slickpete83
Active Member
,but how much was your annual income at the time and the price of house? that is the real question.i would gladly take a 5 year mortgage at 10% if the price of the house was 1/5th of my income
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- Thread starter simuls
- Start date
,but how much was your annual income at the time and the price of house? that is the real question.i would gladly take a 5 year mortgage at 10% if the price of the house was 1/5th of my income
Admiral Beez
Superstar
For us to have any market the houses must be 1/5 of someone’s income.
i would gladly take a 5 year mortgage at 10% if the price of the house was 1/5th of my income
slickpete83
Active Member
typo, i meant to say the price of the house 5 times my income
lenaitch
Senior Member
Ya, fair point. It would take a fair bit of digging to try and figure out what I made back. Certainly not GTA housing prices; I think it was around $46K.
i would gladly take a 5 year mortgage at 10% if the price of the house was 1/5th of my income
Admiral Beez
Superstar
I didn't notice and assumed you meant 5x income. My earlier point stands, all these houses that are bought and sold must be 5x someone's income, otherwise there's no market outside of investors both domestic and foreign, plus those who win the inheritance or family support lottery. Both these groups represent a large group of buyers I'll grant you.
kEiThZ
Superstar
Looks like peak bubble right here:
Undead
Senior Member
An Uber driver trying to qualify for a $1.9 million house? That's just greed. Resale 3-4 bedroom towns in northern Brampton were going for well under a million in 2021.
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evandyk
Senior Member
He qualified for a mortgage for a $1.9M home that was only $5,000 a month? Which could now be $15,000 a month? I'm not sure all these numbers add up properly.
lenaitch
Senior Member
Plus putting $260K down (assuming that isn't financed as well). Uber and the other incomes must be doing well.
I do feel somewhat sorry for people in this situation, but a pre-construction contract; signing up to buy a home that only exists on paper, is little different than investing in the futures market.
kEiThZ
Superstar
The price is nuts. There's obviously more to the story than being an Uber driver. The story is that this person took on a jumbo mortgage of $5k/month expecting 2% rates to be constant. That was crazy. And there's a lot more of these people out there.
slickpete83
Active Member
they probably used fake info on the paper work , think about it even at 2% , they stress test u at like 5% , right now fixed rate is 5.5% , how the heck did they the pass the stress test without cheating lol...
kEiThZ
Superstar
Or they went to a private lender with no stress test......
slickpete83
Active Member
no private lender will give you 2% or qualify you with that down payment, maybe more like +12% , at that point his payment would be +$17000/mth lol...
maybe there is more to the story then we know about..
kEiThZ
Superstar
To be fair, this was pre-con. So no mortgage at the time. I'm going to guess that he moved some money over from India. Figured he could do a flipcon here. Now he's stuck with no flip and finding out that the mortgage will be a five digit payment at current rates. The greed is incredible.
slickpete83
Active Member
what a great deal , you don't even have to leave your bed to go to the washroom 
