06-05-2022, 01:41 AM
(06-04-2022, 09:40 PM)dtkvictim Wrote: Higher interest rate means lower asset price, now it's much easier for my income (which never inflates) to save for a down payment. It generally also means higher GIC returns and higher savings account rates, making saving far more stable and risk free. At lower rates I'm pissing away my savings to inflation, or putting them into far less predictable index funds.
I wonder what house prices would be like if there was no such thing as a mortgage?
I’m not advocating for this, but I’d love to know as a matter of curiosity.
This also relates to why government programs to try to make housing affordable by making it easier to get a mortgage are ultimately unhelpful: they just re-arrange who can qualify to purchase a property, without doing much to cause an actual increase in the amount of construction.