New mortgage rules to further cut demand

Southseacompany linked to this article forcasting the effect of new mortgage rules:

“In the year of implementation, we estimate that this new rule could depress demand by 5% to 10%, and shave 2% to 4% off of our current forecast for the average price level in 2018,” the authors said, as the proposed measures will act as another force that limits price growth in the future.

Those consumers, who often have as little as five per cent down, must qualify based on the posted five-year rate of the Bank of Canada, which is currently 4.84 per cent.

The economists suggest changes to tighten the rules on non-insured mortgages will lead buyers to “come up with a bigger down payment, opt for a lower priced home and scale back other debt,” and may even delay purchases all together.

Read the full article here.

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[…] –Tax land –Flippers triggered crash, not subprime –market to cool slightly in 2017 –Wealthy cashing in on property tax deferment –Odds of rate hike grows –Quantitive easing drives house prices – […]

southseacompany
southseacompany
3 years ago

“Tax Land to House Vancouver’s Fleeing Middle Class: Patrick Condon”, The Tyee

https://thetyee.ca/Opinion/2017/09/01/Vancouver-Fleeing-Middle-Class/

“We don’t have a housing problem, we have a land speculation problem.”

bullwhip29
bullwhip29
3 years ago

We don’t have a housing problem, we have a land speculation problem
https://thetyee.ca/Opinion/2017/09/01/Vancouver-Fleeing-Middle-Class/

bullwhip29
bullwhip29
3 years ago
Oracle
Oracle
3 years ago

800,000 young people are set to migrate north to Canada in the next 2 years as Trump ends DACA tomoro.

Another 600,000 immigrants will come to Canada in the next 2 yrs.

1 million more ten year visas will be issued.

FOMO?? You haven’t seen nothing yet. That’s why condos are white hot. Rents gonna explode.

southseacompany
southseacompany
3 years ago

“Canada’s housing markets to cool slightly in 2017: Poll”, BNN

http://www.bnn.ca/canada-s-housing-markets-to-cool-slightly-in-2017-poll-1.843940

“Canada’s roaring housing market is likely to cool off a bit later this year and into next thanks to government measures aimed at cooling demand in major cities, and the prospect of higher interest rates, a Reuters poll showed.’

southseacompany
southseacompany
3 years ago

“Odds of a rate hike just went up as Canada’s growth wows economists”, Financial Post

Odds of a rate hike just went up as Canada’s growth wows economists

“The economy is growing at the fastest pace in 15 years and that has some analysts changing their calls for a Bank of Canada hike from October to next week”

woo
3 years ago

Should Chinatowns Stay Chinese?

http://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2017/08/29/should-chinatowns-stay-chinese

does any other group get this kind of special treatment?

Best place on meth
Best place on meth
3 years ago
Reply to  woo

These little enclaves were charming for a while, but there is no need for them anymore.

Robson St and its German heritage passed on, and nobody seems to care.

Anyway, they’re racist. RIGHT?

YVR
YVR
3 years ago
Reply to  woo

“does any other group get this kind of special treatment?”

Of course. The British properties have been carefully preserved with their British heritage.

bullwhip29
bullwhip29
3 years ago
Reply to  YVR

lol…how many Brits actually live up there now?

Shut It Down Already
Shut It Down Already
3 years ago
Reply to  woo

“does any other group get this kind of special treatment?”

Yes.

Oracle
Oracle
3 years ago

Looks like the NDP and Eby pulled a huge coup on the renters.

Condo prices are risen $100,000 since they been in power. I’m at awe at people still defending them.

Lets see what excuse you defenders use once October rolls around in 30 days.

Best place on meth
Best place on meth
3 years ago
Reply to  Oracle

Looks like Oracle’s full of shit again.

bestplaceonearth
bestplaceonearth
3 years ago

oh boy…and stupid bears thought they could receive free handouts from the no-deal-party. they are in for a rude awakening! so screwed…

Best place on meth
Best place on meth
3 years ago

What free handouts?

I’m hoping to put and end to the free handouts to homeowners, especially speculators, geezers and communist shynamen.

Oracle
Oracle
3 years ago

Well at least I realize I was lied to.

Confucius
Confucius
3 years ago

He does claim to be brown…..

Oracle
Oracle
3 years ago

How? It’s fucking September. Election was in May.

Give your head a shake. Winter is coming and you will keep defending the liars?

The least they could have done is increase the tax to 20% and made it Province wide. But nope. They are cancelling it.

DaMann
DaMann
3 years ago
Reply to  Oracle

The fact that the NDP didn’t cancel the absolutely ridiculous down payment program brought in by the Liberals tells me all I need to know. There is nothing to “review” about that program. It was a blatant gift to RE industry and to offset her smoke and mirrors foreign buyers tax. That was the first thing the NDP should have done, axe that idiotic program. They didn’t. They have no intention of doing anything to prick the bubble. They will just bang on about building more rentals and giving rental rebates. They have no interest in lowering RE prices. I was fooled into voting for them solely on that promise. I don’t give a toss about tolls, ferries or ICBC ( which is all they talk about). I wanted someone to do something about RE prices. More fool me. I… Read more »

paulb
paulb
3 years ago

New
103
Price Change
29
Sold
111
TI:9462

http://www.clivestevepaul.com

Oracle
Oracle
3 years ago
Reply to  paulb

wow.

inventory dropping rapidly.

Best place on meth
Best place on meth
3 years ago
Reply to  Oracle

Wow.

Oracle’s full of shit again.

Oracle
Oracle
3 years ago

Dude. It was close to 10K two weeks ago. And it’s dropping.

It’s a fact whether you like it or not. I don’t like it.

Your efforts should go to toppling liars like Eby.

KickThemOut
KickThemOut
3 years ago
Best place on meth
Best place on meth
3 years ago
Reply to  KickThemOut

T-shirts made by robots?

How is that different from t-shirts made by chinese?

Combat roach
Combat roach
3 years ago

Overall quality and hygiene.

bestplaceonearth
bestplaceonearth
3 years ago
Reply to  Combat roach

in case you didn’t know, you and your family have been eating lot of shit from china. take a look around your kitchen. still having your pride?

Best place on meth
Best place on meth
3 years ago

Everything from china is shit, but can you elaborate on the stuff from the kitchen?

Shut It Down Already
Shut It Down Already
3 years ago
Reply to  Owen

You didn’t notice the bit where a guy who works as a mortgage broker cashed in his RRSP so that he could start on a path to owning 10 rental properties and use that as his pension? Just another local going all-in….

Abdul Lahazi
Abdul Lahazi
3 years ago

He’s just following after all the real estate agents who have drunk the same kool-aid. And he will really like managing rental properties and tenants in his 60s and 70s.

Owen
Owen
3 years ago

He’s not a strong believer in diversification, that’s for sure. But then again, it’d be pretty scary to have 5:1 leverage in the stock market, right?

Oracle
Oracle
3 years ago

Hearing through sources that no details about housing in the throne speech. Just blah blah. Lag about housing affordability and how theyngoing to build 114,000 units.

They will add a line that rising mortgage rates and fragile economic conditions appear on the horizon.

Now what is worse:

Trudeau and PR or Eby and Housing?

best place on earth
best place on earth
3 years ago
Reply to  Oracle

the writing was on the wall even before the election: never trust the no-deal-party.

Oracle
Oracle
3 years ago
Reply to  Oracle

Why downvote this?

I will repost the same words in 31 days on October 1st. Maybe then you will accept the deception. And you really think they are going to pull a 180 in a few weeks when the fact is that they have been in power all summer?

Abdul Lahazi
Abdul Lahazi
3 years ago
Reply to  Oracle

The legislature has not even sat once yet so let’s wait and see what happens later in the year.

Oracle
Oracle
3 years ago
Reply to  Abdul Lahazi

LOL

Inventory is soon to have a 8K party and you say wait?

Condo prices are approaching $900 K in Vancity and you say wait?

WTF are you on? You not see nothing is being done???

Best place on meth
Best place on meth
3 years ago
Reply to  Oracle

Oracle is back into pumper mode after a brief stint pretending to care about average people.

The Surrey particle board shack market must have cooled off even more.

bullwhip29
bullwhip29
3 years ago

The biggest strata industrial project in Richmond is about to break ground on Mitchell Island
https://www.biv.com/article/2017/8/richmonds-biggest-industrial-strata-project-fires/

>>> i wonder if this is slated to become something like the wholesale “cash for jobs” mall Vstar setup in Saskatchewan?

Combat roach
Combat roach
3 years ago

And craziness continues…

“Their new 1,700-square-foot-plus townhome has four bedrooms and three bathrooms, and cost nearly $500,000.”

https://www.straight.com/news/957096/home-search-burnaby-tech-worker-goes-space-outer-suburb

YVR
YVR
3 years ago
Reply to  Combat roach

From the buyer:

He added that he’s no longer worried about getting priced out of the market.

bullwhip29
bullwhip29
3 years ago
Reply to  Combat roach

in Rmd this would be 3X the price, in Vanc 4X or more depending on location. now steve and his wife can live the dream as they giggle about their pantry and the countless hours they will spend driving to costco and walmart to fill it with stuff they will never use more than once

Abdul Lahazi
Abdul Lahazi
3 years ago
Reply to  Combat roach

This article reads like a real estate industry pump piece.

best place on earth
best place on earth
3 years ago
Reply to  Combat roach

yep, it’s plain and simple. but the genius bears have failed to understand it. just a friendly reminder, rent is due tomorrow.

Abdul Lahazi
Abdul Lahazi
3 years ago

The mortgage payment is due today.

Best place on meth
Best place on meth
3 years ago

Again a friendly reminder to you, rent cheques are for fucking amateurs.

off topic
off topic
3 years ago

Sickening moment Chinese man stabs and slits a kangaroo’s throat 18 TIMES in Australian bush – as his laughing friend films the cowardly attack

http://www.dailymail.co.uk/news/article-4835322/Chinese-man-stabs-slits-kangaroo-s-throat-18-TIMES.html?ito=social-facebook_Australia

Best place on meth
Best place on meth
3 years ago
Reply to  off topic

I’d love to see an Australian do that to a panda.

best place on earth
best place on earth
3 years ago

then you are just as horrible as they are!

Combat roach
Combat roach
3 years ago

Wow! Not only being super-smart you are incredibly Insightful. Pure genius.

Best place on meth
Best place on meth
3 years ago

They are horrible, aren’t they?

Worst culture ever, worse than ISIS.

Whistler or Bust?
Whistler or Bust?
3 years ago
Reply to  Yikes

Hopefully for 1 day for each Shark

Best place on meth
Best place on meth
3 years ago

Plus 2 sinomen finned and dumped in the ocean for each shark taken.

Sharks are worth far more.

Best place on meth
Best place on meth
3 years ago
Reply to  Yikes

“Speaking in Beijing, Chinese Foreign Ministry spokeswoman Hua Chunying said on Tuesday China opposed any form of illegal fishing, and was paying great attention to the case.

However, she said there was no evidence the ship was fishing in Ecuadorian waters but that the ship had transited through the Galapagos protected zone without permission as it did not understand Ecuadorian rules.”

Same old locusts, they get caught and play dumb.

Abdul Lahazi
Abdul Lahazi
3 years ago

no speak engrish.

paulb
paulb
3 years ago

New
114
Price Change
42
Sold
138
TI:9575

http://www.clivestevepaul.com

bullwhip29
bullwhip29
3 years ago

17-year old Richmond resident runs over woman with his Mercedes while she was in a marked crosswalk
http://www.richmond-news.com/news/pedestrian-seriously-injured-in-car-accident-1.22256130

Combat roach
Combat roach
3 years ago
Reply to  bullwhip29
Combat roach
Combat roach
3 years ago

How do vermin deal with the restriction of money leaving China? Creates the fake money, business as usual…

http://www.ctvnews.ca/canada/counterfeit-alert-chinese-writing-a-dead-giveaway-on-fake-bills-1.3568439

Abdul Lahazi
Abdul Lahazi
3 years ago
Reply to  Combat roach

What does that Chinese writing say?

Best place on meth
Best place on meth
3 years ago
Reply to  Abdul Lahazi

Regar tender.

bullwhip29
bullwhip29
3 years ago

Surrey resident sentenced for tax evasion on real estate sales and rentals
https://www.canada.ca/en/revenue-agency/news/newsroom/criminal-investigations-actions-charges-convictions/surrey-resident-sentenced-tax-evasion-real-estate-sales-rentals.html

>>> just wondering if they have ever sentenced a single person from Richmond or Vancouver for that matter.

KickThemOut
KickThemOut
3 years ago

Because the tightening measured worked so well before that this one is going to be a success? Notice the part about bigger down payment? Guess what that means? More buffer in case of decline. Qualify at higher interest rate? Means better debt servicing capability and more likely people will be doing mortgage prepayment using the higher interest rate. Again, better buffer against interest rate increases assuming they would actually increase.

oncebittwiceshy
oncebittwiceshy
3 years ago
Reply to  KickThemOut

You did understand the part about people end running the previous higher qualification legislation because they couldn’t qualify at the higher rate, right? Mommy and daddy or a subprime lender gave/lent them 20% down payments so they could get mortgages at 2.49%. “Get into the market or lose out”.

What this effectively means is that all of those people will not be able to qualify for those big mortgages because regardless of the down payment they will be qualifying at the higher rate. There won’t be a buffer because Junior isn’t getting that mortgage.

KickThemOut
KickThemOut
3 years ago
KickThemOut
KickThemOut
3 years ago

You can make someone a Canadian citizen, but you can never take away their true believes…locust must not be let into Canada, a country that shed blood to fight evil. Almost all real true Canadian patriot have family members who fought in WW2. This is an insult to them that we are letting in people who believes Hitler had right motives.

http://www.zerohedge.com/news/2017-08-30/global-outrage-after-japan-finance-minister-said-hitler-had-right-motives

Owen
Owen
3 years ago
Reply to  KickThemOut

I don’t think many Japanese people are moving to Canada.