pablo picasso - poor people on the shore (1903)I came across a poll (results below) on my ISP's home page yesterday that asked about the amount to which people are mortgaged, and I was a bit surprised at the low levels reported. It is definitely a questionable result, as it is possible to vote as many times as you want, so things could be dramatically skewed. Further, there is no regional break-down, and the sample size was not reported. Interesting none-the-less though.
The poll disappeared today, but it is to note that they had a poll about the dispute between Rosie O'Donnell and Donald Trump (I haven't a clue about that) that lasted for five or six days. Weird priorities...
the poll
The hot housing market in Western Canada, in particular, has forced many to take on large mortgages. How big is your mortgage?
9% More than $300,000
13% More than $200,000
24% More than $100,000
31% Less than $100,000
15% I rent
5% I live for free with family
Is this believable?
Addendum -
Mohican has a good post on "liar mortgages", or "stated income" approved mortgages. When I was pre-approved (by a bank and a broker) I needed to supply my notice of assessment from Rev. Can. The bank offered me way more mortgage than I would ever even think of taking, and the broker was more stringent (or stingy?).
I do know someone who forged a T4 slip to get their first mortgage. He went on to foreclosure and divorce.
6 comments:
Re mortgage balances: don't forget that the great majority of owners in Vancouver bought either their current house, or already owned another house, before the current boom began. That's why most people carry balances under 300K.
Don't confuse averages with the margins.
I think a lot of people who are getting these large mortgages will regret it later.
I was very excited when I bought my first house. Reality came back into play about a year after making payments.
After 8 years I am very cautious about how much I plan on spending on my next house.
There is more to life than a mortgage payment. A large mortgage can take away your life.
Thanks for the plug man. I feel that my best analysis yet is available on my blog today.
Also, how many flippers would answer this question at all considering their investment property debt as their mortgage? When aligned with "I rent"? What if they're, in fact, renting their own digs? If flippers hold the keys to many condos, then this might be very realistic for owner/occupiers.
Patriots beat me to it. What he said.
There has certainly been a drop in the number of people getting mortgaged, and as mortgage rates keep increasing (as they are doing at the moment) then I can't see the housing market recovering any time soon. A lot of people might be looking at mortgage bonds in order to secure their mortgage in case the market suffers another blow.
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