Is Canada moving towards another recession or what?
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I am not wondering that very soon is ~ Will the house prices come down in the GTA if the scenario persists ??
House prices will only come down, when Mortgage Interest rates rise and Down Payment requirements are increased. Its ridiculous when you can get a Variable MTG for less than 2 % in Canada and 5 % down payment, in India you can't get a home loan for less than 10 % in most banks like ICICI, SBI etc..and also most builders, you have to put a 20 % down payment ( so 20:80 schemes )
People here are stupid , they don't see the price and how much they will be paying over the years in interest, as long as they can just about make the monthly payment ( EMI ) by hook or crook they are OK with it.
They don't want to pay it off in 10 yrs with higher montly payment and save interest cost, but are OK with being in debt and taking 25 yrs to pay off with lower montly payment !
2 people doing minimum wage jobs will buy a $ 600 K house, just bcoz they only have to make 5 % down payment, can get a 25 yr amortization and MTG is only 2 % . Their monthly payments are low and they can just about make them, due to lower interest, long term amortization and lower down payment requirement.
Cheap Credit, Financing , Debt - People are adducted to it and is not even frowned upon in Western society. The mentality is " credit " mentality , in India its still " cash " mentality for most part.
I know a desi family here who has bought their $ 1,700 sofa set ( sofa, love seat , chair ) from Leons on a 36 month financing ..lol. They couldn't even buy that in cash..lol..the interest rate is some ridiculous 20 % , in 36 months with interest its probably going to cost them $ 3,600 to buy the $ 1,700 sofa ..lol. But they don't care as all they see is that they ONLY have to pay $ 100 or something like that ( which they can afford ) per month for the next 36 months !
Typical family in Canada only cares about the montly payments they have to make on their house, car, insurance, gadgets.
1. Over priced House - bought with only 5 % down payment , 25 yr mortgage, 2 % variable mortgage.
2. Brand New Car - bought on 60 month financing, instead of cash or used car.
3. Brand New Cell phone - like Iphone , Samsung Galaxy etc bought on a 2 yr overpriced contract with Rogers, Bell, Telus to show off. Instead of buying an Android , Black Berry etc from your own pocket.
I would rathey buy a Moto G for $ 100 from my pocket, than sign a stupid over priced 2 year contract to get a
$ 700 Iphone 6 for cheap.
4. Expensive vacations etc : bought on Credit Cards, where only montly minimum payment is made. Huge balance is carried at 20 % interest.
Most declare bankruptcy, when they can't keep up 
A 1% increase in mortgage rates and a job loss here and there will bring most Canadians on the street and house prices will crash.
Most of them are living pay cheque to pay cheque, with lot of debts with no emergency fund, savings etc.
Quote:
Originally posted by adamthorat
Typical family in Canada only cares about the montly payments they have to make on their house, car, insurance, gadgets.
1. Over priced House - bought with only 5 % down payment , 25 yr mortgage, 2 % variable mortgage.
2. Brand New Car - bought on 60 month financing, instead of cash or used car.
3. Brand New Cell phone - like Iphone , Samsung Galaxy etc bought on a 2 yr overpriced contract with Rogers, Bell, Telus to show off. Instead of buying an Android , Black Berry etc from your own pocket.
I would rathey buy a Moto G for $ 100 from my pocket, than sign a stupid over priced 2 year contract to get a
$ 700 Iphone 6 for cheap.
4. Expensive vacations etc : bought on Credit Cards, where only montly minimum payment is made. Huge balance is carried at 20 % interest.
Most declare bankruptcy, when they can't keep up
True. I couldn't fathom why people lease or finance their Cars when they can easily buy an excellent slightly used Car. Half the time, people I am visiting don't even care what kind of Car I am driving, unless of-course I am a Realtor that have to drive my clients around in order to boast. Even at work, the whole day the frigging costly (bought on credit) Car stays in the Parking lot away from everyone's gaze. Who are they boasting their brand new vehicle to? The walls or simply to the concrete? Well...
And furniture. What the heck? Never understood why they buy it on credit, that too those heavy Raja sofas that look so ugly.
I agree, paying down the mortgage first as soon as possible should be the key - the target should be within 10 years of obtaining the one.
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Originally posted by mcg7
WHY THIS GANG OF 3 FOLKS(TK,FIDO,FP) ALWAYS FIGHT TOGETHER WITH HW36 ? - YOU CAN'T FIGHT ONE PERSON AT A TIME ?
SOME TIME GANG INCLUDE THOSE 2 OTHERS
Don't drag me. Never fought with her. Just pointed out something that was contentious. I hardly waste my energies picking up fights with complete strangers, when I have a wife at home
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Location: God's own country
Posted on: 03-09-15 01:54:35
Lol HW36,
I reread my post again. In fact I did not casually mention that I took it from CNN, I meant in all truthfullness that it was from CNN.
It is much better that posting things flicked from the internet and passing it off as your own.
Hope you take it in the right spirit and correct yourself to Canadian standards. You are only losing all the oppertunities that Canada offers you.
Murali
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Quote:
Originally posted by mcg7
Quote:
Originally posted by febpreet
Quote:
Originally posted by mcg7
WHY THIS GANG OF 3 FOLKS(TK,FIDO,FP) ALWAYS FIGHT TOGETHER WITH HW36 ? - YOU CAN'T FIGHT ONE PERSON AT A TIME ?
SOME TIME GANG INCLUDE THOSE 2 OTHERS
Don't drag me. Never fought with her. Just pointed out something that was contentious. I hardly waste my energies picking up fights with complete strangers, when I have a wife at home
FP - somehow most of then time it appears like that
1st reaction TK
2nd - Fido
3rd -FP
4th-Delhite
5th-Sumjo
....
....
topic may not highjack if anyone of you ignore some post/reactions---
we were discussing a really good topic - HW36 reminded TK something what he preached earlier - fido didn't waste a second to become lawyer of TK - as always somehow you come at # 3--let see who will join next.....and Monica will finally lock this good topic
Had a good one on this .. Carry on Jeeves !!!
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Fido.
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