Nearly 1 out of 2 of home buyers in California chose interest only loans last year according to LoanPerformance.com.
That’s a staggering number of people who would rather own a pricey house than pay off a cheaper one.
Could this happen in Canada? Vancouver? Calgary?
Well maybe not to that extent but Canadian Lenders are clearly gearing up to satisfy our desires for lower payments and pricier homes. CIBC, for one, expects "high risk" mortgages to grow 50% a year in Canada.
Do we think this increased buying power will lead to higher Canadian home prices after our little correction? Well, assuming the economy doesn’t tank, we’d be lying if we said "no."
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