“Over the past 15 years, the volume of outstanding mortgages has increased by 194 per cent. “There is a sizable minority, about 350,000 out of 5.65 million, or about 6 per cent, who would be challenged by rate rises of less than 1 per cent, and a further 225,000 (5 per cent) have thresholds in the range of 1.00 per cent to 1.49 per cent.””
Canadians are carrying more mortgage debt than ever before, with the total crossing the $1 trillion threshold for the first time, according to a new report released Monday.
The annual report from the Canadian Association of Accredited Mortgage Professionals finds that Canada’s total outstanding mortgage debt was $1.0008 trillion as of August 2010.
“Over the past 15 years, the volume of outstanding residential mortgages has expanded by 194 per cent, or a growth rate of 7.5 per cent per year,” the report says.
The current growth rate marks a slowdown from a few years ago. From 2004 to 2008 Canada’s mortgage debt was growing at a rate of 10 per cent per year, but eased off as a result of the recession and hit 7.6 per cent in the most recent 12 month period. Source: CTV
In some locations in Canada, people have paid as much and sometimes more than the average (listed above) for property that should have been bulldozed, but people keep on getting sucked in by those that don’t give a damn about the real economy other than what they can rape from it.
Four incredients were mixed together to form a toxic soup that created the affordable housing crisis in Canada:
1) CMHC when they opened the door for mortgage lending past the STANDARD 25yr amortization, plus zero down payment mortgages, and other parasitic policies which enabled irresponsible behavior in the residential real estate markets.
2) The Bank of Canada for reducing interest rates to all time low levels which when added to the above listed further enabled the ridiculous unjustifiable, and unsustainable increases in price of even the most basic shelter.
3) The speculative buyers who’s sole purpose in the residential market is to flip properties with only one goal in mind. Rape as much profit as possible in a region ripe for the picking, and then when the well dries up, move on to the next opportunity (as they would put it). These people have no stake in a community and therefore don’t give a damn about the damage their actions cause.
4) Last but not least the Government of Canada for ALLOWING the parasitic actions of the previously mentioned to continue to a point where, as a society, we have condemned 100’s of thousands of Canadians who once could afford their rent to those same people who now have hard choices between shelter and food.
Canada fast becoming debt-laden nation
Household debt in Canada reached a record $1.41-trillion in December. If that was spread among all Canadians, each person would carry more than $41,740 in outstanding debt – an amount 2.5 times greater than 1989 after adjusting for inflation and population growth, according to a report by the Certified General Accountants Association of Canada.