Comments on: Canadian “Systemic Risk” Due To CLP Mortgages Is Bigger Than You Think https://betterdwelling.com/canadian-systemic-risk-due-to-clp-mortgages-is-bigger-than-you-think/ Canada’s Fastest Growing Real Estate News Source Wed, 13 Dec 2023 02:11:04 +0000 hourly 1 By: Cory https://betterdwelling.com/canadian-systemic-risk-due-to-clp-mortgages-is-bigger-than-you-think/#comment-92986 Wed, 13 Dec 2023 02:11:04 +0000 https://betterdwelling.com/?p=24430#comment-92986 Smith manoeuvres for the purpose of investing in the stock market are definitely a big portion of it, but I’d assume there are plenty of others using the credit to purchase investment properties.

]]> By: Paul https://betterdwelling.com/canadian-systemic-risk-due-to-clp-mortgages-is-bigger-than-you-think/#comment-92985 Wed, 13 Dec 2023 01:24:10 +0000 https://betterdwelling.com/?p=24430#comment-92985 I think an important take away is the amount of individuals that were trying to pay down their mortgages faster by using the CLP to invest in the stock market thus being able to write off the interest through deductions come tax time. Online when I pressed those individuals about possible future outcomes (namely being higher rates, lower house values, and a falling stock market) they dismissed them as not important or an improbably future timeline that wouldn’t affect their bottom line. Those involved with the “smith manoeuvre” had a chance about a year ago to pull out and take a hit and avoid the catastrophic end that is surely coming. My guess is the numbers going up is the bill going unpaid. Anyone else have any thoughts on this?

]]> By: Patiently Waiting https://betterdwelling.com/canadian-systemic-risk-due-to-clp-mortgages-is-bigger-than-you-think/#comment-92982 Tue, 12 Dec 2023 21:06:19 +0000 https://betterdwelling.com/?p=24430#comment-92982 The author forgets to mention the Federal government’s involvement and willingness to keep this scheme going by directing Banks to extend mortgages for insured borrowers. They only just figured out in Sep we’re having a housing crisis.
When will this bubble pop? I don’t believe this can go on much longer.

]]> By: Scott MacKinnon https://betterdwelling.com/canadian-systemic-risk-due-to-clp-mortgages-is-bigger-than-you-think/#comment-92979 Tue, 12 Dec 2023 20:04:02 +0000 https://betterdwelling.com/?p=24430#comment-92979 “….we have discovered a great social secret in Canada. We have contrived to solve problems which would ruin other countries merely by ignoring their existence.”- Hugh MacLennan. Two Solitudes.

]]> By: Ron Bruce https://betterdwelling.com/canadian-systemic-risk-due-to-clp-mortgages-is-bigger-than-you-think/#comment-92978 Tue, 12 Dec 2023 20:03:24 +0000 https://betterdwelling.com/?p=24430#comment-92978 It sounds like a Ponzi scheme, and banks approve it. Several large Canadian Banks have been fined for money laundering in the past months in the $Billions of dollars. No executives were reported as going to jail. However, their clients and depositors will unknowingly pay the fines over the next few years.

Section 462.31 of the Criminal Code makes it an offence for you to be INVOLVED IN ANY WAY with the laundering of the proceeds of crime, such as using, transferring or transporting funds raised through criminal activity.

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