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Poloz Warns Potential Homebuyers on Toronto, Vancouver Risks

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Real Estate Professional | 09 Jun 2016, 11:19 AM Agree 0
Bank of Canada Governor Stephen Poloz gave one of his bluntest warnings to date about the country’s housing boom, saying Vancouver and Toronto buyers should realize strong price gains probably can’t be sustained by economic fundamentals
  • | 09 Jun 2016, 01:31 PM Agree 0
    Looks like mortgage rate increase on horizon similar as it was at the Southern neighbor just a few years ego
  • | 09 Jun 2016, 03:38 PM Agree 0
    I recently noticed a trend in my area of North York of people in the baby boomer age bracket, but still working, cashing out of their house to builders or first time buyers at prices over $1.1 million for a 70 year old falling apart house and then " renting an apt or house". What does that tell you. I am in the same status currently. Our thinking in our age bracket of having been through at least 3-4 serious recessions is that this upward market can't continue at these levels of increases.

    I meet young couples telling me they have been prior approved for $1 million dollar mortgages? If one of them loses their job or mortgage rates rise they will be in serious trouble. Unfortunately many of these young couples are now depending on their parents, who should be retiring into lending or gifting them money putting the parents in a financial bind especially if there is more than 1 child looking for a home or condo.

    To me the more sensable strategy is for the parents to buy a house that the kids can be partners in , and is large enough to support several kids , pets and children and ultimately the house will be inherited by the children hopefully mortgage free.
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