RE:RE:RE:This is all I hear from a diverse range of people....1. Insured mortgages have been sold like this for a long time. BMO did this as another avenue to raise funds. You're trying to relate this to the US market with their AAA bond self off. I don't see this as a sign of a housing crash.
2. A lot of stockholders having been holding the stock since it was at $28. As they saw it as a good buy then. Many are still holding that position. But, there is for sure day traders trying to make a good trade.
3. Honestly, poor data on who is buying. There is foreign influence but, also Canadians are the type to own. And many are now having to used combined incomes to support this dream. But, the inventory is low and the population is growing. but, this is a concern for only two markets in Canada. . Maybe this dentist makes good money. He has a few rentals? What's the big deal?
4. Rates will take a while to climb. Economy has not grown as experts. Any increase will be small
and don't expect any major movements.
5. It depends on how bad a crash is. Impossible to answer. But, if you assume a 5-10% dip, then people will be fine. If the market falls 50%. People will be in trouble, but I HIGHLY doubt that.
6. Doubt there is an increase in rates where it signals a crash. BOC won't for it. It will be a supply and demand issue. Once, supply is greate, prices will fall. Have yet to see that happen. The media has been predicting a crash for over a decade.
7. Debt is a concern for us. But, the inability to walk away from your home creates a different market reaction. Most Canadians find a way to pay their mortgage before anything else.
8. Rates are based on macro and micro factors. Rates are low because the economy hasn't supported raising them. They will stay low until the economy improves.
No major crash is coming anytime soon. Tell me what you think there is? Is a 5% drop concerning TO you?