those people did qualify at stress rates equal to what lending is now but that was 3-5 years ago. wages havent gone up and costs to live have gone up quite a lot since then too. I think mortgage renewal will hit people harder than you think. Also factor in all the people with more than 1 mortgage, heloc, perhaps even a negative cash flow rental or Airbnb they cant rent anymore. Things are worse than advertised
Thank you for watching and for the comment. The vast majority of mortgages in the Kelowna area are around $400,000. When these people renew at $350,000 on a mortgage where they originally signed at 5 year fixed rate at around 5.34%, their payments will actually go down, not up. Here is a website that will show you the prime lending rates as well as the 1, 3 and 5 year fixed rates since 1975: wowa.ca/canada-mortgage-rates-history I'm not guessing when I talk about these numbers, it is the people on the variable rates that have been hit the hardest, it won't be the ones on the fixed at maturity. The ones on fixed rates who will be renewing in 2024 and 2025 from purchases in 2019 and 2020 respectively may walk into the same rate they have....that being said, noone can predict what the rates are going to be. Who in the hell saw a 4 point jump inside of 12 months coming? Crazy times!!
Great video, keep them coming! Very interesting.. RBC report out says that only 10% of British Columbians can afford a SFH (likely even less in Kelowna). I did a survey in one of my FB groups asking how many people would qualify to buy the house they currently live in - answer was 0%! If Q3 2023 in Kelowna saw 50% buying with a conventional mortgage, only 10% with CMHC, and an astounding 40% buying in CASH!?!? This explains why almost no first time buyer could ever afford to live here without massive equity, and why prices have not plummeted already, with buyers with boat loads of cash (money laundering?) continuing to prop up the market. Truly sad state of affairs for locals as the entire city becomes an unaffordable gentrification zone.
Thanks for the comment. First time buyers will have options in the condo market but will take a long time before they have an opportunity to move up to the single family market. It would be a progression into the townhouse market and maybe eventually into a SF. Not like a city like Calgary where you can get into a SF home for the price of a condo here. I also appreciate the compliment.
+100% is not click bait? You lose credibility when you claim you 100% stand by your predictions....nobody understands what the market will do right now with inflation, economy, interest rates, etc. How credible are you to claim you know more than anyone else? So you're saying that higher interest rates are covered by those who need to refinance because the banks vetted them....yeah, I don't think they expected these rates and they definitely didn't take into account the current inflation rates or did they take into account the stagnant economy. You think people aren't struggling with payments and there won't be any issues with foreclosures....right. But, if there are issues and you add those people who invested for AirBnB purposes.... those numbers can rise. You conveniently utilized data that help your narrative and expect people to trust your predictions? ok
Haha. I lose credibility when I say I stand behind what I say? Ok. Thanks for the comment and the insight. I base these predictions on 17+ years in real estate, in THOUSANDS of hours in analyzing the stats and the market and not just here in Kelowna but also in Calgary. The statistics and where interest rates are heading do NOT suggest a foreclosure apocalypse, they just don't. And I'm not the only one saying this, there are economists and mortgage brokers saying the same thing. And ya, is 111% designed to get you to watch the video? Of course...it worked didn't it? Thanks for watching, I appreciate your stance. 😉
It’s ok to use click bait but don’t mock someone else when they do the same… makes sense right? You think 17 years as working as an agent gives you credibility? There’s a difference between experience and knowledge. As I said, using specific data to support your narrative and ignoring other data that disputes it just shows that you’re predictions aren’t credible. But, if it floats your boat…sail on captain!
![Living in Kelowna BC | 10 Things You MUST Know Before Moving Here! [2024]](http://i.ytimg.com/vi/N68Lcg2YdKM/mqdefault.jpg)
those people did qualify at stress rates equal to what lending is now but that was 3-5 years ago. wages havent gone up and costs to live have gone up quite a lot since then too. I think mortgage renewal will hit people harder than you think. Also factor in all the people with more than 1 mortgage, heloc, perhaps even a negative cash flow rental or Airbnb they cant rent anymore. Things are worse than advertised
Thank you for watching and for the comment. The vast majority of mortgages in the Kelowna area are around $400,000. When these people renew at $350,000 on a mortgage where they originally signed at 5 year fixed rate at around 5.34%, their payments will actually go down, not up. Here is a website that will show you the prime lending rates as well as the 1, 3 and 5 year fixed rates since 1975: wowa.ca/canada-mortgage-rates-history
I'm not guessing when I talk about these numbers, it is the people on the variable rates that have been hit the hardest, it won't be the ones on the fixed at maturity. The ones on fixed rates who will be renewing in 2024 and 2025 from purchases in 2019 and 2020 respectively may walk into the same rate they have....that being said, noone can predict what the rates are going to be. Who in the hell saw a 4 point jump inside of 12 months coming? Crazy times!!
Great video, keep them coming! Very interesting.. RBC report out says that only 10% of British Columbians can afford a SFH (likely even less in Kelowna). I did a survey in one of my FB groups asking how many people would qualify to buy the house they currently live in - answer was 0%! If Q3 2023 in Kelowna saw 50% buying with a conventional mortgage, only 10% with CMHC, and an astounding 40% buying in CASH!?!? This explains why almost no first time buyer could ever afford to live here without massive equity, and why prices have not plummeted already, with buyers with boat loads of cash (money laundering?) continuing to prop up the market. Truly sad state of affairs for locals as the entire city becomes an unaffordable gentrification zone.
Thanks for the comment. First time buyers will have options in the condo market but will take a long time before they have an opportunity to move up to the single family market. It would be a progression into the townhouse market and maybe eventually into a SF. Not like a city like Calgary where you can get into a SF home for the price of a condo here. I also appreciate the compliment.
You are probably right, but this makes it very tough for those moving here and want to start families.@@livelovekelowna
No doubt about it. Not sure my kids will come back here after College...BC sure does live up to its reputation!!
Yes, yearly Income to house price ratio can go higher 😂😂😂
+100% is not click bait? You lose credibility when you claim you 100% stand by your predictions....nobody understands what the market will do right now with inflation, economy, interest rates, etc. How credible are you to claim you know more than anyone else? So you're saying that higher interest rates are covered by those who need to refinance because the banks vetted them....yeah, I don't think they expected these rates and they definitely didn't take into account the current inflation rates or did they take into account the stagnant economy. You think people aren't struggling with payments and there won't be any issues with foreclosures....right. But, if there are issues and you add those people who invested for AirBnB purposes.... those numbers can rise. You conveniently utilized data that help your narrative and expect people to trust your predictions? ok
Haha. I lose credibility when I say I stand behind what I say? Ok. Thanks for the comment and the insight. I base these predictions on 17+ years in real estate, in THOUSANDS of hours in analyzing the stats and the market and not just here in Kelowna but also in Calgary. The statistics and where interest rates are heading do NOT suggest a foreclosure apocalypse, they just don't. And I'm not the only one saying this, there are economists and mortgage brokers saying the same thing. And ya, is 111% designed to get you to watch the video? Of course...it worked didn't it? Thanks for watching, I appreciate your stance. 😉
It’s ok to use click bait but don’t mock someone else when they do the same… makes sense right? You think 17 years as working as an agent gives you credibility? There’s a difference between experience and knowledge. As I said, using specific data to support your narrative and ignoring other data that disputes it just shows that you’re predictions aren’t credible. But, if it floats your boat…sail on captain!
@@myt1soo320 Thank you for continuing to comment and for watching.
@@myt1soo320 Youre confusing standing by ones predictions and standing buy what one knows will happen..lol