Canada, CMHC, economy, hype, mortgage

CMHC & Genworth increase mortgage insurance premiums.

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73 Comments

An article over at the Financial Post by Garry Marr asks if recent hikes in mortgage insurance fees are targeting first time buyers.

The move by Genworth Canada, which matches an increase announced Thursday by Canada Mortgage and Housing Corp. will raise insurance costs by 15% for those Canadians with the highest debt-value mortgages allowed by Ottawa.

Of course lets keep things in perspective here – that 15% increase may result in an extra cost of about $5 dollars a month.

You’d have to be really stretched for that to be an issue.

Rob McLister, founder of ratespy.com, said insurers are padding their margins and doing it for loans that usually result in the least amount of money recovered during defaults.

Read the full article here.

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space889

– No you didn’t understand it at all and frankly it’s not something you would ever understand.

An analogy of what you are basically saying is because politicians here are whores to their campaign donors – ie. big business & the elite, all Canadians are whores to big business & the elite.

Or because CEOs and large shareholders aka wealthy belives that profits trumpets all else like human rights, equitable income distribution, wealth gap, environment, etc, that all Canadians only care about profits and nothing else.

These two statements are nothing close to the truth. But that’s in effect what you are saying about corruption and being Chinese.

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Softy

“Who would have guessed our politicians and bankers and elite would sell out their own country to any money launderer with a suitcase of stolen money to hide.”

I thought it was obvious but money is the most important thing in the world (after health) for the vast majority of people.

“We have become the new money whores of the world.”

Most people in the world are money whores.

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Oracle

Quebec Immigrant Investor Program a Flop… It’s about time… Quebec government benefits and BC is left to deal with the after-effects…

—>. No need to use the investor program anymore. International student programs do the same thing now. Send Chinese son or daughter to a career vocational school with 2 year program. Then child applies immigrate permanently via express entry. Slam dunk.

Meanwhile, dad buys child million dollar home to study in. Mom comes over as extended 10 year visas are allowed, then everyone lives happily ever after.

Why go thru the hassle of a Quebec investor program. No need. Everyone from India around me is doing this now.

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Oracle

Last sentence should read:

“He ISNT writing for free. ”

Damn auto correct.

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Oracle

Garth knows exactly what he is doing. He has eternal politician blood….note how he still takes jabs at his ex colleagues.

He knows the effect of foreign money. But like I said, he is managing $500 million. So he will pump ETFs, big banks (he leases his office from Scotiabank) and has shares of them. He wants dumb people to sell and invest with him. Might be a good idea to sell in most places in Canada.

However, he will not allow any posting of HAM or anything foreign related. Buddy of mine in the conservative Party told me he is hoping the liberals win and post him as an ambassador or some other cushy job like that.

He is writing for free. He has an agenda.

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Ulsterman

“In February, Mr. He published two articles about corruption on his blog — one examining the cultural reasons for the phenomenon, the other focusing on its “institutional” roots.”

So if I understand this correctly even within Chinese media, they admit that corruption is part and parcel of being Chinese. So Vancouver is welcoming hundreds of thousands of immigrants who accept corruption as normal. Oh great. Smart move Canada.

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history

HK Vix up today 50 fckinng percent today. Ham laundry.. no stock ticky, no washy.

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fookem

Who would have guessed our politicians and bankers and elite would sell out their own country to any money launderer with a suitcase of stolen money to hide. We have become the new money whores of the world.

And to Garth I say – you are intentionally closing your eyes to $12-18 Million offshore buys A DAY in Vancouver .

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Bo Xilai

Quebec Immigrant Investor Program a Flop… It’s about time… Quebec government benefits and BC is left to deal with the after-effects…

http://www.scmp.com/comment/blogs/article/1761350/exclusive-chinese-millionaires-appear-be-deserting-quebecs-immigrant

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Oracle

Patriotz:

You are purposely wrong again. Falling CDN dollar means the Yuan and Rupee are worth more. The only way you can bring loads of money here is illegal as those countries have controls on how much money can be brought here. So the easiest way to do it is via Real estate.

$1,080,000,000,000.00 left China illegally in 2014. Yes that’s trillions. Did you discuss this with your colleagues at Citizenship and Immigration canada?

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paulb

New Listings 377
Price Changes 88
Sold Listings 240
TI:13478

http://www.paulboenisch.com

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patriotz

@60:

The fall in the CAD doesn’t make Canadian RE “cheap” (i.e. a better investment) to foreign investors, since its income (rental value) and the eventual sale price are in CAD too. It’s like saying the falling CAD makes Canadian bonds more attractive to foreign buyers.

If someone just wanted to speculate on the CAD going back up, there are much simpler ways with much lower overhead cost.

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StupidityCheck

Don’t you love spring in Vancouver (aka RE pumping season)? This year’s theme: Now that the dollar is all the way down to its long-term average, Vancouver is downright cheap to Americans, Chinese, etc.

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space889

How Millennials are redefining Canada’s luxury home market

https://ca.finance.yahoo.com/blogs/insight/how-millennials-are-redefining-the-luxury-home-194845489.html

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space889

@patriotz – I doubt the top guys even know this guy exists or bother to read his ramblings…More likely just some middle level officials looking to score some points. Everyone knows that corruption is institutional and cultural and that it would take at least 100 years before attitudes can be changed. Pardoning have been tried before Xi Jingping took power where any officials who declared and return all corruption wealthy under a certain amount and a promise to not re-offend was pardoned. Pretty similar to what this guy is suggesting. Except that didn’t solve the corruption problem at all. More likely than not, this guy is floating this idea as mouthpiece from some higher up factions who basically want this corruption scheme to stop, since it is getting higher and higher in the party echleon. A lot of the old… Read more »

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space889

I’m surprised team BPOM members haven’t posted this little gem yet:

Women sentenced for putting super glue in infant’s ear.
https://ca.news.yahoo.com/blogs/dailybrew/woman-sentenced-for-super-glue-assault-on-b-c-231034973.html

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patriotz

@53:

While Mr. Xi has made the war on corruption one of his administration’s central themes, people have been detained or thrown in jail for publicly demanding that officials disclose their assets…

In February, Mr. He published two articles about corruption on his blog — one examining the cultural reasons for the phenomenon, the other focusing on its “institutional” roots.

The first went viral, receiving more than 640,000 hits in two days. But the second piece vanished almost immediately, wiped from the internet by Beijing’s censors.

It would appear that only those at the top get to define “corruption”, and those at the top don’t want to talk about root causes.

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Yunak

@53

“If China was serious about winning its war on corruption, it needed to focus on preventing future crimes rather than those that had already been committed, he said.”

O tempora o mores! That would mean that we’ll have to keep all that garbage and waste that we let in and live with it. Shame…

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patriotz

@47: “Hong Kong, Singapore, Australia”

All have government policies that inflate RE prices, like Canada.

In HK and Singapore all land is owned by the government and they use this to exert monopoly pricing. In this case the supply restrictions result in both higher prices and higher rents.

The “controls” on foreign ownership – which as pointed out above have done nothing to prevent massive bubbles – are just efforts to divert the blame.

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Madashell

@51
This is just 1 of 2 million (or more) corrupt officials in China. Why do you think the real estate in Vancouver is going through the roof. We’ve welcomed and turned a blind eye to these dirty stinking officials from China while the peasants are working in a sweatshop turning out items for the loonie store.

http://news.nationalpost.com/news/world/pardon-two-million-corrupt-communist-officials-or-risk-collapse-chinese-government-warned

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Dave

Slagathor, I thought that was a pretty obvious trend. The boomers are not going to sell their houses to downsize to condos. People like their homes and neighbourhoods and only move out when they are forced to, typically for health reasons. The trend with aging has been better health heading into old age with a faster decline. It follows that boomers will be living healthier longer and staying in their homes longer.

A lot of people predicted a surge of home listings as the boomers moved into condos, but if anything, those boomers will be keeping their homes and also buying condos for their kids or as investments.

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Corrupt in Canada

“Hong Kong, Singapore, Australia are just some of the country that passed law from getting out of control.”

Look how well that that worked out for those countries. Rolls eyes.

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vangrl

U.S stats but I’m sure the same applies to Canada

“Chinese buyers are also unique in that they pay cash about 76 percent of the time. Investment-oriented buyers are increasingly discovering the power of leveraged financing, but cash buyers are still the majority.”

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