Dealing with Debt: Will 30 year mortgages help first time home buyers? 

This is such an important topic. I have family in FL and TX and I tell people all the time not to fall for the no income tax narrative. Both of these states have no income tax and my relatives always complain about their absurdly high property tax, sales tax and other various fees. You have to look at the total tax (and fee) picture, not just income tax.

fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.

I just had a brilliant idea to make homes affordable in Canada, increase the mortgage term to 120 years

This will make the banks richer 😮

Considering the amount of homeowners that are slipping into negative amortization these days I see 30 year mortgages as a last ditch effort to keep the great housing ponzi afloat. Nobody under the age of 30 wants to touch homeownership. Let the older generations keep their debt trap.

Roughly £120k in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.

This government never do things what needs to be done, they need to increase supply. By this it will create more demand for the limited supply.

Why would it help new home buyers? All that does is increase demand. Supply is still limited so it will drive costs even higher. It’s fucking basic

We had 30 year mortgages already they just weren't insured by CMHC.

Nobody remembers what "40 Year No Money Down" mortgages did to house prices? Or maybe they do.

I follow Dave Ramsey , 15 yrs mortgage , the quicker you are debt free , the more money you have to invest and save

Doug sounds like a man with common sense. We have to fix the underlying problem, putting people into debt for life is just insanity!

Another windfall for mortgage lenders. Imagine the interest paid over 30 years

It won't lower interest rates and it certainly hasn't helped regular home buyers. Always some ridiculous spin to bring in more buyers!!

This guy literally offered 0 insight. Everyone sane know you don't have a crystal ball, but your value of being an expert guest is that you can offer an educated speculation and not just restating facts and definitions that most viewers already know.

All 30 year amortizations do for first time home buyers on 'new' contruction.... is ensure distorted Real Estate based Banking/Financial system DEBT instrument solidification. It is NOT viable to download the distortion now on first time home buyers further constraining GDI from stagnant GDP moving. The system needs to correct and the entitlement imbalances(losses) attenuated.

Doug is right, first time buyers need lower prices but the government can’t engineer that because existing home owners and speculators won’t vote for them. We have too much debt and the country would benefit greatly if housing values fell a lot but which government will let the market crash?

50 ways to leave your negative Equity: "You just slip out the back, Jack Make a new plan, Stan You don't need to be coy, Roy Just get yourself free Hop on the bus, Gus You don't need to discuss much Just drop off the key, Lee And get yourself free| Paul Simon

30 yr mortgage at a fixed low rate is your friend in a high inflation environment. It'll kill you if you have a high rate. The amount of interest you pay goes exponential.

it's not about mortgages term or high interest rate. it's about the housing price. people were ok with 7 to 10% interest rate before because housing were affordable.

The problem is a high price tags… banks are getting richer and public getting hard earn money

How can it help when the real estate market needs to correct and increase supply?

"Homeowners" don't have mortgages. The clue is in the second part of the word.

This will help first-time homeowners bid up the cost of all housing, which means it benefits the banks and people who already own housing, but it hurts those currently buying homes by burdening them with debt well into their senior years.

No it does not. You’re paying more in the long run in interest rates…The problem is change for meaningful policies to tame demand. Great analysis !

Don't let them gaslight you into believing that "owning" a home is the point of life.

The title is meaningless or at the very least a contradiction in terms. "will allowing first time home buyers to spend more money on a home help them?"

Increase the prices so people have to work longer and can’t retire. Modern day slavery.

This guy is great. More doug

I got my inheritance and bought a house in full for cash. Half wondering if i should have just left for a cheaper COL country

Canada 🇨🇦 will absolutely have homes which are currently being built

Might save a few re mortagera but nobody will be buying houses so detached from income anymore

The longer the mortgage the more people pay in interest. Or another way to look at it is you pay less down on the principal each payment. Why do people think this is helpful. This government loves low info voters.

The only one will benefit is the banks. 5 more years interest for banker.

The Feds have the power to fix Canada's 2 biggest issues overnight (i. terrible GDP per capita and productivity growth, ii. housing crisis): they could lower income tax (so people have an incentive to be uber productive on an individual level) and tax real estate capitals gains to offset those losses. Productivity would go up, shelter prices would go down, investment would shift away from real estate - which is a non-productive asset - and towards productive investments that yield GDP…and they can keep the same tax revenue. A win from almost every angle! They just have to be willing to annoy the filthy rich that benefited from an offset in their ‘shelter timeline’ relative to other Canadians (i.e. they happen to have been at a point in their lives to "buy" a house prior to the start of "the everything bubble"). If only we had actual leaders in power instead of these simpletons who think they’re fooling their citizens. Shame on them. Squandering the potential of our country.

We have a SUPPLY issue people. We need to build more homes. We need to reduce immigration to more sustainable levels to catch up. Making it easier to qualify for longer mortgages will only benefit the banks, and the developers who will jack up their prices in response to easier money.

Do 200 years mortgage. People need to stay poor

Ah yes, the good ole 'kick the can down the road' strategy.

I don't even like the 25 - paying it off ASAP. Extending the length just gives the banks more money.

Why not 100 years

Just renting by another name with none of the advantages.

This is simply ridiculous, You must implement capital gain tax on all property peoples who own 2 or more property and decide to sell any property will be tax , let's see how the housing market will be corrected

More debt is the last fools jumping in the trap

Honestly ill bet that people just want a home. They wont care if prices go up once they own it

they are gonna need more then 30 years to pay off what some have borrowed. Joke

My property owns me... You want my entire pay cheque you say? Here you go fine sir.....

blah blah blah. Real estate super bubble in Frozen land of canada is done😂😂😂