Some banks mostly offer fixed-payment variable mortgages which allows homeowners to keep monthly payments the same, but leaves them vulnerable to paying little off the principal, experts say.
Not totally a CMHC issue here. People/businesses buying up housing as investments is the bigger problem and it should be clamped down on … ie: first 2 properties = basic taxes, increased by 2% for every additional property owned (3rd is basic + 2%, 4th is basic + 4%, etc).
That’s not nearly enough tax to make it effective, you need to increase the amount 25 or 50% for each additional home. Nobody should be using housing as an investment, it’s for living. This should also include any corporations owning investment properties as well.
If it’s purchased as an investment, but still rented out, how does that make housing less affordable?
I fully support vacant home taxes, but the idea that investors (and people often blame foreign investors specifically) are to blame seems flawed to me.
If there was enough housing supply, prices would drop, no?
Housing becomes less affordable because suddenly rent has to cover the owner’s profit as well as the cost of the mortgage. No one is going to invest in housing if there is no profit, and they are going to do what they can to make the profit as high as possible.
A landlord is essentially a middleman between the mortgage holder and the resident. Renting can make sense, especially for people who are not living somewhere for a long time, but currently people are renting simply because there is no way they can afford to buy a house.
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90 year mortgage? Wait a minute - that’s just a bank-owned rental, that you pay to upkeep? Lmfao.
CMHC allowing these kind of amortizations is what’s prolonging and worsening the affordability crisis in the country. Enough is enough!
Not totally a CMHC issue here. People/businesses buying up housing as investments is the bigger problem and it should be clamped down on … ie: first 2 properties = basic taxes, increased by 2% for every additional property owned (3rd is basic + 2%, 4th is basic + 4%, etc).
Unfortunately, I would expect increases like that to just be tagged onto the eventual selling prices.
That’s not nearly enough tax to make it effective, you need to increase the amount 25 or 50% for each additional home. Nobody should be using housing as an investment, it’s for living. This should also include any corporations owning investment properties as well.
If it’s purchased as an investment, but still rented out, how does that make housing less affordable?
I fully support vacant home taxes, but the idea that investors (and people often blame foreign investors specifically) are to blame seems flawed to me.
If there was enough housing supply, prices would drop, no?
Housing becomes less affordable because suddenly rent has to cover the owner’s profit as well as the cost of the mortgage. No one is going to invest in housing if there is no profit, and they are going to do what they can to make the profit as high as possible.
A landlord is essentially a middleman between the mortgage holder and the resident. Renting can make sense, especially for people who are not living somewhere for a long time, but currently people are renting simply because there is no way they can afford to buy a house.