Ensuring Digital Signature Legitimateness for Mortgage in Canada

How to eSign a document: digital signature legitimateness for Mortgage in Canada

over $269 billion doar worth of mortgages right now are being defaulted on but it's all happening in the shadows here in Canada and many people are blissfully unaware of what's going on as even they're entering into the housing market so let's talk about it talk about the risks here what could go wrong what could possibly save this so anyway forever mortgage warning Canada's Financial Watchdog cautions Banks over use of fixed payment VAR able loans so let's get into it Canada's Financial regulator warned Banks last week that fixed payment variable rate mortgages can saddle homeowners with a forever mortgage Peter rage superintendent of the osfi told a TD Securities Financial Services conference last Friday they were raising Capital requirements for fixed payment variable rate mortgages meaning big Banks and mortgage insurers will need more adequate capital for riskier borrowers ultimately these decisions are to be made at the lender level routage said during the conference so again they're kind of saying you know what these mortgages they're dodgy but you know here's some guidelines on what you should do about it you should increase your Capital requirements but we're not really going to force you to do anything we're just going to stand here and say this could pose a risk to the entire Financial system nobody is taking this seriously and that's what's really annoying about it or maybe people are are taking it seriously like the Bank of Canada and the osfi it's just nobody wants the blame of stepping in and saying hey we need to do something about this to protect the financial system because they're worried that they're going to be seen as the one that came in and collapsed the entire system because that's what could happen with the amount of fixed payment variable rate loans that we have a loan with a name so stupid that even somebody who is terminally brain dead would be able to work out how contradictory even the name in itself is so it's just unbelievable what is happening it's unbelievable that so many people got duped into these mortgages so during the bank of Canada's rapid rate hike campaign fixed payment variable rate mortgages gained attention as some homeowners amortizations were automatically extended out to As Long As 90 years in some cases people received infinity symbols on statements making it seem like they have forever more ages but as we covered many times on this channel guys when people get to the stage where they have to renew they have to bring everything back within line with banking regulations and everything like that so they can't have a 50-year mortgage so they have to then bring it back in line but what happens when their loan to value ratio is higher than 100% And they don't have the free cash in order to put money into the mortgage to refinance and this is a problem that is going to come up more and more as we head into the future as most of these mortgages were took out in 2020 2021 especially and 2022 and will be coming up for Renewal over the next couple of years so it kind of makes sense in some ways then that the Bank of Canada has already started to slowly reduce rates in anticipation for this because they don't want to hit this next year and then seem like they're dropping rates because they're panicking really really rapidly but it's very interesting what is going on so currently 20% of outstanding mortgages are fixed payment variable an osfi spokes person said in an emailed statement and just for comparison during the global financial crisis around 36% of mortgages were adjustable rate mortgages so not that high and of that there was only around 12 to 13% that were subprime which were these Ultra risky type of mortgages I mean I could make the argument that all 20% of these negative amotization mortgages are insanely risky because the people cannot afford to pay down their mortgage right now and even though they're not defaulting on paper you and I know that if they can't afford to pay down their mortgage and their loan balance is just increasing they're in distress it's just the stock market the financial markets and everybody else just hasn't realized it yet and it's only four banks that are doing this remember so it's TD RBC CIBC and Bank of Montreal Believe It or Not Bank of Nova Scotia isn't actually doing this which is interesting because when you actually compare the stock prices over the past 5 years you can see that TD Bank has done the worst obviously they're under investigation for a lot of money laundering allegations a lot of problems with their us business that is going on right now as well and then they've also got the added layer of these fixed payment variable mortgages but I don't think the market is even acknowledging that at this point then you've got the Bank of Nova Scotia which again is kind of surprising considering they're the only ones that don't do this type of mortgage but then again it makes sense because the market really hasn't realized or digested the fact that these banks have massive amounts of fixed payment variable rate mortgages which are completely risky and there is a massive percentage of people who have these mortgages who are actually defaulting in the shadows and that's what people don't understand people might look at the default rates in Canada and say oh you know what they're actually fairly low even though they're trending upwards but you're forgetting the fact that we have hundreds of billions of dollars of mortgages right now where people are in distress they're not paying their loan essentially that's what's happening some of them aren't even paying the interest portion of the loan back let alone anything towards that principal so that loan balance is just increasing creating a financial time bomb that is just ticking away ready for the future to explode and again who will this go on to the taxpayer majority of this will fall onto the taxpayer as you can imagine and then it says here of the two variable rate products four of the major Banks RBC C IBC TD and bimo only offer the fixed payment version experts say a TD spokesperson said customers are told if their amotization has been extended Ed and at renewal are offered debt restructuring payment deferrals or interest only payments if they find their payments too high so think about that guys that in itself sounds like somebody who's in distress somebody who's having to have these type of things going on so they're already making these special allocations for these people right now and saying hey let's do all these different things let's try and make it better for you but the reality is we've seen this before four happened in 2008 and 2007 and it is just not going to end in a good place eventually when people realize that the amount of debt they have is way more than the house they will work out that they're probably never ever going to pay it back for one and they might as well go bankrupt for two as we're already seeing lots of people are in this situation it's going to happen it's just that it's going to be on renewal where we're going to see a lot of this happen because when it comes to these type of things human emotion plays into it as well a lot of people just freeze so they don't do anything they just continue their daily life and they wait up until the point where they get to Renewal and they're faced with that Judgment of what they're actually going to do because people are going to put off that decision to the very last minute because they don't want to experience the pain and that's just pure human psychology and human emotion of what people are going to do so people aren't going to proactively think hey I need to get my in order here that's not going to happen that's not the way humans work humans work they try and avoid pain so they're going to just put off and put off and put off exactly like people did during the global financial crisis when people would have said why didn't you talk to your lender why didn't you reach out to them why did you just start defaulting on payments and not reach out to your lender it was because those people were just Frozen and they didn't want to actually take ownership of what is going on responsib ility is a major problem in society today more so than it was a decade ago back then as well osi's goal is to protect the banking system and is being overly cautious here she said the regulator is trying to protect Banks from this type of borrower I think this is absolutely ridiculous because when you look at the loan loss Provisions you know they're totaling like $10 billion maybe for all the banks and you've got $269 billion worth of these risky mortgages of which 15% of them could go bad and that's going to be way more than all of these banks are holding for so-called bad loans and the write offs that they're having to do for bad loans loans that have gone wrong loans that aren't being paid back just keeps going up and up and up and that's another thing that people don't really understand or realize because that is actually debt destruction happening most of the money that we see com into the money supply is through debt so when you're having these banks that are writing off more and more of these loans whether they're mortgages or business loans that's money that's actually being took out of the system little do people realize or understand mortgage delinquencies that are exceeding now $1 billion in Ontario more than 1.26 million consumers missed at least one payment on some form of credit commitment the highest number since 2020 in the first quarter ing to Equifax so again like we're seeing the massive red flags that there are extreme signs of distress that are out there that nobody could ignore and you know you might think that the Bank of Canada coming in doing these rate cuts of 25 basis points are really going to have an impact but I think you're living on a different planet if you believe that because really they're not going to do anything the only thing that they're going to have an effect on is people's psychology the actual reality of what they're going to do in this type of situation is nothing because interest rates are still historically high for the past couple of decades which is when most people have took on these insane eyew watering levels of De and then you've got Toronto real estate spirals there inventory surges demand hits historic low you've got to see how long though Toronto home sales see fewest buyers since 2000 weakest outside pandemic more noteworthy than the price movement was the lack of buying activity Toronto real estate board reported just 7,033 sales in May a decline of 21.7% compared to the same month last year with the exception of the depths of the pandemic in 2020 one needs to go all the way back to 2000 to find a slower May bluntly put the only slower May in nearly a generation required the shutdown of the economy and that really puts things into perspective for people doesn't it because when you look at what's going on here and you look at the Rising amount of people missing payments you look at the amount of these loans that are dodgy which people are now going to be faced with renewal over the coming years and we're going to see that Skyrocket next year and the year after you're just wondering how's this all going to play out because at the end of the day unless real estate prices go much higher than they were even at the peak when most of these people bore that they're just not going to be able to sell and that's really becoming more of a problem as you can see because here they are saying saying that it's the lowest amount of sales since 2000 so the market is getting more and more liquid which means it's just getting more and more risky because if there's a flood of inventory because there's a lot of forc sales because of people with these type of mortgages then what's going to happen demand's not going to suddenly come out of anywhere especially when you're in a market where most local people cannot afford to buy and it's just purely based off speculation such as Toronto new listings climb 21 .1% from last year to 18,617 in May that pushed the sales to new listings ratio SNR to just over 37% in May marking the worst demand balance for May going back to well ever the board's data only goes back to 1996 and demand has never been so weak relative to inventory in that period so that just goes to show what is going on and you have to also think about the implications of these markets seriously weakening because even markets like Halifax Calgary they could be impacted from the trickle down effect of these markets because if you've got a lot of out of Province people that are coming in and buying in places like Calgary if they can't sell their house because the market is so liquid they might not be able to move let alone are they going to be able to find a job with the unemployment rate at 88.1% now in Calgary which is just crazy recession levels like that is a seriously high unemployment level so I think what's really going on here and it's just so obvious to see is the consumer is very very weak to the point that they are now defaulting we've seen that for the past six months defaults are on this trend upwards 25 basis point cut not going to make any difference to that so basically where we are right now is just a waiting game because as things get worse and worse and worse it doesn't look good for everybody who's holding in these fixed payment variable rate mortgages cuz they're not going to be able to sell and they're going to owe more than their house is worth so it's crazy and then if you look at the residential property you know it's so hard to even just find a chart for Canada real estate prices which just shows you the price it's just unbelievable that in a country like Canada where the real estate market is in such a bubble that you can't even find like a decent chart I mean charts that the ca put out are just a joke but anyway you can see how prices are clearly off the all-time highs here for this Index this index is up like over 300% since 2004 so the increase has been quite insane but you can clearly see how we are off the highs and it's even more so when you look at what is going on in real terms which is what's really important not what nominal prices are doing so anyway it's going to be really interesting to see what continues to happen guys I want to thank thank you so much for watching this video if you want to check out this video i' would highly recommend it and if you're looking for a VPN to get around all the censorship in Canada which is unbelievable I know go to expressvpn.com slm market Mania and I will see you in the