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    Laut BoC werden fast 10 % der Hypothekeninhaber in Toronto nächstes Jahr keinen Anspruch auf eine Refinanzierung haben

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    1. cyclinginvancouver on

      Nearly one in 10 mortgage holders in the Toronto area won’t be able to refinance their loans or renew them with a new lender in 2027 if home prices remain at current depressed levels, according to a Bank of Canada report.

      The central bank’s financial stability report, released late last month, estimates 9 per cent of borrowers in the Toronto region could not qualify to refinance their loans next year. Nationally, the bank estimates the level to be 4 per cent.

      That’s because these borrowers’ property values have fallen significantly since they got their mortgage. These borrowers will not be able to take equity out of their home to pay down debts – one way of refinancing a loan.

      They also will not be able to refinance their loans in other ways, such as lengthening the time it takes to pay back the loan or simply renewing a mortgage with a different lender.

      If borrowers are not able to pursue these options,that may eventually lead them to miss mortgage payments.

    2. Uncertn_Laaife on

      Been hearing this since time
      Immemorial year over year. They’d just refinance with the same bank. Boo hoo!

      Nothing happens barring a handful of unnoticeable forclosures.

      It’s the same as Technology would replace humans, yet her we are graduating thousands of people and almost all
      are working (unemployment is what, 6-7% may be 9%?), barring some unnoticeable jobs that go to AI. People transition to learn AI and move into those professions instead, so they remain employed.

      Unpopular and will be downvoted but that’s how it is. Just look around.

    3. AJMGuitar on

      Your current lender doesn’t usually make you requalify if you’ve made your payments.

    4. huy_lonewolf on

      So the vast majority of the borrowers (more than 90%) will not have any issue with refinancing? That seems like a very resilient market to me.

    5. rorskies on

      Why are they refinancing? Just renew.

      How is this news? The market doesn’t appreciate, you typically can’t refinance a bunch of money out. What am I missing here.

    7. JoshL3253 on

      Paywalled.

      What’s the reason? People losing their jobs or making less money? I don’t think the rates have increased, right?

    8. Inevitable_Butthole on

      Ya they will

      You just stretch it over a longer term.

      Nothing but doom and gloom

    9. VanCityPhotoNewbie on

      Because they won’t be able to refinance with a different lender due to the value of their property decreasing from the initial purchasing price. So 10% of homeowners have property that are a depreciating asset is essentially what this headline is saying.

      That isn’t a big deal and for the banks, it means they have them by the balls and they have no choice but to refinance with their current bank.

      It is only an issue if they cannot pay. Then it is a major issue. Like if a bunch of people in toronto lost their job, couldn’t pay, then it is a serious issue. The bank can only do so much but they can’t „adjust“ much on payments on a mortgage that became a depreciating asset.

      For those people there is no room to „maneuver“ payments because there is negative equity. For someone who has a more well established mortgage position, the banks have room to help. But not for some of these properties bought in 2022-24 and have collapsed in price.

    11. MDFMK on

      The only real issues is the bank or financial borrower has no incentive to offer a decent rate or going rate at the time. The bank will
      have a good idea of who is exposed and who isn’t and will treat those clients accordingly.

      The larger issue is these people across canada who speculated and over-leveraged have to experience wealth destruction at some point. Over leveraging income and excessive debt is the underlying issue and until people learn and deal with hard lessons and experience wealth destruction it is unlikely their personal spending habits will change and the larger economic reality still needs to come back to reality. I would think this issue is far wider then just Toronto and it’s that wider implication people should
      be worried about.

      If the banks are smart they will offer rates at 1-3% over the going rate for these individuals and extend the mortgage terms to 30 years and make money hand over fist on those who have created a poor fiscal situation.

    14. SomewhereStreet7423 on

      So no more shopping around at renewal time. They will be stuck with their current lender at the rates their lender sets out. Since most homes are undervalue to what their mortgage currently is will make it harder to refinance. Especially now, when the feds have official called a recession, meaning the BoC will start raising rates like they have whenever a recession is officially declared by the feds.

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