The federal government is taking a sludge hammer to the housing market, making it even more difficult to purchase as new (much) more restrictive rules will take effect as early as December 1st.
It doesn’t make any sense and it behoves us to understand where all of this is coming from, and why especially since the housing market frenzy is gone, and has returned to a more healthy balanced state.
Why is their focus entirely on real estate GOOD debt without mention of line of credit and credit card BAD debt?
Did you know that 60 per cent of Canadian home owners are MORTGAGE FREE, Yes it’s a fact.
Mortgage defaults are at all time lows, interest rates remain very low as well. The economy remains sluggish, and inflation remains low.
The government wants us to consume to help grow the economy, yet on the other hand they are paranoid about household debt. It’s called ‘Suck and Blow’ at the same time and ya just can’t do it!
So what’s the problem? Where there isn’t one. So we can only scratch our heads, and wonder why?
It seems common sense no longer prevails in this world, just look at The Donald…lol, so we can’t help but think something bigger is going on here in Canada. Hum!
Could Morneau, our federal finance minister, be in any more trouble with conflict of interests and as was news last week. He has owned up to making profit through his company’s contracts with Bombardier only after he was caught, coming clean and pledging to forward all (illegal) profits to charity. WOW, WOW, WOW INDEED as those politicals like to utter. How dare they do this!
Let’s not be naïve to think there is no collusion going on here folks between the powerful rich and the rest of us.
As of Jan 1st Canadians will be 20% poorer, or at least because of the new stress tests requiring everyone to qualify based on a rate 2.0% higher than their actual contract mortgage rate (4.9% instead of 2.9%) will qualify for one fifth less purchase price, mortgage, and refinance needs.
This new reality will force many Canadians into higher cost debt arrangements.
Mortgage debt is Good Debt because it is at low rates, very low rates still. Just think about it, you can get a prime first mortgage still around 3 per cent. Your line of credit debt is between 4, 5, 6 per cent or more. Your loan interest rate is higher. Your credit card interest rate is well, let’s just say INSANE between 20 to 29%.
So our message to you is simple. If you have any credit card, loan, line of credit debt and/or you currently have a bank mortgage, DO EVERYTHING YOU CAN TO GET OUT NOW BEFORE IT’S TOO LATE.
Our purpose and role has become that of consumer advocates to educate, inform, and advise consumers about the best financial solutions for them going forward and to warn you about unfair practices, rule changes etc.
AND TO EXPOSE THE TRUTH ABOUT THE BANKS & GOVERNMENT as best as we can.
It’s not just about your mortgage, it’s about your financial health and financial security going forward.
We love our business and we care deeply about you.
Please call us for an unbiased, truthful conversation about your financial prospects (no cost OAC) and by all means please become fully informed about the potential consequences to you by acting now