CMHC: One home is enough?

The CMHC has just ‘tightened’ their mortgage regulations again.

You might not have know that the CMHC would provide mortgage insurance on second homes, but they won’t anymore:

Canada Mortgage and Housing Corp. is cutting the types of mortgage insurance it offers, meaning the era of tighter rules for home buyers hasn’t come to an end.

The Crown corporation said late Friday it will stop insuring mortgages on second homes, effective May 30. Anyone who has an insured mortgage will no longer be able to act as a co-borrower on another mortgage that CMHC insures. In addition, it will stop offering mortgage insurance to self-employed people who don’t have standard documents to prove their income.

Gotta love that first sentence: The era of tighter rules hasn’t come to an end?  I guess by tighter rules they mean doing away with the most absurdist bubble policies in the form of zero down 40 year mortgages.

What’s next? Banks not being able to offload risk for mortgage lending?

Here’s the amazing bit for those just tuning in:

The Crown corporation has been offering insurance on second homes since 2005. It has been offering insurance to self-employed people without strong income validation since 2007.

Remember NINJA loans in the states?  Good thing we never had those here!

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bun
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bun

@Egg Hunt and @taylor192

Uh, did you notice that Stephens is the end of the line of the new York bikeway, and the York/Stephens intersection is the _closest_ point to Pt. Grey Rd ? So it makes it the OBVIOUS place to put in a bike-only intersection since it forms the nexus of the Cornwall and York bikeways. There will be a bike-controlled light at Stephens and Pt Grey for bikes to safely connect between the two bike routes.

But, don’t let the facts get in the way of your little conspiracy theories…

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CMHC: One home is enough?

Johnny-boy
Guest
Johnny-boy

2/3 SFH West Van sales went to HAM (IMVHO) but only one of them was over $4 M!

Some areas can no longer be bought with tax-paid money from where-ever the source.

Egg Hunt
Guest
Egg Hunt

I’ve got exact address : 1645 Stephens Street

Egg Hunt
Guest
Egg Hunt

#42
In this article, it says on York St. within a block from
Point Grey – Cornwall Bike lane (+ Macdonald?).

http://www.huffingtonpost.ca/2013/07/10/gregor-robertson-kitsilano-move-point-grey-bike-lane_n_3575451.html

I used to live in Jakarta – Indonesia when I was a child.
I saw road widen in one month for no reasons.
That was for one of the polititian’s house newly built on that road.
(unlike here, in Asia, busy road is a status)
I saw similar thing in Bogoda – Colombia, too.

taylor192
Member

@#38

I live 4 blocks from Stephens/PG and could not understand why they are converting Stephens to local/bike access only. This makes sense.

The proposed bike lane on PG between Trafalgar and MacDonald is on the north side, while this local/bike access only is on the south side.

Trafalgar is marked for bike traffic, not Stephens, so it would make far more sense to traffic calm Trafalgar instead of Stephens.

The entire thing reeks of political gaming. Can someone posts Gregor’s exact address, I’d like to welcome him to the neighbourhood.

UBC in crisis mode
Guest
UBC in crisis mode

Wow, an ad on this forum from CIBC showed a 2.97% mortgage, cheap!

https://www.cibc.com/ca/mortgages/fixed-rate-closed-mortg.html?WT.mc_id=Ext-FY14-Spring-MTG-E418

trackback

[…] by number of mortgages.  What we haven’t seen anywhere are numbers in mortgage value, and BOM pointed this out […]

Barb Rennie
Guest
Barb Rennie

I know of one person who was an engineer on the Olympic Village project. He was paid so much that the guy no longer has to work. He was paid a huge bonus to meet deadline. I’m happy that Robertson’s project benefited a few, but somehow he’s spun the project’s loss as some victory. Honesty is not one of his traits.

Egg Hunt
Guest
Egg Hunt

Anyone noticed Point Grey Rd. + Stephen St. (2700 Point Grey)has been
recently converted to beautiful “bike & Pedastrian only” entrance?
What is that for??
Did someone say Robertson’s new home is now at York (one block south of Point Grey) at Stephen?

patriotz
Member

@36:

How do you think Robertson, who took office in 2009 after the OV financing collapsed, could have done better?

He’s not the guy who said this:

“Not one taxpayer has paid one dollar for the Olympic village,” he said. “And they never will.”

And what job does the author of the above quote have today?

Heard Herd selling
Guest
Heard Herd selling

Cov still getting sued by original Olympic condo buyers, so not off hook yet, nor did they get the 200 million lost on the land, just another twist the old news into pretend it s now good news. Whadda ya think we are as dumbass as you look Gregor

4SlicesofCheese
Guest
4SlicesofCheese

I noticed some ads for BCAA rental insurance at some skytrain stations. Sign of the times.

Best place on meth
Member
Best place on meth

I just heard the entire Olympic Village was bought up by Hot Italian Money for an astounding $1.4 million a unit.

Still a bargain for them though, compared to what they were paying that dud Luongo.

Aggregator
Guest
Aggregator

@crikey

The bulk of second mortgages are securitized under NHA MBS, which is a scheme created by the Government of Canada that guarantees principal payments, somewhat like insurance. Because the program is booked CMHC’s balance sheet, but not a direct liability of the agency (even though CMHC is the gov’t), CMHC has the right to only disclose the amount of second mortgages it insures, ex guarantees.

There could be a way to ball park the total amount of second mortgages insured and guaranteed by looking at IFRS changes in 2011, where off balance sheet MBSs (including HELOCs) had to be returned to banks’ balance sheets.

I’m too lazy to figure it out right now. But it’s not 3%, that’s for sure.

4SlicesofCheese
Guest
4SlicesofCheese

“and in an election year”

mystery solved. This is a way to make a political contribution without making one. Nudge nudge wink wink. Sure lets get those Rogers condos built.

lou
Guest
lou

– current Canadian home prices outweigh US prices by factor of two, condos by a factor of 1.5 (including exchange

Don’t forget, US home owner can claim the mortgage interest for tax purpose, but we canadians do not have this advantage. Still confused, how average working people can afford 1 million…..

crikey
Guest
crikey
@#22 BOM “CHMC has a pool of mortgages insured accumulated over the last 25 years. They have only offered the products they are cancelling for 7 to 9 years but they make up 3% of that pool. Simple math indicates over the last 7 years about 10% of mortgages would have been part of the program they are cancelling” I’m not sure about the 10% number but unless I’m missing something you’re right about the impact today being greater than we first thought, great insight. Can’t believe I and so many others here missed that. Again, the private companies can still lend in these cases, but let them take all that risk in a Canadian market where: – interest rates have no more room to fall and inflate the market – price/income ratio in Canada is currently much higher than… Read more »