Heloc LTV going to 65%?

Canadian Mortgage Trends is saying that changes to HELOC loan to value (LTV) limits are a done deal.

If so this means the maximum HELOC you’ll be able will move from 80% to 65% of the total value of the property.

Read the original link for full details. Many commenters there seem to think this is too big a move.

Appraiser said…
65% is too much of a leap all at once.

I can’t understand why OSFI doesn’t ratchet the LTV ratio down a little more slowly (i.e., 5% at at a time and sit back to observe the consequences).

As has been noted lately, the previous three sets of mortgage tightening guidelines have been gradually working their way through the credit markets effectively.

You can kill an ant with a hand grenade, but it usually makes a hell of a mess.

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Bilbo Bloggins

A very “Asian” friendly inventory count.


Thanks McLovin… It didn’t seem like a post you would make… i was surprised



Why is it time to move?


@Anonymous: “Chinese are way more mentally prepared and capable to resist/size-down crash while sacrificing their lifestyle and everything in order to maintain “ownership status””

So renting is out but living with your parents until your late 50’s is OK. Where does that living with your parents ‘status’ fit in?


Hope CTV is lying… I did a check through google news for the last 24 hours of OSFI news and no other station carried the story.

It maybe the mortgage association trying to give the perception that isn’t going to happen so OSFI would look bad if it were to announce the changes.

HAM Solo

I agree with McLovin.

Besides, the real tightening is being driven by banks and other mortgage lenders. These guys have have been monitoring prices, inventory, leverage etc and it is their actions that are driving down the purchase numbers. Lenders aren’t granting as many approvals…and the ones they are granting are for lower totals.

No money down and liar loans didn’t disappear until well after the US market burst, but a few big guys at the centre started tightening the screws. Same process underway in Canada.


@Skeptic: The requalification thing is a bit of a sidebar IMO. The underlying asset (the borrower and the property) doesn’t change if banks choose not to requalify at renewal. If markets think banks have chronic asset distress on the books and believe banks won’t be able to pass the bag, their analysts will hold their feet to the fire or discount them if it’s not properly disclosed. As a previous commenter correctly pointed out, the OSFI guidelines did not state that banks must refuse borrowers a preferential rate, but they would be forced to mark their assets to market and eat the spread (which they are doing now anyways). Further, banks are under no obligation to renew any loan when the term expires. They choose to do so because they get to ignore DSR limits knowing the government will pick… Read more »


@Mclovin: I’ve been burned thinking that before… before 0/40, before lower rates after the 2008 meltdown….. Now cautiously (and quietly) optimistic.


Nothing can stop this market from collapsing under its own weight. The Govt has fired all it’s bullets there is nothing else they can do to prop it up.


OSFI’s decision will keep Van real estate edging upward for the next decade and it is good news to Vancouver economy and the Nation.God bless Canada.


Select May 31st, 12:50.

CTV news at 6 reported that OSFI has put the mortgage renewal rules off the table.


Sigh….as I said in earlier posts, I was skeptical that these changes would have any effect. Since they are off the table, we know they will no effect.

Chalk this up in a long list of variables that could have prompted a quicker decline in prices, and the bursting of the RE bubble.

I guess the RE lobby was a lot more powerful than a bunch of letters from “bitter renters” complaining that they would be paying for irresponsible government and bank policies…

Well, time to move….

Navin R. Johnson

Nice try Conrad Crack. Your shark has been jumped…


Great decision from one of the best regulators on the planet. We are all behind you OSFI!!

More big sales days coming in metro van. Expect next teranet monthly up near a full percent.

Patiently Waiting

@Clockbike: I just lost most of my respect for OSFI. They are supposedly objective regulators, but here they are floating trial balloons. Shame on them.


@crashcow: Intraday, the low on the 10-year yield was 1.53%. We’ve set an all-time record low in rates today!

The bond market is worried and risk aversion is in full force.


@McLovin: Register for an account with VCI on top right. Go to “site admin” then “profile” and scroll down to the bottom. You will see a section for the avatar. You will need to log into VCI if you want to use it to post. With the avatar there is less chance people will mistake you for a douchebag. 😉


In 1946, the 10-year Treasury yield was at 1.54% – the lowest value in the last 220 years. Today, the yield is at 1.59%. Tomorrow or next week may set a new record.

Loser with girls

Chinese PMI,

everything is lower except invetories

Loser with girls

ReadyToPop: “I’ll be looking into what’s on the official agenda..”

fight the poverty, promote the world peace..the usual stuff



Select May 31st, 12:50.

CTV news at 6 reported that OSFI has put the mortgage renewal rules off the table.


Bilderberg Meetings
Chantilly, Virginia, USA, 31 May-3 June 2012 Final List of Participants

Note the Canadian participants. Notably, Carney, Mark J. Governor, Bank of Canada.

I’ll be looking into what’s on the official agenda….RTP


Landcor report is out

British Columbia Q1 2012 Residential Sales Summary

Woodsy analogy, market reality; the regional BC real estate markets are collectively up a tree, staring at the danger below. The mood is a bit scared, a bit scarred, the euphoria of earlier broad-based gains long evaporated.
Branch-wise, some submarkets still maintain a decent grip, others not so much. Adding to the uncertainty, a weighty panda bear has climbed up in the tree too – the regional-centric yet deeply influential influx of foreign residential and resource-industry investment buyers.


Copied from PaulB’s number. Thank you PaulB. http://www.laurenandpaul.ca http://tinyurl.com/paulsfacebookpage Using good-format’s format. Date List Price+- Sold Xpired Inv Inv+- S/L% 12.04.30 316 179 124 17530 75 39 12.05.01 354 144 179 583 17122 -408 51 12.05.02 371 131 150 100 17243 121 36 12.05.03 339 159 121 61 17400 157 36 12.05.04 337 120 77 68 17592 192 23 12.05.07 353 177 90 128 17727 135 25 12.05.08 365 157 183 86 17823 96 50 12.05.09 337 145 183 60 17917 94 54 12.05.10 318 129 115 47 18073 156 36 12.05.11 262 132 81 78 18176 103 31 12.05.14 268 168 150 112 18182 6 56 12.05.15 287 174 95 100 18274 92 33 12.05.16 271 185 204 141 18200 -74 75 12.05.17 270 127 70 94 18306 106 26 12.05.18 328 106 135 80 18419 113 41 12.05.22… Read more »


McLovin you mentioned that a few times…

Where do claim Romeo Jordan works – because I think you are wrong.


MC Lovin – go to Gravatar and sign up for an account using the same email address that you signed up for this account.