FFFA! Late edition.

It’s Friday!

And we’re having tech difficulties.

We’ll flesh this thread out later.

Carry on!

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bon jovi
Guest

just returned from the bank. had a chat with advisor there to deposit money into RESP. On the mortgage front Scotia has 5 year variable at 2.9% and 2 year closed at 2.6 %.

Democrass
Guest

Here is a professor’s view of what governments can do to make housing affordable:

Kershaw, who researches the financial challenges facing young families, said this would save a typical family about $50,000 before their children reach the age of six, which would make it easier for parents to save for a down payment and handle B.C.’s high housing prices or afford to pay their rent.

Kershaw said governments have few ways to influence the price of housing — which is usually determined by market forces — other than programs to fight homelessness and rental assistance to help low-income people.

Read more: http://www.vancouversun.com/life/Expensive+housing+riddle+British+Columbia+parties/8364133/story.html#ixzz2SutiUUY2

Vmd@work
Guest

[Via CMT] Update, May 10, 12:40 p.m. ET:
“We’ve contacted the Department of Finance (DoF) for comment. Banking sources have confirmed reports of the DoF contemplating amortization guideline changes for conventional mortgages. But there’s no confirmation on what, if any, moves will be made. Assuming the DoF acts on this issue, an alternative possibility is that conventional borrowers be made to qualify at a 25-year amortization, but still be allowed to set payments at a longer amortization.”
http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2013/05/death-sentence-for-extended-amortizations.html

DaMann
Member

@bon jovi

You mean the variable is 2.6% and the closed is 2.9% I presume?

DaMann
Member

vmd@work

AM I missing something? I though the new rules brought amortizations down to 25 years already? Though that was the last round of changes. Is this not the case. You can still get 30 year mortgages?

DaMann
Member

Sure whish there was an edit button… Though should be thought, but upon re reading the article it states 30 year will be scrapped for mortgages above 20% DP. Mortgages with under 20% down payment are already restricted to 25 years.

San Dweller
Guest

DaMann:

>You can still get 30 year mortgages?

There are still available via mortgage brokers: I can’t say how the rules are bend – but they appear to be.

vmd@work
Guest

1. @Damann
That’s right, the previous rule change affected only mortgages requiring CMHC insurance (ie ones with 25yr loans to people with 20%+ DP

Looks like Garth might be right this time.. we’ll see.

2. re: family re-unification. The rules are getting tougher:
“Ottawa said it is hiking the minimum necessary annual income for sponsors by 30 per cent, requiring sponsors to demonstrate they meet the new income threshold for three consecutive years instead of 12 months; and extending the sponsorship responsibility period to 20 years from 10 years.”

Tyburn gallows
Guest

http://www.vancouversun.com/business/debt/8365779/story.html

“Instead of admonishing people for getting into debt, a new book by Laura McDonald and Susan Misner of Winnipeg offers a plethora of practical tips, not only on how to avoid debt, but how to get out of it.”

love the timing.. two gorgeous blondes biting the debt bullet… ah yazz… step right up folks, we’re serving austerity… but pump and dump bankers, realtors, and mainstream media tawking heads are off the hook…

bon jovi
Guest

checked with wifey it is 2.69 2 year closed.

Planning
Guest

Does anyone know where to find the City of Vancouver’s development plans? For example, where does the city plan on increasing density, where might new transit routes be, and so on.

Thanks in advance.

Anonymous
Guest

You can still get very low rates right now, the only stipulation is if you want them insured with the government you need to qualify under the 5 year posted rate, which is being kept artificially high.

Skook
Guest

@Planning says:

“Does anyone know where to find the City of Vancouver’s development plans? For example, where does the city plan on increasing density, where might new transit routes be, and so on.”

Would this site be any help to you?…

http://data.vancouver.ca/datacatalogue/index.htm

HAM Solo
Guest
Nice to see some of the bigger US hedge funds picking up the short Canada theme. Home Capital Group moves from $60 -> $50; Genworth MIC “beats and announces buyback” and after a few days not much happens, back to $25. If you look through Q1 report from Home Capital Group, we continue to see higher and higher credit provisions every quarter. My guess is that Q2 or Q3 produces a “doozy” credit provision of $5-8 million compared to last year’s $2-4 million run rate. Unlike Genworth, HCG has no slush fund to throw at stock buybacks. (I suspect that… Read more »
Anonymous
Guest

Yay my brother sold his house. Almost one year on the market and one price reduction. His realtor said that is the only sale he’s had all year… This is a guy that’s been in the business for about 6 years.

On a side note, after a lowball offer a few months ago was declined, the buyers agent approached my brother privately and asked if he’d be interested in selling it privately to her clients… That seems highly highly unethical to me? Bro didn’t even bother to tell his realtor , I certainly would have

space889
Member
Normally not a big fan of Federal Tory, but this kind of changes is long overdue and really should have been the policy since the start. Personally I think any sponsored parents/grandparents that are past working age or really employable should not be eligible for welfare, and social assistance, as well as a long wait for free public health care (or perhaps some kind of co-payments). If you never paid taxes in Canada then you really shouldn’t be getting the benefits. There has to be a net benefit to the country, not just to you. Off course NDP is throwing… Read more »
Johnny_O
Guest

It isn’t Canadians naivete the problem, it’s the plethora of idiots that work for inside the immigration department. They truely believe money comes free!

Vote Down The Facts
Guest

30 year mortgages are still technically available, even with CMHC insurance, via certain products with 25yr amortization that let borrowers skip a payment once annually. The skipped payment gets recapitalized, so if you execute this privilege as often as you’re entitled you’d end up taking about 30 years to pay off that 25 year mortgage. And, on aggregate, the monthly payments are about 10% lower.

Brian Ripley
Guest

Here is another metric for grappling with the valuation disparity between Vancouver and the GTA:

http://www.chpc.biz/2/post/2013/05/whale-watching-update.html

Toronto has more than twice as many billionaires as Vancouver, and more than Calgary and Vancouver combined!

I have also update my earnings chart http://www.chpc.biz/earnings.html

Alberta sets another new record high in earnings and their unemployment dropped to 4.4%

Anonymous1
Guest
Immigration changes today: Biggest change is if I am correct is that parents/grandparents coming in will have to wait 20 years (up from 10) to collect OAS/GIS. Can someone verify? If true, this is a huge change once the 80,000 parents/grandparents applications already in the pipeline are processed. It will mean a move away from the Mega-houses in Surrey. Smaller location friendly homes will be more in demand. Parents and Grandparents won’t come here to stay because no monetary incentive. 20 years is just to long. Before, every parent coming in had listed their age as 55 coming in (even… Read more »
patriotz
Member

“Kershaw said governments have few ways to influence the price of housing — which is usually determined by market forces”

What planet is this guy from? RE prices are as high as they are because government is deliberately inflating them. If there actually was a free market in housing prices would be lower than they are in the US – where the government is still intervening to support prices.

Oh, just noticed he’s from UBC. Well that explains everything.

patriotz
Member
“Biggest change is if I am correct is that parents/grandparents coming in will have to wait 20 years (up from 10) to collect OAS/GIS. Can someone verify? If true, this is a huge change once the 80,000 parents/grandparents applications already in the pipeline are processed.” It’s not a huge change at all, because under pre-existing rules you only get full OAS if you’ve been in Canada for 40 years. Anything less than that and it’s pro-rated. The real financial burden on taxpayers is medical care for elder immigrants, which the provinces cannot refuse to anyone admitted as a permanent resident.… Read more »
Beuller
Guest

I’m liking Kenney more and more all the time. About frigging time we put an end to these freeloaders.

http://www.cbc.ca/news/politics/story/2013/05/10/pol-immigration-family-changes.html

Maybe Flaherty will grow a pair and raise the minimum downpayment instead of just shaking a finger at the banks. Its hilarious to see all the whiners in the mortgage industry crying about how Flaherty is being “risky” by toying with the regulations. Here’s a thought, you idiots, maybe he was being too risky by introducing 40 year zero down mortgages. None of you snakes complained at all then did you?

Anonymous
Guest

@Democrass

Kershaw said governments have few ways to influence the price of housing — which is usually determined by market forces — other than programs to fight homelessness and rental assistance to help low-income people.

Um….huh? I thought governments had many ways to influence the price of housing? Everything from urban planning to monetary policy?

Anonymous1
Guest

patriotz:

This is an example of you missing information..

You are forgetting about the GIS. If you are in Canada for 10 years, of course you get less OAS…BUT it is topped of by more GIS.

The 40 year requirement means nothing…believe me 🙂

The one that matters is 10 years. Is it now 20? That is the BIG question.

Eddie
Guest

The Feds just gave Genworth 50 billion to keep the party going and no one seemed to notice.

They can say anything they want but its clear where their priorities are.

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