Interest rates are going up and thanks to the new stress tests, prices are projected to drop in Canada's 5 largest housing markets.
- manvanfan
It won't drop enough under the current set of rules. The vancouver market would have to drop 70% to get inline with national averages. We know that ain't happening. Vancouver will be an expensive place to live for ever more.
Government secured loans on houses were put in place so banks eased up on their lending criteria. Otherwise nobody would get mortgages. Makes sense. But as long as that is available to foreign investors the stress test won't make a difference.
Where else in the world can hold an investment of $5M - $10M of borrowed money, make insane profits, and have the whole deal insured by a third party while not costing the investor a dime?
