> You also generally can’t borrow 5x your income
You can easily access 3X levered ETFs. Also, while you start out at 5X leverage, you pay down the principal over time. Over the lifetime of a 30-year mortgage, your average leverage is closer to 2X.
You can easily access 3X levered ETFs. Also, while you start out at 5X leverage, you pay down the principal over time. Over the lifetime of a 30-year mortgage, your average leverage is closer to 2X.
VA loans have even higher leverage
And on top of that most of the underwriting is on central government balance sheet via frankenstein constructs like fnma.
Sheesh..
I know "lucky" Vancouver couples who bought the right property at the right time and it is equivalent to winning the lottery. i.e. $600K capital gains in just 2 years.
The inequality created by having huge winners in "hot housing markets" acquiring enormous wealth vs others in flat or down housing market receiving absolutely nothing (not even mortgage interest deduction which isn't available in Canada) is insanity in my mind.