MIKE RIGGS -- The issue isn’t that the system suddenly collapses, it’s that it tightens from multiple directions at once
Canadian Mortgage Trends News announced today (Mar 25 th ) that: As many as 150,000 Canadian borrowers will have trouble refinancing their mortgages over the next two years as they face a combination of declining home values and higher interest rates, according to the country’s top banking regulator. The report went on to say, Interest rates have recently fallen, but they’re still much higher than when many people signed up for ultra-low-rate loans during the height of a housing boom in the early years of the pandemic. This isn’t a minor housing issue, it’s a pressure point that exposes how fragile the broader system can become under stress. If even a portion of those borrowers are unable to refinance, you will see increased forced selling and downward pressure on home prices. That doesn’t remain isolated to those households, it feeds into lower comparable sales, which in turn influences property assessments over time. The impact is gradual, but it’s real. Where this bec...