IMF says Canada should end CMHC insurance

In a surprising recommendation, the International Monetary Fund has suggested that Ottawa should do away with mortgage insurance offered by the CMHC (Canadian Mortgage and Housing Corporation).

The IMF concedes that the current system has its advantages for stability. But it says it also exposes the government, or taxpayers, to financial system risks and might distort the market as a whole in favour of mortgages over more productive uses of capital.

Huh, would any of you taxpayers miss insuring high risk mortgages?  By which we mean would you miss insuring MORE higher-risk mortgages, since there’s no way you can drop responsibility for the ones we already insure.

Read the full article here.

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[…] that time of the week again!  This time, we’re going to use the assistance of commentor Snake who posted most of these […]


“Bill Good, who rents in Coal Harbour…
Why would locals buy there, and then leave them empty”

I think you answered your own question.


Turncoat Turnr has just threatened anyone who posts anti-Chinese stuff related to high house prices (HAM) on his blog…saying he”ll report them to the RCMP. Unbelievable.


Son of Ponzi…

You are at war with naive HAM non-believers and smart Immigration lobby personnel masquerading as ‘bears’…you are going to lose this one. The former are leading themselves to the slaughter.


Delta Rise Tower opens for presales soon…

So much chatter in the South Asian community in Newton about this! On the street…everybody wants one as investment thinking India will come here…lol

We will see if it sells out on opening Day. Something tells me that the majority of it will. I will eat crow if I’m wrong.


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Another small piece of evidence appears: Chartered Bank Loans to Private Businesses for Real Estate (Non-financial corporations and unincorporated businesses) Chart


Here is another affluent local who owns 2 homes on the Westside and 4 homes in BC which he can only use one of at a time. He might even be mistaken for HAM by some.

Son of Ponzi

# 34
I glad you mentioned River Green in Richmond.
Can you tell how many locals making 52k a year are living there?


@32: “Bill Good, who rents in Coal Harbour, recently had a segment where they talked about how many units were empty. Why would locals buy there, and then leave them empty?” There are many affluent locals and Canadians from other provinces who own second homes in Coal Harbour. Bill Good is good example. He owns a house on the Sunshine Coast and spends a lot of time there leaving his Coal harbour condo empty every weekend and for his many months of vacation time. Jimmy Pattison’s main residence is in West Van but he has a condo in Coal Harbour he uses on occasion. There are many snow birds who own condos in Coal Harbour who spend half the year or more down south. For people who want to travel extensively and can afford it owning a condo is easier… Read more »

Son of Ponzi

I crunched some numbers comparing last November’s drop in Listings to this year’s.
Last November (per Whisperer) 1,745.
This November’s drop (per Paul B.) with one day to go 624.

Son of Ponzi

Bill Good, who rents in Coal Harbour, recently had a segment where they talked about how many units were empty.
Why would locals buy there, and then leave them empty?

Son of Ponzi

Cancelled/Expired listings: 46


All but one of the SFH sold in West Van today were HAM purchases. Deniers put that in your pipe and smoke it.


What’s going on?
Everyone and his dog is saying we are 50 to 80% over valued and the buyers are still running
Anyone have a clue what is going on?
Was ther a sudden influx of HAM
Did the locals get a pay rise?


All the theorizing. Then the numbers.


New Listings 92
Price Changes 60
Sold Listings 131


George: “So maybe foreign investors sense trouble with residential real estate in Vancouver and that is why they are switching to commercial (if they are indeed switching” Or maybe the commercial real estate agents sense trouble (CBRE which doesn’t sell residential and is the source of the article) and have lots of commercial properties to unload with few buyers. Remember commercial properties are often building sites for new condos which apparently has slowed down. Having said that we know ‘foreign’ companies have been buying commercial properties in Vancouver since Expo long before any bubble. Concord Pacific (foreign) has built most of False Creek North and Aspac (foreign) has built most of Coal Harbour. Other notable foreign developers in Vancouver are Westin who built everything in the Coal Harbour Bayshore area and Westbank Projects who have built across Canada including many… Read more »

Market cough

Million-dollar babies

‘From crushing daycare fees to saving for university, the cost of having kids is reaching astonishing new heights’

“Elisa and Dave Santiago bought a two-bedroom condo with a den in a trendy neighbourhood in uptown Toronto in 2009 with plans to eventually start a family. Then they found out they were pregnant—with twins. When daughters Micah and Yuna arrived eight weeks ago, the joy of becoming new parents clashed with the new reality of what it meant to raise a family in a high-cost city.”

Son of Ponzi

This usually happens when you extrapolate “known data ” into unknown territory.


“Investor owners are accepting returns below available REIT yields”

Amateur landlords get away with this because they often don’t account for their time managing the property, and don’t need to produce cashflow to appease investors. Either this continues forever, rents skyrocket (ie high PE multiple is justified), or something “goes wrong” and capital re-allocates to more productive pursuits.

Son of Ponzi

Did not somebody on this blog a few posts ago claim the rents in Vancouver are on the rise.
Is Vancouver different?


G&M: Toronto condo rents look poised to fall, report shows Nov 28, 2013 There are signs that rents in Toronto’s condo market are on the verge of decreasing, at a time when new landlords are already dealing with low returns, a new report says. The idea that the condo rental market might be tipping in favour of renters runs counter to the general belief among economists and industry experts that the condo rental market is strong, and that rents are rising. “We believe the rental market may be at an inflection point,” says the report by Veritas Investment Research analyst Ohad Lederer. “Our weekly review of condo ‘for rent’ postings on indicate an approximate doubling of the number of condo listings in late 2013 versus late 2012.” ““New condo landlords in Toronto today can expect going-in unlevered cap rates… Read more »

Bilbo Bloggins

This scam works in Canada as well.
I’m all for immigration, but these people are not here to live here, to integrate, no contribute to the community.
Sadly, it’s not their fault. I would do the same thing.
The rules are to blame.


Here are a few stupid things I hear a lot.

“They don’t have any debt except for a mortgage and student loans.”

OK. And I’m vegan except for bacon-wrapped steak.