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A good portion of why Canada has most taxed property being mortgaged is because of the short terms of the mortgages. You can get a 5-year loan, but that isn't g
by chipsa 3y ago
A good portion of why Canada has most taxed property being mortgaged is because of the short terms of the mortgages. You can get a 5-year loan, but that isn't going to be enough to pay off the mortgage. You just end up getting another loan at the end to pay off the balloon payment at the end, and so you end up with a new mortgage. This does tend to make the market more reactive to interest changes, but it's hard to say whether that's a good thing.
- Joel_Mckay 3y agoMy point was the chartered banks and federal interest rates do not control the speculation boom/bust cycle to the degree people assume. Nor do internal crown debts like student loans. I do agree interest rates help push low-income/high-risk asset holders out of the market, but it does not mitigate the underlying issue. Folks may delay all they want. but by my estimate the interest rates will need to hit 9.4% for 2 years to bring the circus under control... its politically awful for anyone at the top, and a tragedy for those at the bottom.