No More 30 Year Mortgages

[sags]

I don't get it. I thought payday loans were they loan you $200 until payday, once you get paid you pay them back. That would be 10% interest assuming you pay them back. Is your calculation assuming the people repeatedly take out a payday loan every paycheck?

In Ontario, payday loans can legally charge 21% interest.

THe legislation is pretty well useless, as they find ways around the rules.

Examples..............

Charge to put the "loan" on a credit card and charge a fee for the credit card.

Charge a "fee" to use the credit card to access the funds.

Shorten the time period of the loan, sometimes having it come due the day before payday so they can charge "late fees".

Manipulate the paper work to reflect a 21% rate, when it is much higher. Borrow 100 and the loan is recorded as 130 for more interest.

Cash Store and Money Mart were found guilty of charging too much. The settlement required they knock 5 dollars off loans until the money was returned to customers. No loans...........no rebates.

The most nefarious part of payday loans is the disappearance of standard loan companies. The companies who used to make small affordable personal loans over a period of months or years, have all changed to payday loan structures.

Payday loan companies are one of the few places advertising "help wanted" in this area..........so times are booming for them.

[sags]

At some point, income will cap home prices.

There are 6 million baby boomers approaching retirement, many with a mortgage debt and little retirement savings.

People who bought their homes 30 years ago, have a lot of negotiating room on price. Those who bought in the last 10 years.........not so much.

Boomers can sell their homes for prices that would mean a loss for later home buyers.

I expect home prices will turn downward and begin a long slow slide, but we will see what happens.

[Berubeland]

I don't get it. I thought payday loans were they loan you $200 until payday, once you get paid you pay them back. That would be 10% interest assuming you pay them back. Is your calculation assuming the people repeatedly take out a payday loan every paycheck?

Right so your next payday would be...in a week or possibly two. You pay $20 interest on $200 for 10 days for example. Annualize that amount = lotsa dough.

[Spudd]

Yeah, sure, if you do it every week! Hopefully people aren't doing that.

[kcowan]

The government has suspended rich immigrants from applying for citizenship. This should stop the flow of speculative orders for condos in GTA and GVA and possibly SFH. I think they needed $1.6 million of which $800k is real estate investment.

Effective July 1, 2012, Citizenship and Immigration Canada will temporarily cease accepting new applications to the Federal Skilled Worker (FSW) and Immigrant Investor programs.

Source
This is the second punch of the 2 punch program to moderate RE prices.

[andrewf]

Yeah, sure, if you do it every week! Hopefully people aren't doing that.

B is talking annualized interest. The interest is high--hopefully people do it only for short periods. But if you think of it as 'just' 10% for 10 days, that makes you more likely to use it.

[Sampson]

The government has suspended rich immigrants from applying for citizenship.
Source

That's not exactly true. Those are very specialized programs, and rich immigrants will continue to apply and get access under conventional rules.

I don't think the skilled worker programs brought rich foreigners here anyway, not in Alberta. Most of those immigrants coming under these types of programs a typically very middle class in their respective countries (effectively poor by our standards).

[Berubeland]

Yeah, sure, if you do it every week! Hopefully people aren't doing that.

There are people who are doing it every week and anytime they can,( the lenders). There is are always two parties to a transaction. That's the side you want to be on. Seriously I do not have the stomach for that kind of business even though it is legal and all.

[donald]

^Maybe it's time to look into being a shareholder for these companies sags!I don't view them as predators(the lenders-and there shareholders)They are loaning out money to ''high risk'' people,people(for whatever reasons,usaually many)can't do business with regular banks.(these are generally people that have many habitual problem and not a ''rough'' spot)

I've had several employee's(day labourer's) use payday loans(in all cases they have destroyed there credit with banks,credit card co's ect)It's not right or fair.But a lot of things are'nt fair or right.I'm surprised you see it the way you do berubeland,there is some similarities to the same demographic you deal with being a landloard-the same people you likely rent to and have problems collecting from(who generally don't give 2 shits about there landloard) are the same people using payday loan companies.-I'm almost certian you see a lot of your clients rent cheques stamped with payday loans co's in your deposit book?It's like the debate of the tobacco companies/and there end user's.Interesing topic reayday loans.

[sags]

^Maybe it's time to look into being a shareholder for these companies sags!I don't view them as predators(the lenders-and there shareholders)They are loaning out money to ''high risk'' people,people(for whatever reasons,usaually many)can't do business with regular banks.(these are generally people that have many habitual problem and not a ''rough'' spot)

I've had several employee's(day labourer's) use payday loans(in all cases they have destroyed there credit with banks,credit card co's ect)It's not right or fair.But a lot of things are'nt fair or right.I'm surprised you see it the way you do berubeland,there is some similarities to the same demographic you deal with being a landloard-the same people you likely rent to and have problems collecting from(who generally don't give 2 shits about there landloard) are the same people using payday loan companies.-I'm almost certian you see a lot of your clients rent cheques stamped with payday loans co's in your deposit book?It's like the debate of the tobacco companies/and there end user's.Interesing topic reayday loans.

Money Mart, Cash Store, Instaloans.........and many others have been caught........charged........and convicted of fraud for charging beyond what they are legally able to.

The millions of dollars remedy from the class action lawsuits............knock $5 off the next loan.

Predatory lending...............supported by the government.