Mortgage debt could be a ticking bomb: Royce Mendes

[@alexsteven.m6414]

I have watched several KZbin videos on how to trade in the market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands. I think I need guidance in the stock market.

[@edelineguillet2121]

@@JeanpaulCeme I’ve been on both end of the spectrum, I was investing on my own for about years, did my own study and analysis before actually buying, things became rather difficult not until a colleague introduced me to my current financial advisor. he has helped me convert my $50k portfolio into $350k.

[@yolanderiche7476]

@@edelineguillet2121 That's impressive! I could really use the expertise of this advisor, my portfolio has been stagnant.... Who's the person guiding you?

[@edelineguillet2121]

@@yolanderiche7476 My consultant is JEFFREY HAROLD STARR, he has since provide entry and exit points on the securities I focus on. You can look him up online if you care for supervision. I basically follow his trade pattern and haven’t regretted doing so

[@bernisejedeon5888]

@@edelineguillet2121 Impressive, i’ll most definitely check him out. I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel.

[@MadhavSharma-xj5hi]

Scam scam scam

[@EmilyHamsterLover]

On CTV news, realtors were placing fake bids on houses, to create a frenzy and you have to over bid for your home.

[@adityadanayak9813]

Where’s this video? I mean is it on KZbin?

[@segasys1339]

lolz

[@mateuszliese1059]

But there will always be basement dwellings in Mississauga with smell of curry!!!!

[@segasys1339]

@@mateuszliese1059 yes many such cases. People seem to be under the impression that immigrants are not sophisticated enough to build ikea bunk beds and use kijiji to find bunk mates.

[@markkkkitoooo]

Saw this first hand...agents are all crooks..they do fak all and collect

[@brandonvienneau5785]

The mainstream is only realising this now...

[@mobfxtrading]

LMAO trust me man, they tell people way after its too late

[@palestinelucas]

interest rates should keep rising the banks are responsible for giving these crazy loans

[@jctai100]

always takes 2 to tango

[@redMaple_QC]

Mass immigration isn't that great after all. Who knew.

[@moiseso.]

Well how we stop people from panicking and causes caos?

[@VarunGorur]

Not just all variable payments but variable fixed payments are the ones who are paying only interests or not even their full interests. Some banks like Scotiabank dont have variable fixed payments

[@dannewbigging6134]

1/3 own a home, 1/3 rent, and 1/3 have a mortgage. Only a small percentage of home owners are over extended, with to much money borrowed. The bad loans, given to people that can't afford the mortgage need to be dealt with. They ran the housing bubble way to high.

[@stukatz2445]

@@HyperDondon Don't forget the marginal sale sets the price. A few distress sales will impact prices for the rest

[@alkaholik7924]

its immigrants that ran the bubble not bad debt

[@alexpearson8481]

It’s actually the government running a hot (inflation) economy for the last 10 years that’s the culprit. Low rates for waaaayyyy too long.

[@jmela1370]

About 24% of mortgages in Canada have variable rate mortgages so that’s a large amount that can’t handle their payments since most of those will struggle if they have a mortgage of 400 k or more

[@markhirstwood4190]

No, the masses the of people are way over-indebted and severely over-extended. This is going to collapse hard. Housing will lose 95% of its value to come back in line with fundamentals.

[@markhirstwood4190]

No, 'sticker shock' is when you're in a store and you're shocked by the price of an item on the price tag before you choose to buy or not buy the item. That's not what this is. This is a massive, crushing, deflationary depression unfolding where housing loses 95% of its value to eventually come back into line with what most people make and can afford. Canada, Australia, Sweden and others will be devastated. Many more banks will collapse as this all unfolds. Everyone over-extended themselves at 5,000 year low interest rates and now that has reversed. Once everybody hates housing, then you'll find some real property values. Timing, psychology and emotion, those are the key elements of this.

[@enthused7591]

Most of what you said is accurate, but housing will only come down 40-60% depending on region. The remaining people with money to buy waiting on the sidelines wouldn't let it drop more than 55% or so without buying everything they can get their hands on.

[@jonathanandrew2909]

The great reset. When the tides of low interest rates turn.

[@StarkVandalez]

lmao. bro. people have been saying this about toronto for decades. Think about what you just said.. the value of a $1m house will crash to be worth $50k. LMAO. do you realize that we have insane immigration and the moment any house drops even just 15%, then people start buying them up like crazy. the proof is what happened in the last year. rates came up trying to slow the price growth.. it dipped.. and now its going back up as we get more and more people trying to buy houses. whe nyou have 1m houses for sale and 10 million buyers.. you can never expect to see any real drops.

[@samspade1841]

Canada will have a recession and prices may contract enough to cause some stress for buyers who bought above their affordability. Canada has many homeowners who owe nothing on their house and some who will be impacted but not overwhelmed. Doomsday scenarios may be good headlines and great for bbq talk but in reality Canada will continue to be a high priced real estate market. The significant numbers of immigrants and foreign money flowing in guarantees it. Let’s not get silly with the hyperbole about crashing real estate markets.

[@YouTh3r3]

Inventory is superlow in Ontario. Home prices wont collapse that much right away. Once the homeowners loses their homes to the bank and homes come up in the market with 30 to 40% price cut,someone will scoop it up. But this process takes times.

[@doctorali74]

There will not be any shocks, banks and regulators are increasing amortizations up to 50 or 60 years

[@markhirstwood4190]

You could amortize to 100 years and housing could still lose 95% of its value because the market got way out of line with the fundamental values.

[@domjohnson2579]

What lender will lend money to someone that could Die before you get the money back???

[@Joe-mz6dc]

Why not just increase the amortizations and pass the pain down to your children and grandchildren's generations? It's what good parents do. And it's financial genius. /sarcasm

[@alphaomega1351]

I got a "not until sweet zombie 🧟‍♂️ jesus return" mortgage which is great! 😶

[@Sebstian208]

I would like to know which banks are letting people keep the fixed variable rate payments. Sounds like BS to me.

[@karimmourabitamari6540]

Even if you are not required to pay now, going further in debt with your mortgage as time and payments go by should be an immediate concern.

[@don-cw1yz]

You are already starting to see the effects of higher mortgage rates. People who bought at the top of the market are going to get hurt. First, they can't afford the mortgage payments and they will have to sell at less than they paid for the house.

[@niccamelfly]

I say finish the job and push REAL RATES to 6 or 7%.

[@teebone2157]

Children. I'm sorry it's stupid that you have to renew your mortgage anyway if you have a fixed rate.

[@rohanutep81]

Same for variable

[@bittertruth1208]

Nothing will happen mr JT will print more bills 💵 and will hand over to lender to survive 😅😂

[@Seanpfree]

Only overseas, not in America. Ppl like me who haven't been able to buy a home in the US for the last 4 years will never be homeowners without some kind of inheritance, lottery win, or tripling their income.

[@MustyBastard]

or renting a room or a basement in said house, but zoomers do not want to sacrifice anything. It is doable, I am paying off a 600k house by my self and only make 50k a year 12 years into a 25 year mortgage. I rent rooms, developed the basement in to a private rental suite with my own hands. Rent my garage for storage, Been doing it for 12 years. Got no help from anyone.

[@zx7siovia213]

Subprime mortgages have consequences. We’ll figure that out soon enough

[@EllieMaes-Grandad]

. . . . again!

[@enthused7591]

LOL riveting stuff, as if the average teenager couldn't figure out that it's unsustainable when there's a $390,000 median home sale price while the median US income is $67,000, and property tax, homeowners insurance, utilities, groceries, vehicles and all other costs of living are up 40-50% simultaneously, not a single student loan payment has been made in 3 years, mortgage foreclosure was illegal for 2 years straight, high interest debt is rising faster than any time in history, and hundreds of billions of dollars in commercial real estate is about to get surrendered to the banks and re sold at 75-90% off. The coming crash will be worse than 2008. Every last underlying economic fundamental shows it.

[@brianoleson9224]

i hope its not years from now. i been holding cash from a home i sold in 2017 and have been waiting for an opportunity only to see them keep rising year over year. and i dont think im going to wait more then 2 years at the most so ill probably buy a home in late 2024 or 2025 and then see it tank on me after being very patient the last 6 years just bad timing

[@Summer-nm9si]

Ticking bomb??? Did you know that people generally don’t want to borrow money? Why do we need to borrow so much just to buy one house? Don’t you think we have to ask that in the first place? If we don’t have to borrow we won’t. It’s simple.

[@MrPatrick1414]

Who could have seen this coming?...definitely not the honorable selfless banking system..lol

[@JensSchraeder]

Maybe Trudeau should deal with the real cause of inflation. Bad government debt and the carbon tax.

[@janiekcarney5482]

Why would anyone get a variable interest rate???

[@winniethepeg]

I had a variable rate mortgage because my plan was to pay off my mortgage faster without also paying a penalty; with a variable there is no restriction on a POP also.

[@janiekcarney5482]

@@winniethepeg Thank you.

[@Headinavise]

Games. People work all day just want a place to call home. Nice work bankers 👍

[@flociobotaru7314]

May RBC profit with mentally handicapped clients

[@andrewmccoll1582]

Stop the 25bps nonsense. Start going back to 75bps.

[@stephanienguyen6992]

People keep paying = Interest. WAKE UP

[@raymondcaylor6292]

I don't understand the logic in entering a variable rate mortgage and never have. The key is the same as it's always been. Get a mortgage on your home where your payment including escrow is no more than 25% of your monthly take home pay. That gives you the best chance for financial success. Doesn't matter the price or the rate. If your income never goes up you're fine and if your income declines it gives you options. My 1st mortgage was in 1974 at 6.99%. My 2nd mortgage was 1998 at 9.45%. I paid it off in 2008 so I never experienced the 3-5% rates. Just buy what you can afford and hope for good health.

[@bernl178]

The whole way mortgages are figured should be revamped. If you take $100,000 out as a loan and are charged 3% then that 3% is tacked onto the total of 100,000 and then you have the full 20 years to pay it off and not this renew, and re-figure every one to 2To5 years. Of course you’d pay off the interest first, but my point is is that then the consumer would end up with a lot more money to generate an economy instead, now what we’re doing is we’re giving a shit load of money to a bank and they’re the ones regenerating the economy and that’s bullshit. we’ve allowed banks to dictate the way this whole thing runs, and quite frankly the government needs to step in and tell the banks no this is your fair share on the mortgage and that’s it. And then maybe you wouldn’t be given the bank $2-$300,000 on an $800,000 mortgage over 20 years because they extorted that kind of interest yeah because every time you re-mortgage technically you’re refinancing a new amount and of course you tack on a new principal you’re being screwed and the government needs to step in and change this freeing up a whole Lotta money to go into a whole lot of Industry. It’s all in the way you formulate the math is what I’m saying, and the government’s gotta step in, but they won’t because the banks are buying the government and we’re too stupid to see it and that’s on over here. It’s in the US it’s a national trend. It’s another way to make a pile of money by deceiving you technically what is the true borrowing cost over 20 years of your 800,000 versus one contract over 20 years with a fixed interest set at one point from the get-go and that’s it and that’s the money they make.

[@christianduval9067]

I had pay my last mortgage in 2018...because the inflation rate was 8% 10% for my manufacturirng facility....sept 2019 the repo market jump at 10% another signal. I have muliple rental property in Canada and the US...I always buy in period of crisis....2025-2026 will be the canadian real estate fire sale I am ready

[@Jack-russell103]

You greedy bastard

[@jessefaw]

get a job

[@markhirstwood4190]

Are you ready for housing to lose 95% of its value? Are you ready for commercial real estate to lose 80% of it value?

[@markhirstwood4190]

@@jessefaw He has a job, he's a property investor.

[@christianduval9067]

@@markhirstwood4190 I will say yes......That what I did in the US in 2013 when the real estate start to pick up......I had paid $45 000 for property......the defaulted owner paid $180 000.... And today, the similar property goes for $280 000.... Property value could go down...alway's coming back

[@moelo5930]

The government needs to print money to cover the difference needed to help everyone and the budget will balance itself. And Justin needs to continue overspending and everything will be fixed 😂😂😂

[@tealeh2]

so what??? People who can't afford, they sell and become renters...that is the whole idea...

[@amychadwick7688]

Kevin O’Leary for PM

[@goof260]

what percentage of people are in the variable rate mortgage camp versus the fixed rate?

[@prabanamasi2951]

By the year of 2025 to 2026 renewal for the variable rate mortgage market will be in issues 3:11

[@kurdi98k]

Paying so much for a negative cash flow? That's not an investment.

[@janiekcarney5482]

What happened to actually paying for your house not just the interest???

[@eBoyGarb]

man I need to wake up and start realizing shi like this exist

[@clarencelee8852]

Not all VRM products have delayed payment increases. A borrower can always pay down a lump sum from 10-15-20% or greater to reduce their mortgage balance. So it's easy to point out what is dismal; how about a focus on positive solutions?

[@blobtv7444]

Canada needs to allow interest write offs, they can lift amort to 40 years, they can allow interest only payments as a choice...owning is cheaper then renting a lot of times, especially in an interest only environment, at the end you have to pay if you want a roof over your head.

[@BudsCannaCorner]

So there should be no price correction in Canada? So you're basically saying all young Canadians should just get fucked and deal with the exorbitant prices we currently feel?

[@dionjaba4975]

BOC lets have the rates at 10% and clean up this mess.

[@indigobluu]

Omg, variable rates and balloon payments are gonna wreak havoc 😮 for lots of people

[@janiekcarney5482]

Here comes another crash!! Here we come 2008.

[@jordanthedoge535]

Nah canadian real estate keeps going up who cares! Debt is just all noise.

[@RC-the-OG]

good

[@danawc5595]

This was such a waste of time watching this.

[@DWEthiopia]

🤣

[@Joe-mz6dc]

Can you give us some tips on good things to watch on KZbin then? You seem to be a good judge of quality.

[@Johnny_Doe]

LMFAO.

[@garybrown4385]

That's not true. A sensible financial institution would not do negative amortization

[@postmodgent1499]

it's already happening. banks would rather extend amortization if feasible than have to report a default.

[@domjohnson2579]

"SENSIBLE" HAHa that went out the window years ago.

[@Joe-mz6dc]

Gary apparently you aren't aware of what happened in 2008 in the United states. What they were doing wasn't anything to do with "sensible" concepts. They made the decisions based on how much money they could make and rhey bent the rules as much as possible. At the end of the day they were fully aware that they were borderline breaking the law - if not outright breaking the law in many cases - and they got away with it too. The banks were bailed out by the government on the logic that they were too big to fail and the banks were totally fine. Everyone ended up ahead. This is what they do man. Watch the movie The Big Short. Definitely worth your while.

[@skyman86]

Variable rate fixed payments

[@domjohnson2579]

Which means you never pay off the home ever???

[@nickjohnston3882]

Could be? 😂

[@jonnyqu8794]

Rates should be much lower then, as higher mortgage costs will result in less disposable income which will hurt the economy causing a recession which will lower rates, these rates are not sustainable unless wages go up steadily

[@markhirstwood4190]

Wrong. In deflation, which is coming, even 0% nominal rates are effectively more like 5%+, crushing. 0% rates don't help when nobody can or wants to borrow and spend.

[@Hot_Stank653]

no problems here, most people don't own a home.

[@josephsmith594]

In Canada, the homeownership rate in 2021 was 66.5%. Literally “most Canadians” actually DO own a home.

[@ayounb]

@@josephsmith594you don’t own the home if you owe a mortgage…

[@rohanutep81]

@@ayounb yes but you pay towards owning it 25-30 years amortization period

[@josephsmith594]

@@ayounb In 2016, 43% of Canadian homeowners had paid off the mortgage on their principal residence, down from 46% in 1999. So yes, “most” people haven’t paid off their mortgages. But if I have hundreds of thousands of dollars in equity in addition to my mortgage debt, that’s worth something too. Contrary to social media comments, we’re not all penniless and lined up at the food bank.

[@rh3108]

@@josephsmith594 No, 66.5% of Canadians live in homes occupied by the home owner. A teenager who just turned 18 and in their senior year of high school is counted as a "home owner" by stats can.

[@davidngan3391]

the debt ceiling is a ticking time bomb look at it

[@christianduval9067]

Also I plan for FED at 6% at the end pf the summer and 8% next year

[@domjohnson2579]

Ya right I wish!

[@judithtaylor4799]

It is impossible for inflation to come down when the Bank of Canada continues to raise interest rates. Mortgage interest should not be considered when looking at inflation because it is directly affected by interest rates. Including mortgage interest in inflation calculations results in a vicious circle of interest rate and inflation increases.

[@adobo6905]

Sales of $1500 cell phones are huge, and people are still in denial of bad times will continue for many years to come.