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Edward H.C
The situation is really very frightening for anyone who has a mortgage or a home equity line of credit ,it is frightening ,angst causing, and not prone to adding peace and tranquillity in ones life.
The underlying agreement in every mortgage and loan states that the banks may call in a loan at any time ! They may freeze your accounts at anytime for any reason if they believe you might default. Now take into account that in Canada regardless of reason the Canadian banks are obligated to produce factually accurate payment history to the credit bureaus ,if you fail to make a payment! And they have the legal right to start legal proceedings against you within 15 days after your first missed payment.
The banks are going to really have to apply discretion on how they handle this? Because all home owners in this country are going to be challenged financially unless the banks "turn the other cheek to late payments" and rapidly sinking equity that have been pledged to the bank as collateral . I don't think they will turn the other cheek !
And it is for this reason that although I am going to answer directly my position on further possible equity loss in Canadian housing ,it is in recognition of the financial destruction to those with debt.
Today is October 22. 2022 and it is my opinion that if you have a listing anywhere in Canada and you are not offering at least 40% less than the MLS listing price you are over paying. And that is starting from today !
So in my opinion given the issues facing inflation and interest rate hikes, not only are housing prices going to total collapse but the ability to pay the debt associated with it will cause huge financial disparities.
The underlying agreement in every mortgage and loan states that the banks may call in a loan at any time ! They may freeze your accounts at anytime for any reason if they believe you might default. Now take into account that in Canada regardless of reason the Canadian banks are obligated to produce factually accurate payment history to the credit bureaus ,if you fail to make a payment! And they have the legal right to start legal proceedings against you within 15 days after your first missed payment.
The banks are going to really have to apply discretion on how they handle this? Because all home owners in this country are going to be challenged financially unless the banks "turn the other cheek to late payments" and rapidly sinking equity that have been pledged to the bank as collateral . I don't think they will turn the other cheek !
And it is for this reason that although I am going to answer directly my position on further possible equity loss in Canadian housing ,it is in recognition of the financial destruction to those with debt.
Today is October 22. 2022 and it is my opinion that if you have a listing anywhere in Canada and you are not offering at least 40% less than the MLS listing price you are over paying. And that is starting from today !
So in my opinion given the issues facing inflation and interest rate hikes, not only are housing prices going to total collapse but the ability to pay the debt associated with it will cause huge financial disparities.
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Edward H.C
BY REALTY PLUS
Published - Friday, 25 Aug, 2023
Canada Experiencing One Of The Largest Housing Bubbles Of All Time
According to a recent report by financial strategist Iva Poshnjari, Canada’s housing market is currently experiencing one of the largest housing bubbles of all time. Poshnjari warns that the level of debt that Canadians have taken on in comparison to their income, combined with soaring housing prices, puts the market at high risk of unravelling.
The excessive debt-to-income ratio in Canada is a cause for concern. Canadians have been taking on increasingly large amounts of debt to afford skyrocketing housing prices. This means that many Canadians are highly leveraged, with a significant portion of their income going towards debt repayment.
Poshnjari points out that historically low interest rates have been a driving factor behind the surge in housing prices. These low rates have made borrowing money more affordable, leading to increased demand for housing. However, if interest rates were to rise significantly, many Canadians may struggle to meet their debt obligations, leading to a potential housing market crash.
Furthermore, Poshnjari suggests that the current housing market is driven more by speculation than by real demand. People are buying houses not because they need a place to live, but rather as an investment or a way to park their money. This speculative activity further inflates housing prices and increases the risk of a housing bubble bursting.
If the Canadian housing bubble were to burst, it could have severe consequences for the broader economy. A collapse in housing prices could lead to a decline in consumer spending, as homeowners may feel less wealthy and be less willing to make big-ticket purchases. Additionally, a significant downturn in the housing market could have a ripple effect on other sectors, such as construction and banking.
In conclusion, Canada is currently facing one of the largest housing bubbles in history.
Published - Friday, 25 Aug, 2023
Canada Experiencing One Of The Largest Housing Bubbles Of All Time
According to a recent report by financial strategist Iva Poshnjari, Canada’s housing market is currently experiencing one of the largest housing bubbles of all time. Poshnjari warns that the level of debt that Canadians have taken on in comparison to their income, combined with soaring housing prices, puts the market at high risk of unravelling.
The excessive debt-to-income ratio in Canada is a cause for concern. Canadians have been taking on increasingly large amounts of debt to afford skyrocketing housing prices. This means that many Canadians are highly leveraged, with a significant portion of their income going towards debt repayment.
Poshnjari points out that historically low interest rates have been a driving factor behind the surge in housing prices. These low rates have made borrowing money more affordable, leading to increased demand for housing. However, if interest rates were to rise significantly, many Canadians may struggle to meet their debt obligations, leading to a potential housing market crash.
Furthermore, Poshnjari suggests that the current housing market is driven more by speculation than by real demand. People are buying houses not because they need a place to live, but rather as an investment or a way to park their money. This speculative activity further inflates housing prices and increases the risk of a housing bubble bursting.
If the Canadian housing bubble were to burst, it could have severe consequences for the broader economy. A collapse in housing prices could lead to a decline in consumer spending, as homeowners may feel less wealthy and be less willing to make big-ticket purchases. Additionally, a significant downturn in the housing market could have a ripple effect on other sectors, such as construction and banking.
In conclusion, Canada is currently facing one of the largest housing bubbles in history.
Joan
Mortgage interest rates are similar to the rates in the Fifties and into the Seventies. People will simply have to get used to them. We were spoiled by the low interest loans made to spur housing and the economy, but that goal is now over; containment of inflation is the present intent.
Edward H.C
Edward HC Graydon
October 10, 2021 at 7:36 AM
If I might extend a concern that still relates to mortgage debt . The stipulation in the mortgage agreement with Canadian banks states they may call their loan at any time regardless of reason . This is also applied to lines of credit and credit cards ,mortgages are just another form of credit line although usually in larger finanacial amounts .The underlying problem is the banks ability to make the decision on your behalf if they believe you are having problems. As of today 10 10 2021 I believe the Canadian banking system is going to make the lives of a great deal of mortgage holders in this country responsible for what was in fact the biggest pyramid play in Canadian history . The Canadian Banks are starting to call in all their loans while reducing credit lines, it is going to really start to get tough for many people.
October 10, 2021 at 7:36 AM
If I might extend a concern that still relates to mortgage debt . The stipulation in the mortgage agreement with Canadian banks states they may call their loan at any time regardless of reason . This is also applied to lines of credit and credit cards ,mortgages are just another form of credit line although usually in larger finanacial amounts .The underlying problem is the banks ability to make the decision on your behalf if they believe you are having problems. As of today 10 10 2021 I believe the Canadian banking system is going to make the lives of a great deal of mortgage holders in this country responsible for what was in fact the biggest pyramid play in Canadian history . The Canadian Banks are starting to call in all their loans while reducing credit lines, it is going to really start to get tough for many people.
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Edward H.C
Although I am not a licensed financial advisor I make my living buying and selling stock on the open market where any other corporation and or investor can also participate . But because I do not operate a public company my trades and income are not public information .Only my publicly stated opinions on where we see financial markets headed regardless of sector.
And it is the opinion of those that operate Graydon Investments Group LTD? That many in the industry lack conviction in what they believe is taking place concerning debt ,interest rates and financial markets . As the call by Graydon investments group LTD from October 10, 2021. at 7:36 AM seems one of the very best that should have been seen coming by Canada’s biggest players, or if it was should have been publicly stated by the CEO’s and investment advisers as a form of informing the public as too their thinking .
Don’t be scared! Put it out there as a moniker cannot take credit for accurate financial statements as there is no way to take credit or place the prediction with a real person.
Post to the internet what you know and like to do while using your real name and take the credit for doing so as the only possible down fall is that you called it wrong ! But that is part of the game.
Edward HC Graydon
Graydon Investments Group LTD
And it is the opinion of those that operate Graydon Investments Group LTD? That many in the industry lack conviction in what they believe is taking place concerning debt ,interest rates and financial markets . As the call by Graydon investments group LTD from October 10, 2021. at 7:36 AM seems one of the very best that should have been seen coming by Canada’s biggest players, or if it was should have been publicly stated by the CEO’s and investment advisers as a form of informing the public as too their thinking .
Don’t be scared! Put it out there as a moniker cannot take credit for accurate financial statements as there is no way to take credit or place the prediction with a real person.
Post to the internet what you know and like to do while using your real name and take the credit for doing so as the only possible down fall is that you called it wrong ! But that is part of the game.
Edward HC Graydon
Graydon Investments Group LTD
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Edward H.C
Edward HC Graydon's intuition seems to play a significant role in his financial insights and opinions. Here are some observations based on his writings¹:
Financial Market Predictions: Graydon predicted that Canadian banks are in big trouble, citing potential issues with debt loads and risk management. His intuition about the banking sector's troubles seems to stem from his experience and observations of market trends.
Debt Management: He emphasizes the importance of managing debt effectively, particularly when dealing with credit cards and mortgages. Graydon's advice suggests he has a good understanding of financial intricacies and potential pitfalls.
Economic Trends: Graydon's comments on interest rates and inflation indicate he's attuned to broader economic shifts. He believes interest rates will continue to rise, affecting mortgage holders and credit card users.
Some key traits that might contribute to his intuitive nature include²:
Experience: As the president of Graydon Investments Group LTD, he likely has extensive experience in finance and investing.
Observations: Graydon's writings show he's observant of market trends, economic shifts, and societal issues, which helps inform his intuition.
Analytical Thinking: His ability to break down complex financial concepts and offer practical advice suggests he's analytical and thoughtful in his approach.
Overall, Edward HC Graydon's intuition appears to be informed by his experience, observations, and analytical thinking, making him a perceptive commentator on financial matters.
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Edward HC Graydon INTUITIVE
bing.com
Sources
Write to Meta AI
Financial Market Predictions: Graydon predicted that Canadian banks are in big trouble, citing potential issues with debt loads and risk management. His intuition about the banking sector's troubles seems to stem from his experience and observations of market trends.
Debt Management: He emphasizes the importance of managing debt effectively, particularly when dealing with credit cards and mortgages. Graydon's advice suggests he has a good understanding of financial intricacies and potential pitfalls.
Economic Trends: Graydon's comments on interest rates and inflation indicate he's attuned to broader economic shifts. He believes interest rates will continue to rise, affecting mortgage holders and credit card users.
Some key traits that might contribute to his intuitive nature include²:
Experience: As the president of Graydon Investments Group LTD, he likely has extensive experience in finance and investing.
Observations: Graydon's writings show he's observant of market trends, economic shifts, and societal issues, which helps inform his intuition.
Analytical Thinking: His ability to break down complex financial concepts and offer practical advice suggests he's analytical and thoughtful in his approach.
Overall, Edward HC Graydon's intuition appears to be informed by his experience, observations, and analytical thinking, making him a perceptive commentator on financial matters.
Icon for this message's header
Edward HC Graydon INTUITIVE
bing.com
Sources
Write to Meta AI
David
I agree with Joan, that we have been spoiled by the lower interest rates in the last 10 years or so.
People will adapt to the new rates as long as the value of the home keeps going down a bit.
Real estate now is a bit overpriced, so I believe it has room to drop a bit.
People will adapt to the new rates as long as the value of the home keeps going down a bit.
Real estate now is a bit overpriced, so I believe it has room to drop a bit.
posted by Edward HC Graydon @ April 06, 2026
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What are your estimates?