BMO: This could cause a potential banking and mortgage crisis in Canada.

BMO is a large Canadian bank that has a significant amount of its mortgages in fixed payment variable rate mortgages with a massive amount of uninsured mortgages and deposits on its books. In this video, we discuss negative amortization and what happened in the mortgage crisis in the US in 2008, and how this is likely to occur in Canada.

You won't hear any news like this on any of the mainstream media organizations like City News, CTV News, CBC News, and Global News.

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#Recession #Banking #Crisis

0:00 - Subprime mortgages
0:40 - Negative amortization defined
1:50 - BMO
2:40 - Who will pay?
3:19 - Balloon payments
4:30 - Forced to sell
4:48 - Some people are paying more
5:40 - People can't even pay the interest
6:46 - BMOs portfolio
7:46 - Uninsured mortgages
8:20 - CIBC problems
9:26 - The banking crisis
9:55 - Predatory loans in the US during 2008
10:55 - IF rates went down
11:40 - Subprime mortgages
12:35 - Subprime problem
13:18 - Mortgage fraud
13:52 - The key part!
14:30 - Unemployment and defaults tied at the hip
15:44 - Bailouts
16:30 - Private sector debt
17:30 - Economy dependence on real estate
18:05 - Mainstream media
18:40 - 2020 and fiscal support
19:10 - Alberta migration boom-bust
20:00 - Human emotions
20:18 - CBDC
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[joshuahankins]

Canada standard of living is sharply declining. High housing costs, low wages, increased violence, higher taxes, and increased censorship not to mention a health care system soon that will be below every other g7 country.

[tylerpowell]

There is thousands leaving Ontario/Canada. Depression is a brewing. I’m making more money than I ever have and struggling worse than I ever have. Canada is falling

[dpledoone]

You are actually providing a very important service to Canadians by shedding light on a very uncomfortable truth, for which we should all be grateful. Canadian banks have a pretty abysmal record with their loan books, but this imminent mortgage crisis will shake the financial system to its core, leaving the regulators at OSFI with rotten egg on their faces.

[jmela]

Hey Luke,
Another excellent video. Glad your trying to inform the average Canadian how scary the real economic/banking situation is in Canada and those comparisons to the 08 US banking situation hit the nail on the head.
As your getting more and more subscribers reality will hit more Canadians so they can try to prepare themselves better for what’s coming instead of hoping for a bailout or 1% rates from QE again. Miracles could happen but most likely those situations will just lead to an even larger crises in the following few years

[James-qsyx]

“It is, What it is “ . Sir, you just keep doing what your doing, bye giving unbiased, realistic, truthful information- What It Is, becomes THE reason for a change that the entire country will get behind . I Applaud You! 👏👏👏

[zafarhussain]

This is also put pressure on supply as people will be holding back their homes. And dishonest people will keep buying homes with the so called mortgage documents frauds. There seems no punishment for frauds in here. Total injustice for savers and average Canadians. You are doing an awesome job by trying to spread awareness to the people. Thanks!

[DustinNulf]

It's amazing that only 14 years after 2008 we are in a situation even worse than that financial crisis. How absolutely brain dead are our politicians and bankers to allow us to get back into this situation so quickly?

[lindabaker]

I definitely believe you. Central banking along with 15 minute cities is taking us straight to commuism!

[lawgc]

Thanks Luke for letting people know about the hidden mortgage issues. I did leave same comment below in your CIBC video and hope people can hear what my experience with NA and can choose what mortgage plan is suitable for them.

I am using CIBC mortgage and it’s exactly this case Luke mentioned. I didn’t lock the rate when I renewed in Jan 2021 at only 1.7% coz I was planning to sell it and relocate to other city. I put 35% downpayment and monthly payment is fixed at around $1, 900 with more than $1, 500 go to principal payment every month. And in Jan 2023 my interest rate rose to 5.7% my payment going to principal is $0, means whole $1, 900 going to interest! This month is a little better (Mar 2023) around $100 go to principal, but just realized they charged me interest penalty for $66 coz my $1, 900 monthly payment in past few months not even enough to cover the interest :(

[quintongames]

And let's not forget the over valued homes, appraised by bank hired appraisers over the past 2 a disaster.

[deltaskyhawk]

They are called "banksters" for a reason! It is interesting that in my town I am seeing many development projects; both residential and commercial.

[zayat]

I like how you talked about the 2008 crisis. Canada did not feel it last time in 08, but now I feel all the indicators are pointing to 08 type of problem in the Candian housing market.

[paulchristensen]

Been following you a while now. Your really hitting your stride. Keep up the great presentation of information

[tamaras.]

Honestly I have been getting so depressed about how things are going in our country. Born and raised in southern Ontario, make a good income, and feel I will never be able to own, or even live independently (of course I’m a millennial). I work in legal, and constantly see clients who have massively valuable homes and never made more than $60k or even $80k with dual incomes simply due to their age/ when they bought for the most part. I don’t know what to do anymore but to plan to leave the country, I feel hopeless. I am 100% unsure about the future for Canadians.

[ryancerickson]

Awesome channel. I am thankful that I have come across someone talking about Canada and the banking system in this country.

[steve]

Really enjoy watching your videos Luke. I appreciate the research that has gone into them. It’s refreshing to see this kind of content and delivery. I couldn’t agree more that this country is falling apart. I’m working on retiring to Mexico within 5 years because of how corrupt this country has become.

[Harperrr.]

With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $120, 000 bond/stock portfolio.

[icarium]

Another absolute bangin video. Much thanks.

[MrPatrick]

That's what some home owners in the 80s did when interest rates got to high and house prices went down...they simply walked away from their home and mortgage

[BinkyTheElf]

Luke: Thanks for caring so much for your adopted country, and spending so much effort to help others see where we REALLY are.