? Encouraging Canadians to borrow their brain out, take HELOs and assuring Canadians that interest rates will stay low for a veeery long time..?

@Chima4289 4 месяца назад

Its not the end of the world, unless you are out of money and Canadians are increasingly out of jobs

@Chima4289 4 месяца назад

Do not despair! 60% of Canadians don’t have debt😁 So, its the remaining 40% who are the unfortunate ones. And its only 25% who are totally screwed and drowning now.., but “its not the end of the world”, right?

@cleon2040 4 месяца назад

💯💯💯💯

@patrickandbjtalkrealestate 4 месяца назад

Thank you for your comment and for raising these important questions. The alarm is meant to bring attention to potential risks in the mortgage and real estate market as identified by OSFI, the Canadian banking regulator. The goal is to encourage proactive measures to mitigate these risks. Banks are expected to closely monitor their mortgage portfolios, ensure they are prepared for potential increases in defaults, and provide guidance to customers who might be facing financial difficulties. Regarding the housing bubble, it's a complex issue with many factors at play, including economic policies, consumer behavior, and global financial trends. Regulators, policymakers, and financial institutions all have roles in shaping the market, and hindsight often reveals areas where different actions could have been taken. Our aim is to provide information and support to help navigate these challenging times. We appreciate your engagement and hope our content continues to be informative and helpful.

@comptegoogle511 4 месяца назад

Sacrificing a few things means that the waiter and the barmaid won't do as much tips, the car salesman won't make as many commissions, the travel agent won't sale as many trips.... All those folks will have bigger problems doing their payment on their mortgage....

@patrickandbjtalkrealestate 4 месяца назад

You bring up an important point about the ripple effects on various sectors. During COVID, segments like hospitality and travel were indeed hit hard, impacting many workers' incomes. However, it's worth noting that not all sectors were affected equally, and housing prices continued upward despite challenges. Many factors, including low interest rates and increased demand for housing, contributed to the resilience of the real estate market during that time. It's a complex issue with varied impacts, but understanding these nuances helps us see the broader picture. Thank you for contributing to the discussion!

@comptegoogle511 4 месяца назад

@@patrickandbjtalkrealestate Realestate went up because of the free mortgage and government money. UberEat and Amazon never made that much money. Now it's pay back time.

@rontrulycanadian995 4 месяца назад

It works out roughly to 100 a month for every one percent increase for every 100000.

@patrickandbjtalkrealestate 4 месяца назад

I like how your brain works. Do you think that will make a significant impact on Canadian mortgage holders? Perhaps maybe more to Vancouverites and Torontonians?

@rontrulycanadian995 4 месяца назад

I'm not smart enough to know what will happen for sure but I do believe big problems are on the way. My old stomping grounds in the Fort Erie area went from less than 100 homes for sale 3 years ago to almost 800 for sale now....Makes me wonder....retired in the North.

@dirtlump 4 месяца назад

Neither a lender nor a borrower be...... it's really simple here, if you overleveraged before and are now heading into a renewal that you can not afford to Pay..... then it's time to Sell. Mortgage Stree testing was in place when you took on the Debt.... Real Estate is NOT a "Heads I win and Tails I win" situation, nor should/can Gov't or anyone else bail you out this time.

@steveshideler1333 4 месяца назад

They shouldn’t but they can. They ( policy makers, politicians and banks) have every incentive to keep their voters / customers in their homes. Policy makers will just move the goal posts. Banks will get to renew people at insane amortizations. Six months ago TD called me and asked how my financial situation was and if I was struggling they let me know that I could suspend my payments for up to a year if I needed a break to get over something’s. I’m not interested in that but it just shows that lenders are already willing to work with their borrowers more than ever. Banks don’t want mass sales of real estate and the deflation in their loan book (which is their asset). Heads banks win. Tails banks win.

@dirtlump 4 месяца назад

@@steveshideler1333 Normally I would agree with you as past practise indeed supports future predictive outcomes ? but NOT this time.... as any Monetary Policy rate DEBT instrument relief at this juncture ? is very clearly debasement based as evidenced in resurgent inflation that is also now unsupportable in future GDP/Consumer GDI from any set of presenting datasets ? Simply put..... recent US Treasury auction difficulties with yields are very clearly unsupportive of any BoC rate policy divergence from a U.S. Fed rate policy bound to persist elevated.... and intending latitiude for BoC divergence troublesome into resurgent inflation as it would be directly correlated to lower Loonie valuations..... Yeah... it's THAT bad and Canadian Banks will take a severe hit on Canadian Real Estate valuations that in Real/Adjusted terms of the intrument valuations suggests GTA -30% at a minimum dowen from here ? Believe whatever you want.... but just know it's gonna get ugly from here.

@steveshideler1333 4 месяца назад

@@dirtlump I’ll have to disagree. Policy makers, politicians and banks have zero incentive to let a major crash happen. They will just move the goal posts again and again. You are correct though. The BoC is going to face a crisis and it will be drop rates, let inflation rise and sacrifice currency or maintain rates, keep inflation slightly above target but have assets deflate, pensions in trouble with devalued bond values, governments, business and personnel debt default crisis. When faced with this choice they always burn the currency as the only thing central banks fear more than inflation, is deflation.

@dinoa.17 4 месяца назад

Toronto Vancouver house prices ll go down %85 imminent cuz lending ll b stop

@13odman 4 месяца назад

If they go down 85% , we have bigger problems

@dingdong8242 4 месяца назад

You right. If you sell your Honda Civic you might even buy a penthouse and still have money left over to buy a trailer home.

@siriusfun 4 месяца назад

lol Just... shhhh.

@patrickandbjtalkrealestate 4 месяца назад

Better stock up on Honda Civics. 😉

@dinoa.17 4 месяца назад

I have 4 homes without mortgage Loser like you was laughing at me i was buying bitcoin $30 Educate urself

@mikemann1638 4 месяца назад

Right the payer has to sacrifice that's the bull that got the banks ect in this mess

@patrickandbjtalkrealestate 4 месяца назад

Interesting comment.

@BellaBella-jw9ef 4 месяца назад

Get your shtick together boys. Very annoying delivery of a significant problem.

@13odman 4 месяца назад

It’s because they’re realtors , they just care about $$$. They get paid either way .

@patrickandbjtalkrealestate 4 месяца назад

Thank you for your feedback. We appreciate you taking the time to watch our video and share your thoughts. We'll take your comments into consideration as we strive to improve our delivery and ensure we're providing valuable and engaging content on important topics. Your input helps us get better, and we hope you'll continue to share your insights with us.

@patrickandbjtalkrealestate 4 месяца назад

Only if it sells😉

@JByrt3 4 месяца назад

These guys are actually doing you a disservice because things are far worse than they are leading on. If this is not obvious to you, you are in trouble. Get out of debt now, or you will continue to be a slave, forever.

@Berdihan_outdoors 4 месяца назад

When Morgan Freeman becomes realtor

@patrickandbjtalkrealestate 4 месяца назад

😂😂😂😂😂

@gottasay1157 4 месяца назад

A generation over borrowed and now they are crying, NEXT. LET THE BUBBLE DROP AND. I hope interest rates goes higher

@coreyheath5496 4 месяца назад

Thank a liberal. Don’t blame a generation

@patrickandbjtalkrealestate 4 месяца назад

Wow. That cuts like a knife to many in people in highly populated areas. 😱

@patrickandbjtalkrealestate 4 месяца назад

While it's understandable to have strong feelings about the housing market and borrowing practices, it's important to remember that many families and individuals could be significantly affected by rising interest rates. A balanced and sustainable approach is crucial for the well-being of our communities. Let's hope for solutions that can support economic stability and help everyone navigate these challenging times.