As I said, the notion that 60-year mortgages are on the table is hard to believe… but my understanding of the maximum amortization period in Canada is that it’s only a maximum if you want/need government-backed insurance. If you want a longer term than 35 years, you just have to pony up for (more costly) private insurance.

From the BCREA website, there’s info on how the “outlawed” 40-year products offered by name-brand brokerages are still, in fact, available:

http://www.bcrea.bc.ca/economi.....rtgage.htm

“Private insurers are still free to insure 40-year amortization and 100 per cent loan-to-value mortgage products, but the lack of government backing will lead to sizeable increase in risk. This may mean the elimination of these products after October 15, or a higher insurance cost for the borrower.”

I haven’t found anything in a google search about 60-year products per se, but I will ask my friend for more info. My guess is that it’s not offered by name-brand institutions, but sketchier companies. In the meantime: anyone else know about the availability/popularity of crazy-long mortgages in Canada? If there’s something you can point to on the web that definitively says these are unavailable, that would be helpful, too…

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Stop trying to make the bears feel happy.

“138 subpriming the pump Says:

October 5th, 2008 at 3:48 pm
A friend of mine bought in Vancouver at the beginning of summer. She and hubby got a mortgage from a broker in Alberta. I can’t even believe the terms: 5% down, and 60 year amortization! I didn’t even know this was possible… “

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One is intentionally funny, the other is just funny. But enjoy them both while they’re here; they’ll both disappear in a couple of months.

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The credit crisis, which has been building slowly for the past year, is now moving so fast that governments around the world are finding it impossible to keep pace.

http://business.timesonline.co.....888251.ece

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Believe it or not, house prices are going to soar

With developers unlikely to respond quickly when the market bottoms out, prices may recover more quickly than people imagine.’

That price rise may be every bit as large as the current price falls.

http://tinyurl.com/4ug4t6

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You see the connection between the money printing presses and inflated asset prices, yet you fail to see the event that always follows the inflation phase.
But no problem, you will see if first hand – inflation, recession, panic selling.

In California prices are down 47% in some markets, even with Bernanke putting an extra graveyard shift on the money presses.

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Actually it doesn’t take much of a strike at all for sales to drop off a cliff. For every new buyer there are 2-3 that rely on that buyer to sell their own properties. Take away only 15% of demand and that’s your 40% drop right there.

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hey! if you like canucks this yr press green arrow below
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Unlike his blog, where he censors the truth, here, the posters decide.

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I like to follow both sides of the conversation, and I don’t think it does us any good to completely shut out the bullish views. And since we are all fairly certain that Dave is somehow involved with real estate in his professional life, his comments are a useful way for us to see how the dishonest and/or clueless members of these professions are currently tricking people into buying.

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The metrics tell the tale:
S/L ratio: in the high 90’s
MOI : 1.5

And let’s not forget, the shortage of land, the fact that Vancouver is a world hub of business, and did I mention we are the California of the North?

(maybe I shouldn’t use the California of the North thingy anymore)

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The results vary greatly – but I’ve never seen a montly loss as low as $200. I would say $500 minimum (this would be on a smaller 1BR.)

If anyone sees any listings like this, post them … they are interesting!

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The rationale is to keep the monthly payments within their range, and longterm they’re counting on appreciation… I tried to get them to read this and other bear blogs, but they wouldn’t do it. I guess they’re not that worried, they’re in for so little it will be easy for them to walk away if things get tough.

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Well, sumbith, I was so pumped to blast away at the first sight of Dave and John that I hit the wrong damn button…that feels even worse than the agony of not having the “thumbs down” option.

O man, will I be waiting for you creeps the next time.

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I grew up in the southern Interior, wise guy, so I’ve known about Greenwood since I was a kid.

If you think being “rich in history” makes a house in a ghost town worth 390K, go ahead and buy it.

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German Chancellor Angela Merkel has moved to reassure savers in German financial institutions that their deposits are safe.

The BBC business editor says the biggest worry is now in Iceland, where the government is trying to shore up the entire banking system before markets open on Monday.

http://news.bbc.co.uk/2/hi/business/7653317.stm

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“$1400 1br – 1 Bedroom w/View at Coal Harbour for Rent (#1204-1328 W. Pender St., Van, BC) (map)Well designed 1 bed suite, 7 appliances, granite countertop.

12/Fl, view of Coal Harbour, Park, marina and mountain.

Building has Resident Manager, concierge service, indoor swimming pool & full rec facility.

Come with 1 parking and 1 locker. ”

So what is it you are trying to say?
Are you suggesting it’s only a loss of $250 if you buy it outright? What about the opportunity costs of putting up hundreds of thousands?

If vacancies are so tight in coal harbour why do I have my pick of hundreds right now?

You actually need 25% down for an investment property, which you must know. The fact that people lie and put 5% down and then rent them out isn’t a secret.

If you can find me a place and then rent it out at a loss of only $250 per month I’ll write you a cheque.

The truth is it’s a loss of $1500 per month and since the market will tank anywhere from 20-40% it’s a paper loss of thousands per month which requires a further cash injection of another fifteen hundred just to avoid foreclosure, hurry there are rich asians coming to buy them so if you don’t buy now they will!

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33 listings – one for every 20 people. Look what you can get for just 390K LOL!

Thanks for bringing this listing up. I’ve driven by many, many times and wondered what the history of this building was … it’s described in the MLS listing. Bet that’s about all you know about Greenwood, a city rich in history. Regarding “LOL”, you big city folks are all the same … full of yourselves.

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That is a 1 bedroom price in coal harbour, those numbers make sense it’s a $2,000 loss to the landlord every month

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October 5th, 2008 at 12:17 pm
Downtown rents cover 1/3-1/2 of the mortgage payments with 5% down ( I know 25% percent is required but people lie).
$600 per $100k on a $489k (oops $450 now) plus strata fees ($230),maintenance and insurance is over $3,000 per month.
The rent for this unit (and there are hundreds so this is a fair sample) is $1300-1500.”

- No one is paying 6% on a mortgage not even close.
- A 20% downpayment is required to avoid CMHC costs.
- While you can rent downtown for $1300-$1500 a decent sized 2 bdrm in a new building with a pool is a different story.
- Vacancy is low enough that you can assume full rental all year right now.

So in the examples posted the owner is losing $250 dollars a month. Hardly the 1/3 to 1/2 you claim.

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