Quote (Subzer0isGG @ Aug 30 2016 09:59am)
Reading up on how Canadian housing market is about as bad as USA was before their bubble collapsed.
500k average house price in Canada.
40k average household income.
Shit may burst soon. What does this mean for current home owners ?
It's not really though. In the US banks were giving mortgages they definitely couldn't afford with no downpayment and low interest rate for the first year or two. In Canada, it's a lengthy process to get approved, and you always need a downpayment usually a pretty sizeable one. Most provinces have forced sale rules if you default on your mortgage and the ones that do have foreclosure it's very difficult for that to actually happen. And in the US the housing market collapsed because banks were trading their bad mortgages around and no one knew who had them so people were petrified of investing when so many lenders and financial institutions were carrying so many toxic mortgages.
Also average Canadian household income tends to be pretty misleading. Your typical Canadian household is making far more than $40K a year especially ones that are capable of buying a home.
This post was edited by Caedus on Aug 30 2016 08:11am