Non-bank mortgage lenders don’t like new rules

It’s looking like lending for real estate is going to get a bit more pricy as Ottawa tightens rules and seeks to offload some risk.  Many lenders in this Globe and Mail article feel blindsided by the change and complain that it’s unfair as they will not be able to compete with the banks:

Non-bank lenders left reeling by new federal mortgage rules

The new rules kick in November 30th after which lenders will not be able to insure mortgages with amortization beyond 25 years or on homes over $1million or rental properties. I guess we’re about to find out the price of risk in these no longer covered categories.

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chilled
Member
chilled

The turkeys can return to their first career choice; selling used cars. Realturds are about to increase their inventory numbers significantly.

Slava
Guest
Slava

Bingo.
They need to know less than a used car salesman.
The party for these uneducated parasitic simpletons, is over:)
Same goes for Mortgage Brokers.

bullwhip29
Guest
bullwhip29

word on the street is that new rules will eventually apply to conventional mortgages too. lots of balls flying in the air right now…

bullwhip29
Guest
bullwhip29

Nearly 7 in 10 Americans have less than $1,000 in savings
http://www.usatoday.com/story/money/personalfinance/2016/10/09/savings-study/91083712/

– ignore the MSM coverage of this gong show of an election particularly in the US. with many of the paid talking heads calling what most assume is a rigged election already over, markets of all shapes and sizes are ripe for a major blindsiding come november. there are millions of disgruntled americans out there that could turn this whole thing on its head should they actually show up and vote.

patriotz
Member

“what most assume is a rigged election”

I think you mean most of the crackpots who still support Trump.

Question of the day: Which group comprises 53% of US voters?

kabloona
Member
kabloona

women……

😉

history
Guest
history

it’s true, Trump would Rationalise the Snivel Service. If Trump was a Canadian, laid off Ottawa snivelers could always find work on Vancouver Island, riding their bicycles around, shaving mustoches and massaging heads, infiltrate local govt…

Oncebittwiceshy
Guest
Oncebittwiceshy
patriotz, Unfortunately, Trump is not necessarily supported by a majority of “crackpots”. They could very well be the same supporters that were demanding change here in Canada. One of the most interesting things that I have heard from countless women, over the years, is that they do not like having a woman boss. You can’t get a bigger boss scenario. Lol. No, this isn’t tacit Trump support, it is simply an observation that just might affect the vote. If you want to know who is going to win, take a look at the number of people who actually vote. If the polls are recording an historic turnout it will, more likely than not, be a Trump win. People are very consistent when it comes to elections. If they want to change the current leadership/party then they will come out in… Read more »
Slava
Guest
Slava

Actually the crackpots and MSM brainwashed tits are the ones supporting that thing that calls herself Hillary.

Dave
Member

The MSM bias is unbelievable. It’s gross.

bullwhip29
Guest
bullwhip29

not really paying any attention to much of this. the debates are basically staged nonsense. the undecided voters on CNN were reading off cue cards or coached what to say in advance (and caught on camera doing it). the audience members are all planted there too. pretty certain actual election result will look nothing like what massaged polls indicate

Dave
Member
I don’t think anybody really knows how far off the polls are. All the polling companies got Brexit wrong and by a long shot. We don’t know how many people silently are supporting Trump. Some of the wikileaks stuff coming out today shows once again how biased the media is. They are destroying what little credibility they had remaining. Trust in the media is at an all time low and it’s going to fall even further. CNN is terrible. I’m not a fan of Trump or Clinton but their bias towards Clinton is like Pravda in Soviet times. Locally in Vancouver, I think our media is more incompetent than corrupt. If we use real estate as an example, does anybody here get any useful information on the market from the MSM? Or do forums like this, bloggers and realtors like… Read more »
bullwhip29
Guest
bullwhip29

the local news (with their obvious pro RE spin) is nothing more than a 24-7 infomercial bought and paid for by the RE and banking cartel. i am only grasping at straws here, but who really knows why steve darling alone got canned the other day, did he not want to tow the company line anymore, were his employers just trimming a little fat (and singled only him out?) or was he just being a douche about things and was shown the door?

Dave
Member

The media is struggling because fewer and fewer people are consuming it.

I bet Global is probably trying to cut costs and streamline their production. They will probably just hire young anchors and pay them next to nothing. It’s not hard to smile and read from a teleprompter. There is no shortage of narcissists out there. I bet they could charge people to take the job.

bullwhip29
Guest
bullwhip29

there are lots of rumors floating around that his firing was due to other reasons. does it not seem odd that he was singled out?

Dave
Member

What do the rumours say?

I don’t think it’s odd for a single person to go. The downside of letting multiple people go is makes your network look like it’s failing. That could damage the audience.

Ulsterman
Member

Many people are embarrassed to say that they support Trump and so just avoid the conversation or politely concur with anti-Trump conversations. It will be interesting to see what they do in the privacy of the ballot box. Anyone that claims to know the outcome is gambling.

patriotz
Member

In 2012 Obama beat Romney by 4%, which was a larger margin than the polls predicted. See for yourself:

https://en.wikipedia.org/wiki/Nationwide_opinion_polling_for_the_United_States_presidential_election,_2012

I am genuinely puzzled why any decent or rational person would support Trump, whose entire career (I don’t just mean in politics) has been an affront to decency and rationality.

Slava
Guest
Slava

Facepalm. Evidently another PC victim of MSM Panicked Propaganda.

Best place on meth
Guest
Best place on meth

“I am genuinely puzzled why any decent or rational person would support Trump”

I on the other hand am genuinely puzzled why anyone other than a raving feminist or hardcore Democrat would support a man-hating, bank-owned, war-mongering, thoroughly corrupt to the bone stonecold liar and thief who represents a broken political system and a political class who despises the average working person.

I\'m With Stupid ^
Guest
I\'m With Stupid ^

Cause its still better than Trump?

Slava
Guest
Slava

And how is that? Please elaborate.
Just ’cause.

Pookie
Guest
Pookie

If you don’t know, there is no point wasting the keystrokes.

Nate silver has trump at around a 13% chance to win.

Slava
Guest
Slava

That is the problem with these PC Libtards.
They don’t have any clue why they Hildabeast is the better candidate, they are just conditioned to repeat MSM Media brainwashing, with a total lack of critical thinking skills, as is evidenced by Pookie here…lol

I\'m With Stupid ^
Guest
I\'m With Stupid ^

ROFL

Ulsterman
Member

The US personal savings rate according to the article is +5.7%. The hipsters of BC roll with a -1.9% rate and to make those americans even more jealous, we’ve only had a positive rate once since 1996. Yeah baby!

British Columbia’s household saving rate (saving as a percent of household disposable income)fell back into negative territory in 2014 (-1.9%), after climbing to 0.4% in 2013. British Columbia’s saving rate has been negative in all but one year since 1996, making it the only province that has persistently had a negative saving rate during this period, although other provinces such as Nova Scotia (-4.0%), P.E.I. (-1.5%) and New Brunswick (-0.9%) have also seen negative saving rates during some of this period.

http://www.bcstats.gov.bc.ca/publications/infoline/15-11-10/Issue_15-74.aspx

No Money Down
Member
No Money Down

NON-BANK MORTGAGE LENDERS DON’T LIKE NEW RULES
Does this mean no more annoying “Capital Direct dot CA” jingles on Rock 101?

Slava
Guest
Slava

Those loan sharks and their stupid ad might be out of business.

Newcomer-can\'t-post
Guest
Newcomer-can\'t-post

Those commercials remind me of the incessant “Lost another loan to Daitech dot com” commercials in the States in 2006. Couldn’t go five minutes without one.

YVR
Guest
YVR

The non bank lenders they are referring to are companies such as First National which were giving out CMHC insured mortgages. Companies like Capital Direct which are called private lenders were never doing anything that would qualify for CMHC insurance even under the old rules. Their mortgages are 8% interest and up. It may actually help companies like Capital Direct because the low cost mortgages will be far less available and these sub-prime lenders will be the only thing available to many who are desperate.

bullwhip29
Guest
bullwhip29
bullwhip29
Guest
bullwhip29
FULL TEXT: Unlicensed foreign agents leverage lax regulation to sell B.C. real estate Nathan VanderKlippe BEIJING — The Globe and Mail Published Monday, Oct. 10, 2016 9:13PM EDT Last updated Monday, Oct. 10, 2016 9:39PM EDT The man on the phone is cheery and confident, with the practised ease of someone accustomed to calming anxiety. There is no need to worry, he says. Buying a home in Vancouver is simple. His company will dispatch people to the airport, then guide an inexperienced buyer through the entire process. No other company will be involved, he promises. “If you go to look at a house, our headquarters staff will take care of you,” he says. His colleagues will come every day to arrange showings and, when a suitable home is found, arrange negotiations with the seller’s agent, he says. “Our staff will… Read more »
Just me
Guest
Just me

Thank you Christy Clark. This will certainly protect the “hard won” equity of you constituents.
Resign and do us all a favor.
We need serious regulations, and curbs to real estate access from China.

Best place on meth
Guest
Best place on meth

“BC Liberals: 15 years of looking the other way”

bullwhip29
Guest
bullwhip29

Cottage owners may end up feeling the bite of Ottawa’s crackdown on tax-free capital gains
http://business.financialpost.com/news/cottage-owners-may-end-up-feeling-the-bite-of-ottawas-crackdown-on-tax-free-capital-gains

Whistler or Bust?
Guest
Whistler or Bust?

Its an embarrassment of riches!

Oh oh
Guest
Oh oh

Bumped into old pal today…he does lawn post installs for agents and tells me things are picking up and asks if I know of anyone looking for a job as his clients tell him to expect a tsunami of new listings. ….

Hyper-mega-Bull
Member
Hyper-mega-Bull

Fake.

Just me
Guest
Just me
YVR
Guest
YVR

The banks argue that Canadian mortgage defaults are so low that making lenders share the risk is unnecessary and not worth the costs.

It makes you wonder why anyone would be opposed to something with such low risk?

Oracle
Guest
Oracle

Hot air. Banks run the show. Those in gov just want their brown paper envelopes.

Just me
Guest
Just me
Just me
Guest
Just me

Prices not budging in Vancouver, east or west. Demand from China picking up again. This was a good long weekend for agents, the first good one in a long time.
We need to make policy changes that produce actual results, not Christy Clark’s window dressing.

Jesper
Guest
Jesper

Yesterday was a very busy day. These sales will show up in a week or two. The Asians already here continue to funnel money in from China.

would-be buyer
Guest
would-be buyer

If that is true that sales are picking up again from Mainland Chinese buying and it’s business as usual, expect pitchforks in the streets. The Liberal’s new mortgage regulations will crush local residents ability to buy and make them more angry at this ineffective government as they see their last hope of home ownership slip by. I am one of those local residents who will now have to qualify at 4.46% to compete with off-shore money, which is absurd if prices don’t come down. Clark will be voted out in May.

bullwhip29
Guest
bullwhip29

have been saying this since the tax was rolled out. HAM that is already here have no plans to leave. market will continue to be quiet and increasingly more fragmented as a result of the new rules.

Combat roach
Guest
Combat roach
HAMster
Guest
HAMster

Maybe mayor moonbeam thinks it would be okay to celebrate North Korea too?

Best place on meth
Guest
Best place on meth

The Manchurian Candidate has a communist chinese girlfriend.

Of course he supports raising her flag.

Best place on meth
Guest
Best place on meth

“Prices not budging in Vancouver, east or west”

Yes they are. Hardly any sales in East Van selling for that mythical $1.55M “benchmark” price that the real estate board has concocted.

The same mediocre, average houses that were fetching 1.6M in July are getting $1.3 million now.

Just me
Guest
Just me

Getting back to business as usual

http://www.bloomberg.com/news/articles/2016-10-11/canada-nanos-index-rebounds-amid-improving-housing-outlook

Canada Nanos Index Rebounds Amid Improving Housing Outlook

I have also heard from a few afents that things are picking up again, especially on the east side.

patriotz
Member

More like improving housing illusions.

The share of Canadians who expect home prices to increase rose to 39.7 percent, the highest level since August. The percentage who see a decrease fell to 13.4 percent, the third straight decline. The difference between the two — at 26.3 percentage points — is also the widest since August.

Note the poll was taken too soon for any impact from the new mortgage changes to filter down to consumers.

bullwhip29
Guest
bullwhip29

Richmond School Board to decide whether to stop school closure process
http://www.cbc.ca/news/canada/british-columbia/richmond-school-board-to-decide-whether-to-stop-school-closure-process-1.3799428

– when are people going to realize that no one wants to close the schools. this is all about making changes to how all that prime city land is utilized.

Dave
Member

It’s crazy that in places like Vancouver and Richmond we are closing schools when in any given direction from a school you can see cranes building skyscrapers. It’s symbolic of how we are hollowing out our City and neighbourhoods. Every politician says they like families, but in practice, we hate them.

bullwhip29
Guest
bullwhip29

the mandate is sell, sell, sell until there is no space left. schools and other amenities/services will be part of new condo bldgs going forward. standalone PUBLIC schools with acres of grassy fields, playgrounds, tennis courts etc will soon be a thing of the past

Slava
Guest
Slava

Bingo! It is a war on local families who live and work here.
Economic Ethnic Cleansing.

southseacompany
Member
southseacompany

“Condos won’t be immune in case of market correction: realtor”, News 1130

http://www.news1130.com/2016/10/11/condos-wont-immune-case-market-correction-realtor/

“One local realtor is doubtful the condo market will hold up in the case there’s a major correction in the Metro Vancouver real estate market. According to figures Steve Saretsky has compiled, condo prices have dropped five per cent over the last three months.”

bullwhip29
Guest
bullwhip29

imho condo + apt market is the most vulnerable to new regulations from ottawa, victoria and vancouver

Oracle
Guest
Oracle

Bingo! China money outflows are buying detached. Local residents ignore Chinese origin are the ones doing it.

Ulsterman
Member

Wow, that realtor must have spent years learning his craft to make such a profound statement.

Billybonger
Guest
Billybonger

It will be busy, as borrowers rush to beat new mortgage rules.

Happens every time there is a big change/tightening, there is a rush to get that max borrowing done.

China money flowing again? Who knows (I sure as heck don’t) it’s so opaque.

I won’t take a bit of a surge in buying as anything other than a short term borrowing binge. I believe the tide has turned (macro) but that’s imho.

bullwhip29
Guest
bullwhip29

not sure exactly why this is happening, but i heard through the grapevine that mortgage underwriting depts at some of the big banks are doing major hiring right now. typically it take 3-6 months for trainees to get up to speed, which would mean they expect them to hit the ground running in early spring. is this simply wishful thinking or do they expect a ramp up in activity for one reason or another that we dont know about?

Oracle
Guest
Oracle

China outflows continue at record pace. Locals bringing in illicit money.

Immigration set to soar.

Oracle
Guest
Oracle

Borrowers?? Hahaha

Detached are bought with cash…mostly from overseas…brought in by locals (Canadian Chinese mostly).

That’s whats driving the market. Mortgage rules hurt the non cash people.

Madashell
Guest
Madashell

Today’s SCMP: Four in 10 Hongkongers want to leave city, with some already planning their exit.
It’s time for the Canadian government to reaccessed their open door immigration policy and let in these who will benefit and contributes to Canada as an immigrant rather than those that were taken advantage of system “Immigrants of Convenience”.

bullwhip29
Guest
bullwhip29
bullwhip29
Guest
bullwhip29

China banks may need $1.7 trillion injection as credit quality worsens -S&P
http://www.reuters.com/article/china-debt-bankinjection-sp-idUSL4N1CH1TU

Just me
Guest
Just me
News from Australia. We are no different. August and September were just a lull. We need a Provincial government willing to take effective measures, not the BC Liberals’ tweaking around the hedges. Our local governments (actually, both city and provincial) do NOT want to change the status quo. Christy Clark should not be re-elected — she thinks RE is our lifeline and without chinese buyers we would be lost. There is an irreconcilable clash of views, right there. http://www.smh.com.au/business/banking-and-finance/chinese-demand-for-australian-property-holding-up-hsbc-20161011-grzqn3.html “In recent months, there have been warnings from the credit rating agencies that moves by the major banks to clamp down on lending to foreigners may slow demand from these buyers. But HSBC’s head of retail banking in Australia Graham Heunis said on Tuesday the bank’s lending to foreigners was “steady” after it experienced a brief “blip” in demand for credit… Read more »
southseacompany
Member
southseacompany

“Is Canada’s housing crackdown wicked or wimpy?”, Globe & Mail

http://www.theglobeandmail.com/report-on-business/top-business-stories/is-canadas-housing-crackdown-wicked-or-wimpy/article32316466/

“Economists are divided over whether Canada’s housing market crackdown may be too wicked or too wimpy.”

HAMster
Guest
HAMster

It appears there is a new pumper posting here… maybe an out of work realtor?

Oracle
Guest
Oracle

Dude, wake up. Until Chinese inflows are stopped, good luck living in the delusional upside down.

Or laws with substance passed. Like triple tax on 2nd homes. You guys are making the foxes pass regulations while you sheep cheer them on.

It is the sheep that need to make the rules.

Oracle
Guest
Oracle

Sheep=hens

YVR
Guest
YVR

“Or laws with substance passed. Like triple tax on 2nd homes. ”

Already going to be done in Vancouver and West Vancouver.

patriotz
Member

West Van is asking that all municipalities (except CoV which has its own charter) be allowed to charge extra property taxes on all non-principal residences, the great majority of which are occupied rentals. Not hard to see the outcome of that and Christy is not crazy enough to approve it.

Madashell
Guest
Madashell

Unlike other places popular with overseas buyers – including Ontario, New York and California – B.C. allows foreign firms to sell B.C. homes without provincial licensing.
Earlier this year, Mr. Lok, the Vanfun (Chinese real estate network platform in the overseas market) agent posted to his private WeChat social-media account a photo of a Vanfun “Best Selling Agent 2016” trophy from Concord Pacific, one of Canada’s top property developers.
http://www.theglobeandmail.com/news/world/unlicensed-foreign-agents-leverage-lax-regulation-to-sell-bc-real-estate/article32316302/
This needs to be address fast.

HAMster
Guest
HAMster

Housing is big news: CKNW has a whole section devoted to it.
http://www.cknw.com/housing-news/
it never used to be this way, a house used to be for living in.

UBC in Crisis Mode
Guest

Someone will win this lottery:

1879 ACADIA ROAD, University, Vancouver West, $6,988,000.00

http://www.realtylink.org/prop_search/Detail.cfm?MLS=R2115389&REBoards=All&From=MLS

The lot in this area used to cost $4 million two or three years ago.

HAMster
Guest
HAMster

Realtor cannot even be bothered to go to the property to take a few pictures they just do a screen grab from Google.

Ulsterman
Member

Recently i looked at listings in my home town of Belfast, Northern Ireland. Well written, detailed descriptions of the property along with one or two dozen well-composed photographs. And these agents are lucky to make 1% on houses selling for 1/4 of the Vancouver prices. The agents here are jokers. Overpaid jokers, but jokers nonetheless.

bullwhip29
Guest
bullwhip29

Richmond sewers like ‘blocked arteries’ with grease buildup
http://www.cbc.ca/news/canada/british-columbia/richmond-grease-fighters-1.3800283

“Richmond probably has some of the worst issues, because they’re so flat. You don’t have a lot of flow, it’s slow moving. There’s also a lot of cooking with oils in that area,”

Combat roach
Guest
Combat roach

It is a cultural matter. Some people usually dispose all kind of garbage and waste into a river or sewer without thinking of consequences and pollution. Who cares, it’s not my problem as long as it is convenient and doesn’t cost the money. The earth will absorb everything at the end…

HAMster
Guest
HAMster

Or Google “gutter oil”…

franko
Member
Active Member
franko

“Some people usually dispose all kinds of garbage and waste into a river….”

Including tons of carbon from wood burning stoves and fire places that is totally unmonitored and not included in any of Justin’s proposed carbon tax.
The only place to take complaints is MetroVancouver Air Quality (604-436-6777)

Shut It Down Already
Guest
Shut It Down Already

Is that why Canadians fly tip so much then?

bullwhip29
Guest
bullwhip29

Vancouver mansion listed for $38M sold for $9.5M two years ago
http://bc.ctvnews.ca/vancouver-mansion-listed-for-38m-sold-for-9-5m-two-years-ago-1.3110801

HAMster
Guest
HAMster

Breaking:
just heard on news1130 radio Chinese development company has bought Oakridge transit depot for $450 million from Translink.

Pain
Guest
Pain

TransLink mega land deal details revealed | Real Estate | Business …

Business in Vancouver – 7h ago

A third party remains unconfirmed but is said to be Beijing-based Modern Green Development Co. Ltd., operating as Modern Investment Group.
https://goo.gl/X6rn0N

bullwhip29
Guest
bullwhip29

this is basically what has been happening all over central richmond. all commercial/warehouse lots being snapped up left, right and center (with no 15% tax of course) and turned into multi family residential. warehouses and old strip malls are the new bungalows.

Combat roach
Guest
Combat roach

Not being able to do anything but dully witnessing the city being eaten up by insects is extraordinarily depressing.

HAMster
Guest
HAMster

Yup. Chinese continue to profit at our expense. When will the takeover end?
I like this, he is taking names and kicking ass. A typical communist.
“When asked about the Oakridge transit deal, Kunyuan president, Kevin Li, first asked for the names of BIV sources.”

Shut It Down Already
Guest
Shut It Down Already

I pity you both.

Best place on meth
Guest
Best place on meth

I won’t pity you at all.

ostritch
Member
ostritch

It’s so sad. But I laughed at the way you phrased it.

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