Only a very, very small percentage of owners will anticipate a large fall in RE prices, sell their primary residences, and rent. If a larger percentage attempted to do this, the market would collapse by virtue of that supply. Thus, the vast majority of owners will ride paper profits up and down. -vreaa
Dwide_Schrude at theglobeandmail.com 18 Jun 2010 8:33 am -
“I’m a mortgage broker and I can tell you that almost nobody who owns goes back to renting. Most people perceive that as a total regression. My parents have lived in a 2800 SF house for 30 years. Do you honestly think they’re going to rent an apartment because of what a few people think about interest rates? Most people who own a house figure out a way to pay the mortgage somehow. Almost nobody defaults in Canada. There’s a reason CMHC made just under a billion dollars last year.”
I’m sure her parents are not going to rent an apartment while they are happy staying in the large SFH where they raised a family. But her argument is not convincing when applied to the many Vancouverites who own homes too small for them or who struggle with a mortgage that is too large.
“Most people who own a house figure out a way to pay the mortgage somehow”
Yeah by cutting back spending, and the deflationary spiral continues. That’ll keep prices up defo. Thanks for the laugh as always, vreaa.
If you are a mortgage broker there is a very good chance that you will be moving back in with your parents soon…..
The best option these days to unlock the value of your home involves taking out a lifetime mortgage plan, equity release schemes will let you borrow money against the value of your home with the debt being repaid from its sale only after your death, seem an attractive solution to many cash-poor, asset-rich retirees.
[The above spam comment has been left up to demonstrate the dependence that many soon-to-be-retirees have on their home equity for their retirement needs. -ed.]