Quote:
Originally Posted by Harvey Specter
So a friend who's in the mortgage business told me that Vancity deferred mortgage payments on 7000+ properties. According to him, around 60% have told Vancity they can pay interest only payments next month whilst the remaining 40% can't. The amount of deferrals is a huge number considering the size of Vancity.
He also said the bigger banks have even higher deferrals and predicts lending will get even tougher in the months to come. He was also telling the amount of debt some people are carrying is insane and there's no way he can even get banks to remortgage clients because the ratios are so bad and banks are now factoring in declines in RE even though publicly they keep claiming everything is fine. He's expecting for the first time in a long that we'll start to see foreclosures in the coming months.
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Interestingly, a friend in the mortgage brokering business told me this:
It actually makes no sense for banks for foreclose right now, there's a TON of mortgage deferrals, but apparently owners do have approx a year to pay back, so worst case the owners will reduce prices slightly and sell.
There is a huge influx in applications given the July 1 deadline
It's a long shot but some people in my brokerage are speculating that the gov't may end up somewhat decreasing the foreign home buyer restrictions to probe economy