House Price Fucktastophe In Some Cities: To The Point Some Lenders May Change Policies

Added: 2026-05-19

[00:00:00]Okay, house value destruction in some particular cities is becoming a catastrophe. Like it is it is bending minds. It is shocking lenders. Like I get the calls. I do get the calls. So, we know how far values are falling in Brampton. Now, the thing about Brampton is it's not like some way out of the way [ __ ] place in in Ontario. It's not a It's not Windsor. It's not a little town on the border. It's not Um it's not like some place out in the sticks, okay, where you might expect Oh, yeah, value could drop there a lot.

[00:00:36]Brampton, nobody thought of the values would drop that much. I mean, not really. Like it's a very big dynamic city just north of Toronto and [snorts] it's had a lot of appreciation in value for decades and what's happening now is it's a catastrophe. Like because the values are falling so far so fast.

[00:01:00]I ain't getting from lenders. Not the banks. The banks are fine. They don't they won't change any lending policy towards Brampton. By the way, Surrey is sort of starting to get into the conversation about these [clears throat] these issues about value destruction. So, the the a lenders calls us says, "Yeah, yeah, we we think we have to just really change how we approach lending in Brampton because we've had our asses handed to us. We've had like we've had some big houses go down. Like big losses on a couple. Like don't get me wrong.

[00:01:38]Doesn't affect the the performance of the lender. It doesn't, but it pisses them off. Like if you believe that it's perfectly normal real estate, that it's the same as Tobiko, it's the same as Mississauga, it's the same as Burnaby, it's the same as um you know, just regular real estate that's the same as every place else.

[00:01:59]And then you get your ass handed to you.

[00:02:01]You know, like big house, big 4,000 square foot house, 40% off price that they paid in '22.

[00:02:12]Whoa, [ __ ] I mean, like that's a disaster. That's just a [ __ ] disaster. That's a capital loss, okay?

[00:02:19]Not saying there aren't capital losses everywhere in Canada from time to time, but when you take big ones and then you find out then you look at your book and you say, "Whoa, we got a bunch of these [ __ ] big houses in Brampton and in arrears and default on their mortgages."

[00:02:37]You stop and some lenders will stop and say, "We're going to just change our whole approach." And that's [ __ ] disastrous. That means that even the people who could refinance out because they still have some equity and their incomes are fine and they're perfectly normal people and it's legit income, they can't refinance because some alternative lenders have just said, "No, we're not going there anymore. We're just going to maybe 50%. That's all we're doing." So, yeah.

[00:03:02][ __ ] bad.