CMHC looks to make mortgages easier to get

The CEO of the Canadian Mortgage and Housing Corporation has said that requiring new Canadians and the self employed to prove income is ‘discriminatory’ and they are looking to make mortgages easier to get:

“Right now, under our mortgage insurance policies, you have to be able to document income to get mortgage insurance, to a level of specificity that discriminates against new Canadians, because they can’t do that,” Evan Siddall, the CEO of the Canada Mortgage and Housing Corp., said in a wide-ranging interview with The Canadian Press.

“It discriminates against entrepreneurs, as well, because they can’t prove their income as well, so we’re looking at our own policies to try and make sure that there is more equity in our mortgage insurance programs,” he said.

Read the full article here.

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Just me
Guest
Just me

“The days of ultra low interest rates in Canada are over,” Royal Bank said. “These increases are just the beginning of a hiking campaign.”

Oracle
Guest
Oracle

Don’t believe the BS Just me me. You seem to fall in the same trap.

Long term yields and the FED’s unwinding have indicated that rates are not going to rise much at all. See the 10 yr premium. Almost negligible.

Quit believing headlines.

Lost...but not leased
Guest
Lost...but not leased

Agree.
..are contrarian people that stooopid?

The global economy is terminally addicted to (i)low interest rates and(ii) the subsequent inflation..and don’t dare reverse this in the aforementioned order
…..any change will have dire consequences…unless that is the end game.

Any “threats” of raising interest rates are simply trial balloons,…. token at best …so they can claim”we tried”.

Canada and BoC should be watched closely as being THE biggest bluffers

Just me
Guest
Just me

Some good news from the banks (and no, I am not being ironic). Mortgage carrying costs to rise 8% for new buyers next year, Scotiabank says.

http://www.cbc.ca/news/business/scotiabank-royal-bank-mortgage-rate-forecast-1.4344124

After two hikes this summer, the bank is expecting four more rate hikes by the end of next year, which would put Canada’s central bank rate at two per cent — a level it hasn’t been at since before the financial crisis of 2009.

That would have a “significant impact” on mortgage holders, as the bank calculates that a one percentage point increase in the central bank’s rate would drive up mortgage rates more than three times that amount.

“All markets would be affected, but the effect would be most substantial in high-priced markets — almost seven percentage points in the case of Vancouver,” the bank said.

history
Guest
history

Creating artificial scarcity is a long held game theory strategy. In the board Settlers of Catan, artificial scarcity can be leveraged 2:1 with desperate opponents.

Your goal as a global strategist is to put people into debt servitude, locking them into a dismal future driven by their Emotional need for traditional housing. You lever both the renter and HELOCer, pitting them against one another.

The risk is great, but you take it. A phalanx of Ivy League gamers populate your UN offices, various Govt and Non govt entities, many unelected.

Lost...but not leased
Guest
Lost...but not leased

Artificial Scarcity? ..of course
Its key chess piece for the powers that be.

That’s why one should look very skeptically at these environmental groups.
Many of them are funded by the oligarchs and multinationals.

Example: Keystone Pipeline..would charge approx. $10 a barrel to ship…but Warren Buffet BNSF railway charges $30 barrel….so Buffet and cronies fund opposition to pipeline often through buffer of “Foundations”.

May also suggest GOOGLE ” Hollyhocks”..a little seemingly banal little isolated enclave up the BC coast..at one level a retreat but at another a grooming facility for left wing.

bullwhip29
Guest
bullwhip29
Best place on meth
Member
Best place on meth

Canada just got a whole lot more divided today, Brad Wall suggested a bleak future for a united country.

Justin the Turd recently approved the Kinder Morgan pipeline that would send oil to china, his favorite country, but made it so impossibly difficult to get a pipeline built across our own country that would actually serve Canadians that it’s now dead due to over regulation.

Pierre the Turd would be so proud of his communist chinese loving son.

I think that deep down our traitor PM applauds Fat Kim.

Lost...but not leased
Guest
Lost...but not leased

Looks like electoral reforms(aka proportional representation) are coming via referendum in Fall 2018. and via mail in ballot

Also Official Party status now requires only (2) seats as opposed to (4)….thus Greens get that designation and the perks

So…was Weavers attacks on the NDP just posturing and red herring?….

Oracle
Guest
Oracle

Posturing.

NDP know they will never again get a majority. They will have about the same number of seats as the Greens in a PR election.

I think they will want it to fail…and they might help create a new conservative party of bc to help split the liberal vote.

Interesting times.

Just me
Guest
Just me

Meanwhile, on planet earth, the very first moronic action of the NDP cancelling road tolls, is slammed down by people who actually use their brain. Political convenience at work.

Road pricing best way to reduce vehicle emissions, concludes UBC study. Opportunity for Vancouver to be a leader in sustainable transportation, says UBC professor.

http://www.cbc.ca/news/canada/british-columbia/road-pricing-reduce-emissions-ubc-study-1.4342859

For the record, I voted NDP for housing reform, electoral reform and party finance reform. But the elimination of tolls was one of the things I found most annoying in their manifesto.

bullwhip29
Guest
bullwhip29

Short-term rental restrictions coming for some parts of Indian Arm and Pitt Lake
http://vancouversun.com/news/local-news/short-term-rental-restrictions-coming-for-some-parts-of-indian-arm-and-pitt-lake

Just me
Guest
Just me

B.C. ‘very serious’ about closing loopholes in foreign buyers tax, minister says. Finance Minister Carole James says rent-to-own schemes legal, but tax avoidance isn’t.

http://www.cbc.ca/news/canada/british-columbia/foreign-buyers-carole-james-1.4342897

A bit vague, minister, aren’t you? What is this much anticipated “legislation” you guys will introduce.
There is a word for this in the English language. Evasive (no pun intended).

YVR
Guest
YVR

“B.C. ‘very serious’ about closing loopholes in foreign buyers tax”

The developer was on the news tonight and stated they ran the program by Carole Jame’s Ministry of Finance and were told it is fine. In other words they approved the loophole before it hit the media. What Carole James is serious about is deflecting after getting caught opening a loophole for foreign buyers. Next time someone asks about this they will be studying it and will point to the additional funding to the residential tenancy office.

Oracle
Guest
Oracle

hot air.

Weaver said yesterday that NDP is not even giving any ‘signals’ on housing.

There you go.

bullwhip29
Guest
bullwhip29

B.C. ‘very serious’ about closing loopholes in foreign buyers tax, minister says
http://www.cbc.ca/news/canada/british-columbia/foreign-buyers-carole-james-1.4342897

paulb
Member

New
156
Price Change
46
Sold
164
TI:9920

http://www.clivestevepaul.com

Just me
Guest
Just me
From the excellent article of Herb Grubel: Currently, the most popular answer is a shortage of investment in housing and infrastructure. Governments for some time have adopted policies to remedy this situation. The very existence and growth of the excess demand is clear evidence that these policies are inadequate and are likely to remain so….there is one simple way to reduce demand. Lower immigration from the present rate, which sees about 250 new immigrant families settle every week of the year in Greater Vancouver. This rate of increase has brought the total population of B.C. from 2.2 million in 1972 to 4.8 million in 2017. The projection that it will reach six million in 2037 strongly suggests future worsening of excess demand. Parliament could easily reduce the number of immigrants temporarily from the present, national 300,000 per year to 50,000.… Read more »
Combat roach
Guest
Combat roach

Just stop any immigration from China including students, parents, homemakers, housewifes, pregnants and the rest of crap, and leave the rest of immigration as is. Preferably send some illegal leftovers (fake passports, drug dealers and realtors) back to paradise. Problems completely solved, housing, community, recovered and saved country.

history
Guest
history

I would caution anyone considering going Short immigrants or refugees. We are in a bull market, where shorts are squeezed out.

history
Guest
history

We are in an immigrant and refugee Growth period for some time. Remains to be seen if we rotate into Value, as is often the case after runaway growth. Value immigrants and refugees are out there, but you need to be very selective. Value immigrants dont come from the same place as Growth immigrants.

franko
Member
franko

Interesting article on immigration By Herb Grubel
vancouversun.com/opinion/op-ed/opinion-curb-immigration-to-let-housing-catch-up-to-demand

Maybe our Oracle deserves a bit more credit than we’ve been giving him.

BubbleTea
Guest
BubbleTea

I have no issues with immigration however they are not letting the right ones in, the skill workers who genuinely wants to come here to work, pay their taxes and contribute to the country. I am sorry to say they have let in too many freeloader immigrants of convience who takes advantages of the system, not paying their share of taxes and uses real estates to hide laundered their dirty money.

Just me
Guest
Just me

I agree.
I would also say: nothing wrong with letting refugees in. They are desperately poor and needy people. But let’s make room for them by getting less millionaire migrants.

Bag it and tag it
Member
Bag it and tag it

Yes, but most refugees are not true refugees in the sense the they are escaping some sort of persecution…they are merely looking for a better standard of living and exploiting loopholes to get in. There needs to be better vetting.

Lost...but not leased
Guest
Lost...but not leased
More on Stratas “folding” and selling out to developers. Currently need quorom of 80%…. Some updates: A couple in a strata successfully challenged their strata..their are steps that need to be followed beyond simply 80% quorom.. It gets interesting when the strata has to carve up the strata pie and allocate a certain amount of common property etc to each unit to figure out a value… However, Michael Geller reports that, and this is a no brainer, that a strata will now be assessed by BC assessment at higher and best use…so if a Local Gov’t has increased the density on a given existing strata site…..this could result in drastic property tax increases..(.much like that which affected industrial/commercial land that were rezoned to higher density) Thus, in theory, one could buy into a strata that may be rezoned at any… Read more »
KickThemOut
Member
KickThemOut

Simply a way for developers to force a strata to take up its offer, or suffer the consequences. Civic gov’t go along with this because they get the extra tax revenues while strata is trying to hold out. Best of all, no bad news about people being forced from homes, or NIMBYism.

Note that right now, this doesn’t apply to SFH lots. Why? Bet because most of the donors live in SFH.

YVR
Guest
YVR

“However, Michael Geller reports that, and this is a no brainer, that a strata will now be assessed by BC assessment at higher and best use…”

It always has been this way. Land value should reflect this.

Lost...but not leased
Guest
Lost...but not leased
Exactly… I think the count is 10 stratas to date have folded…but I anticipate the floodgates will open as more stratas get tagged by Local Gov’ts OCP for higher and best use aka higher density. To date……it appeared old stratas were getting tagged…with the usual spectrum of older residents and newer ones, with the older less amenable to moving. Now, we could see newer condos say a 10 storey complex built in 1990’s, rezoned to say 35 storeys…which may result in BC assessemment (and subsequent property tax hike) that many of the owners cannot afford,…. thus it becomes NOT a matter of say 80 % quorom that wants to cash out..but a significant number that are forced out..THEN we simply add to the already large number of displaced people. These developers need land…and this may be a new and somewhat… Read more »
realist
Member
realist

This is already the experience of some who have cashed out of SFH on Vancouver West Side. Those who have moved to older stratas are discovering to their dismay, sometimes after several years of expensive renovations, that their tenure is by no means secure.

Lost...but not leased
Guest
Lost...but not leased

Interesting link noted above re: some small businesses in Vancouver/West Vancouver have a hard time recruiting and keeping staff…even offering far above minimum wage ie $20/hr.

Probably old news..but simply getting worse..whats worse…having no customers or the inability to cater to them
……another symptom of our f*cked up economy.

Oracle
Guest
Oracle

Looks like i underestimated.

Trudeau is going to bring in 450,000 immigrants per year in a a few years. Add to that the 10 million 10 yr visa holders and a million foreign students.

https://globalnews.ca/news/3782202/450000-immigration-target-canada/

Read the headline!!!

Told you guys.

Vancouver will grow by 100,000 people a year. Prices will shoot towards the moon. Buy a detached even if in Chilliwack. I sure am.

BubbleTea
Guest
BubbleTea

Recent Gallup poll: Should immigration be kept at its present level, increased or decreased?
73% of the response wants immigration to be kept or decreased. Why the f**k is T2 and the Liberals not listening!
http://news.gallup.com/poll/1660/immigration.aspx

realist
Member
realist

“Why the f**k is T2 and the Liberals not listening!”

Because high immigration levels are very much in the interest of large corporations and the 0.1%, and those are the only voices that T2 actually listens to and heeds (while pretending to listen to the babbling of refugee Syrian infants, good ole’ Mom & Pops & Grannie, etc)

Lost...but not leased
Guest
Lost...but not leased

Canada immigration is based on the assumption of a low birth rate.
Why?

Canada’s economic policies make children an economic luxury, ( add to that the usual village idiots cry about Carbon footprints, divorce, abortion )…

Problem is immigrants choose to live in already crowded/expensive urban areas, so this simply turns into a gov’t juiced vicious cycle

Just me
Guest
Just me

I think that even for Trudeau that is political suicide. Only corporations would benefit from such a disorderly intake of immigrants. It is way too large proportionally. Even 300k is a stretch.

There is also the issue of the composition of immigrants: are we bringing in much-needed nurses, caretakers, doctors, IT experts and the like? Or are we giving a free ride to millionaire migrants who shop for the best international passport and low tax system? In Vancouver we get a lot of the latter, and this is making our lives miserable.

KickThemOut
Member
KickThemOut

Good luck trying to recruit a John Hopkins Univ medical doctor with 10 years experience to Canada and tell them because they have no Canadian experience, they have to start from the bottom internship again.

BubbleTea
Guest
BubbleTea

Green Party Andrew Weaver is now the New Eby. Listen to his rant on the lack of action from the NDP on housing. He is on steele and drex.

Just me
Guest
Just me

Links?

Lost...but not leased
Guest
Lost...but not leased

I attended a forum last year on housing issue held by NDP at the Greek Hall off Arbutus , Eby, Horgan etc. attended

In hindsight it was simply a spleen venting exercise… the NDP gave no policy proposals.
The public was well represented…many in attendance.

However, while we can accuse the NDP of being somewhat deceitful, we also have ourselves to blame re not realizing/admitting the system is so infiltrated and corrupted nothing short of a total collapse will start a remedy, and no political party is going to dare risk that.

There will be NO political solution…its like the wildfires…it will run its course.

YVR
Guest
YVR

It is not that the system is corrupt. It is that the BC economy is based on housing and foreign money. You take that away and there is nothing. Mass unemployment, people with underwater mortgages and tax revenues cut in half. We go into a depression when housing crashes. The NDP know this and knew this prior to the election. They just lied about it. Add to this all the canceled mega projects and less natural resource based economy and housing becomes even more important.

Patiently Waiting
Member
Patiently Waiting

Yep, I also attended one of the forums (Eby was there, but not Horgan), and it was quite obvious affordable housing was the priority, not popping the real estate bubble. This is what I expect from the NDP. They’re improving things for renters, and it’s only a few weeks into their minority government.

Let’s face it, if the bubble pops because of the NDP, we’ll hear about for the rest of our lives. They are not going to do anything major with real estate. The only real disappointment for me, so far, is them not already getting rid of the interest-free loan (HOME) program. I’m waiting for them to either trash it or try to explain themselves. There is no justification for such bad policy, and I’ll be writing Horgan, my MLA etc. if they don’t follow through.

Lost...but not leased
Guest
Lost...but not leased

Recall the NDP was in power for most of the 1990’s….what did they do? Seem to recall they bought a few Vancouver flophouses, renovated them has then run by societies(recall Portland Hotel Society) that ripped of the taxpayers.

Regardless…that may have been their best chance back then..but then we have the old economy sucked under the NDP , thus social housing a luxury? Its simply a no win either way?!?

If you review the economic data, there was a lull when China took over Hong Kong in 1997…which ultimately manifested as Mainland China was getting geared up to mount a bloodless(aka economic) war against much of the Western world.

Patiently Waiting
Member
Patiently Waiting

Affordable housing just wasn’t the priority it was today because the urgent need wasn’t there. The federal government ended just about all support for affordable housing programs. Many of today’s decaying rental buildings were still decent shape back then. If only the governments at all levels could have seen where their inaction would lead to today.

C.Junta
Guest
C.Junta

“system is so infiltrated and corrupted nothing short of a total collapse will start a remedy”

I tend to agree. And the sooner it happens, the less painful it will be. I hate to say it, but “The worse, the better”.

Housing is a sacred cow that none of the politicians want to slaughter, everyone is trying to milk it. Unfortunately, this cow is extremely voracious, so other living beings are starving. The guy with balls who kills the cow will become a national hero. But they will crucify him first.

Lost...but not leased
Guest
Lost...but not leased

Re Andrew Weaver and bare trust loophole…

Apparently the bare trust loophole has been around since the property sales tax ie 1991 introduced under VanderZalm. If true, this means that the last NDP Gov’t (Harcourt etc.) was aware of it yet did nothing.

ALSO: Seems like the Libs are going to sit back and watch Greens bite the NDP. This is the downside of the coalition…unless this is all scripted posturing by both sides.

Weaver is cornering himself ie does he continue to attack his NDP ally?..or back down and then be accused of posturing?

Just me
Guest
Just me

To answer a few posters saying that the NDP is actually working on new legislation to tackle housing prices (they call it affordability. But I hope that means lower prices!), my two dimes is this: it better be bloody awesome legislation, if we have to wait until the new year to see it! Meaning, something that brutally reduces the flows of money from China. Anything short of that is a failure.

realist
Member
realist

“Meaning, something that brutally reduces the flows of money from China. Anything short of that is a failure.”

Correct, but sadly this is, practically, impossible, without committing political suicide. The prosperity of BC and Victoria’s account receivables are dependent on money laundering & immigration from China. Worse is yet to come, as it is the tax-paying local middle class that will have to foot the bill to house everyone else.

BubbleTea
Guest
BubbleTea

So far this year, 876 people in B.C. have died from drug overdoses, most of those attributed to illicit fentanyl, a drug that is produced in clandestine labs, primarily in China. Fentanyl is used by drug dealers to increase both the high and the profits and as a cheap alternative to heroin.
We’ve got bags of dirty money. Literally millions of dollars that is probably raised by selling illegal drugs that are fueling the opioid crisis are being gambled and “laundered” at B.C. casinos. Then they are sometimes invested in real estate in B.C., fueling the housing affordability crisis.
https://www.nationalobserver.com/2017/10/04/opinion/trail-dirty-money-vancouver-linking-housing-prices-drugs-gambling
Krusty, Coleman and a lot of people should be in Jail for corruption.

KickThemOut
Member
KickThemOut

Don’t do drugs, and you wouldn’t get overdose. How hard is that?

Just me
Guest
Just me

If hell exists, Christy Clark has her name tag on one of its rooms. She let this situation get to epidemic proportion 9both the Fentanyl crisis and the housing crisis).
And she even had the guts to claim that BC is better off now than it has ever been.

bullwhip29
Guest
bullwhip29

Bill Morneau’s former firm could benefit from his decisions on overseas tax treaties
https://globalnews.ca/news/3786941/bill-morneaus-former-firm-could-benefit-from-his-decisions-on-overseas-tax-treaties/

C.Junta
Guest
C.Junta

Vancouver byelection in City Hall yesterday.
1. Turnout was surprisingly high for advance voting, there was a 5-10min lineup around 5pm.
2. I saw a guy in a red “Rent Freeze Now” t-shirt voting.

KickThemOut
Member
KickThemOut

Shit…thanks to mid-Autumn Festival and National Holiday, the Chinese “workers” at my office got 2 days off in exchange for working during XMas – New Year week, to give rest of us a “break”, like we get extra days off during that time. Note, I’m not talking about XMas, and New Year Day which are stat holidays, but the working day in between.

bullwhip29
Guest
bullwhip29

THE ECONOMIST: The bull market in everything
Asset prices are high across the board. Is it time to worry?
https://www.economist.com/news/leaders/21730019-ultra-loose-monetary-policy-coming-end-it-best-tread-carefully-asset-prices-are

KickThemOut
Member
KickThemOut

Can you post the Cliff Notes about how this is all the results of manipulation and machination of Commie China?

Dave
Member
Bubbles are generally caused by excess liquidity. After the Great Recession all the central banks, including China, dramatically increased liquidity with China going into deficit spending. The economic growth of Asia is creating a capital surplus which is flowing into the real estate of Western cities. In the past, if you had excess liquidity and created bubbles, the raising of interest rates by the central bank would pull back on liquidity keeping things in check. But at present, we have an international economy and our central banks have no control over the inflows of overseas capital. Yes, that has always existed to some extent. But, in the last ten years we’re seeing trillions get funnelled into real estate. So, it’s at a scale unprecedented in history. I think that’s really the only way to explain the extreme lack of affordability… Read more »
KickThemOut
Member
KickThemOut

So all the excess liquidity that went into RE is created by PBOC then? We should just nuke PBOC and problem solved?

Lost...but not leased
Guest
Lost...but not leased
BANG ON….Well said… A review of history would indicate a nations sovereignty was based on how it dealt with tariffs and free trade.. Tariffs would often generate enough revenue to fund gov’t and protect local industries. Free trade basically loses the aforementioned and overtime one becomes part of increasing globalism and branch plant for multinationals. Unlke the housing bubble of the 1980’s, which was nuked by the banks high interest rates 20% plus…Canada economy is at the whims of overseas capital, much of it from dubious sources. BoC Poloz will only be posturing with any moves…they will be token at best and probably experimental. Canada is addicted to this overseas capital, and withdrawal would be extremely painful. All the banks did was allow the locals to compete with overseas capital, via low interest rates, which likely pumped the condo market… Read more »
KickThemOut
Member
KickThemOut

So reducing / controlling Free Trade is the answer? That approach really worked well during the 1930s right?

Dave
Member

There is definitely good reason to be concerned. Asset values have been inflated by low rates and we’re now in a rate tightening cycle. I think the valuations of assets, like stocks and real estate, make some sense when bond returns are where they are. But, I think that pricing is vulnerable to interest rate increases or an economic slowdown.

I think the stock market has priced in optimism about everything going forward and it wouldn’t take much to cause a correction. That could be escalation of the North Korean situation (e.g. trade sanctions on China), failure to pass tax changes in the US, growth slowdown or higher interest rates.

KickThemOut
Member
KickThemOut

But since bears have live stock quotes and can sell in 5 seconds, what’s to worry? They will not only get out before any crash but also short the market to profit on the way too, while kicking the speculators in the groins for extra satisfaction.

bullwhip29
Guest
bullwhip29

World’s two biggest fund managers say Bank of Canada is done hiking this year
http://business.financialpost.com/news/economy/pimco-blackrock-say-boc-done-hiking-in-2017-traders-disagree

Just me
Guest
Just me

They are done. It is true. Poloz does not have th e courage to hike again. He probably is all freaked out about the CAD$ appreciation.
Perhaps next year.

Dave
Member

I think he’s more freaked out about a housing crash. Now that Toronto is clearly in correction mode, I think that will prevent more rate increases. As usual, Vancouver is a secondary consideration to the bureaucrats in Ottawa.

KickThemOut
Member
KickThemOut

What about the consideration of Vancouver RE bears? Surely that’s the most important thing ever!

Dave
Member

Poloz doesn’t care about Vancouver… bears of bulls.

Joe Laurentian
Guest

True. Toronto prices are falling so he thinks he’s done his job. Time to put the breaks on cuts for a while so that TO doesn’t fall too quickly.

It’s just like when Flaherty drove around TO and saw all the towers going up and only then became concerned about a bubble.

It’s all about the Centre of the Universe.

YVR
Guest
YVR

“He probably is all freaked out about the CAD$ appreciation.”

For sure he is. But the US will hike soon and the CAD will be back to 77 cents which will set the stage for another two more cuts in Canada.

bullwhip29
Guest
bullwhip29

Canada’s trade deficit widens to $3.4 billion in August
http://www.cbc.ca/news/business/trade-deficit-1.4339696

Just me
Guest
Just me

Another nail in the coffin of higher rates. No way Poloz hikes in October. You can bank on it.