Mortgage brokers warn about new rules
Canadian mortgage brokers are freaking out about new refinancing rules proposed by the OSFI which has taken over responsibility for the CMHC. Reasonably enough, they’re asking for clarification about proposals to require banks to check income and current house value before refinancing.
Currently, when mortgages come up for renewal, banks tend to focus on the borrower’s payment history. They rarely appraise the property again and not all banks will check the borrower’s updated income level, Mr. Murphy said.
“CAAMP strongly recommends that this concept be clarified so that mortgages continue to be renewed at maturity without requalification,” the industry association said in a submission to the Office of the Superintendent of Financial Institutions (OSFI).
“If not, homeowners who have been in compliance may no longer qualify. This would result in a number of properties hitting the market at the same time and thereby driving down prices.”
Such a phenomenon could add further fuel to a real estate downturn if lower house prices and higher unemployment caused more people to lose their homes upon renewal, Mr. Murphy suggested.
Read the full article in the Globe and Mail.
May 24th, 2012 at 6:15 pm
Gonna talk about the hospice at ubc on global news tonight.. Always fun:)
May 24th, 2012 at 5:37 pm
@chopper: For future reference you can format a link like this: first type
then paste the link in and close the tag with another > bracket. Then you type what you want the link to say, then close the tag with .Putting all together a link to this site would be typed out like this:
And when you post it will look like this:
link
May 24th, 2012 at 5:28 pm
@M-: The crazy with 8 and 4s are started with HK and Taiwan immigrants who really believed in this stuff. The mainland Chinese didn’t really pick this stuff up until the last few years. 1996 is right during the big HK and Taiwan immigration waves.
May 24th, 2012 at 5:03 pm
@Makaya: Ha! you’re awesome. Thanks Makaya!
May 24th, 2012 at 4:54 pm
@chopper:
World edges closer to deflationary slump as money contracts in China
Fixed that for you!
May 24th, 2012 at 4:50 pm
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9263196/World-edges-closer-to-deflationary-slump-as-money-contracts-in-China.htm
If the link above does not work can someone please teach a retard like me how to do a link properly…
BTW, this is something to cheer up BPOM’s day
May 24th, 2012 at 4:23 pm
re:
http://www.realtor.ca/PropertyDetails.aspx?&PropertyId=11939783&PidKey=-542343134
I think that house has been done over by amateur flippers. They are starting to get spooked by the slowing market, having dropped the price $50K or so in the last two months.
It was re-listed recently as “NEW!”. Not.
May 24th, 2012 at 3:31 pm
@Anonymous:
>Nope, just a place to bitch about lounging RE agents with little to do but post crap on blogs.
If different points of view that are presented in a civil way aren’t tolerated, doesn’t this blog turn into the same mass media, developer/agent driven echo chamber that people have been complaining about for the last 7 years?
May 24th, 2012 at 3:24 pm
Makaya: “If you’re willing to provide ideas, I’m more than willing to listen”
you mean ideas about future of Canada after RE crash?
well the best is to experience it firsthand. I was in Florida in 2009 and one word could describe it “Desperation”..this Christmas I was in Athens..same thing. this morning read the news mother and son jumped to death in Athens of financial problems. crazy times.
May 24th, 2012 at 3:12 pm
@Bull! Bull! Bull!: ….Or is it a place for people to bitch about the Chinese and how they can’t keep up with the Joneses..
Nope, just a place to bitch about lounging RE agents with little to do but post crap on blogs.
May 24th, 2012 at 3:08 pm
Re Pending Unemployment Insurance changes” ‘This government would have you believe that they’re sitting there and surfing off the shores of Nova Scotia or skiing in the mountains of British Columbia … it’s not true.’
Err, I hope that I never have to swear on a stack of Bibles that I’ve never been skiing in British Columbia while collecting UI
Ken’s right of course about folks ‘surfing off the shores of Nova Scotia’: no self respecting UI collecting surfer would be caught dead in Nova Scotia when the big waves are at Jordan River.