Saturday, Sep 04, 2010
LTV ratios are the culprit again
Montreal Gazette: Housing bubble 'an accident waiting to happen': report
Steep housing price increases in Canada since 2002 have all the hallmarks of an “accident waiting to happen” if mortgage rates rise too sharply, “The hottest six real-estate markets could be in for a correction at best or, at worst, a bubble burst." The average, inflation-adjusted house price in the cities has historically held stable at between $150,000 and $220,00 in today’s dollars. But the current average price in all six major markets now is over $300,000. The report also recommended returning to pre-2006 mortgage rules, which required a down payment of 10% and a 25-year mortgage. The current rules call for 5% down and a 35-year mortgage.
Posted by drewster @ 11:52 PM (429 views) Add Comment
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