Should banks take on more risk?

There’s an article over at the CBC on the CMHC and CEO Evan Siddall.

Mr. Siddall is of the opinion that the CMHC should not be privatized as it acted as a ‘shock absorber’ during the last correction, but does think the banks should take on a share of the risk for insured mortgages.

“That ultimately will be a decision for government to make and we’re in the process of looking at different options that will take a few years to evaluate, but the idea is that people should have skin in the game,”

“In the insured mortgage businesses, the banks offload all that risk to the government through CMHC, The government’s interested in taking a reduced role in the housing market … so we’ll look at different ways to share risks with lenders.

What do you think, should the CMHC force banks to take on more responsibility for the insured loans they hand out or would the banks just use that as an excuse to charge more?

Read the full article here.

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paulb
Member

New Listings 145
Price Changes 87
Sold Listings 76
TI:15314

http://www.paulboenisch.com

Westside Realtor
Guest
Westside Realtor
Gah, There is no pri in power. Places that were selling for 3.5mm just six months ago are difficult to get interest in at $3mm now. We have a listing in that range that we recently took off the market so the owner can spend about $150k tasting it up. Then we will bring it back out and try to sell it for what we were trying to sell it for. Let’s say we do, ND the stats show a solid sale (but do not adjust for the cost of the improvements), then I guess the market is hot, right? No, wrong. Underneath the numbers things are week. And don’t forget that China’s real estate is also on the slide. it’s all connected. In addition, when Dad in Guanzhaou gets a call from the bank to show proof of source… Read more »
Boombust
Guest
Boombust

gah,

What are the numbers?

gah
Guest
gah

Just totally dead since June, hey Westside Realtor? Weird that even with a lag it’s not really turning up in the official numbers.

gah
Guest
gah

Westside Realtor Says:
June 30th, 2014 at 6:30 pm 93
Sure, there are still HAM buyers out there. Lots.

Buy not droves.

You should see how many listings over $3mm are gathering cobwebs these days.

I agree with Romeo Jordan, a slow but steady reckoning appears to be in motion.

IMHO

Son of Ponzi
Guest
Son of Ponzi

#64

8. Chinese people have lots of last names, get married a lot, and do endless of paperwork to not pay taxes
—————–
You got that one right. I know from personal experience.

Just keep reading this post, and you’ll experience true enlightenment.
No stats required.

ostritch
Member
ostritch

Here is what I’ve learned reading the comments here so far:

1. The 3M+ market is toast. No it’s not. Yes it is.

2. Barbara Yaffe is an idiot.

3. Banks should say they’re going to do things they’re not going to do

4. Sell/List ratio just went parabolic. And in a bad way.

5. The Chinese RE is 400% of GDP and they may want me to buy their westside house for 1/2 of 4M. (But it’s still 1.3M too much).

6. Interest rates change.

7. The TO Star spells vigour weird.

8. Chinese people have lots of last names, get married a lot, and do endless of paperwork to not pay taxes

9. No matter what anyone says, what the topic is or what happens, Westside Realtor sees it as proof that the westside is tanking.

Westside Realtor
Guest
Westside Realtor

Son of Ponzi,

Here Here.

I fully agree. 100% (for you statistics freaks).

The moos, tempo and exuberance is declining. HAM are in ever shorter supply (and Jan 1 it gets much harder to sneak money into Canada).

Sniff the air – the Goose Is Cooked.

Son of Ponzi
Guest
Son of Ponzi

#61
the problem with the half-decent statistics was, well, that they were half-decent.
The other half was missing.
I say better no statistics, than bad ones.
Trust your own senses.
If you can’t tell what’s going on by looking around you, then it’s time to remove the blinders.

Shut It Down Already
Guest
Shut It Down Already

I remember when there used to be half-decent statistical analysis on this blog. Now it’s reached the level of Westside Realtor and his “beliefs”.

What’s next? Reading tea leaves?

Could the sane people return and post something that actually has some value, pretty please?

@tiger
Guest
@tiger

Those aren’t the real people of Vancouver. Not a single HAM in the group.

This isn’t Vancouver 30 years ago. Wake up and look around. The city has changed.

tigerblood
Guest
tigerblood

I am with WSrealtor, I think the mkt here is toast and declining right now.

Tiger
Guest
Tiger
Tiger
Guest
Tiger
Son of Ponzi
Guest
Son of Ponzi

#52
these tricks are well known in the Chinese community.
But, of course, Pats will not buy it.
He needs “facts”.

history
Guest
history

@egg hunt 53
Very interesting…VCI= loophole school… that is what i tell my associates, they should study diligently to get ahead in life.

Westside Realtor
Guest
Westside Realtor

Egg,

It’s easier than even that.

In any event, developers are slowly starting to have a hard time offloading product at prior expected prices.

I suspect that this challenge will ratchet higher leading to a slump in pricing for teardowns.

I believe that this market is going to shit starting at the upper end where PRICING POWER is G-O-N-E

Egg Hunt
Guest
Egg Hunt

Sorry, in this example, your parents’ last names are Wong and Ng (not in-laws), your last name is from your father, Wong, your wife is Zhang.

Egg Hunt
Guest
Egg Hunt

Regarding free capital gains on principal homes.

It is easier to do if your family is Chinese origin, each members files zero to very small income.
I know many real examples.

Chinese women don;t change their last name after marriage.
So, your in-laws’s last names, for instance are Wong and Ng.
Your wife’s last name is Zhang.

If you keep filing as an individual tax filer, it looks each Wong, Ng and Zhang own their principal homes, although if they are living in different locations, and rent properties out for cash.

CRA can track by marital status?
It won’t matter if you file zero to very small income, just file as individual, not connecting spouses.
CRA will not matching your immigration record and current marital status.

CRA has no resource (human and technology) to crack down those free capital gains fraud unless by TIPS.

bobwestsiderealtor
Guest
bobwestsiderealtor

“(Workers’) tastes in housing may not necessarily shake out with their skills and work experience,”

http://www.oregonlive.com/opinion/index.ssf/2014/10/things_about_the_portland_area.html

southseacompany
Member
southseacompany
Toronto Star: “Why our housing ‘spending vigour’ worries Bank of Canada: Mayers Canadians will enjoy cheap borrowing costs for a while, but even a small increase in interest rates makes a huge difference to affordability.” http://www.thestar.com/business/personal_finance/2014/10/23/why_our_housing_spending_vigour_worries_bank_of_canada_mayers.html “Canadians can expect to enjoy cheap borrowing costs for a while yet and the Bank of Canada doesn’t seem to be in any hurry to change things. That’s good news for those investing in stocks and for those who want to buy a home. It’s far less so for savers, heading in their sixth lean year as we remain stuck in an awkward low interest rate trap.” “A report by Bank of Montreal predicted this week that an interest rate rise of two percentage points would have a big impact on those looking to buy. A quarter of house-hunters would be barely able to… Read more »
mls watch
Guest
mls watch

My favorite part:
Beijing: The Australian Federal Police are poised to seize assets of corrupt Chinese officials within weeks, in an unprecedented joint operation with their Chinese counterparts.

http://www.smh.com.au/world/australia-set-to-seize-assets-of-corrupt-chinese-officials-20141020-118kl3.html#ixzz3Gw8nRrJi

George
Guest
George
When I was a kid in the 1980s, the home I grew up in on the west side of Vancouver had a old Chinese landlord. My parents called her the dragon lady. I remember they were at a friend’s house once and they realized he had the same landlord (she owned buildings all over Vancouver) and that guy also called her the dragon lady, just by coincidence. I guess they called her the dragon lady because she could be a bit harsh. She wouldn’t put up with BS. If rent was late, she’d give you a tongue lashing, as opposed to serve you with eviction papers. My mum thought she was fair. She had an old man white guy working for her as her maintenance man and any repairs that were needed, he’d take care of them. You could call… Read more »
George
Guest
George

Room for rent in exchange for services, check out this Craigslist ad:

https://farm8.staticflickr.com/7456/8724831160_b3a0f72b89_b.jpg

patriotz
Member

@44:

Gains are not legally tax free if it is not a bona fide principal residence. CRA has been cracking down on this sort of thing:

http://www.greaterfool.ca/2013/04/16/cheatin/

Disclaimer – I’m including this link to Garth because it came up on Google and it’s informative. 🙂

Of course home ownership leaves a permanent paper trail so it’s not something anyone can conceal.