Yea. There was lockdown in Covid and to restart economy , Government of Canada printed currency at the rate of 5 billion per week . This quantitative easing program created 350 billion dollar over a period of 1.5 years( 24 lakh crore rupee). Most of it was distributed as housing loan to support housing price , by reducing cost of borrowing money ( interest rate ) . Government wanted to run deficit and therefore they reduced cost of borrowing to less than 2% ( for borrowing a million dollars, cost per year is only 20k) . But this caused too much money supply and inflation and that’s why government increased interest rate to reduce money supply . Now that money supply is dried out as cost of borrowing is 60k for a million ( 6% rate ) and most of the excess money is dried up and loans is unaffordable cuz most of the people can’t come up with 60k as interest only . Now housing price is coming down. Interest rate will come down further , if US again make jumbo rate cut in November. But since Canada is already in a recession as printed money is dried out and jobs created by cheap borrowing is also drying out , housing price is not gonna increase dramatically. Since you go for refinancing , you will have to pay higher rate more money will go out of the system back to the central bank , housing price will come down further. Government reduce rate depending upon inflation . If it comes down they will reduce rate to avoid a recession. Reason for rate cut is that the country is at recession . They make sure you work hard until 60 by making you in fall debt. The core concept of immigration is making people work and make them pay tax. So you have to work hard to pay all those public debt ( 350 billion ) back. Basically government print money and give it to rich corporations as “ bail out package “ , or buy their debt in bond market ( government get the debt and corporate up na get the money ) . Now it’s your job as public to pay back all debt in the form of increased taxes and fees and increased inflation make it hard for you.
Simple thing to remember wherever you are- 1. Have and put down 20% down payment money when you buy a house 2. Go for 15 yr mortgage 3. Your monthly mortgage payment should stay within 30% of the take home salary 4. Have money set aside to cover 4-6 months monthly mortgage and expenses. This becomes really helpful in case you lose your job
This is a good suggestion bro, but according to the recent home price, monthly payments should be very higher, and it may not be affordable for everyone.
@@rexyjoy2898 I understand. However, if we do not start from a solid financial base, it is going to impact our life in many dift ways. Following these steps helped us a lot, so thought of putting it out here
This is a standard before 2020, pre Covid era. Based on current house price in BC or Ontario and many other parts of Canada , only few can buy house if you listen to this criteria . Husband and wife should be a doctor or some other similar job. For example , one million house , with 200,000 down payment and 15 year mortgage with 5% interest will require 6000 monthly payment and when you add property tax , strata etc will will come close to 7k . You will be stress tested for 7% and in order to qualify for the loan you after tax income in house hold should be close to 100k. Now you need to live also. Your spouse also should have a salary of 100k. Only few can qualify for it.
Don’t go for 15 year mortgages, instead if you can afford the monthly payments of 15 year mortgage, get a 30 year loan and make payments of a 15 year loan every month. This will keep your credit worthiness high when you are looking for a second home or second mortgage. Banks look at your monthly bills more thoroughly than your overall debt
ഇവിടെ ഇപ്പം പുതിയതായി വന്ന കുറെ മലയാളി ഫാമിലികൾ ഉണ്ട്, കഴിഞ്ഞ ഒരു അഞ്ചു വർഷത്തിന് ഇടക്ക് വന്നവർ, അവരാണ് ഏറ്റവും കൂടുതൽ ഇവിടെ കിടന്നു കാണിച്ചു കൂട്ടുന്നത്, mortgages അടക്കാൻ വേണ്ടി രണ്ടും മൂന്നും ജോലിക്ക് പോയി ഒരു വിശ്രമവും ഇല്ലാതെ ജോലി ചെയ്യുന്ന കുറെ പേരെ എനിക്ക് അറിയാം, കുടുതലും ഫ്രണ്ട്സിനെ കാണിക്കാൻ വേണ്ടി കാണിച്ചു കൂട്ടൽ ആണ് അധികവും, ഞാൻ കണ്ടതാണ് പറഞ്ഞത് കണ്ടുകൊണ്ട് ഇരിക്കുന്നതാണ് പറഞ്ഞത് 🙏👍
Bank of Canada fixes the interest rate not the government. BOC increase or decrease the interest rate to change the velocity of money supply. Flow of money supply creates the inflation or deflation. BOC has a mandate to control the inflation to 2% The real estate markets of India and US are much bigger than CDN market. So banks can effectively manage their risk and profitability. It is not possible in Canada. Canadian banks are very strictly regulated, hence you do not see many bank failures. When something is strictly regulated, it increase the cost of doing business. Also it is lot more expensive to build a house in Canada. Insulation, heating and cooling systems are expensive.
@@rexyjoy2898 That is basically a short term problem. It does not affect most of the people. Many owns properties which are already paid off. Yes it does affect newcomers mostly. These anomalies will work out. This country has gone through much bigger problems. Personally it does not affect me at all. Actually benefited a lot. 3 to 4 times the purchase price on each fully paid off properties..
yes, people who bought house here at least a 15 to 20 years back, they are very lucky people. As you said, I know my couple of cousins they have more than 3 houses and earn more profits, but for new immigrants just exist as a dream
@@lakeofbays1622The system is rigged. House has become a commodity to trade rather than a place to live . While millions of people are not able to buy a house , there are other set of people who are sitting with 4 houses and enjoying the benefits.
@@lakeofbays1622half of single family houses in Vancouver are already paid off. Large part of the other half is owned by rich , so these problems don’t affect them. Only problem is for youngsters who are Canadians and also new comers who did not buy a house before 2020. Others are ok. If you paid off you should be ok.
ഒരു വീട് സ്വന്തമായി പണിതാലും ഇത്രക്ക് തന്നെയാകും. ഇൻഫെൾഷനും US money printing ആണ് കാരണം. കോവിഡ് കഴിഞ്ഞ ശേഷം കാർഗോ ഫീസ് 5k നിന്നും 30k ആയി. വീട് പണിയാനുള്ള സാധനം china യിൽ നിന്നും വരണം.
House prices will go up again in the long run. Real estate is a long term game in Canada 🇨🇦. If some one who bought even at the peak of market who can hold tight& meet their expenses will benefit from the next real estate wave which will push house prices higher.
@@Canmallu it will never crash but it will stagnate that is what happened in calgary yrs ago from 2014-2021 yyc was done same thing is gonna happen ,jt won't allow to crash so do any politician because they want people to retire because most of people's money is in their primary residence.
Cheap loans were available for anyone , and there was no serous stress test. Bank of Canada governor encouraged people to buy house and said rate will be long for a long time .
2 tier City കളിലേക്കു മാറിയാൽ റെന്റും ലിവിങ് expenses നല്ല വ്യതാസം ഇല്ലേ ? Toronto യിലും Vancouver യിലും മാത്രമേ ജീവിക്കൂ എന്ന് വാശി പിടിച്ചാൽ നല്ല expenses ഉണ്ടാകും
yes bro, but I think more peoples still staying in Toronto because of convenience, job opportunities (compare with other provinces and cities), severe weather in other provinces and cities etc..
@@rexyjoy2898 ശരിയയായിരിക്കാം , പക്ഷെ desperate times calls for desperate measures എന്നല്ലേ , അപ്പൊ നല്ല ജോലിയും ജീവിത ചിലതും കുറവുള്ള സ്ഥലം നോക്കി മാറുക ,അല്ലാതെ മൂന്നു പേരുടെ ഓപ്പണിങ് നു 500 പേര് ക്യു നിൽക്കുന്ന സിറ്റി യില് ജീവിച്ചിട്ട് എന്ത് കിട്ടാനാണ് , മലയാളികൾ esp പുതിയ കുട്ടികൾ ഒക്കെ അവസാനം ഒരു നിൽക്കക്കള്ളിയും ഇല്ലാതെ ആകുമ്പോഴേ വേറെ സ്ഥലത്തു പോയി ജോലി അന്യോഷിക്കൂ, അവസരങ്ങൾ അന്യോഷിച്ചു കണ്ടുപിടിച്ചവർ ഒക്കെ ഏറെക്കുറെ ഭേദ പെട്ട അവസ്ഥയിൽ ആണ് .
Canada in every way had this coming since a long time. Influx of economic benefit seeking migrants who doesn't even contribute anything to the society, lack of employment in every sector due to over subscription and cheap supply, failing government sponsored health care. COVID and inflation exacerbated the situation quickly. Now ballooned up real estate prices are free falling yet a house is still beyond the reach of middle class in Canada. Those who bought the houses before COVID as an investment can make money as rental market is doing pretty good. Think about this, every small suburbs of Canada that had a population of 20k to 40k have seen 20-25% of immigrant surge resulting in lack of housing and unemployment crisis. Trudeau made this happen under the support of leftist media who kept turning a blind eye towards real problems. There's no turning back. Even conservatives can't fix this.
