Home owners overleveraged and can't get their finances in order
lol, just read an article over this weekend that stated:
According to CRA, of the 1,768,640 individuals who had a Home Buyers’ Plan balance owing at the start of 2013, 885,700 did not pay the full required annual repayment that year.
http://www.macleans.ca/politics/ottawa/ ... s-promise/
This just proves how overleveraged and house broke those who bought into this environment are. They're stretched so thin that they can't even repay the HBP. Combine that with a small interest rise or a small rise in unemployment, the entire house of cards will come crashing down as tons of people flock to sell.
Is anybody else surprised by how thin most home owners are stretched, to the point where they can't even repay the HBP?
According to CRA, of the 1,768,640 individuals who had a Home Buyers’ Plan balance owing at the start of 2013, 885,700 did not pay the full required annual repayment that year.
http://www.macleans.ca/politics/ottawa/ ... s-promise/
This just proves how overleveraged and house broke those who bought into this environment are. They're stretched so thin that they can't even repay the HBP. Combine that with a small interest rise or a small rise in unemployment, the entire house of cards will come crashing down as tons of people flock to sell.
Is anybody else surprised by how thin most home owners are stretched, to the point where they can't even repay the HBP?