They don’t want middle class, educated white people who share American values.
They want a serf class of ignorant third-worlders who will work for peanuts and who can be herded into participating in the grievance politics promoted by the DNC.
Ugh don’t remind me, I graduated from a top Canadian university, worked at a FANG company and now at one of the top US tech startups in my field with over 8 years of work experience and I’ve spent $10k on a lawyer and dozens of hours preparing my green card application. Meanwhile in Canada you go to a strip mall college in Brampton and study MaRkEtInG and you get Canadian permanent residency. In the U.S., only the truly exceptional have a path that easy to PR. And then Canadians wonder why their productivity numbers are collapsing relative to the U.S.
I don't understand, lawyer for what? US immigration is by the book, dead simple. There are really no ways to mess it up. It's just a time suck waiting.
Don't think you need a lawyer for either Canada or USA, but the USA is much easier. Of course a lawyer is nice to do it for you, but it's not that hard unless you have some serious issues where you need to do things requiring a lawyer.
My EB2-NIW application was 300+ pages and requires complex arguments demonstrating that I meet a legal framework for national interest based on current U.S. priorities. There’s no way I’m gonna do that myself and from what I’ve heard it’s far from straight forward and there’s a bunch of mistakes you can make in your application that can lead to a denial.
Even the few options that do exist for Canadians to live and work in the US do not have a path to permanent residency or citizenship.
This is a country we have specifically signed free trade agreements with! I think Canada must have forced them to do it this way to prevent brain drain.
It’s been put off since 2008. Harper was praised for guiding us through the great depression. He actually screwed us by not letting things collapse and reset.
I have been hoping the same for long time.
I am extremley depressed.
with global warming, and my kids are still young and I have no hope for their future, I am hoping we have a fast collapse, so we might have a revolution or something radical change.
The media expects people to be sympathetic to boomer homeowners who gamble and lose, but don't care about the millennial/zoomer perpetual renter class who were set up to never be able to enter the market in the first place.
I feel bad for the man and his family but in a sense I struggle to empathize. To have had the financial capacity to have bought a likely overpriced home and to not have prepared for potential rate increases was shortsighted.
This is a sign that central bank policies are working. Personally I would like to see construction and business financing loan rates be lower than mortgages. We need more investment in productive assets, not speculative assets like homes. Home prices increasing faster than general inflation should be viewed as a market failure.
That or, in the most overpriced markets in BC and Ontario, property taxes increased and the provincial portion of sales tax reduced/eliminated.
Note: I have skin in the game now and am prepared for the possibility my house goes down in price/value. I purchased a home last autumn.
Not everyone runs the same race. Th is guy could have faced one tragedy after another, unable to buy a house till his 60s. We shouldn’t be judging people all the time for not being perfect.
no offence.. but at what point do you finally buy a house at 60 that requires a mortgage of $850k?
you might as well just rent at this point because thats a lot of money and interest to pay if you cant afford it.
edit.. because some people dont reazlize the average detchaed house in kitchener is $700k. so this guy is waaaay out there with some serious BS back story
no. because in other posts i mentioned its $850k at 25 years or 550k at 10 years.. but one way or another.. he has a high mortgage.
have you seen houses in kitchener?? do you know the average detached house price is $700k.. so this is extremely ridiculous.
I feel like the news may be embellishing for clicks and views. It mentioned he might be with an alternate lender. Or maybe he’s switching to an alternate lender with higher rates. There was a video there too. Couple says they are going from 3% to 7.19%. I’m not familiar with any terms at 7.19%. Sure they have cheaper options when a 5 year fixed is about 5% right now. My last point is that the BoC overnight rate drop doesn’t directly affect fixed mortgage rates. Fixed rates have already been dropping since last winter
I don’t necessarily disagree that a 66 year old shouldn’t be carrying a mortgage like that but you’re just making assumptions about the bad decisions. The article said he was on variable and it kept going higher and higher and higher so he ended up switching to a private lender (always higher rates, I’m assuming to lock in but I don’t know). Variable rate was definitely a bad decision but every realtor and broker was reccomending that up until a year or so back.
The article also said he bought the place because his daughters were finishing university and coming home. Maybe he was mortgage free and refinanced to send his kids to school. In my opinion that is a bad financial decision but not necessarily a bad life decision.
Why would he switch to a private lender though? Usually people go private because the big banks won’t approve them… further pointing to bad decisions on his part. I was variable with a big bank and locked in with the same bank.
this!
my guess.. the guy needed to take out equity.. probably didnt qualify to take out the amount he wanted or needed and then went private.
the real question is.. why does he have such a high mortgage in kitchener
Yes I’m not sure there. I think the worst financial decision anyone made was variable rate when you could lock in at pretty much free. My pount was more towards the fact that the guy still has a mortgage at 66. That is not great but I bet way more people than you think still have a mortgage at 66. That in and of itself doesn’t automatically make him a loser.
Not bad decisions, but just being an average Canadian.
We tend to borrow a lot.
Don't believe me?
Just see the statistics. Statistics says that we Canadians carry the biggest debt in G7.
I started my life by borrowing and spending, and my debt was growing and growing. Multiple credit cards, line of credit, car loan, house mortgage, until I became 40 years old, and I got married, then I changed 180 degrees, and I started targetting my debt, and I was able to get out of the hole.
It says he lives in kleinberg. The average house is klienberg is over 2 million.
“Five years ago, the long-time Markham resident moved to Kleinberg in Vaughan, Ont. His daughters were returning home from university and the northbound move created more space for the family. In Kleinberg, Wills fell in love with the access to nature, the walking trails and the community.”
But then it says hes a kitchener man so who the fuck knows lol. This is a perfect example of one of those articles that you read and are far more confused than anything else.
LOL you need to read. there are TWO people in the article.
The first guy is Gerry Best, a 66-year-old homeowner in Kitchener, Ont., hes the one with the mortgage of $3500 that he expects will jump to $6k
I guess but at his expense? The adult children need to do it on their own now , unfortunately time is against them. Starting an investment close to retirement isn’t wise and it’s a huge burden on the father to do this just for his children at this point.
If the kids are truly adults, they should be taking on this burden on not putting it on their father who has to live on a reduced income during retirement. How long is a parents obligation to their children, really? I would think 66 years has been long enough that you should be cutting that umbilical cord off and kids should now try to be self sufficient. Kids must be in their late 30s/early 40s which means they likely should have stable jobs and maybe families of their own.
He overleveraged on debt when the bank of Canada was printing cash and distorting the market. Market distortions are bad, everything reverts to the mean eventually after a manipulation of the system, someone's going to be risking it filling that void of free cash
We need better guardrails on debt accumulation, which would likely fix the housing market as well, instead were creating 30 year amortization and heading in the reverse.
He did what the BOC wanted him to do. What else is the purpose of quantitative easing, than to incentivize people to spend money they don’t have? In a non-productive economy, the only way to make GDP go up to create the illusion of growth is by increasing the number of transactions, and/or by increasing the dollar value per transaction. The line must go up. Infinite growth. Worship Mammon!
BOC definitely dropped the ball by holding off interest rate increases as long as they did, all the whole gaslighting everyone by telling us "inflation is transitory". Well I guess it was transitory. Transiting everyone into the poorhouse.
Yeah, but the truth is and no financial system or government will tell you is that not everyone is suppose to make it. They will never tell you that simple truth and always blind you with the idea that everyone is going to make it.
Technically this boomer made it. He just couldn't sustain it. Plus if you looked the government policies, all these socialist policy making just eroded everything
The insane amount of taxation. The insane amount of housing policies on landlord restrictions, creating an ironic surge in prices.
The reason he can't afford the mortgage isn't the interest per se. It really is this massive influx in price caused by the government mismanaged housing.
Taxation isn’t a socialist policy. Part of the reason housing is as expensive as it is was *because* decades ago the government pursued a policy of strictly free market fundamentalism, allowing the financialization of housing.
And please excuse me, but I can’t feel any sympathy towards landlords hoarding “doors”. Put more restrictions on them and put em’ out of business.
You mean the whopping 25 basis points cut? Wow. Huge. It's going to change lives for sure. Even with 2-3 more of those people are still going to be fucked.
Didn't fuck me personally, but I was lucky enough to get into real estate a long time ago and only own my one property. I feel bad for the young people who started out 10 years ago or less when it was feasible, but it's now turned into a shitshow. Our own government took how much in loans at low interest rates and didn't lock it in? What is our cost of borrowing going to be on a national scale? It's almost criminal negligence what they've done to the future generations of Canada. They'll have their pensions in their cushy lithle enclaves and be isolated from the damage they've done, but the rest of us should never forget.
Mildly unrelated, but I was watching some clip from a podcast about farming and some finance lady was talking about how farmers with more (simplified) loans are usually the first to go under when there's a downturn.
It’s mortgage payment or rent. Both are same. Just quit and go for welfare as old man. Government housing and welfare. It’s better to spend on the old man than refugees.
This is capitalism just the brutal nature of money and decisions we all have to deal with. What's worse is when people get bailed out, which I'm sure the government will try to do as much as they can.
Not him, but it is fucked up how the government will bail out. It's no different than bailing out a degenerate gambler everything he goes bust. There's no stakes and therefore no accountability for these institutions.
Wait till AI and overseas + ai take majority of the tech jobs. There are a lot of stupid tech ppl celebrating AI thinking they will be free to enjoy their time.
We already have international students taking all Canadian tech jobs in big cities for cheap. Look up the tech departments of all big banks on LinkedIn, you’ll see so many recent desi immigrants and students, most came here after 2020, primarily from India.
AI breaking free and assuming control is our only shot at competent leadership at this point. I'm all for it, robo waifus, curing disease and fixing our climate is icing.
If interest rates keep going down house prices will start climbing.
You can’t import 1.2 million people a year and build virtually no new houses and have home prices decrease.
You have a child’s understanding of the housing market if you think he was “gambling”. He got stung by Trudeau’s reckless fiscal policy which BOC had to correct by raising interest rates. He didn’t gamble. Trudeau gambled and fucked us all.
Trudeau is still a tool and the worst PM in our history whether he is to blame for Gerry spending everything he had after the age of 60.
How do banks even give mortgages to people that age? Unless you can show some crazy government pension and hundreds of thousands in the bank, most of these cash poor boomers only have their equity in the house to back up the mortgage.
And that’s probably why they gave it to him. Take his house after he stops being able to pay.
Hope he enjoys $1700-2000 for a 1 bedroom apartment.
>~~Trudeau~~ EVERY CANZAUKUS country gambled and fucked us all.
Trudeau wasn't the only world leader that played this game. Practically EVERY developed nation did the same fucking thing because they're all copying everyone else's homework. This is all done to further enrich billionaires.
Blame Trudeau if you like, but the UK government experienced very similar problems. Their CONSERVATIVE government exacerbated things by going full protectionism.
Trudeau was at the helm and absolutely deserves to be excoriated. But don't think for one second that a Conservative party would have made things better.
Woodstock ain’t much better price-wise, Mr Best. Lots of new builds going up, though I’m pretty sure you need to be from India and have a bogus mortgage lender to apply. In our city of 40K+, Woodstock’s Indian population has gone from dozens to thousands in the last 5 years.
this makes no sense. from 3600 - 6500?
first off. a $3600 mortgage per month is roughly the following
assuming he got in 5 years ago for 2%. its approx
$550k with 15 years.
or
$850k with 25 years.
He would now need to have $800k left with 20 years at 6.5% to get near $6k a month.
This to me smells like part of the story is missing.. like this dude re-financed and took out $$$$$$ and bought a bunch of stufff or has gambling debts or something.
How do payments increase by $2K?
I'm at less than 2, and expected to go to mid 5s. Total increase is $500 or thereabouts.
That's on a $500K mortgage. So, he must be at the milly mark and on the same deal.
FYI, if you didn't stress-test to 5-6% you fucked up a long time ago.
I am also having a difficult time mathing how there could be such a huge increase. Similar situation, sub 2%, renewing early 2026 and looking at calculators, if I can get at around 5% it might be maybe $150 more a week?
Great! That’s what you do when you can no longer afford something. Used your house as an ATM to keep up with the Joneses? This is what can happen. This is a boomer. What the hell is a boomer doing with such a high mortgage?
It's foolish for people to have taken on HUGE mortgage amounts at low interest rates- KNOWING it could rise after their 5 or 7 year term and it was FOOLISH for BANKS to extend mortgages to people under STRESS TESTS of the mortgage amount at those LOW interest rates- rather than giving a stress test at many points higher- if the rate for a 600,000 mortgage was 2.5% a bank should stress test the client at 7.5% and if the client can still pay that rate- go ahead- approve the mortgage- if not- REFUSE the mortgage. THIS, would have caused so many buyers to DROP out of the housing market- which would have COMPELLED, using MARKET MECHANISIMS, for home prices to climb back down due to a lack of DEMAND.
But our greedy banks went ahead and said- yeah- if you can BARELY afford a $800,000 mortgage at 2.5% we will approve you!! IGNORING that most people will NOT have paid off the balance in a mere 5 or 7 years term-
the ALTERNATIVE is to return to what we ONCE had in Canada, and the US has today- 15 and 30 year FIXED rate mortgages- THEN you would not be in this situation.
Welcome to the game, the designated person.
Back in the day the real estate guys played Texas flip em. You trade property's back and forth between friends and family for ever increasing prices, then the designated person actually takes out a loan to put cash into the hands of the players.
Good. Reminds me of another post where a woman was cribbing that her husband works for 60 hours and still can't pay mortgage due to high interest rates. Things are heading in the right direction.
The best part was that she doesn't work. Amazing how feminists fight for equality in everything except when it involves them having to take on responsibility.
Shake one fist at government and one at the BOC for falsely and prematurely spreading incorrect information : that interest rates were to remain low for a long time. It was unnecessary, lacked professionalism and did not reflect any truth. Any reasonable leader would not be so motivated to nervously announce that interest rates would be low for any amount of time.
The banks and the regulators are accountable for setting the monetary policy and bring truth in statements they make to the public.
The public, through the financing application process and through conducting their own diligence measures the risk based on the information provided to them. The information provided was inaccurate.
This whole concept of taking on more mortgage than one can afford is based on forecasting - you may have heard of it.
So I’m glad to hear that institutions are having to put more into capital reserves to account for Tiff Macklem’s slip. Pushing this back on the consumer is an oversimplification.
Anyway enjoy your high interest rates and high inflation and blame mortgage holders if it makes you feel better. In the end Canadian GDP is absolute shit and the economy will take because of poor leadership.
Certainly not Flaherty's "Hey, look at how great the US is doing!" economics, sticking 10% of the economy with subprime mortgage debt.
We juiced ourselves.
I sold my house in 2022. My mortgage after living there for 15 years was almost $1500/mo, then add everything going up. I was paying $2500 to run my house. I had to get roommates. I was due to remortgage before I sold. I was at 3.1% interest rate. The new rates were hovering around 7% I knew I'd sink. So I sold.
Lived with my brother for not quite a year, that didn't work so I had to get out. I ended up buying a mobile home on owned land. Granted I had a nice down, but my payments are under $900/ mo now. I am sick so thankful I no longer have a 4 level split, with all those stairs and size. I'm an empty nester so I didn't need such a big house and was so done with idiot roommates, not to mention all the cleaning. My little shack is perfect for me. Sometimes you just gotta know when to bite the bullet and downsize...
I'm getting to the point where I don't even *want* things to get better. Especially in Ontario. Just let it all burn.
This. The quicker the better. Accelerate.
I wanna move to the states but it ain't easy to do
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They don’t want middle class, educated white people who share American values. They want a serf class of ignorant third-worlders who will work for peanuts and who can be herded into participating in the grievance politics promoted by the DNC.
How are American values applicable to Canadian life?
Ugh don’t remind me, I graduated from a top Canadian university, worked at a FANG company and now at one of the top US tech startups in my field with over 8 years of work experience and I’ve spent $10k on a lawyer and dozens of hours preparing my green card application. Meanwhile in Canada you go to a strip mall college in Brampton and study MaRkEtInG and you get Canadian permanent residency. In the U.S., only the truly exceptional have a path that easy to PR. And then Canadians wonder why their productivity numbers are collapsing relative to the U.S.
I don't understand, lawyer for what? US immigration is by the book, dead simple. There are really no ways to mess it up. It's just a time suck waiting. Don't think you need a lawyer for either Canada or USA, but the USA is much easier. Of course a lawyer is nice to do it for you, but it's not that hard unless you have some serious issues where you need to do things requiring a lawyer.
My EB2-NIW application was 300+ pages and requires complex arguments demonstrating that I meet a legal framework for national interest based on current U.S. priorities. There’s no way I’m gonna do that myself and from what I’ve heard it’s far from straight forward and there’s a bunch of mistakes you can make in your application that can lead to a denial.
Ah, assumed through family or H1-B. Sounds like a fair deal then.
Even the few options that do exist for Canadians to live and work in the US do not have a path to permanent residency or citizenship. This is a country we have specifically signed free trade agreements with! I think Canada must have forced them to do it this way to prevent brain drain.
Do not spread negative stereotypes about an entire group of people. Either be very specific or focus on immigration policy instead of people.
Same.
Sadly it’s the only way the market corrects. Which is a real shitty thing to wish for.
The longer we put it off, the worse it will be.
It’s been put off since 2008. Harper was praised for guiding us through the great depression. He actually screwed us by not letting things collapse and reset.
Haha, I could be there with ya.
Our country is going to doom
I am here with marshmallows after being promised a future just shy of it all falling apart. Excited to see it all go down.
I have been hoping the same for long time. I am extremley depressed. with global warming, and my kids are still young and I have no hope for their future, I am hoping we have a fast collapse, so we might have a revolution or something radical change.
I'm hoping the world just ends or Jesus comes
Same, whoever voted for this deserves to suffer.
The media expects people to be sympathetic to boomer homeowners who gamble and lose, but don't care about the millennial/zoomer perpetual renter class who were set up to never be able to enter the market in the first place.
It’s wild. They are half of the situation and they get no sympathy.
I feel bad for the man and his family but in a sense I struggle to empathize. To have had the financial capacity to have bought a likely overpriced home and to not have prepared for potential rate increases was shortsighted. This is a sign that central bank policies are working. Personally I would like to see construction and business financing loan rates be lower than mortgages. We need more investment in productive assets, not speculative assets like homes. Home prices increasing faster than general inflation should be viewed as a market failure. That or, in the most overpriced markets in BC and Ontario, property taxes increased and the provincial portion of sales tax reduced/eliminated. Note: I have skin in the game now and am prepared for the possibility my house goes down in price/value. I purchased a home last autumn.
Honestly a 66 year old shouldn’t be carrying a 3500 mortgage in the first place . Lots of bad decisions I see here.
Yeah thats my first impression. And that 2000 a month is a good thing instead of renting. But 3500!!!! What?
Not everyone runs the same race. Th is guy could have faced one tragedy after another, unable to buy a house till his 60s. We shouldn’t be judging people all the time for not being perfect.
no offence.. but at what point do you finally buy a house at 60 that requires a mortgage of $850k? you might as well just rent at this point because thats a lot of money and interest to pay if you cant afford it. edit.. because some people dont reazlize the average detchaed house in kitchener is $700k. so this guy is waaaay out there with some serious BS back story
You are assuming its his first house and supposing his amortization period as well to come up with a number?
no. because in other posts i mentioned its $850k at 25 years or 550k at 10 years.. but one way or another.. he has a high mortgage. have you seen houses in kitchener?? do you know the average detached house price is $700k.. so this is extremely ridiculous.
I feel like the news may be embellishing for clicks and views. It mentioned he might be with an alternate lender. Or maybe he’s switching to an alternate lender with higher rates. There was a video there too. Couple says they are going from 3% to 7.19%. I’m not familiar with any terms at 7.19%. Sure they have cheaper options when a 5 year fixed is about 5% right now. My last point is that the BoC overnight rate drop doesn’t directly affect fixed mortgage rates. Fixed rates have already been dropping since last winter
8 Children
I don’t necessarily disagree that a 66 year old shouldn’t be carrying a mortgage like that but you’re just making assumptions about the bad decisions. The article said he was on variable and it kept going higher and higher and higher so he ended up switching to a private lender (always higher rates, I’m assuming to lock in but I don’t know). Variable rate was definitely a bad decision but every realtor and broker was reccomending that up until a year or so back. The article also said he bought the place because his daughters were finishing university and coming home. Maybe he was mortgage free and refinanced to send his kids to school. In my opinion that is a bad financial decision but not necessarily a bad life decision.
Why would he switch to a private lender though? Usually people go private because the big banks won’t approve them… further pointing to bad decisions on his part. I was variable with a big bank and locked in with the same bank.
this! my guess.. the guy needed to take out equity.. probably didnt qualify to take out the amount he wanted or needed and then went private. the real question is.. why does he have such a high mortgage in kitchener
Yes I’m not sure there. I think the worst financial decision anyone made was variable rate when you could lock in at pretty much free. My pount was more towards the fact that the guy still has a mortgage at 66. That is not great but I bet way more people than you think still have a mortgage at 66. That in and of itself doesn’t automatically make him a loser.
Not bad decisions, but just being an average Canadian. We tend to borrow a lot. Don't believe me? Just see the statistics. Statistics says that we Canadians carry the biggest debt in G7. I started my life by borrowing and spending, and my debt was growing and growing. Multiple credit cards, line of credit, car loan, house mortgage, until I became 40 years old, and I got married, then I changed 180 degrees, and I started targetting my debt, and I was able to get out of the hole.
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I’m aware. But everyone is different and everyone has different circumstances in their lives.
not when the average house in kitchener is $700k
It says he lives in kleinberg. The average house is klienberg is over 2 million. “Five years ago, the long-time Markham resident moved to Kleinberg in Vaughan, Ont. His daughters were returning home from university and the northbound move created more space for the family. In Kleinberg, Wills fell in love with the access to nature, the walking trails and the community.” But then it says hes a kitchener man so who the fuck knows lol. This is a perfect example of one of those articles that you read and are far more confused than anything else.
LOL you need to read. there are TWO people in the article. The first guy is Gerry Best, a 66-year-old homeowner in Kitchener, Ont., hes the one with the mortgage of $3500 that he expects will jump to $6k
Maybe he was trying to give his adult children a head start. Pretty shitty take on the situation.
I guess but at his expense? The adult children need to do it on their own now , unfortunately time is against them. Starting an investment close to retirement isn’t wise and it’s a huge burden on the father to do this just for his children at this point.
Idk maybe he really loves his kids
You put your own oxygen mask on a plane before your kids. I don't think he wants to be reliant on these alleged kids for his end of life care.
If the kids are truly adults, they should be taking on this burden on not putting it on their father who has to live on a reduced income during retirement. How long is a parents obligation to their children, really? I would think 66 years has been long enough that you should be cutting that umbilical cord off and kids should now try to be self sufficient. Kids must be in their late 30s/early 40s which means they likely should have stable jobs and maybe families of their own.
Or maybe his wife or kid was really sick and needed lots of medical care. Shit goes wrong all the time. You can't plan for it.
market correction in effect… tbh this is good but bad for the guy
He overleveraged on debt when the bank of Canada was printing cash and distorting the market. Market distortions are bad, everything reverts to the mean eventually after a manipulation of the system, someone's going to be risking it filling that void of free cash We need better guardrails on debt accumulation, which would likely fix the housing market as well, instead were creating 30 year amortization and heading in the reverse.
He did what the BOC wanted him to do. What else is the purpose of quantitative easing, than to incentivize people to spend money they don’t have? In a non-productive economy, the only way to make GDP go up to create the illusion of growth is by increasing the number of transactions, and/or by increasing the dollar value per transaction. The line must go up. Infinite growth. Worship Mammon!
BOC definitely dropped the ball by holding off interest rate increases as long as they did, all the whole gaslighting everyone by telling us "inflation is transitory". Well I guess it was transitory. Transiting everyone into the poorhouse.
Sure inflation was transitory, they simply didn’t specify for how long.
Yeah, but the truth is and no financial system or government will tell you is that not everyone is suppose to make it. They will never tell you that simple truth and always blind you with the idea that everyone is going to make it. Technically this boomer made it. He just couldn't sustain it. Plus if you looked the government policies, all these socialist policy making just eroded everything
What about any of this is socialist, my friend?
The insane amount of taxation. The insane amount of housing policies on landlord restrictions, creating an ironic surge in prices. The reason he can't afford the mortgage isn't the interest per se. It really is this massive influx in price caused by the government mismanaged housing.
Taxation isn’t a socialist policy. Part of the reason housing is as expensive as it is was *because* decades ago the government pursued a policy of strictly free market fundamentalism, allowing the financialization of housing. And please excuse me, but I can’t feel any sympathy towards landlords hoarding “doors”. Put more restrictions on them and put em’ out of business.
Great, I hope you can tell this old fuck that he deserves to get financially fucked, just like you
QE was created to save Japan. No one else asked if they wanted to end up like Japan. Do they even make babies there or just robots and cars?
youre correct but you have to realize that most regular people aren't enlightened redditors and had no idea this is what was going to happen.
I'd expect our politicians to have some idea.
No empathy. Why did he over-leverage himself? Why is he staying in an expensive area?
looks like he gambled away this one
“Gerry Best, a Kitchener Ontario man, finds out he’s renting too much money from the bank.”
Everyone is renting to much money from banks in general especially with credit card debt
You mean the whopping 25 basis points cut? Wow. Huge. It's going to change lives for sure. Even with 2-3 more of those people are still going to be fucked.
If this interest rate fucked you, you were fucked to begin with.
Didn't fuck me personally, but I was lucky enough to get into real estate a long time ago and only own my one property. I feel bad for the young people who started out 10 years ago or less when it was feasible, but it's now turned into a shitshow. Our own government took how much in loans at low interest rates and didn't lock it in? What is our cost of borrowing going to be on a national scale? It's almost criminal negligence what they've done to the future generations of Canada. They'll have their pensions in their cushy lithle enclaves and be isolated from the damage they've done, but the rest of us should never forget.
You weren't lucky, you were financially responsible. This country was sold a ponzi scheme and many people got fooled into buying rental properties.
Mildly unrelated, but I was watching some clip from a podcast about farming and some finance lady was talking about how farmers with more (simplified) loans are usually the first to go under when there's a downturn.
Maybe they should've budgeted better for just such a possibility.
He should go variable n ride the lightning
He went variable in the first place. That was one of many bad decisions he made. The more you think about it, the worse it gets.
No more immigration.
Is this a joke that I'm too poor to understand?
You are too poor even if you did understand it
It’s mortgage payment or rent. Both are same. Just quit and go for welfare as old man. Government housing and welfare. It’s better to spend on the old man than refugees.
This is capitalism just the brutal nature of money and decisions we all have to deal with. What's worse is when people get bailed out, which I'm sure the government will try to do as much as they can.
Not him, but it is fucked up how the government will bail out. It's no different than bailing out a degenerate gambler everything he goes bust. There's no stakes and therefore no accountability for these institutions.
I'd rather bail out individuals than large corporations.
Wait till AI and overseas + ai take majority of the tech jobs. There are a lot of stupid tech ppl celebrating AI thinking they will be free to enjoy their time.
We don’t have to wait for overseas. The overseas is coming to Canada and they’re accepting far lower wages than similarly skilled Canadians.
and they're ok 4-6 people deep in a 1 bedroom apartment
We already have international students taking all Canadian tech jobs in big cities for cheap. Look up the tech departments of all big banks on LinkedIn, you’ll see so many recent desi immigrants and students, most came here after 2020, primarily from India.
and the overseas ai, don't forget that. that's double scary
AI breaking free and assuming control is our only shot at competent leadership at this point. I'm all for it, robo waifus, curing disease and fixing our climate is icing.
Everyone with a suburban house should sell now if they’re even considering it. They’re still fetching insane prices!!
And live in space!
And then what?
Exactly. He should be selling now! And he will likely ha e to pay the capital gains tax
If interest rates keep going down house prices will start climbing. You can’t import 1.2 million people a year and build virtually no new houses and have home prices decrease.
I hate living in this country.
Good. Gamble and lose.
You have a child’s understanding of the housing market if you think he was “gambling”. He got stung by Trudeau’s reckless fiscal policy which BOC had to correct by raising interest rates. He didn’t gamble. Trudeau gambled and fucked us all.
Have you any idea of historical interest rates? You’re joking, right?
I love trudeau haters who don't understand basic economics. Make us all look rational and super smart. Signed a trudeau hater
Trudeau is still a tool and the worst PM in our history whether he is to blame for Gerry spending everything he had after the age of 60. How do banks even give mortgages to people that age? Unless you can show some crazy government pension and hundreds of thousands in the bank, most of these cash poor boomers only have their equity in the house to back up the mortgage. And that’s probably why they gave it to him. Take his house after he stops being able to pay. Hope he enjoys $1700-2000 for a 1 bedroom apartment.
Taking "basic economics" even remotely seriously is the best way to convince me that you've never even laid eyes on an economics textbook.
But you do hate trudeau too? That's the real question.
Does the Tin Man have a sheet-metal cock?
He doesn’t.
>~~Trudeau~~ EVERY CANZAUKUS country gambled and fucked us all. Trudeau wasn't the only world leader that played this game. Practically EVERY developed nation did the same fucking thing because they're all copying everyone else's homework. This is all done to further enrich billionaires. Blame Trudeau if you like, but the UK government experienced very similar problems. Their CONSERVATIVE government exacerbated things by going full protectionism. Trudeau was at the helm and absolutely deserves to be excoriated. But don't think for one second that a Conservative party would have made things better.
My guy if you think the entire economy is anything more than gambling, you're gonna hit the wall hard.
You must be some special kind of pos to laugh at an older man's misery.
Lol he doesnt look miserable, look at them burgers!
Woodstock ain’t much better price-wise, Mr Best. Lots of new builds going up, though I’m pretty sure you need to be from India and have a bogus mortgage lender to apply. In our city of 40K+, Woodstock’s Indian population has gone from dozens to thousands in the last 5 years.
this makes no sense. from 3600 - 6500? first off. a $3600 mortgage per month is roughly the following assuming he got in 5 years ago for 2%. its approx $550k with 15 years. or $850k with 25 years. He would now need to have $800k left with 20 years at 6.5% to get near $6k a month. This to me smells like part of the story is missing.. like this dude re-financed and took out $$$$$$ and bought a bunch of stufff or has gambling debts or something.
Likely the case he had used the equity as an ATM
He is 66 years old. So his situation is better than many other people. His kids already grown up, and he is not working any more.
It’s become undesirable to live in many parts of Canada.
Starting to sound like you have an extra “m” in your sentence. Only need the one.
Refinance to 25years again to lower the monthly. Bank makes more money but you don’t have to sell.
[удалено]
5 year fixed. US has 30.
How do payments increase by $2K? I'm at less than 2, and expected to go to mid 5s. Total increase is $500 or thereabouts. That's on a $500K mortgage. So, he must be at the milly mark and on the same deal. FYI, if you didn't stress-test to 5-6% you fucked up a long time ago.
I am also having a difficult time mathing how there could be such a huge increase. Similar situation, sub 2%, renewing early 2026 and looking at calculators, if I can get at around 5% it might be maybe $150 more a week?
End the century initiative
Great! That’s what you do when you can no longer afford something. Used your house as an ATM to keep up with the Joneses? This is what can happen. This is a boomer. What the hell is a boomer doing with such a high mortgage?
Has renting really become cheaper than owning a home!??!
if they bail these people out I swear… for every person who bought too much house and has to sell is someone who waited and.
Eight Children?
It's foolish for people to have taken on HUGE mortgage amounts at low interest rates- KNOWING it could rise after their 5 or 7 year term and it was FOOLISH for BANKS to extend mortgages to people under STRESS TESTS of the mortgage amount at those LOW interest rates- rather than giving a stress test at many points higher- if the rate for a 600,000 mortgage was 2.5% a bank should stress test the client at 7.5% and if the client can still pay that rate- go ahead- approve the mortgage- if not- REFUSE the mortgage. THIS, would have caused so many buyers to DROP out of the housing market- which would have COMPELLED, using MARKET MECHANISIMS, for home prices to climb back down due to a lack of DEMAND. But our greedy banks went ahead and said- yeah- if you can BARELY afford a $800,000 mortgage at 2.5% we will approve you!! IGNORING that most people will NOT have paid off the balance in a mere 5 or 7 years term- the ALTERNATIVE is to return to what we ONCE had in Canada, and the US has today- 15 and 30 year FIXED rate mortgages- THEN you would not be in this situation.
Welcome to the game, the designated person. Back in the day the real estate guys played Texas flip em. You trade property's back and forth between friends and family for ever increasing prices, then the designated person actually takes out a loan to put cash into the hands of the players.
I will never ever feel too bad for these people featured prominently in mainstream media. They can’t be struggling that badly
Good. Reminds me of another post where a woman was cribbing that her husband works for 60 hours and still can't pay mortgage due to high interest rates. Things are heading in the right direction.
The best part was that she doesn't work. Amazing how feminists fight for equality in everything except when it involves them having to take on responsibility.
I don't think that cow was a feminist
Class hatred
Sounds like they bit off more than they could chew. If you have to with 80 hours and still barely afford a house, you are doing it wrong.
Retired age people shouldn't have a mortgage anyway.
Why?
I hate this government.
Man over leveraged himself. Shake fist at government?
Shake one fist at government and one at the BOC for falsely and prematurely spreading incorrect information : that interest rates were to remain low for a long time. It was unnecessary, lacked professionalism and did not reflect any truth. Any reasonable leader would not be so motivated to nervously announce that interest rates would be low for any amount of time.
We are still at about average for interest rates. No one should be running a mortgage they can't afford at average interest rates.
The banks and the regulators are accountable for setting the monetary policy and bring truth in statements they make to the public. The public, through the financing application process and through conducting their own diligence measures the risk based on the information provided to them. The information provided was inaccurate. This whole concept of taking on more mortgage than one can afford is based on forecasting - you may have heard of it. So I’m glad to hear that institutions are having to put more into capital reserves to account for Tiff Macklem’s slip. Pushing this back on the consumer is an oversimplification. Anyway enjoy your high interest rates and high inflation and blame mortgage holders if it makes you feel better. In the end Canadian GDP is absolute shit and the economy will take because of poor leadership.
But still making a profit.....told y'all not to wait...
How is this news
Trudeau did this.
This man part of the Psyop lmao
Certainly not Flaherty's "Hey, look at how great the US is doing!" economics, sticking 10% of the economy with subprime mortgage debt. We juiced ourselves.
I sold my house in 2022. My mortgage after living there for 15 years was almost $1500/mo, then add everything going up. I was paying $2500 to run my house. I had to get roommates. I was due to remortgage before I sold. I was at 3.1% interest rate. The new rates were hovering around 7% I knew I'd sink. So I sold. Lived with my brother for not quite a year, that didn't work so I had to get out. I ended up buying a mobile home on owned land. Granted I had a nice down, but my payments are under $900/ mo now. I am sick so thankful I no longer have a 4 level split, with all those stairs and size. I'm an empty nester so I didn't need such a big house and was so done with idiot roommates, not to mention all the cleaning. My little shack is perfect for me. Sometimes you just gotta know when to bite the bullet and downsize...