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
bon jovi
3 years 17 days ago

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
Democrass
3 years 17 days ago

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
Vmd@work
3 years 17 days ago

[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
DaMann
3 years 17 days ago

@bon jovi

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

DaMann
Member
DaMann
3 years 17 days ago

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
DaMann
3 years 17 days ago

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
San Dweller
3 years 17 days ago

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
vmd@work
3 years 17 days ago

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
Tyburn gallows
3 years 17 days ago

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
bon jovi
3 years 17 days ago

checked with wifey it is 2.69 2 year closed.

Planning
Guest
Planning
3 years 17 days ago

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
Anonymous
3 years 17 days ago

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
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Skook
3 years 17 days ago

@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
HAM Solo
3 years 17 days ago
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
Anonymous
3 years 17 days ago

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
space889
3 years 17 days ago
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
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Johnny_O
3 years 17 days ago

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
Vote Down The Facts
3 years 17 days ago

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
3 years 17 days ago

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
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Anonymous1
3 years 17 days ago
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
3 years 17 days ago

“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
3 years 17 days ago
“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
Beuller
3 years 17 days ago

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
Anonymous
3 years 17 days ago

@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
Anonymous1
3 years 17 days ago

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
Eddie
3 years 17 days ago

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.

Vote Down The Facts
Guest
Vote Down The Facts
3 years 17 days ago

Unemployment in BC down from 7% to 6.4%, and is now well below the national average of 7.2%

http://www.vancouversun.com/business/economy/unemployment+rate+dropped+March/8366314/story.html

Vote Down The Facts
Guest
Vote Down The Facts
3 years 17 days ago

“Toronto has more than twice as many billionaires as Vancouver”

So per-capita Vancouver has more billionaires than Toronto?

VMD
Member
3 years 17 days ago

@#27 VDTF
also note:
Unemployment in Vancouver stayed at 6.8%, while BC dropped from 7% to 6.4%
http://www.cbc.ca/news/interactives/unemployment-stats/

paulb
Member
3 years 17 days ago

New Listings 232
Price Changes 121
Sold Listings 32 …huh?
TI:18050
http://www.paulboenisch.com

kabloona
Member
kabloona
3 years 17 days ago

Well…..now *that’s* a slow sales day. 18k party anyway.

😉

patriotz
Member
3 years 17 days ago

“Toronto has more than twice as many billionaires as Vancouver”

So per-capita Vancouver has more billionaires than Toronto?

Residences in that table are obviously metro areas. Toronto has a bit more than twice the population of Vancouver (metro vs metro), so take it from there.

What I find interesting is how many billionaires there are in Quebec, which has far and away the highest taxes in Canada.

Boombust
Guest
Boombust
3 years 17 days ago

Well done, Paul.

Luv ya!

Chris
Guest
Chris
3 years 17 days ago

Something doesn’t seem quite right… Yesterday’s sales number (80) is also likely wrong. Most days PaulB’s numbers match up exactly with RobChipman’s numbers. But yesterday Rob reported 144 vs 80 for PaulB.

PaulB’s numbers still very valuable though, as Rob does not report new listings, price changes or TI. Please keep posting!

Boombust
Guest
Boombust
3 years 17 days ago

Rob? Chipman?

Who cares?

george
Guest
george
3 years 17 days ago
frank
Guest
frank
3 years 17 days ago

Paul’s numbers don’t jive with Fish’s either. But still a great day with a list/sales under 30%!
I am happy with that.

http://fishyre.blogspot.ca/2013/05/the-lay-of-land.html?showComment=1368243512088

Anonymous1
Guest
Anonymous1
3 years 16 days ago

Whats better than coming to this blog?? Take a guess. hhahahahahahah! woo hoo! hope every one is enjoying their friday nite!!!!!

Anonymous1

Uncoveredoption
Guest
Uncoveredoption
3 years 16 days ago

Could the 30 yr amort cap be avoided by first taking out a 20%+ downpayment mortgage, and then HELOC’ing 10% in a subsequent transaction?

The bank should be able to bulk insure this transacton? The 30 yr cap is dodged, everyone is happy?

Anonymous
Guest
Anonymous
3 years 16 days ago

Happy 18,000 Party!

A
Guest
A
3 years 16 days ago

Increases in the homeownership rate are associated with increases in unemployment. Home ownership creates “negative externalities” for the labour market as it impairs labour market mobility and NIMBYist homeowners block economic development that creates jobs.

http://finance.yahoo.com/news/challenge-dogma-owning-home-182926523.html

VMD
Member
3 years 16 days ago

@34
fyi Rob Chipman’s post also confirmed paulB’s 32 sales.

Loon
Guest
Loon
3 years 16 days ago

To all the sellers and RE agents:

Stop throwing away money on interest, helocs and maintenance.

Get on with your life,
reduce your price !

rp1
Guest
rp1
3 years 16 days ago

#26 Feds gave Genworth rope to hang themselves with. $50 billion in insurance cap is not going to support the market. If Genworth’s loans are “problematic” they will sink.

This is a totally different story from 2008, when it was $300 billion new insurance cap for CMHC (doubling the old limit) and a directive from the finance minister “to approve as many high ratio loans as possible.”

patriotz
Member
3 years 16 days ago

Prices were in a free fall in 2008. Actions then were aimed at getting prices past the previous peak and rising until the Cons got their majority.

Actions now are intended to engineer a “soft landing”. You will see more incremental measures if prices start to decline too rapidly in Toronto. But they don’t care about Vancouver.

george
Guest
george
3 years 16 days ago

The face of personal bankruptcy in Canada is getting older and older.

Older Canadians facing deeper debt: study

CullBull
Guest
CullBull
3 years 16 days ago

“Actions now are intended to engineer a “soft landing”. You will see more incremental measures if prices start to decline too rapidly in Toronto.”

All indications are that the soft landing plan is working and will continue to work. A soft landing is not worth waiting for. Just buy now.

CullBull
Guest
CullBull
3 years 16 days ago

Look at Australia. The peak was three years ago and what have prices done? They have only declined 5%. What’s the point in waiting years for a mere 5%. It is not true that all bubbles crash. Look at australia as an example. And what to australia and Vancouver have in common? Chinese buyers. Read about it in Bloomberg:

houses in the top 20 percent of the market in Australia’s major cities are about 5 percent below a peak in April 2010, according to Brisbane-based researcher RP Data.

http://www.bloomberg.com/news/2013-05-09/sydney-s-luxury-home-sales-stir-as-stock-rally-lifts-confidence.html

CullBull
Guest
CullBull
3 years 16 days ago

I might ad that the people who run this country are the smartest and most effective administrators in the world. They engineered a housing bubble to avoid the great recession. And how they are engineering a soft landing.

They made housing prices skyrocket while the financial world was collapsing. If they can do that, they can do anything. Don’t bet against the GOC (Government of Canada).

Anonymous
Guest
Anonymous
3 years 16 days ago
CullBull: “All indications are that the soft landing plan is working and will continue to work. A soft landing is not worth waiting for. Just buy now.” Wrong. The governments plan is to reduce household debt which is still on the rise. The only way to reduce household debt is to have lower real estate prices. It is pretty simple to figure that out. Household debt cannot keep rising. There are two possibilities. The government engineers lower household debt through a slow decline in real estate (their current plan) or the whole thing blows up like in the US. Either… Read more »
Anonymous
Guest
Anonymous
3 years 16 days ago

Don’t bet against the Canadian Govt? You have got to be kidding?

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