its seems like a deliberate push to make sure the collapse happens

"Loans are bad" is a great mindset if you want to stay poor.

They're tools. Understand them and use them where appropriate.

more imo about banks being able to collect collateral once it does fall. if you force defaults higher on the market banks will be able to evict more people and repossess more houses.

they know the bottom is falling out, so they're gonna take the middle as well.

Fannie Mae and Freddie Mac finding ways to reduce risk of underwriting risky borrowers.

I wonder where I've seen this before.

Reducing risk of undewriting risky borrowers is a good thing. Mitigating risk is literally the name of the game for loans.

Honestly this isn't a particularly bad or weird policy. If you want people in harder situations to be able to accrue generational wealth then reasonable steps to improve home access is a good way to do that.

Hmf your guys are free to check for acquisition rates of private properties by large companies, and compare states.
I saw some date like 2 months ago it was terrible like 15% of all properties bought in 1 year or so.

for most people making 50k or less a year a house is a terrible investment, especially where we are at in the 2021-2023 market.

at 50k income you're buying a 100-200k home, that likely needs a lot of work or furnishing to make it feel your own, has appliances and/or a roof that will need to be replaced, and will be worth 50% of what you paid for it when the market collapses.

poor people should rent anything they can, lease cars, buys used cell phones online, buy second hand clothes, etc.


once the market collapses i 100% agree, buy a house low at like 3% interest and let your kids sell it when you die to create wealth. even if you're poor.

Well yes obviously that's what any lender is going to do but it can go vastly too far if not stress tested adequately and you take Canada for instance the provincial stress test in Ontario is a joke. You can easily obtain a million dollar home and have no business owning that home. Now we're starting to see consequences slowly. Something like above 50% said they can't afford their renewal. I'll have to dig up the last round of stats.

With the below ratios you could get a million dollar home on an annual household income of 125K during Covid and we saw some fastest turnover ever in our real estate markets, Toronto, Van, Ottawa Halifax, Montreal, etc.

Oh, and that's with only 5% down. 5%...

Gross Debt Service Ratio ≤ 39%
Total Debt Service Ratio ≤ 44%

And Canada is supposed to have tame / more regulated markets by comparison to the USA. Of course these 5% down people are going to default the second interest rates go up a few points and their renewal is up.

This post was edited by SBD on Apr 20 2023 01:16pm

Some crooked people even misuse loans by over or under valuing them, given the situation.

I sold all my property bar my primary residence this year, not worth it, throwing everything into the asx for the next two years then i will reassess.