TD outgoing CEO wants tighter lending rules

Ed Clark is the CEO of Canada’s 2nd largest lender: TD Bank, but he’s heading out in November.

He has some interesting things to say about mortgage lending in Canada:

“It’s just not realistic in a competitive marketplace to say, ‘Why doesn’t one bank lead the way and change the rules?’ It won’t happen. This is a responsibility of the government,” he told Reuters.

“I get why they keep worrying about doing it. But I think you have to just keep touching this brake. As long as you run low interest rates, you then should be continuously leaning against asset bubbles.”

Why is it not realistic for an individual bank to change lending rules? Because they would be the chump to leave money on the table.  If your business had an oppourtunity for income which the government would insure against loss, how much sense would it make to not take advantage of that business?

And you’ve got to love this seemingly prerequisite paragraph that comes next in all of these articles:

Canada’s Conservative government has stepped in four times since 2008 to tighten mortgage lending rules to cool a real estate market that flourished as the financial crisis ebbed.

It is accurate to say that the government has stepped in four times since 2008 to tighten mortgage lending rules, but it omits the change before 2008. For those of you just tuning in they look something like this:

•March ’06: CMHC change to allow 0% down, 30 year Amort.

•June ’06: Allow 35 year amort & interest only payments for 10 yrs

•Nov. ’06: Aw heck, lets go all out and allow 40 year amorts!

•April ’07: Insured min. down payment moved from 25% to 20%

•Oct. ’08: 5% down allowed, amort moved back to 35 years

•April ’10: Require approval at 5 year fixed rate

•March ’11: Drop back down to 30 year amorts.

•July ’12: Drop back down to 25 year amorts.

Shouldn’t we take into account how much gas was applied before we started tapping the brakes?

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Marguerite
Marguerite
6 years ago

It’s goingg tto Ьbe end of mine day, however before ending I aam reading this wonderful piecee of writing to increase my knowledge.

My page … insurance policy

George
George
6 years ago

@ Oracle #28

“He said apple is paying them $200 to stand in line.”

So Apple is paying people now to line-up outside its stores to generate buzz. And they just announced their latest new innovative product is going to be a watch. Way to innovate, Apple–a watch, what a fascinating new invention!

The writing is on the wall. Apple is going down the crapper.

patriotz
6 years ago

CRA staffing shakeup throws promised tax crackdown into question

A staff shakeup at the Canada Revenue Agency is prompting accusations the Conservatives are backing away from a promised crackdown on international tax evasion.

Surprise!

tedeastside
tedeastside
6 years ago

vancouver is a dump, people actually pay to live there.

i’d rather live in LA’s worst Slum than vancouvers best neighborhood

patriotz
6 years ago

@3 etc:

It looks like you are discussing Vancouver price trends only. Each city’s price history is different. For example Calgary and Edmonton showed a massive takeoff in 2006. Toronto steepened significantly only in 2009.

It was only BC (Van, Vic) which had a real runup in the early 2000’s. Pick your cause, I would say that since it is the “most bubbly” province it was the first to join the global bubble.

Oracle
Oracle
6 years ago

The previous post is westside impersonating me. Ever since I posted that ibbiugh a building lot, he has had an obsession impersonating me and that lot that lot. Lol

Grow up Loser. If we ever were in an MMA match, I would make you last all the rounds.

Heard Herd selling
Heard Herd selling
6 years ago

Fill your boots Oracle, fill em up!

Oracle
Oracle
6 years ago

Heard, I might buy that listing, sit in it until spring and then list it for another 10% over what I buy it for now.

What could go wrong? You bears have been dead wrong for how many years now?

Heard Herd selling
Heard Herd selling
6 years ago

2116 east 19th Vancouver, fix n flip, the listing agents are the sellers, they bought for 960k in April sunk at least 100k and now asking 1199000, wow that’s a big gamble for a measly 10% profit.I wonder if they will disclose the creek that runs underneath it or the foundation cracks it had?

Boombust
Boombust
6 years ago

Softly,

He’s NOT a realtor.

Softy
Softy
6 years ago

Westside Realtor Says:
September 18th, 2014 at 2:53 am 1
Chinese real estate prices continue to decline.

That is one of many reasons why Westside sfh prices continue to soften.

Prove that you are a realtor and post some stats that only realtors have access to.

gordholio
6 years ago

Oracle:

People being paid to stand in line? Right here in the Bestest Best Place on the Planet? Why, the very idea is absurd.

http://www.lievertising.com/2011/02/hello-world/

Oracle
Oracle
6 years ago

Was at Metrotown earlier today. Huge lineup at by Target outside for Apple store inside.

Must be a couple hundred people. Mostly HAM (Asian kids).

Here’s where the story gets interesting. I asked a kid what the line is for. He said apple is paying them $200 to stand in line. WTF?

I thought it was just rich kids. Its poor HAM kids trying to make a buck or get $200 off on their iPhone.

Son of Ponzi
Son of Ponzi
6 years ago

Sweet SixTeen!

VanRant
VanRant
6 years ago

Finally, happy 16,000 everyone.

paulb
6 years ago

New Listings 218
Price Changes 75
Sold Listings 95
TI:16040

http://www.paulboenisch.com

Ulsterman
6 years ago

Best place on meth Says:
Early 2002 real estate prices began climbing sharply.

I agree. I viewed 1 bed apartments around Commercial & 7th / 8th in late 2001. They were selling for 80-90k. I looked again in Feb/March 2002 and similar places were listed for 110k. I distinctly remember wondering if the market was moving too quickly and that I could be chasing a top. Sounds absurd now, but it’s the truth. It was a big percentage jump in prices and I worried it was unsustainable. Ho ho!

For those interested, those places were renting for about $650/month. Mortage/Tax/Strata was about the same with 5% down.

Yunak
Yunak
6 years ago

As for investors from outside China, these developments may be most welcome. They make it more possible for them to apply and gain approvals. Therefore, unless current policies in the U.S. and Canada are changed – and despite the growing urgency of Chinese investors to exit China – you should expect a future source of investors to shift from China to elsewhere.

Therefore Chrusty goes to India?

Heard Herd selling
Heard Herd selling
6 years ago

16k party:-)

UBC in Crisis Mode
UBC in Crisis Mode
6 years ago

Is it legal to add “Sold” to the sell sign while the property says on the market for the right buyer?

http://www.realtylink.org/prop_search/Detail.cfm?MLS=V1083841&REBoards=All&From=MLS

1872 WESTERN PW, University, Vancouver West, $5,050,000.00
V1083841

chilled
chilled
6 years ago

“TD outgoing CEO wants tighter lending rules”

+++++++++++++++++++++

And I want a ‘tighter’ girlfriend! But after years of loosely flapping in the wind, it probably isn’t going to happen.

Best place on meth
Best place on meth
6 years ago
taylor192
6 years ago

2006:
GDS: 32%
TDS: 40%

2007:
GDS: unlimited (limited to TDS)
TDS: 45%

2012:
GDS: 39%
TDS: 44%

Government should step in a 5th time to resets GDS to 32% and TDS to 40%.

These loose ratios are contributing to Canadians piling on debt… cause they can!