In reverse

 – hugo_the_newfie photo

The news yesterday was that half of Canadians are two hundred bucks from monthly insolvency. But how does that square with a home ownership rate of 70.6%? Or eighty per cent for the disintegrating Boomers? How can people own real estate – which is so damned expensive – and be running out of money? Doesn’t everyone without a house think getting one is the key to security?

It’s the irony of our times. People want stuff. Liquidity scares them. They don’t really think about the benefits of a pile of financial assets until they stop working. Most people have no corporate pension. Nobody can live happy on the government pogey. So retiring with a house and no stash sucks.

No wonder there’s a reverse mortgage boom.

This credit growth is ten times faster than with regular mortgages. Yikes. The outstanding amount will pass $4 billion in 2019, up about 30% year/year. The size of that pile of money has doubled in just three years, and at this rate it will skyrocket in the coming decade. A lot of old farts, in other words, are plunging headlong into very expensive debt after a lifetime of paying it off. So something is clearly amiss.

A reverse mortgage is simple. You get a bag of money to spend on anything and never have to pay it back. In return the lender goes on the title of your house and charges you interest and fees that you never really see. So over time the debt grows – the opposite of a conventional mortgage. The money is eventually returned to the lender when you sell the property or croak, in which case your estate pays.

The advantage is tax-free funds and no payments. The disadvantage is you’re eating up your real estate equity every month. For example, a 70-year-old living in a paid-for $1 million house, qualifies for a reverse mortgage of about $350,000. If that cash lasts for ten years of expenses, at age 80 the reverse mortgage debt will have grown to $670,000. Seven years later it will top $1 million. The heirs will be pissed.

Now, some people are doubtlessly happy with this kind of loan. It papers over the fact they were financially dodgy, plus they get to stay in their home and turn equity into groceries. They also avoid moving into a rented condo one floor above a Mill smoking doobies all day. But, of course, this is a loan of last resort. No reasonable, clear-thinking little old senior would enter their seventh decade with all their wealth in one asset which costs money and pays no income.

The reverse mortgage lender of choice in Canada is HomeEquity Bank. Its customer base starts at age 55 and the amount loaned is impacted by age, house type, value and location. The interest rate on a conventional mortgage may be sub-3% currently, but the geezers are being Hoovered for more than twice that amount – currently over 6.6%. The lender also calculates pay-out costs on a reverse mortgage then folds them into the annual charge. It’s a neat trick that adds about a third of a point.

Reverse mortgages come in two flavours – variable rate (the prime plus at least 2%) and fixed (to a max of five years, then reset at bank rates). Obviously a HELOC (line of credit secured by your home) is cheaper, but seniors living on CPP/OAS likely won’t be offered one by their bank. Nor should they be.

Well this week’s big news is a deal between HomeEquity Bank and the Legion. These days more than half the members are over the age of 65 and, the bank figures, ideal candidates for becoming clients. “We believe in supporting our Canadian Veterans who selflessly served. Enabling Canadians to live the retirement they worked hard for and deserve is part of our core values at HomeEquity Bank,” says CEO Steve Ranson, “which is why we are very excited about this partnership. We look forward to providing Legion members with the opportunity to retire the way they want and in the home they love.”

As stated, a reverse mortgage may work for some. But a predatory rate of interest, hidden charges, silent bloating of the debt obligation and estate destruction do not seem like a veteran’s just rewards.

Lest we forget. Even a bank.

152 comments ↓

#1 Stan Brooks on 04.23.19 at 3:55 pm

Poloz’s peso dives again

https://ca.finance.yahoo.com/news/why-the-next-move-for-the-bank-of-canada-could-be-lower-185158234.html

”With little in the way of underlying inflationary pressures, the Bank can afford to take a ‘wait and see’ approach.”

Lie after lie after lie. No inflation folks.

Four out of 10 economists in the group expect a rate cut in July. In fact, they expect the rate to go as low as 1.15 per cent before it increases again.

#2 PeterfromCalgary on 04.23.19 at 3:59 pm

I find that the more complex a financial product the more fees and extra costs often hide with in it. Also banks and other financial businesses tend to charge more to those who are the most desperate.

#3 Stan Brooks on 04.23.19 at 4:00 pm

https://ca.yahoo.com/news/commemorative-loonie-marking-apos-progress-080004559.html

Protect your behind, the French villa guy loves you…

#4 LarryB on 04.23.19 at 4:11 pm

Who better to screw over then our Vets?

Thanks Home Equity Bank, you are truly a Canadian corporate hero.

Any chance Bill Morneau is a shareholder?

I think the CEO mistook the word supporting for fleecing.

Predatory vultures is all Home Equity is. Avoid at all costs folks. SELL the house before giving it away to these estate thieves.

#5 Ron on 04.23.19 at 4:18 pm

Maybe I’m simple, but I don’t get the problem with reverse mortgages. You get a pile of money and the bank gets your house when you move into a cozy pine box.

The only ´victims’ are your undoubtedly ungrateful progeny who don’t deserve anything from you anyways.

Win-win

#6 Sovavia on 04.23.19 at 4:37 pm

Debt is modern-day slavery (everywhere in chains).

Do not see any political leaders who will stand up for the majority of the people; too many governments only represent the interests of the creditors (also why the Roman Empire fell).

Too much debt breaks the social bonds of a country.

“Neither a Borrower Nor a Lender Be” (Shakespeare)

#7 AGuyInVancouver on 04.23.19 at 4:38 pm

..Most people have no corporate pension. Nobody can live happy on the government pogey. So retiring with a house and no stash sucks.

No wonder there’s a reverse mortgage boom..
_ _ _
But there’s your answer. People are planning on their home funding their retirement.

#8 Anthony on 04.23.19 at 4:46 pm

“We look forward to providing Legion members with the opportunity to retire the way they want and in the home they love.”

“Until all the equity of their home is sucked out and we will kick them out to sell their home”

#9 NoName on 04.23.19 at 4:46 pm

The news yesterday was that half of Canadians are two hundred bucks from monthly insolvency.

Damn right we are! I just got lucky yesterday that wifi have secret accout, or i would be talking to trusty in bakrupcy…

#10 jess on 04.23.19 at 4:47 pm

victims?

Friday, December 21, 2018
Celink Agrees To Pay $4.25 Million To Resolve Its Alleged Liability Relating To Its Servicing Of Federally Insured Reverse Mortgages

https://www.justice.gov/usao-mdfl/pr/celink-agrees-pay-425-million-resolve-its-alleged-liability-relating-its-servicing

Dan Gilbert vows he will never settle Department of Justice mortgage lawsuit
John Gallagher, Detroit Free Press Published 6:00 a.m. ET Jan. 18, 2018 | Updated 12:06 p.m. ET Jan. 19, 2018

Sep 4, 2015 – The settlement was announced by the Justice Department Friday. According to the DOJ, Walter Investment subsidiaries Reverse Mortgage …

https://www.investopedia.com/articles/economics/09/fall-of-indymac.asp

Mnuchin and his partners at Dune Capital Management formed OneWest in 2009 after buying the remains of IndyMac Federal Bank from the Federal Deposit Insurance Corp. Dune Capital Management then sold OneWest and Financial Freedom, a reverse mortgage servicer owned by OneWest, to CIT Group in 2015 for a profit.Oct 9, 2017

https://www.housingwire.com/articles/43599-big-changes-at-cit-exits-reverse-mortgage-and-servicing-businesses

whistleblower tip from Sandra Jolley,
https://www.housingwire.com/articles/40137-mnuchins-onewest-subsidiary-agrees-to-89m-settlement-for-reverse-mortgage-violations
2017
https://www.justice.gov/opa/pr/financial-freedom-settles-alleged-liability-servicing-federally-insured-reverse-mortgage

#11 Shawn Allen on 04.23.19 at 5:00 pm

Revers Mortgages

As stated, a reverse mortgage may work for some. But a predatory rate of interest, hidden charges, silent bloating of the debt obligation and estate destruction do not seem like a veteran’s just rewards.

***********************************
Indeed 6.6% might be considered predatory… that is the only serious beef I would have with reverse mortgages. More competition is the answer to that but the big banks fear to enter the market because the mob REALLY hates reverse mortgages.

But didn’t Garth call I believe it was HSBC’s 1.99% rate predatory a few weeks back. Are both predatory?

Eating the competition and eating customers are two different things. – Garth

#12 AA on 04.23.19 at 5:05 pm

Had a chat with TD web broker today..asked about the trailing fee on the high interest savings mutual fund to keep some cash on the side as a percentage of the portfolio….. First answer was…well you don’t pay that so it shouldn’t matter… when I insisted…thr person had no clue..after holding for a good 10-20 mins …the answer FINALLY was .25%…but the focus initially was…why should you care..you don’t pay it…you get the interest Listed on the site…… thought would just mention it..that’s higher than my ETF MER’s

#13 Shawn Allen on 04.23.19 at 5:05 pm

Eat Your Equity More Slowly?

Don’t a lot of reverse mortgages pay out monthly rather than lump-sum at the start? That eats your equity much more slowly.

They can’t take the equity with them so I have no problem with seniors doing this. I’d just like to see lower interest rates. Leaving money for heirs should be far down the list of priorities. In many cases the heirs are middle aged or older so should have made their own way by now.

P.S. Someone mentioned the bank takes your house at the end. Myth. They just take back the equity they own. Residual value would go to the estate.

P.P.S Who would guessed 30 years ago, that today we would call a 6.6% mortgage rate in any way predatory?

#14 That is ... on 04.23.19 at 5:13 pm

disgusting. But not surprising.

#15 Cliff on 04.23.19 at 5:18 pm

So, when I look at things like GIC rates for example, Home Equity bank always gives a better rate than the established institutions. I’ve always avoided them because I associate them with risk, but your article may be saying they are actually a good investment as they can’t help but end up owning all of Canada’s real estate which they “purchased” at good prices. Yes?

#16 Hawk on 04.23.19 at 5:18 pm

What happens in a reverse mortgage if the house plummets in value. If say a $1 million house suddenly becomes worth $500K after the reverse mortgage deal is done theoretically it is the lender, not the boomer who is screwed.

But in actuality, I’d bet there’s something in the fine print that will enable the lender to slither out of the deal.

#17 NoName on 04.23.19 at 5:18 pm

i did mention twitter earler, didnt i

https://motherboard.vice.com/en_us/article/evynxw/twitter-ceo-jack-dorsey-meeting-president-trump

#18 FreeBird on 04.23.19 at 5:25 pm

Garth (sort of) with a southern accent. They agree on idea of reverse mortgages and stupid spending (but not on cars).
https://youtu.be/_c-WtWSnRzU

#19 Erich on 04.23.19 at 5:26 pm

#12 AA
The TD ISA is 1.6% right now vs say Tangerine and Simplii which were at 1.2% the last time I checked. I think Oaken is at 2.3%. It’s all relative. The MER on ETFs might be lower but I don’t think you’re going to find one where short term principle and interest are guaranteed.

Inflation is 2%. You lose. – Garth

#20 The Real Mark on 04.23.19 at 5:26 pm

“Reverse Mortgages”

The big problem with reverse mortgages is that if the lender ever believes that they’re underwater or nearing underwater on the loan, ie: the loan couldn’t be re-sold for a positive value, they have great incentive to send their inspectors to actually check the house out, and find reasons to consider the loan to be in a state of default.

Everyone knows that cash-strapped seniors, the sort that would take out a reverse mortgage, aren’t exactly the types of people who would maintain a house to pristine conditions. Especially at increasingly elderly ages. Yet that’s exactly what all reverse mortgage contracts demand, under penalty of technical default, that a house be maintained in pristine condition.

So basically, for the reverse mortgage lender, its a “heads, I win, tails, you lose” sort of situation. If financial markets remain such that financing a mortgage is a good investment, then the reverse mortgage lender collects a fairly good rate of interest. If financial markets change in such a way that financing a reverse mortgage is a bad investment, they simply find a reason to foreclose, liquidate the property, and move on.

Even the threat of such, which inevitably some lenders will be forced to undertake due to actual neglect of maintenance, could be profoundly destabilizing of an elderly person. Especially ones that may have alienated their kids by entering into a reverse mortgage in the first place instead of rationalizing their housing situation and personal spending up-front.

#21 LP on 04.23.19 at 5:31 pm

#6 Sovavia on 04.23.19 at 4:37 pm
“Neither a Borrower Nor a Lender Be” (Shakespeare)

But the Bible said it first and better!
Proverbs 22:7 The rich rule over the poor, and the borrower is slave to the lender.

#22 BlogDog123 on 04.23.19 at 5:36 pm

Notice a common theme from cradle to grave???:

Baby Vultures – predatory scholarship college savings plans (high fees, low returns, penalties to exit)

Payday loans – high fees

A certain Winnipeg Based Investing Group company… ‘Nuff said..

Reverse Mortgage – high interest rates, predatory on cash strapped seniors, fine print says we foreclose!

#23 The Real Mark on 04.23.19 at 5:38 pm

“#16 Hawk on 04.23.19 at 5:18 pm
What happens in a reverse mortgage if the house plummets in value. If say a $1 million house suddenly becomes worth $500K after the reverse mortgage deal is done theoretically it is the lender, not the boomer who is screwed.”

In such case, I would expect a lender to send their inspector (of which, the borrower has agreed to access and even to pay for the costs of such) to the property. The inspector, working for the lender, would then proceed to find defects in the maintenance of the property. After exchanging a bunch of letters, demanding that all the ‘maintenance’ be performed, and offering terms of a settlement, the bank serves notice upon the reverse mortgage borrower that the loan is in default. And proceeds towards the legal process of foreclosure.

With little money and probably not even a legitimate defense, the borrower in such a situation is probably forced out of ‘their’ house and into public subsidized housing. Or unfortunately, even assisted living or nursing care since such a sequence of events can have devastating physical and psychological consequences.

Meanwhile the banker probably gets the loan paid back as they are almost certain to initiate such a sequence of events *before* the loan is truly in negative equity.

“But in actuality, I’d bet there’s something in the fine print that will enable the lender to slither out of the deal.”

Bingo! Similar clauses are actually in nearly all Canadian mortgages, reverse or not. I personally predict that there may very well be a brisk market for bank-side home inspectors in the coming months/years.

#24 Duke on 04.23.19 at 5:42 pm

Anyone signs up for reverse mortgage is a fool. The easy way of living after retirement is selling the house and invest the money. Living in a rental home with a load of invested liquid asset is much better than living in a home you don’t technically own. Sometimes people think they have eternal lives.

#25 Duke on 04.23.19 at 5:45 pm

#20 The Real Mark on 04.23.19 at 5:26 pm

A must read for all who consider reverse mortgage.

#26 joe calgary on 04.23.19 at 5:46 pm

Despicable.

#27 Bob Dog on 04.23.19 at 5:56 pm

Isn’t the Legion filled with armed trained soldiers who have no issues with killing the enemies of Canada. Seems like risky bankster business to me.

#28 Smoking Man on 04.23.19 at 6:02 pm

Calling it.

Leafs will beat Boston 3 to 1

#29 dosouth on 04.23.19 at 6:03 pm

Reverse mortgages….predatory for sure but a great way to make sure you leave with what you came into the world with…

#30 Shawn Allen on 04.23.19 at 6:12 pm

Predatory Lending

But didn’t Garth call I believe it was HSBC’s 1.99% rate predatory a few weeks back. Are both predatory?

Eating the competition and eating customers are two different things. – Garth

*********************************
It seems I misunderstood who was the prey in the HSBC 1.99% mortgage – so it the other lenders not the borrowers. Well, no one minds someone eating the lunch of the big banks so good for HSBC on that offer.

#31 jess on 04.23.19 at 6:15 pm

Barr Has a History of Writing Summaries That Obscure the Truth
A 1989 memo Barr wrote summarizing the “principal conclusions” of a D.O.J. ruling apparently left out several of those principal conclusions.

William Barr in 1989 as assistant attorney general, declared documents sought by Congress to be confidential and offered his personal summary instead, only to have his ruse exposed years later when the real document was released.

https://www.theguardian.com/us-news/2019/apr/18/william-barr-attorney-general-profile-trump-obstruction-of-justice
by Bess Levin

April 16, 2019 6:37 pm

https://www.vanityfair.com/news/2019/04/william-barr-mueller-report-summary

#32 Oakville Stinks on 04.23.19 at 6:24 pm

#1 – Stan Brooks

Negative interest rates, here they come. In fact the government knew this and prepared for it by passing certain laws prior to Poloz fictitiously raising rates in the name of a “good economy.” Not a coincidence!

Economy is burning up and the roof is on fire!

#33 Shawn Allen on 04.23.19 at 6:34 pm

#32 Oakville Stinks on 04.23.19 at 6:24 pm
#1 – Stan Brooks

Negative interest rates, here they come. In fact the government knew this and prepared for it by passing certain laws prior to Poloz fictitiously raising rates in the name of a “good economy.” Not a coincidence!

Economy is burning up and the roof is on fire!

**************************************
Well, the stock markets (okay ETF equity markets for Garth) have certainly been on fire! Oh, did you and Stan miss out?

#34 Drill Baby Drill on 04.23.19 at 6:39 pm

Carbon tax + higher gasoline prices = Inflation

Carbon Tax will add costs to absolutely everything including municipal taxes.
Move along folks no inflation to see here.

#35 acdel on 04.23.19 at 6:41 pm

You are hitting them out of the ballpark this week Garth; great advice or commentary; hopefully those Mill, Gen-X and boomer tokers are reading this. :)

#36 Drill Baby Drill on 04.23.19 at 6:42 pm

If the statement “50% of Canadians within 200 bucks of being broke” is even remotely accurate then we are in very serious trouble. I thought it was “Sunny Days”?

#37 Penny Henny on 04.23.19 at 6:42 pm

#235 rosie on 04.23.19 at 3:09 pm
#215 Penny Henny

Toronto, Vancouver, Calgary, Montreal and everywhere in between had the numbers out within the first week of April. Niagara took 3 weeks and got the date wrong. I wonder if they got any thing else wrong. It’s a pretty small area, population wise.
////////////////

Rosie please tell me do you think they are incompetent, lying or just making it up.
Or more maybe it is conspiracy????????
Maybe the ‘one person’ they have available to make these extremely difficult calculations was in the Dominican the last week. Usually the report is out just before mid month.

#38 Drill Baby Drill on 04.23.19 at 6:44 pm

Selfie Boy and Enviro Barbie are currently polishing up their “Polution Tax” speeches just as every one is going broke.

#39 Keith on 04.23.19 at 6:52 pm

What is the best way to invest in reverse mortgage lending and score a sweet return?

#40 Doghouse Dweller on 04.23.19 at 6:53 pm

#19 Erich
#12 AA

The TD ISA is a mutual fund structure not an ETF. Its primary purpose
is for short term trading cash that pays interest. If you have cash in your trading account you get zip,zero, nada.

If you used a iShares Premium Money Market ETF you would pay $9.99
in and out and only get 1.61% with a 0.28% fee.

Canada 5-Year Bond Yield
1.564 %. Peso Poloz and company will make sure you loose no matter what you do.

#41 Mayer Winthorpe on 04.23.19 at 6:54 pm

Easy way to neutralize inflation every year. Just give 2% less to charity. Sorry had to say it. We are getting carbon taxed to death here!

#42 Paul C. on 04.23.19 at 6:58 pm

Reverse mortgages are ugly because they place all the risk on the borrower.

Seniors have no obligation to leave an inheritance (especially after supporting kids at home into their 30s!), but need a fairer way to cash out.

The French ‘Viager’ system is much better – a deferred sale that gives the seller a lump sum, monthly income, and the right to stay in their home for life.

Of course, the price reflects this (about 50% at age 70), but the opportunity of a win-win for seller and buyer.

And not a sleezy bankster in sight!

#43 Long Branch Apprentice on 04.23.19 at 7:00 pm

I’ve been patient so far, still renting and investing.

Can’t wait to be even more patient with a big juicy reward in my future. Which aging Boomer who took on heaps of debt will be my gracious donor?

Just a matter of time, which a commodity Boomers don’t have much of.

I’ve sacrificed my comfort and wants by thinking about my future self, something I’ll try to deeply instill in my son.

#44 Dazed and CONfused on 04.23.19 at 7:00 pm

Seems these days everyone wants a piece of the action cozying up to our ‘vets who selflessly served’, all the while pocketing the proceeds from their dubious ‘partnerships’.

“….Environment and Climate Change Minister Catherine McKenna announced Monday that the government is giving Loblaw Companies Ltd. $12 million to install lower-emission refrigeration systems in 370 of its stores. (the same Loblaws that has engaged in illegal price-fixing, and scammed $400 million in tax fraud).

“…Why are we still fighting certain veterans groups in court? Because they’re asking for more than we are able to give right now,” Trudeau said (Feb 01, 2018)

Makes me want to vomit.

#45 Penny Henny on 04.23.19 at 7:05 pm

Its customer base starts at age 55 (the younger you are the bigger the loan),-GT

Don’t you mean the smaller the loan?

No. – Garth

#46 genbizx on 04.23.19 at 7:21 pm

Moral hazard-ish situation..punish savers and those who are responsible with debt and reward people who couldn’t handle a rise in rates with…drumroll…a rate cut! I’m sure it will be no change status quo but nothing would surprise me. Never mind that a small rise in rates is really the proper course of action. What a complete breakdown of policy.

#47 acdel on 04.23.19 at 7:31 pm

Smoking Man, this one is for you.

https://www.youtube.com/watch?v=2j3wBldVBHo

Sigh, as my Flames fizzled out I will be cheering for the only Canuck Team out there; let us hope your prediction is correct!

#48 Bob Dog on 04.23.19 at 7:32 pm

When these veterans are facing financial ruin due to financial terrorism, will it be sufficient to casually state that no laws have been broken? Some of these people spent years fighting Nazis. Stealing is still stealing regardless of how a corrupt government labels it.

#49 Mike on 04.23.19 at 7:32 pm

Disappointed in yesterday’s post Garth. You missed a few key facts, including:

– The yellow vest movement is in it’s 20th week and supported by more than 80% of French citizens, some of the highest taxed in the EU (5th overall). It was a visceral reaction to yet another gas tax, all under the banner of environmentalism.

– The election of a comedian is no different than that of a TV celebrity. People are growing tired of ever increasing taxes with diminishing returns and the rise of the “third party” is a global phenomenon, not just one locale or the next. It’s why Duterte, Trump and Notley all came to power;

– The carbon tax is a sham and serves no purpose than to fill government coffers. It does nothing for the environment or the polar bears and is yet another burden on the middle class.

Global civil unrest will only continue to rise as socialist policies and agendas stifle economic growth and are too much of a burden to be supported (ie: Venezuela). History may not repeat, but certainly does rhyme.

#50 paracho on 04.23.19 at 7:37 pm

Reverse mortgages are misunderstood by the majority . Many sweat all their lives just to pay off their houses only to take out a reverse mortgage on the same property . They do not see the interest adding up and compounding over time . They do not see the higher interest rate or the impact upon their kids or heirs .
So unfortunate .
A large market for HomeEquity Bank and validity under the guise of the Legion . Clever to say the least . ( I know how cynical I sound ).
We are living in some very interesting times with an overindebted society which is aging rapidly .

#51 Ronaldo on 04.23.19 at 7:43 pm

So what happens if that million dollar house they reversed mortgaged all of a sudden turns out to be at $700,000 house after the market corrects and stays there for 10 years? The whole idea with a reverse mortgage I believe is that the value of the house is expected to go up in value so that takes the sting out of the interest costs that keep piling up. I could very well turn out that after 7 years there is no equity left given that mortgage rates are likely to rise eating more and more of the equity each month. Bad deal.

#52 crowdedelevatorfartz on 04.23.19 at 7:48 pm

Just got a letter in the mail today.
The class action lawsuit against SNC-Lavalin :)

I sold my shares a few years ago when the stench of their company was even too much for me to take( and that is saying something).
Apparently even former shareholders get to kick SNC when they’re down…..
The company that just keeps on givin’ :)

Anywho.
Gonna jump on the wagon full of vultures and enjoy receiving some money when they pick the flesh off the bones of SNC…..
Good times!

#53 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 04.23.19 at 7:54 pm

First Period:

Bruins – 2

Make Believes – disgusting and incompetent

Toronto and the GTA is a fifth rate sprawling wasteland whose inferiority embarrasses all of Real Canada.

#54 crowdedelevatorfartz on 04.23.19 at 7:57 pm

@#42 Paul C
“The French ‘Viager’ system is much better – a deferred sale that gives the seller a lump sum, monthly income, and the right to stay in their home for life.”
++++

Like THIS deal ?

https://www.chicagotribune.com/news/ct-xpm-1995-12-27-9512280029-story.html

#55 Shawn Allen on 04.23.19 at 8:07 pm

How to Beat Inflation

#41 Mayer Winthorpe on 04.23.19 at 6:54 pm
Easy way to neutralize inflation every year. Just give 2% less to charity. Sorry had to say it. We are getting carbon taxed to death here!

*******************************
Sure that math works… just as long as you are currently spending the same on chastity as you are on all your total expenses that are subject to inflation.

If so, you are very generous indeed.

What is the Canadian median for charity claimed on income tax returns? I’d bet it is well under $500. The average of course is MUCH higher.

#56 islander on 04.23.19 at 8:08 pm

https://www.theglobeandmail.com/globe-investor/retirement/retire-housing/foreclosures-can-happen-with-reverse-mortgages/article34067548/

Foreclosures can happen with reverse mortgages – worth a read.

“… foreclosure can happen in Canada, if the homeowner doesn’t pay property tax and home insurance, as well as maintain the value of the property by keeping the home in good shape.

If you don’t, we will work with you. Perhaps we can advance additional funds from what you are eligible for. We could potentially help you refinance. You can get help from family members,” said Yvonne Ziomecki, senior vice-president of marketing and sales.”

How do we spell ‘suckered’?

#57 In the Cold on 04.23.19 at 8:18 pm

Hi Garth,

You say:

“Credit growth is ten times faster than with regular mortgages. Yikes. The outstanding amount will pass $4 billion in 2019, up about 30% year/year.”

Not sure how to read the number, it breaks down to less than $120/Canadian… Maybe you’re talking about $4 trillion?

Reverse mortgages. – Garth

#58 georgist on 04.23.19 at 8:30 pm

BoC will encourage reverse mortgages because it delays price discovery.

No need for boomers to downsize now, BoC can bail out the bankers way later. “who could have known”.

#59 Linda on 04.23.19 at 8:32 pm

For sure, the reasoning behind Home Equity offer would ensure I would never consider a reverse mortgage. Sell & move to smaller digs instead. Seriously. I admire big houses but would never want to own one. Retirement is not meant to be an endless round of maintenance & cleaning of space one doesn’t use. Was chatting to a neighbor today who expressed the desire to downsize & complimented us on our housing choice (compact single level bungalow that we had built back in the 80’s). Neighbor had the usual story – big house was great when the kids were living at home, but the kids grew up, moved out & these days they are living in far too large a space with far too many stairs to comfortably age in place. Too bad houses don’t shrink on command.

Anyway, Home Equity reminds me of those utterly smarmy ‘offers’ that credit card companies send out at Christmas, where they gush about how everyone deserves to be able to shower endless goodies upon their loved ones & how they are so happy to ‘help’ by foregoing any payment for December so the card holder can run up an even bigger mound of debt. Of course, they don’t ‘forgive’ any interest charges for such expenditures or the missed payment. End result is that they get a nice Christmas present too & given how many folks run a balance, one could truly state its a gift that keep on giving – to the credit card company. I can usually scrub the taint of the ‘offer’ off my hands after a few minutes. Talk about sleazy, manipulative marketing.

#60 tccontrarian on 04.23.19 at 8:36 pm

Inflation is 2%. You lose. – Garth

///////////////////

In which universe is inflation 2%?

A couple years ago I was buying:

– lemons at $0.55 each – now at 0.99 (when on ‘special’).
– head of lettuce (organic) was $2.89 each – now $3.99
– home insurance (rental) was $289 in 2016 – now, for about the same coverage (actually in a safer area), it’s more than $400
– a full cart at Costco would range from $300-$400, as we basically buy the same things, give or take – last few months? From $550-700!

And so on…

Only TV’s and Electronics are cheaper – but they tend to be ‘cheaper’ in quality too.

At least, that’s my experience of prices.

TCC

#61 oh bouy on 04.23.19 at 8:56 pm

@#36 Drill Baby Drill on 04.23.19 at 6:42 pm
If the statement “50% of Canadians within 200 bucks of being broke” is even remotely accurate then we are in very serious trouble. I thought it was “Sunny Days”?

______________________

50% of canadians polled. which probably means 1200 people. obviously they polled the losers.

#62 Chaddywack on 04.23.19 at 8:59 pm

“They also avoid moving into a rented condo one floor above a Mill smoking doobies all day.”

Truer words were never spoken……especially in East Vancouver! They don’t care about how their smoke affects others because “it’s legal and you should be joining [them]!”

#63 Win not Lose on 04.23.19 at 9:01 pm

When I shuffle off this mortal coil, I want to leave the same way I came:
Naked,
Broke, and
Beside a lovely lady.
That’s all folks. HT Bugs

#64 Marie Legateau on 04.23.19 at 9:02 pm

Garth,

These are troubling times. Is anything more telling seeing the great unwashed cheering on from maple leaf square, while the landed gentry sip on the matcha lattes in towers on Bay street. It seems very similar to the zeitgeist before the French revolution. Let them eat cake I say (or maybe popcorn may fit the analogy more)

#65 The Real Mark on 04.23.19 at 9:03 pm

“The French ‘Viager’ system is much better – a deferred sale that gives the seller a lump sum, monthly income, and the right to stay in their home for life.”

There’s no reason why people couldn’t set this up with their kids. Gradually transfer a portion of ownership of the home, in exchange for cash. On an equity basis. Life insurance could be bought to guard against the scenario of living forever.

Only problem is, there’s some sort of bias against doing business with family in Canada. “grandkids” have credit card, auto, and mortgage debt. “grandma” has a savings account with $500k in it and is complaining of only getting 0.5%. Logically the “grandkids” would have their CC’s and mortgages funded by “grandma”, but realistically, only high net worth families bother to implement this sort of stuff.

#66 Figure it Out on 04.23.19 at 9:05 pm

Gotta love it when somebody gives Garth a chance to correct a possible typo and he doubles down instead.

Right is right. – Garth

#67 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 04.23.19 at 9:09 pm

Third Period:

Boston 3, Toronto 1

So utterly predictable.

Only delusional GTAhole idiots with IQs below 80 were the Greater Fools thinking this team could win something important.

Turn off the TV’s Toronturds, quick, go buy some crappy condos in your falling-apart suburban swamp. That’ll help with the misery! It’s different there!

#68 will on 04.23.19 at 9:21 pm

deplorable

#69 pay your taxes on 04.23.19 at 9:30 pm

Thanks for the info about reverse mortgages. I had no idea how predatory the terms are, but seeing as it involves seniors and money, it’s none too surprising.

The word “deserve” turns my stomach.

#70 AK on 04.23.19 at 9:30 pm

#28 Smoking Man on 04.23.19 at 6:02 pm
“Calling it.
Leafs will beat Boston 3 to 1”
=====================================

Well, you got the correct score.

#71 Smoking Man on 04.23.19 at 9:31 pm

Good Bye Leafs and the liberals in PEI. T2 you paying attention. You’re next.

Let’s go Vegas Nights.

#72 SI2K on 04.23.19 at 9:35 pm

“They also avoid moving into a rented condo one floor above a Mill smoking doobies all day.”

Oh, Garth! You finally figured out why Gen X all want houses.

#73 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 04.23.19 at 9:37 pm

Bwahaahaahaaahaaahaaahaaaa!!!!!!

LOLOLOLOLOLOLOLOL!!!!!!!!!!!!!!!!!!!!!

#74 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 04.23.19 at 9:39 pm

Toronto =

A CITY OF DELUSIONAL GREATER FOOLS WHO CANNOT ACCOMPLISH ANYTHING

#75 PGer on 04.23.19 at 9:39 pm

Pretty pathetic performance from the mapple laughs tonight (5-1 Bruins). For a game 7, it lacked playoff intensity. Always have a US pick as backup these days (same could be said for stocks).

#76 salonist on 04.23.19 at 9:40 pm

dog with a hair lip

mark mark

there is no rgi housing available

#77 150 YEARS OF MAPLE LEAF INCOMPETENCE! on 04.23.19 at 9:50 pm

Anything Is Possible, Toronturds!

Here’s to your long future of losing !!!!!!!

#78 Midnights on 04.23.19 at 9:56 pm

Very true….
Only TV’s and Electronics are cheaper – but they tend to be ‘cheaper’ in quality too.

At least, that’s my experience of prices.

TCC
—————————————
Martin Armstrong
Jim Puplava
McAlvany
Robert Kiyosaki
Have been talking about this happening for years.

#79 Remembrancer on 04.23.19 at 9:59 pm

#69 pay your taxes on 04.23.19 at 9:30 pm
Thanks for the info about reverse mortgages. I had no idea how predatory the terms are, but seeing as it involves seniors and money, it’s none too surprising.

The word “deserve” turns my stomach.
——————————
Reverse mortgages are the payday loans for retired home owners, once you get hooked, you aren’t easily getting off the treadmill… What’s worse, it preys on the nesting instincts of the wrinklies based on a lifetime of hard work to get that house and corrodes the value when simply downsizing makes more sense most of the time…

I don’t know what’s worse, that The Legion is promoting this, or that so many of the members are prime candidates that the vultures are paying them for the endorsement…

#80 Late bloomer on 04.23.19 at 10:11 pm

Hi garth, CO workers were talking about ur blog at work today, I read last 10-12 posts. 48 male, late bloomer, played hockey on east coast till 39. Made no money but love the game. Parents gave me 60k to put in my 2 kids resp. I have never contributed to their resp at all. Daughter just turned 18 & son is 16 in July. So I can get some money for my son but none for my daughter. So I’m thinking to put it all into a group resp and buy 1 or 2 etfs. My daughter has scholar ships to pay for her first 2 years and by the time 3rd and 4th year I will have money to pay for them years. As for my son he doesn’t know his plan yet. Then I can use the 60k for daughters other 4 years. She will have 8 years in school total. Is that the right thing to do? I know I should of been doing this years ago. Yes I feel embarrassed.
Thank you
Late bloomer

#81 MF on 04.23.19 at 10:14 pm

#73 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 04.23.19 at 9:37 pm

-I’m from Toronto, no one over the age of 12 cares, and this is not a sports blog.

MF

#82 Ronaldo on 04.23.19 at 10:20 pm

#61 oh bouy on 04.23.19 at 8:56 pm
@#36 Drill Baby Drill on 04.23.19 at 6:42 pm
If the statement “50% of Canadians within 200 bucks of being broke” is even remotely accurate then we are in very serious trouble. I thought it was “Sunny Days”?

______________________

50% of canadians polled. which probably means 1200 people. obviously they polled the losers.
——————————————————————-
Must be the ones that still have a land lines.

#83 Doug in London on 04.23.19 at 10:22 pm

@Drill Baby Drill, post #36:
It is sunny days for anyone who manages their finances responsibly so they aren’t within 200 bucks of being broke. The days are even more sunny for anyone who used the money they saved by being responsible to scoop up stocks and equity ETFs back in December when they were on sale. That’s what happens when you take the time to manage your finances sensibly rather than getting caught up in conspicuous consumption or worrying about rubbish like what the Kardashians are doing.

#84 Paul on 04.23.19 at 10:59 pm

#28 Smoking Man

Calling it.

Leafs will beat Boston 3 to 1

__________

You’re running bad.

#85 Kato on 04.23.19 at 11:23 pm

#5 Ron on 04.23.19 at 4:18 pm
Maybe I’m simple, but I don’t get the problem with reverse mortgages. You get a pile of money and the bank gets your house when you move into a cozy pine box.

The only ´victims’ are your undoubtedly ungrateful progeny who don’t deserve anything from you anyways.

Win-win
——————
The problem arises when you don’t croak in your house and need money for a nice(ish) care home or to buy an accessible condo.
You also still have to maintain the place (in the the contract), and if the handy partner (assuming there is one) becomes immobile (or deceased), you likely can’t afford to pay someone (otherwise you wouldn’t need the reverse mortgage). Even cleaning a big house can become untenable if arthritis or dementia kicks in. So long as you CAN stay in the house, great, but I wouldn’t count on it forever.

#86 n1tro on 04.23.19 at 11:47 pm

Garth,

I think your example of 70 yr old grandma in her $1M paid for house is too simplistic but I can understand why you would use it given the audience.

If I was granny, I’d sell the place and collect $1M and have young well toned pool boys rub sun lotion into my many skin folds somewhere in Florida. If $1M can’t last me 17 years as in the story, I deserve to be in a box.

As for any of my spawn who let their dear old mother live in a house by herself waiting on the grim reaper, the hell will them. Anything I have left after tipping the pool boys through their speedos, goes to the dog.

#87 Dragonslayer on 04.23.19 at 11:48 pm

Why don’t the Liberals and Greens form a minority government in PEI, similar to BC? Even deducting one, for Speaker, they’d still have one more than the PC’s.

Interesting…

#88 Exodus 2020 on 04.24.19 at 12:19 am

Probably more to the story with the stats on how many are $200 away from monthly insolvency. I once worked for the government as an intern writing reports on stats can data, and my senior colleagues were not professional statisticians, more like Arts majors. Well I caught a line on an unpublished report they wrote stating more than half of all visible minorities haven’t completed high school, and I alerted them that if you dig into the stats just a little you’ll find that most of them are still in school! So ya, I was probably $200 away from insolvency by definition throughout my twenties as I was saddled with student debt, but there are many buffers as well such as parents, selling stuff, saying no to a night out, etc.

#89 Stan Brooks on 04.24.19 at 12:27 am

#33 Shawn Allen on 04.23.19 at 6:34 pm
#32 Oakville Stinks on 04.23.19 at 6:24 pm
#1 – Stan Brooks

Negative interest rates, here they come. In fact the government knew this and prepared for it by passing certain laws prior to Poloz fictitiously raising rates in the name of a “good economy.” Not a coincidence!

Economy is burning up and the roof is on fire!

**************************************
Well, the stock markets (okay ETF equity markets for Garth) have certainly been on fire! Oh, did you and Stan miss out?

I noticed that you are becoming increasingly obnoxious but I still hoped you are not that stupid. Alas.

I have been preaching about investing in stocks for quite a while.

Of course anything of value will rise against the increasingly worthless loonie.

As #60 tccontrarian on 04.23.19 at 8:36 pm

correctly noted: inflation is rampant.

Of course rates will go lower while inflation roars, they will lie about it as they lie now, at the end savers, retires will be hit hard and will get nothing in exchange for lifetime contributions.

#90 Stan Brooks on 04.24.19 at 12:37 am

#60 tccontrarian on 04.23.19 at 8:36 pm

You have dangerous math skills. That is worse than terrorism in the eyes of the thieves.

All they need is obedient sheeple who takes whatever stupidity they pass (like 2 % inflation) as absolute truth and start cheering in awe (see Shawn Allen above).

When logic and markets fail they grow believers, then they drug them (pot legalization).

At school they teach obedience, conformism and non-confrontational group ‘skills’ instead of logic and critical thinking. They call it ‘well rounded people’ I call it brainwashed idiots (Shawn Allen for example).

Cheers,

#91 No Debt on 04.24.19 at 1:00 am

“Doesn’t everyone without a house think getting one is the key to security?”

Nope. Not me, anyway. Happily renting.

#92 Smoking Man on 04.24.19 at 1:08 am

AK on 04.23.19 at 9:30 pm
#28 Smoking Man on 04.23.19 at 6:02 pm
“Calling it.
Leafs will beat Boston 3 to 1”
=====================================

Well, you got the correct score
…..
It was a tease , what the hell was Babcock thinking pulling the goaly 3 min left. I put that thought into his head ..

I’m not wasting my alien power to thrill girly men in a girly progressive city to give em a win. Until men become men again in Toronto, they will never win a cup.

It’s all about vibrations in the universe.

#93 jane24 on 04.24.19 at 1:45 am

Many years ago in the year dot, I was a TO RE agent. Many times I as called out to value a big home in very poor condition with one senior living in it and many times they decided against listing it to downsize. Why?

One moving at an advanced age is too stressful and often the families that want them to downsize are not helping out. Easier to stay put and just live downstairs.

Two a generation that eked out a living in the war cannot bring itself to pay the high fees of a retirement condo and they have no experience of apartment living. Too scary. Too big a change.

Three there is nothing for them to move into, no small, 2 bed bungalows with manageable gardens as these sell to developers.

Four at this age being close to family, friends and familiar stores is the important factor. Who want to start life again at 80.

Five for most Canadians taking Granny in to live with you is not the done thing. Granny needs to be left all on her own. She will manage somehow as she preserves the family inheritance.

So there is a huge market for reverse mortgages, such tools will become very very popular. Maybe we should all hold our noses and invest in them, like second mortgages. Sadly a lot of money to be made here but at least we could make a fairer deal.

#94 NorthOf49 on 04.24.19 at 2:27 am

Bye Bye (Las) Vegas, thanks for the great game 7.

#95 under the radar on 04.24.19 at 5:07 am

6.6 % predatory rate of interest ? You folks who think so either live in a bubble or are just ignorant . Any thing less than 60% per annum is legal . Go look at your credit card issuers rate of interest , or payday loan rate of interest . If you don’t like paying the Man then don’t borrow.

#96 Tony on 04.24.19 at 5:31 am

I read yesterday’s news and yes it appears the democrats are moving to impeach Trump following the disclosure of the FULL Mueller report. This is great news that should have happened almost two and a half years ago.
At the 3:46 mark of this video
https://www.youtube.com/watch?v=VxiqKBGzO6U

#97 Hamsterwheelie on 04.24.19 at 7:08 am

Wonder what’s worse
Dad has a ever increasing HELOC that at some point he will reach the end of, presumably the bank could call this in or he will need to sell when its maxed out – likely at an inconvenient time or worst case scenario, a market slump. So house goes on the market and earns less than half of what he expects in a best case scenario.
OR
Reverse mortgage, stay in his home and suck up the rest of the equity.
The suggestions everyone makes about selling at a good time, investing the money & renting have been explained till we’re blue in the face but tge problem is 1) he doesn’t want to move/ can’t see living anywhere else 2) his realtor friend claims he’s ‘earning $70,000 a year on the house going up in value 3) he thinks renting is ‘throwing money away’ (but doesn’t have enough to live in his current housing, hence the line of credit)

#98 Ace Goodheart on 04.24.19 at 7:17 am

#93 jane24 on 04.24.19 at 1:45 am

“Five for most Canadians taking Granny in to live with you is not the done thing. Granny needs to be left all on her own. She will manage somehow as she preserves the family inheritance.”

You’ve obviously never met my mother in law…..

#99 Ace Goodheart on 04.24.19 at 7:25 am

So since 1967 to the present we still do not have another Stanley Cup win in Toronto. Try as they might and tear down and rebuild of franchise after franchise, our mighty Leafs simply cannot make it very far in the playoffs.

On a weirder note, a party without a platform (other than “we like to hug trees”) is now the official opposition in PEI, with a conservative minority. This is sort of like putting your hamster in with your pet rattlesnake and asking them to work together to run the terrarium. There is going to be a lot of fur and scales flying about, but not much useful getting done. I can see the debate now:

Cons: we need to support this or that business enterprise

Greens: but wait, did they plant enough trees around their last HQ? Is their CEO a girl (or does she want to be)?

Yeah, this is going to be funny to watch (grabs popcorn and gets comfy).

Our PMO apparently vetted appointed judges to confirm they were all Liberals. So yeah, if he was not already a flaming slow motion train wreck heading into the October election, well, um, he is now…..

#100 dharma bum on 04.24.19 at 7:54 am

#74 50 Years of Maple Leaf Incompetence!

Toronto =

A CITY OF DELUSIONAL GREATER FOOLS WHO CANNOT ACCOMPLISH ANYTHING
——————————————————————-

Well, the legacy and legend lives on!

The boys in blue and white did not disappoint.

Babcock also fulfilled his role as the moronic Neanderthal that he is.

Add him to the list of incompetent, visionless, self-serving pitiful emissaries of the 5th rate wannabe so-called world class city.

Crappy potholed roads, horrible hockey, terrible transit, awful traffic, vacuous leadership, inadequate infrastructure, obscenely overpriced housing, zoning law corruption, generic boring retail scene, expensive lousy restaurants, Starbucks on every block, and shallow deluded clueless residents who think it’s the greatest.

52 years, and counting, of Toronto Maple Leaf incompetence continues indeed.

More fuel for future posts by the real 50 Years of Maple leaf Incompetence guy!

#101 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 04.24.19 at 7:58 am

Wake up, Toronturds! :)

No, that wasn’t a dream.

The perpetual failure of your pathetic and incompetently managed hockey team is a perfect metaphor for the overrated bubble-infused real estate mirage that you have gambled everything on.

Greater fools won’t save you, not anymore. The market has gone to sleep. Neither will HELOCs or reverse mortgages in the years ahead.

But perhaps if you can get three part-time jobs working at Tims you can pay off your house debt by the time a new local hockey team wins something….?

Maybe 2069…? 2167?

Stay Special, Toronto ;)

#102 crowdedelevatorfartz on 04.24.19 at 8:13 am

@#87 Dragonslayer
“Why don’t the Liberals and Greens form a minority government in PEI, similar to BC?”

*****
Like most other elections everywhere these days…
The Libs were voted out. Not the Cons voted in.
While the Greens may have been a refreshing change on Spud Island….
The Liberal/Conservative brand runs long and deep on the Million Acre Farm .
PEI back room politics demands the status quo.
Political change is glacial.

Enjoy the minority govt squabbling in PEI.
Its the first one they have had since the 1870’s…..almost since they joined Confederation in 1873

#103 maxx on 04.24.19 at 8:21 am

@ #22

Let’s not forget student loans and credit cards.

#104 oh bouy on 04.24.19 at 8:24 am

@#81 MF on 04.23.19 at 10:14 pm
#73 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 04.23.19 at 9:37 pm

-I’m from Toronto, no one over the age of 12 cares, and this is not a sports blog.

MF
_________________________________

more like nobody under 50 cares

#105 crowdedelevatorfartz on 04.24.19 at 8:32 am

@#97 Hamster wheelie
“Wonder what’s worse
Dad has a ever increasing HELOC that at some point he will reach the end of, presumably the bank could call this in or he will need to sell when its maxed out ”
****

I know a guy who once owned/mortgaged a Vancouver condo down by Science World.
He fell into the HELOC trap and started using his place as a personal bank machine.
Year long trips to Europe, Asia, the US.
Lived the life of a pseudo millionaire for about 5 years.
Everything was great as prices went uppa, uppa,uppa Then there was a burp in Re prices around 2012.
Prices flat lined , sales dipped.
The Bank called.
“Your two weeks from being maxxed out and we will call the loan”. ie Make him sell.
He started working again. Met a girl. Got her to buy the place. Dumped her and moved with a bit of money. Spent another year or so partying.
Now?
He’s living in a mouldy basement suite with some other girl who works and pays the bills.
Sponging off her while he write’s “The Great American novel”
He has nothing.

I’m thinking as this RE market deflates….many HELOC’s are going to be called in….forcing more sales…..accelerating the decline of Re prices.

I suspect this summer will be the last gasp of motor homes and boat trailers scuttling to and fro on Canadian Highways as the price of gas reaches new levels of pain and the HELOC toys become too expensive to play with…

Hopefully the horrifying realization will be settling in with the Greaterfools as the RE readjustment will be in full swing by Sept and the HELOC warning letters arrive in the mail.
As JT heads into a Fall election….. :)

#106 Tater on 04.24.19 at 8:49 am

#60 tccontrarian on 04.23.19 at 8:36 pm
Inflation is 2%. You lose. – Garth

///////////////////

In which universe is inflation 2%?

A couple years ago I was buying:

– lemons at $0.55 each – now at 0.99 (when on ‘special’).
– head of lettuce (organic) was $2.89 each – now $3.99
– home insurance (rental) was $289 in 2016 – now, for about the same coverage (actually in a safer area), it’s more than $400
– a full cart at Costco would range from $300-$400, as we basically buy the same things, give or take – last few months? From $550-700!

And so on…

Only TV’s and Electronics are cheaper – but they tend to be ‘cheaper’ in quality too.

At least, that’s my experience of prices.

TCC
—————————————————————
Luckily the economy is not run off of one person’s experience with inflation. If you’d like to see some actual data, Stats Can has a great tool here: https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpilg-ipcgl-eng.htm

Flip it to index and you can plot all the various sub-categories going back to 1949

#107 rosie on 04.24.19 at 8:57 am

#37 Penny Henny

Yes to all three. Incompetent because the date has yet to be changed. Lying, well if you would like to compare March 2017 to March 2019 on their site, you can’t because March and April 2017 numbers have disappeared. As to making it up well I’ll leave that up to the buying public. I’ve lived down here, in Niagara, to know that the local powers that be are capable of as much malfeasance as the big city folk.

#108 Jaques Pepin on 04.24.19 at 9:03 am

Trudeau comes out swinging. But, as usual, fights the wrong fight, against the wrong people, creating embarrassment for Canada and a new low in international relations. What effect is George Soros millions in “donations” having on our PM? Obviously, money makes Justin stupid loyal, just not to Canada.

https://torontosun.com/news/national/canada-international-allies-butt-heads-over-focus-on-white-supremacism/wcm/2da5263b-9001-4e3e-9454-a8f57fe5c238?utm_term=Autofeed&utm_medium=Social&utm_source=Facebook#Echobox=1556108170

#109 Cto on 04.24.19 at 9:19 am

My work makes me spend a lot of time in new blinged -up subdivisions. I observe a lot pretentous people driving around high end European vehicles trying sooo hard to impress everyone that sees them. These people definitly are the ones swiming in debt. They try so hard to be high rollers, but it’s all show. They need to fail to bring order back into the Canadian economy
They unfortunately have to fail. Rip the bandaids off.

Harsh words but reality…

#110 JB on 04.24.19 at 9:31 am

#92 Smoking Man on 04.24.19 at 1:08 am

AK on 04.23.19 at 9:30 pm
#28 Smoking Man on 04.23.19 at 6:02 pm
“Calling it.
Leafs will beat Boston 3 to 1”
=====================================

Well, you got the correct score
…..
It was a tease , what the hell was Babcock thinking pulling the goaly 3 min left. I put that thought into his head ..
I’m not wasting my alien power to thrill girly men in a girly progressive city to give em a win. Until men become men again in Toronto, they will never win a cup.
It’s all about vibrations in the universe.
………………………………………………………………
Good call Smoking man, Leafs will beat Boston 3 to 1. Tease my ass. I’m definitely relying on your bombastic acumen in investing. You’re a real mystic when it comes to being accurate. As for vibrations in the universe, we don’t need details of your sex life! Lmfao………………

#111 Jaques Pepin on 04.24.19 at 9:37 am

Trudeau’s destructive relationship with trade partners has Canadian producers reeling from Canadas JV political inexperience.

https://ca.reuters.com/article/businessNews/idCAKCN1RY1M2-OCABS

#112 JB on 04.24.19 at 9:43 am

#62 Chaddywack on 04.23.19 at 8:59 pm

“They also avoid moving into a rented condo one floor above a Mill smoking doobies all day.”

Truer words were never spoken……especially in East Vancouver! They don’t care about how their smoke affects others because “it’s legal and you should be joining [them]!”
…………………………………………………………………
Ha, ha, ha out of the three condos I have been in visiting friends in the last two months, everyone of them stunk of pot. It really stinks in the halls and even in their units. The funny thing is my friends don’t even smoke cigarettes or pot. Our one friends wife is constantly burning some incense shit to alleviate the smell. It doesn’t work and only makes the two smells worse. The one friends neighbors are an older 70ish hippy type couple and apparently smoke this crap 24/7. So get used to it people its legal now.

#113 Mattl on 04.24.19 at 10:13 am

Most of these people that are 200 away from being in trouble wouldn’t be better off without RE. They would likely still be 200 away from trouble. Most of the 70% of homeowners bought RE before the bubble inflated. And 40% of Canadians have no mortgage at all. So the issue isn’t RE, it’s boneheads that don’t understand how money works.

RE is a saving grace for most people. Financially illiterates are probably best plowing most of their cheque into a house, at least its some (albeit weak) form of forced savings.

Bottom line is RE ownership should not be a barrier to savings, and I’d bet a lot of money renters are in similar or worse shape then the median CDN homeowner.

#114 Reximus on 04.24.19 at 10:19 am

#83…the ‘survey’ is completely bogus

#115 n1tro on 04.24.19 at 10:19 am

Loonie tanking.

#116 Figure it Out on 04.24.19 at 10:50 am

“6.6 % predatory rate of interest ? You folks who think so either live in a bubble or are just ignorant.”

It is a good question. Say you’re going to lend money against good collateral, BUT…
– you have no idea how long the loan will last. Maybe one year, maybe thirty. “According to Forbes Magazine, the average term ends up being about seven years.”
– interest is capitalised rather than being paid regularly, so you have no regular payments to reinvest in the event rates were to go up.
– if you’ve got a whole big portfolio of these things, duration risk is manageable, but if you’ve only got a couple, you could end up like that French lawyer cited above whose borrower lived to 120…
– your clients might need a lot of hand holding, and their heirs might claim they weren’t competent to contract at the time of the loan… Sales costs will be expensive compared to a conventional mortgage.
– Plus the whole thing has a whiff of death and decay about it, like life insurance viatical settlements and such. The borrower or the heirs will NEVER be happy when they see the payout statement at time of sale. So there ought to be a premium for that…

So what’s a fair rate? What would blog dogs charge to lend $50-200k to a late boomer? I don’t think 6.6% sounds so bad. Personally, *I* wouldn’t lend at that rate, for that business. Any blog dogs who would, maybe contact some lawyers who do private mortgages and get into the business.

As an alternative, I don’t see anything preventing somebody from selling their house today, but maintaining a life interest in the property (i.e. a legal right, registered on title, to occupy the place until you die. Obviously there’d be a substantial discount to current market value, and buyers for this might be few and far between, but it’s another way of skinning the cat for people who are allergic to compound interest and think that a discount rate is a totally different thing. They could think of it as a capitalised rent payment, or the sale of house and concurrent purchase of an annuity that equals the rent for the leaseback.

#117 Alistair McLaughlin on 04.24.19 at 10:55 am

@#87 Dragonslayer, because convention is that the party leader with the most seats gets the first crack at forming a government. Also, you’re assuming the Greens would support the Liberals after they’ve been in power for 4 terms and the whole island is sick of them. Seems more likely they’d support the PCs. Greens are primarily disaffected Red Tories anyway.

#118 Smoking Man on 04.24.19 at 11:20 am

Not a good sign for Canadian economy.
USDCAD kisses 1.35 while price of oil surges.
People have known for a while no BOC spike.

Trying figure out why?

#119 PastThePeak on 04.24.19 at 11:53 am

Whatever happened to the news about a month ago of Canada having a great start GDP-wise to 2019? According to BoC, economy is basically at a stall and they have taken any expectation of rate hikes off the table.

https://business.financialpost.com/news/economy/bank-of-canada-holds-key-interest-rate-at-1-75

“Gross domestic product was growing at an annual rate of two per cent in the third quarter [2018], then decelerated to rates of 0.4 per cent in the fourth quarter and 0.3 per cent in the first three months of this year, according to the central bank’s new quarterly Monetary Policy Report (MPR)”.

New forecast for 2019 GDP growth is 1.2%. Anyone believe this is likely to last anymore than the 1.9% forecast in Oct/18, or the 1.7% in Jan/19?

Who is convinced there is no Canadian recession on the horizon?

#120 IHCTD9 on 04.24.19 at 11:56 am

#49 Mike on 04.23.19 at 7:32 pm

– The carbon tax is a sham and serves no purpose than to fill government coffers. It does nothing for the environment or the polar bears and is yet another burden on the middle class.
___________

100% correct – at least in Canada. Carbon taxes essentially go into general revenues to later be wasted on crap like financing some crooked dictator half way around the world to fight climate change, or cutting a cheque to Mohammad bin Salman for promoting Women’s issues in Saudi Arabia.

The best way to correct the problem is to never vote for any party with a history of burning revenue on crap like this. Of course you never really know what kind of politician you’re getting until after they’ve been voted in.

So in addition to not voting for a Moron, you also need to offset the tax in some way that reduces government revenues a like or greater amount.

I’ll be offsetting the carbon tax by reducing the taxable heating fuel I consume in the winter, and somewhere down the road I may also reduce the taxable transportation fuel I consume as well.

Just about every working stiff has their limit – this is what generates the Laffer curve, and the reason why after a certain point – raising taxes actually starts reducing revenues.

Might as well sink the knife in and get things moving – I don’t see the cash burning ending through political decision making – the day when that kind of thing was desirable or even acceptable is long gone. From here on in the money burning is permanent, deficits norm, and debt forever bloating.

This means the crazy attempts at “taxation” (i.e. they take the money without providing a service in return) will be relentless. Think NL when the Ball Liberals came to power in 2016 – a full on Orgy of 300+ new taxes and fees all at once – with not a single new service provided .

And It still wasn’t enough…

#121 Stan Brooks on 04.24.19 at 12:06 pm

#106 Tater on 04.24.19 at 8:49 am

Luckily the economy is not run off of one person’s experience with inflation. If you’d like to see some actual data, Stats Can has a great tool here: https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpilg-ipcgl-eng.htm

Flip it to index and you can plot all the various sub-categories going back to 1949

=====================

Unluckily the statistics is run by liars.

Subcategories going back to 1949? You are comparing apples and oranges, current statistics has nothing to do with the data collected in the 20th century, the data and methodology to ‘measure inflation’ has evolved in order to track expense habits, not price of things.

For example:

In the last 10 years cost of housing has increased north of 8-10 % annually.

In the last 3 yeas rents has increased north of 10 % annually.

So did gas at the pump – north of 8 % annually.

So did food, restaurants, groceries.

And inflation is sub 2 %? Sure. Keep believing it.
Only in the last 2 days the loonie lost over 1 % of its value against the USD, this impacts all imports.

The ‘growth’ as projected this year will be 1.2 % in nominal terms, most likely sub 1 %. With inflation understated at least by 5 % we are facing actual contraction of 4 % +. Typical for severe economic depression.

And yet the idiots at BoC prescribe the same medicine: more debt and lower rates.

Run while you still can.

#122 Blank slate on 04.24.19 at 12:18 pm

Salvation is upon us. Trudeau is bring Barack Obama to tour Canada , back to the photo – op grab assing days of yesteryear.

Huzzah, the past is our near future. Well , get ready for Barack and Justin regurgitating David Axelrods stale speeches about the middle class and diversity. Ive even heard European ministers repeat those tired phrases
as if imagination is dead and conformity is the new God. Iwonder if he gets royalties from those speeches for all the years they’ve circled the Orwellian Liberal camp.

Get your knee pads out folks. We’ll be back to full page ads of Justin’s hair extensions and eye brow replacements in a few weeks. Gush. Barack and Justin , eye to eye, hugs and kisses, oooh la la.

But I have noticed that the CBC, CTV or Global is keeping this on the down low, they want us to be surprised to hear that Mighty mighty Barack is coming to advise on Justin’s election campaign. I actually had to read a McLeans article for the discovery in smallish print. Likely a slip from a writer who couldn’t help spilling the beans. Insert Jazz Hands here.

https://www.macleans.ca/politics/ottawa/trudeau-and-kenney-well-this-was-coming/

Do we know what we’re wearing?

#123 Penny Henny on 04.24.19 at 12:38 pm

#107 rosie on 04.24.19 at 8:57 am
#37 Penny Henny

Yes to all three. Incompetent because the date has yet to be changed. Lying, well if you would like to compare March 2017 to March 2019 on their site, you can’t because March and April 2017 numbers have disappeared.
////////////////////

While I’ll be a monkey’s uncle, March and April 2017 have disappeared. Good detective work Rosie.
Respect.

#124 Superflop Vancoucer on 04.24.19 at 12:42 pm

Superflop in West Vancouver. A sudden crash is occuring right now. No more BS from the REB, it’s chaos unfolding as buyers are no where to be seen . Timberrrrrrrr!!!? What’s that they say, oh yeah, :Pigs get slaughtered.

https://www.thestar.com/vancouver/2019/04/23/how-a-65-million-dream-turned-into-a-nightmare-in-vancouvers-real-estate-meltdown.html

Jingle Mail jingle Mail jingle all the way. And look, right on schedule, a stock market melt up slips right passed the snarling savages who have no money to invest further exascerbating the need to push the angry liquidation button. Oh human natural greed, I love you so much.

#125 Remembrancer on 04.24.19 at 12:44 pm

#100 dharma bum on 04.24.19 at 7:54 am
#74 50 Years of Maple Leaf Incompetence!

Toronto =
—————————————–
You left out “chronically low property tax-paying”…

#126 tkid on 04.24.19 at 1:04 pm

Ron, there are a number of things that can go wrong.

They can call in the mortgage – that’s what this is – if the conditions call for it. Goodbye house and most of the nestegg that the house represented.

You can need to move to a seniors apartment because of health needs. Goodbye house and most of if not all of the nestegg that the house represented.

And the ultimate? You’ve given up 65% of your net worth in exchange for a roof over your head and immediately getting 35% of your net worth.

But hey, you can still rely on the next gen if things go wrong, right?

If someone came to you and said, “I’ll give $350,000 if you give me that million dollar house you own,” would you go for it?

#127 Sail away on 04.24.19 at 1:11 pm

#80 Late bloomer on 04.23.19 at 10:11 pm
Hi garth, CO workers were talking about ur blog at work today, I read last 10-12 posts. 48 male, late bloomer, played hockey on east coast till 39. Made no money but love the game. Parents gave me 60k to put in my 2 kids resp. I have never contributed to their resp at all. Daughter just turned 18 & son is 16 in July. So I can get some money for my son but none for my daughter. So I’m thinking to put it all into a group resp and buy 1 or 2 etfs. My daughter has scholar ships to pay for her first 2 years and by the time 3rd and 4th year I will have money to pay for them years. As for my son he doesn’t know his plan yet. Then I can use the 60k for daughters other 4 years. She will have 8 years in school total. Is that the right thing to do? I know I should of been doing this years ago. Yes I feel embarrassed.
Thank you
Late bloomer

—————————————————-

Your window for compound interest is gone and the money should be placed in fixed income. You should still contribute for your son (as planned) to get the 20% benefit, and you may be able to catch up on previous non-contributions.

Don’t invest in anything before doing more due diligence. Talk with someone trustworthy.

#128 Tater on 04.24.19 at 1:19 pm

#121 Stan Brooks on 04.24.19 at 12:06 pm
#106 Tater on 04.24.19 at 8:49 am

Luckily the economy is not run off of one person’s experience with inflation. If you’d like to see some actual data, Stats Can has a great tool here: https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpilg-ipcgl-eng.htm

Flip it to index and you can plot all the various sub-categories going back to 1949

=====================

Unluckily the statistics is run by liars.

Subcategories going back to 1949? You are comparing apples and oranges, current statistics has nothing to do with the data collected in the 20th century, the data and methodology to ‘measure inflation’ has evolved in order to track expense habits, not price of things.

For example:

In the last 10 years cost of housing has increased north of 8-10 % annually.

In the last 3 yeas rents has increased north of 10 % annually.

So did gas at the pump – north of 8 % annually.

So did food, restaurants, groceries.

And inflation is sub 2 %? Sure. Keep believing it.
Only in the last 2 days the loonie lost over 1 % of its value against the USD, this impacts all imports.

The ‘growth’ as projected this year will be 1.2 % in nominal terms, most likely sub 1 %. With inflation understated at least by 5 % we are facing actual contraction of 4 % +. Typical for severe economic depression.

And yet the idiots at BoC prescribe the same medicine: more debt and lower rates.

Run while you still can.
—————————————————————-

I’ll take a minute to show that you’re either lying or can’t do math on one of your points and hopefully that’ll put to be the notion that you have any semblance of a clue.

Average gas price in Toronto in 2009 was 91.6 in 2009. It’s now around 133.

(133/91.6)^.1 = 3.8% annually.

I’m pretty sure that’s less than 8%.

Hope you enjoyed your second math lesson Stan.

#129 IHCTD9 on 04.24.19 at 2:03 pm

#109 Cto on 04.24.19 at 9:19 am
My work makes me spend a lot of time in new blinged -up subdivisions. I observe a lot pretentous people driving around high end European vehicles trying sooo hard to impress everyone that sees them. These people definitly are the ones swiming in debt. They try so hard to be high rollers, but it’s all show.
____

This stuff really stands out to us non Urban types. I went to a wedding once, the Groom’s Mom was Asian, so there were a pile of the Groom’s young Asian cousins there. They (the males) all showed up from the GTA in blinged up Benz’s.

All us local white rednecks (and everyone else) showed up in Fords and Chevy’s, but every single one of these 20 something GTA dudes showed up in slammed MB’s wearing fancy suits and goofy socks. The whole lot of them stood out like they were from another planet. The show somehow seemed obvious when you’re not part of the circus…

I chalk it up to a combo of insecurity and herd mentality. That’s pretty much the entire GTA in a nutshell, all the different groups that are playing in their own little sandboxes.

It was an interesting wedding. Half the guys behind the Groom = 5′-6″, half the guys behind the bride = 6′-6″. I estimate after dinner was over, the Bride’s family had ate 80% of all food consumed, and drank 95+% of all alcohol consumed. :)

#130 RE To The Moon on 04.24.19 at 2:11 pm

BOC confirms that rate hikes are done! Real estate – game on!

For over half a decade, pundits have warned about the rising risk of debt and the impact of rising rates. We heard predictions of rate normalization – back to 5-6% – which were eventually walked back to 3-4%.

After a few minor increases, the rates are on hold. Surprise! Everyone predicted that they could not raise rates because of Canadians love of debt and shiny new homes, and they were all right.

Those that lived in fear of rising rates the coming real estate collapse have missed out on a lifetime of gains while they rented, and sat on the sidelines waiting and waiting.

Now the Spring market will take off as the BOC just said it was all clear to invest again in real estate!

Rates rose 5 times in Canada and 9 times in the US. The stress test hurdle is 5.34%. Yes, the cost of money went up as predicted and expected. If rates pause, it means economic slowdown. Do not cheer that. – Garth

#131 Doghouse Dweller on 04.24.19 at 2:13 pm

#106 Tater
#128 Tater

They changed the formula 23 times since 2003. So much for historical data.
“There are three types of lies — lies, damn lies, and statistics.”

http://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getMainChange&Id=1212106

#132 BillyBob on 04.24.19 at 2:57 pm

#81 MF on 04.23.19 at 10:14 pm
#73 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 04.23.19 at 9:37 pm

-I’m from Toronto, no one over the age of 12 cares, and this is not a sports blog.

MF

==================================

Sure, all the losers at Maple Leaf square were under 12.

*eye roll*

Just a note, but people trying to give the impression they “don’t care” wouldn’t bother to post lol…

#133 Stan Brooks on 04.24.19 at 2:59 pm

#128 Tater on 04.24.19 at 1:19 pm

This is what I said:

In the last 3 yeas rents have increased north of 10 % annually.

So did gas at the pump – north of 8 % annually.
————————————
Gas was bellow a buck towards the end of 2016 in Toronto,

Today it is 1.33. up over 35 % in 2.5 years.

3.8 % yearly?
Sure.

#134 JB on 04.24.19 at 3:07 pm

#111 Jaques Pepin on 04.24.19 at 9:37 am

Trudeau’s destructive relationship with trade partners has Canadian producers reeling from Canadas JV political inexperience.

https://ca.reuters.com/article/businessNews/idCAKCN1RY1M2-OCABS
……………………………………………………………………
Ha what do you know? Isn’t it the year of the pig. Touche China, touche! Dongpo Pork and Fen jen ro will surely be missed by the Chinese. Now buy our canola you to feed your piggies.

#135 Stan Brooks on 04.24.19 at 3:10 pm

#128 Tater on 04.24.19 at 1:19 pm

Of course you do realize (unless you are BoC who has incentive to lie) that for the last 3 years rents, food, gas have increased more than 8 % annually, more likely around 10 %.

Accelerating inflation. More to come as interest rates start to dive again.

Before that home prices alone have increased by 100 % an overage every 10 years in the last 2 decades, 200 % in the big cities.

So come again, 2 % inflation?
And you have the arrogance to pretend to teach math lessons, boy?

#136 Ace Goodheart on 04.24.19 at 3:11 pm

RE: Inflation versus GIC arguments:

If you are going to buy bank debt, buy their preferred shares. Way better return on investment.

Or just buy the common shares.

For some reason, Canadian Chartered banks have very low price to earnings ratios. CIBC for example is trading at a little over 9 x with a dividend of 5% or so right now.

People think that is not a good deal.

And yet they’ll continue to pile into companies like TSLA which cannot even have a positive price to earnings ratio because there are never any earnings.

Oh well.

Another interesting point: has anyone ever actually tried to claim their $100,000 CDIC deposit insurance on a GIC when some dodgy little bank went belly up? Interested to learn about the experience.

#137 jess on 04.24.19 at 3:12 pm

dan fumano writes in the vancouver sun:

What’s in a name?

The term “social housing” could have many definitions. In Vancouver, some may be surprised to learn, the city’s definition of social housing includes a studio apartment renting for $1,700 a month.

Earlier this month, the official City of Vancouver Twitter account announced the approval of “a record 1,938 new social and supportive homes in 2018!”

A record year for social housing certainly sounds like a good thing in a city with an ongoing housing and homelessness crisis. Citizens might presume all those social housing units help the most vulnerable members of our society.

But beyond the tweet, and deep into the 197-page housing data book recently released by the city, a more complicated picture emerges.

For one thing, more than 60 per cent of those 1,938 new social and supportive homes approved last year are affordable only for households with incomes higher than $50,000 a year. Almost a quarter of them are only affordable for households earning more than $80,000 a year.

That is because of how the City of Vancouver defines and tallies “social housing.”

https://vancouversun.com/news/local-news/dan-fumano-citys-definition-of-social-housing-includes-households-earning-80000-

https://vancouver.ca/files/cov/2019-housing-vancouver-annual-progress-report-and-data-book.pdf

#138 Stan Brooks on 04.24.19 at 3:16 pm

https://forbeswealthblog.ca/2018/06/22/are-the-posted-inflation-rates-a-lie/

The real inflation/for dummies like Tater along with explanation on why the government lies about it.

#139 Steven Rowlandson on 04.24.19 at 3:27 pm

“How can people own real estate – which is so damned expensive – and be running out of money?”

How can people own real estate? Get a 95% discount on their first home. It is only a place to live….
If they don’t get the discount they will soon be running out of money due to income retardation which is imposed to fight inflation….. Can’t get 3 digit pay raises or the discount? Get a tent.

#140 Glengarry Girl on 04.24.19 at 3:33 pm

Tangerine.ca is offering 3% savings account. Use my Orange Key Code 56087952S1 and we both get extra $50. I also just opened eSavings account with RBC introductory 3% for 3 months. All CDIC insured, I’m contented to sit on the sidelines, Safe and not Sorry. Too much volatility and I have zero confidence that the Economy is Good, I trusted my instincts in 2008 and cashed out, no regrets. Waiting to see what the Spring Housing Data looks like in Toronto, It will set the tone.

#141 Azashi on 04.24.19 at 3:34 pm

Glorious. Two pics in one week of the greatest dog breed!

#142 Tater on 04.24.19 at 3:41 pm

#133 Stan Brooks on 04.24.19 at 2:59 pm
#128 Tater on 04.24.19 at 1:19 pm

This is what I said:

In the last 3 yeas rents have increased north of 10 % annually.

So did gas at the pump – north of 8 % annually.
————————————
Gas was bellow a buck towards the end of 2016 in Toronto,

Today it is 1.33. up over 35 % in 2.5 years.

3.8 % yearly?
Sure.
————————————————————–
Can get a 10 year chart here: https://www.gasbuddy.com/Charts

There is no 8% drift annually in the price of gas over the last 10 years. That is completely false.

Addled old man. Don’t get too worked up, don’t want your care worker to have to change you again.

#143 Tater on 04.24.19 at 3:50 pm

#131 Doghouse Dweller on 04.24.19 at 2:13 pm
#106 Tater
#128 Tater

They changed the formula 23 times since 2003. So much for historical data.
“There are three types of lies — lies, damn lies, and statistics.”

http://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getMainChange&Id=1212106
—————————————————————

Did you actually read those changes? And if so, do you understand the rationale for them?

If you genuinely want to learn about CPI and how it’s calculated Stats Can has a great guide here: https://www150.statcan.gc.ca/n1/pub/62-553-x/2014001/chap/chap-1-eng.htm#a9

If you prefer to jam your head up your own @ss, after parroting pity quotes, at least say hi to Stan in there.

#144 IHCTD9 on 04.24.19 at 3:53 pm

#127 Sail away on 04.24.19 at 1:11 pm
#80 Late bloomer on 04.23.19 at 10:11 pm

Your window for compound interest is gone and the money should be placed in fixed income. You should still contribute for your son (as planned) to get the 20% benefit, and you may be able to catch up on previous non-contributions.

Don’t invest in anything before doing more due diligence. Talk with someone trustworthy.
____

Pounding 3 grand per month till 68 years old will get buddy 1.2 Mil at 5% which would generate about 58K/yr interest plus OAS/CPP – should be plenty.

2K/mo till 68 @ 5% nets 820K and 38K/yr + OAS/CPP

1K/mo till 68 @ 5% nets 410K and 19K/yr + OAS/CPP

If buddy can sell something and realize 100K, invest that right now and baste with 2K/month (again, right now), he’ll have about 1.1 Mill at 68 or 51K/yr plus OAS/CPP.

Drawing down will add to any of the numbers above. Go see a pro and make a plan. Make sure you know what you can pound in there per month first. Working till 68 would suck – might look at how cheap you can live, and set realistic expectations.

Sugar Mommas are a thing too if it comes to that. Some of the rich old ladies might like a “hockey stud” lounging around the house if the price is right…

#145 Tater on 04.24.19 at 3:59 pm

#138 Stan Brooks on 04.24.19 at 3:16 pm
https://forbeswealthblog.ca/2018/06/22/are-the-posted-inflation-rates-a-lie/

The real inflation/for dummies like Tater along with explanation on why the government lies about it.
—————————————————————

This is laughably dumb.

“This becomes a problem, however, when we compare the high inflationary items, with the low inflationary items. Compared side by side, its easy to see that the items which inflate at the highest rate (housing, food, electricity, etc) are the things that we need to survive. So, one might argue that if these items were weighted higher due to necessity in the CPI, our inflation statistics would change drastically. It is also important to note that items such as TVs are purchased less frequently than food or other consumables.”

This is handled in CPI calculations by weighting the constituents of the basket in proportion to the amount of consumption by the typical household.

You may have an issue with those weightings, but to claim they don’t exists marks you as a liar or an idiot.

#146 IHCTD9 on 04.24.19 at 4:09 pm

#137 jess on 04.24.19 at 3:12 pm

For one thing, more than 60 per cent of those 1,938 new social and supportive homes approved last year are affordable only for households with incomes higher than $50,000 a year. Almost a quarter of them are only affordable for households earning more than $80,000 a year.
___

Is there a problem here? Minimum wage in BC is 12.65, so a couple working at Timmies full time can move into more than 60% of those homes.

Are single folks and couples making less than minimum wage supposed to be able to afford a house?

#147 oh bouy on 04.24.19 at 4:29 pm

@#132 BillyBob on 04.24.19 at 2:57 pm
#81 MF on 04.23.19 at 10:14 pm
#73 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 04.23.19 at 9:37 pm

-I’m from Toronto, no one over the age of 12 cares, and this is not a sports blog.

MF

==================================

Sure, all the losers at Maple Leaf square were under 12.

*eye roll*

Just a note, but people trying to give the impression they “don’t care” wouldn’t bother to post lol…

____________________

For sure billybob was there.
fits the profile and all.

#148 Pfft on 04.24.19 at 4:32 pm

@#125 Remembrancer on 04.24.19 at 12:44 pm
#100 dharma bum on 04.24.19 at 7:54 am
#74 50 Years of Maple Leaf Incompetence!

Toronto =
—————————————–
You left out “chronically low property tax-paying”…
____________________

Myth

#149 Cto on 04.24.19 at 4:39 pm

129 IHCTD9
Bang on you said it exactly. I work in the GTA but we originally from a place up north.
Ever since I’ve lived down here I think the people down here are totally wacky especially the people with ethnic descent. No offence to people would happen if the sent the good people but they seem to Value The Herd around them. Never understanding that uniqueness is a quality and it doesn’t have to cost you boat loads of money.

#150 Doghouse Dweller on 04.24.19 at 4:40 pm

Do not cheer that. – Garth
————————————
Economic slowdown or what some would call prolonged Depression.
Thats what worries me most , whether Inflation is 2% or 20% is moot.
People are already working 2 and 3 jobs in the gig economy just to eat, pay the rent, and put gas in the rental car.
Will they have to work 6 jobs to pay for $5 cellery, $40,000 Kia`s ?
I don`t they are going take the BS much longer and things could turn real nasty in a hurry. That won`t be good news for anybody.

#151 Doghouse Dweller on 04.24.19 at 4:49 pm

Find the missing “think”

#152 NoName on 04.24.19 at 5:06 pm

Hey black sheep

https://apolloflags.wordpress.com/2012/03/26/apollo-16-flag-still-aloft/?utm_content=buffera4f8c&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

Caption: This animated image is assembled from 7 images taken at different times during the lunar day, from shallow Sun angles at sunrise to similarly low Sun angles at sunset. The Sun’s angle above the Moon’s Eastern horizon is 8 degrees (near sunrise) in the first frame, 10 degrees in the second frame, 43 degrees in the third and 69 degrees in the fourth . Then the last three images have the Sun at 61 degrees above the Western horizon, then 7 degrees and finally 2 degrees (near sunset).