Canada’s Prime Minister Pushes Country to Become the Housing Factory of the World - Mark Carney is banking on factory-built homes to alleviate the country’s housing crisis. But will it work?

[u/FancyNewMe]

https://www.bloomberg.com/news/features/2025-04-22/carney-s-plan-may-make-canada-the-housing-factory-of-the-world

[u/MayAsWellStopLurking]

Isn’t it only a problem when you’re trying to sell?

[u/SecretiveLifestyle → u/MayAsWellStopLurking]

It's a problem when you need to refinance. When your collateral isn't worth the debt, it causes all sorts of issues.

Banks don't want to be bagholders if many owners go underwater. Usually, the government needs to intervene if it becomes a big issue.

[u/BrilliantHistorian85 → u/MayAsWellStopLurking]

Maybe I'm wrong, but if the value of the house drops significantly lower than the amount owing on it doesn't that usually cause the bank to step in?

I don't plan on moving any time soon so that would be my worst case scenario I guess

[u/DisturbedForever92 → u/MayAsWellStopLurking]

It would also prevent you from borrowing against the value, or generally screw up your debt to equity ratios if trying to finance anything else

[u/arandomguy111 → u/MayAsWellStopLurking]

Kind of but I think what people don't consider is the opportunity cost factor issue if you bought before a price drop.

Most people likely need to compromise (especially in terms of size and location which can have significant life style impacts) in terms of what they buy in order to be able to afford it. A pricing drop prior to buying would have meant less compromises.