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Probably by not giving people loans for houses, which would make them equally unaffordable for people, but in a different way. A 400k house might instead be a
by izzydata 4y ago
Probably by not giving people loans for houses, which would make them equally unaffordable for people, but in a different way.
A 400k house might instead be a 200k house, but you will never have 200k in cash compared to 20k for a down payment on a mortgage.
- triceratops 4y agoMoneylenders have always existed when legal.
- richjdsmith 4y agoThere would absolutely still be mortgage lenders without artificially low federal funds. I manage a fund in Canada that does exactly that. We have a pool of investors, and lend out on mortgages only. Primarily in markets larger institutions won’t touch.
- JumpCrisscross 4y ago> would absolutely still be mortgage lenders without artificially low federal funds 30-year fixed-rate mortgages for middle earners are a policy creation, not a natural market creature.
- liketochill 4y ago30 year fixed rate mortgages aren’t available in Canada. Most have the interest rate adjusted every 3-5 years
- deleted 4y ago[deleted]
- cudgy 4y agoHard to argue that a 50% price reduction is less affordable. Ever heard of owner-financing?