“After my conversation with my parents’ banker the other day, I guess I shouldn’t be surprised that the craziness continues.”

Patiently Waiting at vancouvercondo.info 26 Oct 2010 at 9:28 pm “After my conversation with my parents’ banker the other day, I guess I shouldn’t be surprised that the craziness continues. You don’t need a steady income if you had one a year or two ago. Just bring in those old tax assessments. The lender won’t just be accepting of your application…no, they will be downright anxious to throw a mountain of debt on your weakened shoulders. When I said I might want to wait to see where prices go, the banker reminded that the homoaners will “just pull their houses off the market” if buyers don’t appear. Why? Banks will now let the homoaners pile on even more debt in exchange for even less freedom. Up to 125% of their property value.”

4 responses to ““After my conversation with my parents’ banker the other day, I guess I shouldn’t be surprised that the craziness continues.”

  1. Oh dear. I fear for the civility of this conversation if “homoaners” goes viral.

  2. I was just listening to a radio program on the excesses of the American mortgage industry (zero lending standards, lack of documentation, emphasis on a high volume of loans as fast as possible), which is now threatening anew the survival of our largest banks.
    It’s just amazing that you guys have kept right along making all the exact same mistakes. You are really in for it. Gravity always wins.

  3. Geez. This feels so backwards and contrary to what BOC says. I mean, just in a previous post vreaa mentioned that, “Carney told the committee the bank is limited in what it can do to use interest rate changes to encourage Canadians to reduce their debt.”

    Yet every bank is doing plenty more to ensure that Canadians pile it on. Who is in charge?

    • It think Carney is saying that he’d like to be able to limit personal borrowing but can’t do so by raising interest rates (because that would tank the whole economy). And his only other ‘instrument’ is to appeal for prudence.

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