CMHC expands insurance options

According to an article in the Globe and Mail the CMHC is partnering with Genworth and US based Countrywide financial to offer innovative new insurance products in Canada:

The new insurance products offer coverage for a range of situations beyond the current batch of taxpayer based financial products that cover zero down and 40 year mortgage terms.

“The CMHC is proud to be able to offer these new products to help to fulfill our mandate of ensuring every Canadian can buy their own home” says Chuck U. Farley, VP of marketing “Where ever there are markets with affordability concerns the Canadian Mortgage and Housing Corporation will be there to lend a hand.”

Along with the new products the CMHC will relax limitations further when it comes to down payments and mortgage approvals.

“Today’s sophisticated investors know that credit is the best way to acquire the ‘pride of ownership’ without paying in advance.  This is an obvious improvement over the inefficient older style of ‘saving’ to pay for a major purchase.  For this reason we will now permit down payments to be made on credit cards and we are excited to announce a new CMHC ‘buyers pride card’. These ‘scratch and win’ style cards will not only give buyers a chance to save on mortgage interest rate, they will also give buyers a chance to win loan approval without the the lengthy and demeaning traditional process of a credit check.”

Chuck U. Farley points out that this will be a positive boon to hot western housing markets where ‘unaffordability has reached record levels’.

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wizardofozziejurock
wizardofozziejurock
12 years ago

Drachen,

Ummm…you know that's a snide comment.

If I thought there was a Conservative in the position to take on the CMHC don't you think I would have suggested as much, particularly one who currently has a bestseller about a collapsing real estate bubble in Canada?

I completely agree with you about the Harper government which is exactly why it could only help to have Garth Turner speaking up on the issue.

Burden of Proof
Burden of Proof
12 years ago

Vancouver Island Real Estate Board reports a 30% drop in sales for March 2008 YOY. Avereage sale price increased 8% YOY. I'd say that the VI market is following the blue print for a crash.

"By Westcoaster.ca Staff

The average sales price for real estate in Port Alberni this past March rose by 12 per cent over the same month last year, according to the Vancouver Island Real Estate Board.

On Tuesday, VIREB released a summary of the Multiple Listing Service for March.

According to the summary, the average sales price in Port Alberni increased to $233,053.

The average sales price across the VIREB region also rose by eight per cent to $338,846.

VIREB reports the number of units sold, however, dropped by about 30 per cent from March 2007."

Drachen
Drachen
12 years ago

wizardofozziejurock

Umm you do know that Garth is a Liberal right? The major Canadian party that is NOT currently in power?

As I've said before, Harper and the Conservatives will do nothing to disrupt the CMHC's deepening of the problem because they are desperately hoping that by throwing money more and more recklessly at the problem they can stave off a collapse until after the next election. If Harper hadn't given up the power to call an election we'd be going to the polls soon. They know that if things get bad on their watch that they are screwed.

Drachen
Drachen
12 years ago

From Salon.com (unfortunately this is not a joke)

"A record number of Americans receiving food stamps. Gas prices at an all-time high, and staples such as milk, eggs and bread costing a prettier penny every week. The average number of Americans filing for unemployment benefits reached its highest level in two years last week, while just this week, construction spending fell for the fifth straight month and manufacturing activity shrank to its lowest level in five years. Real estate values are even plummeting in the Hamptons, and hedge funds started off 2008 with their worst quarter ever."

blueskies
blueskies
12 years ago

anecdotal info on current slowdown:

my favorite coffee shop is doing less business than usual… owner now puts in a full day and hired manager is on part time, and part time staff is cut back.

this is a ten year old operation that is extremely well managed…….

will keep ya'll posted

cashisking
cashisking
12 years ago

MLS was warning realtors that the system has been slow the last few days b/c of all the new listings … my better half is a realtor … info came at there weekly market meeting … also if anyone has realtylink check out price revisions 98% are to the downside (opposite of last year).

Krrish2
Krrish2
12 years ago

Garth Turner aha ok post any of his answer or anology, I will show you Garth Turner knows nothing about real estate but he wanted to buy a Penthouse on 36th floor from where he can call all the humans on earth "Gretest Fool".

Challenge from Krrish2

wizardofozziejurock
wizardofozziejurock
12 years ago

If there's one thing we don't like, it's the CMHC, correct?

There's currently one person in Canada who has access to a big enough soap box to take on the CMHC – Garth Turner.

I strongly encourage you to lobby Garth to take this cause on via postings to his site at greaterfool.ca

Got me too
Got me too
12 years ago

ha ha april fools..that name chuck u farley is sweet. Krrish is a DIPSH#T.

"Chuck you farley" dates you IMHO.

We still use the mechanism — many times daily — in our home. It saves having to write things like the "#" in "DIPSH#T". Instead we would write say "shipdit" or — depending on our mood — "gucking foofoff" or "wainless bronder" which may turn out to be more appropriate terms.

Got me too
Got me too
12 years ago

I thought April Fool's jokes only counted if they were implausible. So this one doesn't count, eh?

Krrish2
Krrish2
12 years ago

DRAAT!

Comment by Krrish2

2008-04-01 15:22:22

Is not me must be prank for April Fool Bdk,A,and others, you guys got punked together.

CMHC:How do they design their policy and procedure to run their bussiness is none of our bussiness the bottom line is they like to provide equal opportunity to every single PR to buy their own shelter if you guys don't like that then use 20% down payment and get rid of CMHC.

A,

I don't have to defend CMHC but they are dealing with Canadian part that's definitely safe and they do have a super duper analysis to predict the future of Canadian Housing Market.

They have eliminated bubble from British Columbia,Since Satv did that Last year they have adopt the same conclusion same reasons .

Anonymous
Anonymous
12 years ago

ha ha april fools..that name chuck u farley is sweet. Krrish is a DIPSH#T.

Lager not Logger
Lager not Logger
12 years ago

Young man, there's no need to feel down.

I said, young man, pick yourself off the ground.

I said, young man, 'cause you're in a new town

There's no need to be unhappy.

Young man, there's a place you can go.

I said, young man, when you're short on your dough.

You can stay there, and I'm sure you will find

Many ways to have a good time.

It's fun to work at the C-M-H-C.

It's fun to work at the C-M-H-C.

Strataman
Strataman
12 years ago

anono"Flipping is a sin. If the R/E is high because of fundamentals, I’m totally ok with it. But if it is because of speculation, that’s BS." Very true my feelings exactly 100% tax unless you live in it 3 years! Flippers are total leeches of society. People this town would be far better off without those non contributing parasites. 🙂

Anonymous
Anonymous
12 years ago

-A-,

I totally agree. Sell off CMHC. Enforce a law to have 50% down payment for homes. Implement a flipper tax where gains at 100% taxable at the highest rate and loss and not deductible. Flipping is a sin. If the R/E is high because of fundamentals, I'm totally ok with it. But if it is because of speculation, that's BS.

-A-
-A-
12 years ago

.

.

.

.

.

Krrish aka Rob I just noticed on your blog, defending CMHC seems to be something you cannot resist.

Why?

BDK
BDK
12 years ago

Krissh reply proves he is a spam bot.

That or he can't read.

BDK
BDK
12 years ago

Right Spam Bot, all the peasants from China and homeless people in Vancouver are lining up to buy at TV Towers.

Idiot

Krrish2
Krrish2
12 years ago

This is all for proof that for peaceful happy fun living we will all be going to moon with rocket fuel of cmhc. Tell homeless man tell student tell starving in china come to vancouver for finding of purest enjoyment that can only be come from mouth of real estate. When we will all have happy party and sing "To the moon Sonika, to the moon!"

-A-
-A-
12 years ago

….

….

The best way to insure home affordability is to dismantle CMHC.

Why should taxpayers be in the business of creating bubbles which eventually go bust?

Without the, artificially created, demand by CMHC ,housing costs would be much more aligned with fundamentals such as population and wages, since you cannot use creative financing for rental payments.

CMHC is a parasitic scam, and an incubator of deceitful, fast talking charlatans who eventually go to work for real estate boards.

Shut it down, and let the banks, realtors, and developers set up their own shill agency.

paul
12 years ago

I like the scratch cards idea. Kind of like Bay Days. Innovation at it's zenith! lol

paul
12 years ago

Oh man you had me!!

bdk
bdk
12 years ago

So true!

betamax
betamax
12 years ago

Good thing you used a funny name, so the parody was distinguishable from reality.

bdk
bdk
12 years ago

Must be an April Fools day joke.