CMHC, humor, hype, mortgage, Open Topic, opinion, predictions

What will the CMHC announce?

118
118 Comments

Who wants to play ‘guess the future’?

Apparently the CMHC is holding a conference call at 10 am EST on Feb 27th.

Some rumours are saying privatization, though it looks like most everyone agrees that would extreeeeemely unlikely at this point for a few reasons:

–Privatization would require the finance department
–No one in their right mind would take on the debt

But that doesn’t mean you can’t guess at what is going to be revealed tomorrow!

So what do you think the CMHC will announce? Privatization? Tougher underwriting standards? Branching out into commemorative figurines? A new special expert task force comprised of Brad Lamb, Bob Rennie and Angelo Mozilo?

What’s your best guess at what the CMHC will announce tomorrow?

Sort by:   newest | oldest | most voted
tantric massage london, erotic massage london, sensual massage london, incall massage london
Guest
tantric massage london, erotic massage london, sensual massage london, incall massage london
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

Great posting. I’m verifying continuously that site exactly what amazed! Handy info in particular the ultimate sections 🙂 My spouse and i care for this kind of information and facts lots. I’d been interested in this particular data for a quite a while. Thanks a lot along with all the best ..

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 24 days ago
fix repair credit
Guest
fix repair credit
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

Hi there, Awesome posting. There’s a trouble as well as your internet site with website ie, may perhaps analyze that? Firefox nevertheless would be the market boss in addition to a major component of other individuals is going to miss your excellent composing for that reason challenge.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 26 days ago
George
Guest
George
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

Why are comments #114 and #115 downvoted into oblivion? Right now 114 has 3 upvotes and 29 downvotes and 115 has 4 upvotes and 25 downvotes. Those commenters didn’t say anything offensive or rude. All they are doing is expressing dislike for CIBC’s practice of enabling people from China to circumvent China’s capital controls.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 28 days ago
No Noise
Guest
No Noise
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

@ Rainmaker – a very logical and entirely possible underlying reason this dirty money transfer goes on

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
rainmaker
Guest
rainmaker
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.
Wow hey @95, my original post (post #32) was also downvoted to oblivion, looks like a lot of readers are trying to hide the fact that, as @95 said, “…banks are coming up with ways to circumvent China’s capital controls. It may not meet the technical definition of money laundering, as Patriotz pointed out, but I agree with what someone else wrote that that is really just nitpicking (or arguing about semantics). The banks are helping people violate the law in China.” @ 81 says “…It’s unbelievable that the government of Canada knowingly allows major Canadian financial institutions to assist Chinese foreign investors to break China’s $ transfer laws. And as well no checks on the whether the $ was ill-gotten? What other countries is Canada doing this to? You would think diplomatic relations would suffer at least. Once again… Read more »
You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
space889
Member
space889
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.
@Mortgageslave – hate to break it to you but you are the idiot. Being fine is simply a cost of doing business and if the profits are higher than the fine, banks will still do it. Just see JPMorgan for the prime example. Looks at the case of CIBC discussed here where it is helping people in China work around the China’s $50K limit. Also where it fired an employee so they can keep her clients by making her unemployable elsewhere. Btw, this came straight from the mouth of the person who makes his living placing Chinese students in Canada. As well Canada require the student to have $50K in their Cdn bank account to proof they have enough cash to live here for 2 years before visa is given. Given this kids spending habits, $50K/year might not even be… Read more »
You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
UBC in crisis mode
Guest
UBC in crisis mode
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

New ads from all realtors:

Buy! Buy! Buy! before May 1, 2014 when CHMC new rules come in.
This will create a hot housing market in next two months.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
patriotz
Member
patriotz
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

“Effective May 1st, CMHC Purchase (owner occupied 1 – 4 unit) mortgage insurance premiums will increase by approximately 15%, on average, for all loan-to-value ranges.”

And as @1 predicted, they are not doing anything that will have real impact.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
patriotz
Member
patriotz
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

@98: “CMHC to increase mortgage insurance premiums:”

Told ya so. 🙂

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
Son of Ponzi
Guest
Son of Ponzi
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

#104
I still believe that this monster will crash under its own weight
Or, maybe it will be death from a thousand paper cuts.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
Son of Ponzi
Guest
Son of Ponzi
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

# 106
Everyone is a little edgy.
—————–
Of course, everyone is, especially the Realtors.
They know this thing will blow up soon.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
Son of Ponzi
Guest
Son of Ponzi
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

I question the low listings recently reported by the Real Estate Board.
I monitor the SFH RE activity in the following areas in Richmond.
Westwind, Steveston Village and Steveston South.
In the last 3 weeks, not a single new listing has been posted for these areas.
Pretty strange, because these are generally very active RE areas.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
Many Franks
Member
Active Member
Many Franks
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

@david: All CMHC said is that it was going to make an announcement. It’s everyone else — this blog included — that went wild with speculation. (See acres of twitchy realtors on Twitter before the announcement.) It seems everyone’s a little edgy.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
Many Franks
Member
Active Member
Many Franks
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

Let’s do some dubious math, mixing national and local numbers. Garth recently reported that the average downpayment across Canada is 7%; that puts the CMHC premium into the 90% LTV bracket, which is going from 2.00% to 2.40%.

CREA’s average Vancouver home price in January is $805k. A 0.04% premium increase is $3200, and as pointed out above, the insurance is typically amortized. So this is an additional papercut.

Note that CREA is also announcing that it will be announcing premium reviews yearly in Q1 of each year. This may set the stage for further ratcheting (on a slow, yearly basis).

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
VMD
Member
VMD
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

@25
Turns out to be low-impact CMHC announcement.
Does have direct (but mild) impact to general public, hence summoned media? And/or a publicity stunt for CMHC to seem “proactively” protecting tax payers?

Attention now moves back to OSFI’s B21 guidelines expected to open to public comment in March 2014, where 30 year mortgages may be scrutinized.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
david
Guest
david
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

You gotta give them credit (pardon the pun)…..they came up with an idea that makes no difference whatsoever — not to buyers, not to the industry insiders, and not to the government politicians —- but which does give them the appearance of at least being awake and proactive…..which will be a handy defense when the eventual post-mortem and ash-sifting occurs. Golf clap.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
Ray
Member
Ray
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

haha, I love how they admit right on the website that noone in their right mind would pay these premiums straight up — that the average Canadian just folds them into their mortgage and amortizes over 25 years. What’s 3.15% of your mortgage when you spread it over 25 years? Something like 6.3%? lol

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
bullwhip29
Guest
bullwhip29
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

@ 99

absolutely riveting stuff, huh? now back to our originally scheduled programming…

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
Softy
Guest
Softy
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

Here is the key statement:

For the average Canadian homebuyer requiring CMHC insured financing, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. This is not expected to have a material impact on the housing market.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
Softy
Guest
Softy
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.
OTTAWA, February 28, 2014 — Following the annual review of its insurance products and capital requirements, CMHC will increase its mortgage loan insurance premiums for homeowner and 1 – 4 unit rental properties effective May 1, 2014. The increase applies to mortgage loan insurance premiums for owner occupied, self-employed and 1-to-4 unit rental properties, including low-ratio refinance premiums. This does not apply to mortgages currently insured by CMHC. CMHC’s capital management framework is consistent with international practices and Canadian guidelines for mortgage insurers. Increased capital targets are consistent with Canadian and international industry trends and makes the financial system more stable and resilient. “The higher premiums reflect CMHC’s higher capital targets” said Steven Mennill, CMHC’s Vice-President, Insurance Operations. “CMHC’s capital holdings reduce Canadian taxpayers’ exposure to the housing market and contribute to the long term stability of the financial system.”… Read more »
You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
Softy
Guest
Softy
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

CMHC to increase mortgage insurance premiums:

https://www.cmhc-schl.gc.ca/en/corp/nero/nere/2014/2014-02-28-1100.cfm

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
No Noise
Guest
No Noise
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

Because politically it looks terrible, especially if this is dirty foreign money. China is trying to stop the flow of corrupt $ out, Canada is assisting the process.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
registered
Member
registered
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

@81 No Noise Says: “It’s unbelievable that the government of Canada knowingly allows major Canadian financial institutions ….”

The CMHC benefits financial institutions by backing their loan risks with taxpayer dollars. Why would policies granting additional advantages be a shock?

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
George
Guest
George
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.
Why is Bo Xilai’s comment #38 downvoted into oblivion? It IS troubling that banks are coming up with ways to circumvent China’s capital controls. It may not meet the technical definition of money laundering, as Patriotz pointed out, but I agree with what someone else wrote that that is really just nitpicking (or arguing about semantics). The banks are helping people violate the law in China. Canadian banks have no obligation to follow the laws in other countries (funny how that doesn’t stop them from conforming to FACTA, which is US policy). But to actually devise strategies intent on circumventing laws in another country seems to cross the line. Maybe I could be convinced that this would be a good thing if it serves some public interest or moralistic good (like helping someone escape anti-gay laws in Russia, for example).… Read more »
You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago
patriotz
Member
patriotz
Click to flag and open «Comment Reporting» form. You can choose reporting category and send message to website administrator. Admins may or may not choose to remove the comment or block the author. And please don't worry, your report will be anonymous.

@92: “Whats disturbing is that these 2 extra visas are not counted in statscan population figures.”

Because you’re not part of the population of a country if you’re just visiting. But the numbers of such people are available – you know them don’t you.

You might also note that anyone spending over 183 days a year in Canada, regardless of visa status, is legally a resident of Canada for income tax purposes and must report and pay taxes on worldwide income.

Over to you, “tough on crime” Federal government.

You Must Be Logged In To Vote00You Must Be Logged In To Vote
6 years 1 month ago