IT STARTED WITH 2008
In 2008, the world experienced the U.S. sub-prime mortgage crisis. Financial markets and real estate values nose-dived around the world…. well, not everywhere. Some countries, like Canada, held their own. Most of Canada didn’t really suffer like the rest of the world. Call it luck, govt intervention, maybe being 5 yrs behind the U.S. (that’s personally what I think it was), or whatever. Today, property values have never been higher!
Here’s the strange thing. Our Federal govt has made several mortgage rule changes that makes getting a mortgage tougher. Yet, those changes were made AFTER the crisis. In fact, they have made annual changes since 2009, including 2013. Somehow, our real estate market remains red-hot. (That’s something to discuss another day).
The govt demanded higher credit scores, more proof of income, larger down payments, shorter amortizations and reduced how much your can borrow against your house. Yes, all these changes were made AFTER the 2008 crisis and are as recent 2013. And that’s what so amazing our current real estate market.. it’s resilient. It’s continued to grow and climb even with all the govt tinkering. Read the rest of this entry »