That was pretty painful to read when it popped up earlier today.
S.
Moderators: sky's the limit, sepia, Sulako, lilfssister, North Shore, I WAS Birddog
That was pretty painful to read when it popped up earlier today.
Um, no. That's some shitty rhetoric. If you believe that you betray very little experience with financial advisers. The vast majority are nothing more than salespeople with zero ability, experience, training, or any relevant qualities whatsoever to actually offer financial advice of value. At best they may do your situation no harm, at worst they will lose everything you allow them to manage or advise on. The few good ones? A different story, but not accessible to most people.
Complex:complexintentions wrote: ↑Fri Dec 21, 2018 9:35 am
hey rookie, if you have such contempt for pilots ability to assess macroeconomics, how about offering your own pearls of wisdom? So far you've only offered insults, nothing of value. Or is it just easier to take cheap shots and run away from stating your own opinion in fear it is as useless as everyone else's?
True I did spend most of my life in the flying industry and did very well in it because I flew in specialised sectors of the business such as Ag. flying, fire suppression, the TV industry and the movie industry and spent eight years the air show circuit in Europe so I did quite well.As far as pilots, shame you see the profession you've spent your whole life in so poorly, though. Same old, same old - pilots with low self esteem!
Not for the folks who've bought in and are mortgaged to the teeth, they're f'd.piperdriver wrote: ↑Sun Dec 23, 2018 7:48 am Falling house prices might not necessarily be a bad thing in over heated markets like the GTA and Vancouver.
Can't speak for Toronto, but for those of us with an 'average' income in the Lower Mainland, prices will have to drop ~40% to bring them back to 'affordable' - and that's a huge kick to the net worth of a lot of people.piperdriver wrote: ↑Sun Dec 23, 2018 7:48 am Falling house prices might not necessarily be a bad thing in over heated markets like the GTA and Vancouver.
See, I've never really understood that. What does it matter that the value of your house goes up or down 50%? You are living in there. Your mortgage payments are not affected by the changing value of your house. So how does it affect your lifestyle?7ECA wrote: ↑Sun Dec 23, 2018 11:59 amNot for the folks who've bought in and are mortgaged to the teeth, they're f'd.piperdriver wrote: ↑Sun Dec 23, 2018 7:48 am Falling house prices might not necessarily be a bad thing in over heated markets like the GTA and Vancouver.
Which bank is going to lend you 500k on a 250K property? Let me know I'm interesteddigits_ wrote: ↑Sun Dec 23, 2018 1:00 pmSee, I've never really understood that. What does it matter that the value of your house goes up or down 50%? You are living in there. Your mortgage payments are not affected by the changing value of your house. So how does it affect your lifestyle?7ECA wrote: ↑Sun Dec 23, 2018 11:59 amNot for the folks who've bought in and are mortgaged to the teeth, they're f'd.piperdriver wrote: ↑Sun Dec 23, 2018 7:48 am Falling house prices might not necessarily be a bad thing in over heated markets like the GTA and Vancouver.
It may feel sucky and sour to pay off a 500k mortgate if your house is only worth 250k, but it shouldn't affect the ability to put food on the table or drag you into poverty because you can't pay your mortgage anymore.
What am I missing?
The catch is when the time comes to renew your mortgage after the X year term of the mortgage. I believe the bank you currently hold your mortgage with is pretty much stuck to renew you but you will never be able to switch lenders so you are going to get an awful interest rate.digits_ wrote: ↑Sun Dec 23, 2018 5:45 pm But how is that relevant? The moment your mortgage gets approved, the bank uses the current 500k value of your house. One year later, the house is only worth 250k. How does that @#$! up your life? The bank already approved the mortgage, and your income and payments didn't change. What's the catch?
Huh? No bank is ever obligated to renew you. They can demand repayment in full after the term is up, if they don't like the loan.fish4life wrote: ↑Sun Dec 23, 2018 6:00 pmThe catch is when the time comes to renew your mortgage after the X year term of the mortgage. I believe the bank you currently hold your mortgage with is pretty much stuck to renew you but you will never be able to switch lenders so you are going to get an awful interest rate.digits_ wrote: ↑Sun Dec 23, 2018 5:45 pm But how is that relevant? The moment your mortgage gets approved, the bank uses the current 500k value of your house. One year later, the house is only worth 250k. How does that @#$! up your life? The bank already approved the mortgage, and your income and payments didn't change. What's the catch?
I'd suggest that the issue would be the decrease in equity, while the debt load remains the same. The other issue is that people have gotten into the overinflated housing market with some hope that while they bought high, they could sell even higher... Instead, you bought high then the market corrects and you're stuck with a large mortgage on a home/land that is worth a lot less.digits_ wrote: ↑Sun Dec 23, 2018 1:00 pm See, I've never really understood that. What does it matter that the value of your house goes up or down 50%? You are living in there. Your mortgage payments are not affected by the changing value of your house. So how does it affect your lifestyle?
It may feel sucky and sour to pay off a 500k mortgate if your house is only worth 250k, but it shouldn't affect the ability to put food on the table or drag you into poverty because you can't pay your mortgage anymore.
What am I missing?
they aren't obligated to renew you but if they have a 500K loan on a house worth 250K and don't renew you, followed by you defaulting and then they are stuck with a 500k liability on a 250k asset. A bank would rather renew the loan and have you continue paying the 500K loan.rookiepilot wrote: ↑Sun Dec 23, 2018 6:48 pmHuh? No bank is ever obligated to renew you. They can demand repayment in full after the term is up, if they don't like the loan.fish4life wrote: ↑Sun Dec 23, 2018 6:00 pmThe catch is when the time comes to renew your mortgage after the X year term of the mortgage. I believe the bank you currently hold your mortgage with is pretty much stuck to renew you but you will never be able to switch lenders so you are going to get an awful interest rate.digits_ wrote: ↑Sun Dec 23, 2018 5:45 pm But how is that relevant? The moment your mortgage gets approved, the bank uses the current 500k value of your house. One year later, the house is only worth 250k. How does that @#$! up your life? The bank already approved the mortgage, and your income and payments didn't change. What's the catch?