I have been reading through some recent
What Mr. Wolf is emasculating is that Canada’s housing market bubble is set to burst with a huge resounding pop because Canadian house holds are over extended, even more so then those of Britain and almost as much as the U.S.
While I won’t disagree that there are a large portion of Canadians who are over extended on their credit cards, and other untimely debt to un named furniture stores that advertise furniture for free until 2012, I do disagree with the statement that our housing bubble may burst.
There are several huge differences between the Canadian housing market and the
You have to be gainfully employed. A large portion of sub prime mortgages in the United States were handed out to people who had no income, did not have to prove that they ever had any income, and were given a substantially large mortgage based on what? Absolutely nothing.
You must have a down payment of 5% - 25%. This almost leads back to the first point of being gainfully employed. Somewhere along the line large amounts of Americans where aloud by the banks to do Zero down mortgages. What’s worse, they were only paying down the interest and not the principle.
You must be a person of character. Here some might argue that this may be against the Charter of Human Rights. However, those who have some sort or drug or alcohol addiction and have not sorted their lives out, and have no job shouldn’t be allowed to have an interest only zero down mortgage for a house that is worth a half million. Period.
You must show that you have paid your taxes. These days mortgage brokers and banks alike ask for proof that you have paid your taxes and you don’t owe the government outstanding money.
Taking a look at the bigger picture of
Stephen Harper has repeated the same sentiments over the course of the debates in the wake of our looming Federal election, “we will not see the same thing here (Canada) as in the US” stressing that our financial institutions and consumer markets are in much better shape and can ride out a storm as heavy as this.