It’s that time of the week again… Friday free-for-all time! And BC Budget time!
This is our usual end of the week news round up and open topic discussion thread for the weekend, here are a few recent links to kick off the chat:
–Transitional rules needed?
–A war on upper end homes
–No more hiding
–Market gets tougher
–That speculation tax
–
So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments below and have an excellent weekend!
[…] special request of commenter Bubble – a Monday […]
True to form, the NDP released a tax and spend budget. False promises and massive spending on the backs of job creators, along with a double-dipping tax on small, medium, and large businesses.
Well they would say that. What they didn’t say is a single word regarding the FBT, PTT, speculation tax, or RE anti-fraud measures.
https://twitter.com/wilkinson4bc?lang=en
I think the NDP would be smart to head to the polls right about now. The Liberals seem to be a total mess. Poor communication. Bad messaging.
Dave….IMHO you are correct…as in RIGHT NOW…..ASAP >>>
My guess is that by end of summer 2018…….the NDP will be very LOOWWWW in the polls.
They’re not going to do it because this wasn’t an election budget. The next chance of an election is this time next year should the referendum fail… it won’t.
The NDP are too popular right now and there isn’t going to be enough anger for voters to pick NO. Rather, the momentum is with the YES side.
Only if they release details of spec tax. The tax must have bite.
Here is a suggestion for a new post. Will China’s economy slow down in concert with tax changes?
HAM watchers know, without a change in outflows Vancouver is hooped. https://www.bloomberg.com/news/articles/2018-02-07/china-s-outlook-seems-darkest-from-a-distance
Long live Chairman Xi, the savior for us Canada’s poor!
Yeah….Chairman Xi….honorary member of Metro Vancouver #1 conquered city Richmond BC
IMHO..given the amendments to the Foreign Locust Hive Central constitution…seems the Commie bastards are shedding their quasi – conservative/free enterprise camouflage and yearning/converting back to Chairman Mao ( Student of Yale University ) good olde days..whereby tens of millions of Chinese were slaughtered in the name of WTF ?
……oh yeah..a Sino franchise of the Bolshevik Revolution…up to 100 Million(Russia and China) purged..
Oh…F#ck……
Must be a fake news, not possible in Canada?
S&P Global Ratings says it expects more evidence of Canadian residential mortgage fraud could emerge amid high household debt and home prices.
Here is a question, and i don’t know the answer, can CMHC get an “out” from bad mortgages if the banks have been found to be negligent? I would assume CMHC would do everything they can to not re-reimburse a bank for a bad mortgage. It is after all what insurance companies do. Find any way they can not to pay the claim
“can CMHC get an “out” from bad mortgages if the banks have been found to be negligent?” Yes.
CMHC spokesman Jonathan Rotondo said in an email that the agency works “proactively with partners throughout the industry to combat mortgage fraud,” rarely sees fraud, and when there is reasonable evidence of it, the agency can declare coverage void.
I don’t see bailouts coming myself. I doubt the big banks would get enough fraudulent lending proven, relative to their total business, and the Feds seem to be willing to leave the small lenders to their own devices, as we saw with Home Capital.
I think the government did more with Home Capital than we know. I’m sure a few phone calls were made by our regulators to Berkshire.
Keep watching and we just might find out. I think there have been a lot of shenanigans and I think a lot of banks have turned a blind eye. I doubt there is much out and out fraud, so I think it’ll be hard for the CMHC to deny coverage.
In the scenario this gets tested, I think we’re already into a major federal bailout of the banks and emergency measures. Just like in the US correction, the bankers keep their bonuses and Rolex’s.
If there is a correction, you can be sure a lot of evidence will emerge. In an unwind, the factors that lead to a boom are often the same ones that cause an overreaction the other way. Those who bought with leverage will have to sell to cover that leverage.
Long live Teddy Bear Xi? Not even pretending anymore
https://www.ctvnews.ca/world/spectre-of-one-man-rule-looms-as-china-lifts-xi-s-term-limit-1.3819180
Like it or lump it, President Xi’s dictates will affect our real estate market as much if not more than John Horgan.
Could very well be true. If he calls the money to come home, our market crashes. If Horgan did the same thing, he probably backtracks at some point to protect the market since he’s at the whim of the voter.
Defending the indefensible…
http://www.bbc.com/news/world-us-canada-43200850
Locusts can’t drive in a little snowy conditions. Should be part of the immigration test, we are Canada after all!
‘People went flying’: Bus passenger on crash that left 29 injured
http://www.cbc.ca/news/canada/british-columbia/coquihalla-crash-1.4551795
This is Monday now. New thread, please.
Found this government bulletin about the speculation tax
https://www2.gov.bc.ca/assets/gov/taxes/property-taxes/publications/is-2018-001-speculation-tax.pdf
Re speculation tax
What’s this BS I am reading..
So. ALL homeowners will be sent a form to fill out.
Then it mentions either an:
(i) Exemption
OR
(ii)non refundable income tax credit (NFITC)
Why not keep it simple via exemption…ie if you qualify….you pay no speculation tax.
WTF is a NFITC?
Thanks …..but as a native born Canadian and a life long BC resident, I don’t need this added NDP Bullshit…which seems to be like VISION policies……..GUILTY till proven innocent.
Don’t need a bunch of cerebral onanism ….they seem to be casting a big net…as opposed to some data base that should red flag usual suspects.
I am not an NDP supporter per se…but I was gonna give them a chance…
Let’s see them collect this tax from satellite welfare moms who don’t speak English and don’t answer the door.
Any comments on this bulls?
https://www.zolo.ca/richmond-real-estate/trends
I know it was a rhetorical question, but 20.6 months of inventory (detached) seems high.
Where do you see 20 months of detached inventory? That’s a bad number if true, but it’s also February.
703 active listings over 34 sales. That’s Jan 26 to Feb 23, so not quite a month.
What a crazy market. In Burnaby MOI for SFH is 11. For condos, it’s about 1.5. In Vancouver, it’s roughly 2 MOI for condos.
Has the market ever been that divergent? Bear market for SFH and bull market for condos?
We have a long ways to go to get MOI up to 8 for condos.
If you’re a foreign speculator, it’s a good time to dump product because the market hardly has any right now. You actually have a chance of getting out before the condo market could crash.
the burnaby condo market is being flooded with thousands of units at or nearing completion.
Bought and paid for already, so it’s not adding to inventory.
In order for condo prices to drop, we need a big jump in supply. It’s hard for me to imagine where those units will come from. Let’s say HAM is 25% of the market and half drop their pre-sales or put units up for sale, is that enough?
many are presales so they are not paid for yet. they will also be flipped so I’d count them as inventory. also lots of buildings have not broken ground yet.
Richmond prices have apparently either flatlined or heading south.
Larger homes (5-6 bedroom ) seem to be taking the biggest hit.
Also interesting is one year ago 5 Bedroom was going for $2.7 million…6 bedroom $1.7 Milion
Overall the market seems to gravitate to ” $2 million” regardless of detached size.
Also: Watch Richmond…..majority of population is Chinese.
Higher probability of RE crash there …canary in mine for rest of Metro Vancouver.
Moreso because Richmond City Hall kisses Sino ass unlike any other
Well I am shocked.. SHOCKED! I say…. https://thinkpol.ca/2018/02/23/bc-liberals-continued-support-alleged-ponzi-operator-sponsored-christy-clark-despite-warnings/
“An alleged Ponzi operator who sponsored former British Columbia Premier Christy Clark’s junkets to China continued to enjoy the full support and backing of the former BC Liberal government despite red flags raised by auditors, according to documents obtained by ThinkPol.
The documents also show that whenever favours were sought from the former government on behalf of Istuary Innovation Group, whose CEO has allegedly fled to China after fleecing investors in an alleged Ponzi scam and stealing millions in employee wages, the BC Liberals were reminded of the sponsorship BC’s former governing party received from the company.”
And so on….
Love the pic of Andrew Wilkinson pleasantly conversing with a criminal and tax evader. Smiles all over.
“The new BC Liberal leader Andrew Wilkinson did not escape the alleged Ponzi scheme’s allure.
Wilkinson endorsed after going on a trip with the company to China while serving as the Minister of Advanced education.
“It’s a pleasure to acknowledge Istuary Innovation Group as a creator of business and job opportunities for British Columbians, particularly those in the high-tech industry,” Wilkinson wrote in a letter of endorsement.
“I would also like to recognize the work of Istuary Innovation Group for helping with the exchange of British Columbian technological resources with Asia,” Wilkinson added.”
“Love the pic of Andrew Wilkinson pleasantly conversing with a criminal and tax evader. Smiles all over.”
Are you trying to get Dave upset? Wilky’s his horse in the next election.
Reminds me of this Kids in the Hall classic https://www.youtube.com/watch?v=ZbxqjDht8S4
Reverse racism…..these political whores actually think/believe Non Caucasians can do no wrong….
Rather pathetic in conquered land/ locust land HQ/ Beijing West aka Richmond BC to see Richmond Mayor..Richmond MP…3 MLA’s Andrew Wilkinson wearing Chinese garb in group brown nose suck up photo opp to foreign locusts .
May suggest pass the hat so next time they are forced to touch toes while pants pulled down and let the locusts ” have their way”..
…….should also tell them to piss on graves of soldiers and other memorials to those who died in wars to fight communism…..as these political whores have welcome the foreign COMMIE locusts with open arms.
Speaking of traitors and graves….
https://www.ctvnews.ca/vandals-paint-traitor-on-trudeau-mausoleum-1.291863
Squeak you work in the hospital system I think you said? You are scaring the poop out of me but I don’t think there’s any way to get all the money needed for healthcare for everyone out of the tax base. Had the Chinese billionaires and millionaires come here to participate in our social safety net they would be lauded to the skies. We would want more and more Chinese billionaires. But no. That’s not what’s happened.
If I was in a home run by chinese, I would pray to god I could get my hands on a cyanide pill.
Why didn’t you? You little coward? Typical bear, all talk with no action.
Yeah…in the big picture….WTF was Justinetime Turdeau and cronies thinking….allowing a company with dubious record like Anbang buying Seniors homes…..some things need a serious considerations.
Anyway, at a more personal level….I don’t have to worry about it anymore.
You’ve got all the pills you need?
The whites here gonna be in for a shock in 10 years when the Asian majority votes to end public funding of care homes. It’s expected the family look after their elderly overseas and it will be like this here.
YOuve made your own bed boomers.
My late mother was in a facility now owned by Anbang. She was there since last June….so she was there when Anbang bought it. I really didn’t notice an drop in level of care( which I would rate quite highly).
This particular facility had ” funded ” beds…ie partly subsidized by Gov’t.
My initial concerns were the Real Estate aspect…that Anbang may shut them down and redevelop the land.
You are obviously lying….any business taken over by Chinese are immediately turned into a slum biz, with corner cutting galore as owners attempt to squeeze every last bit of profit from stone. The fact you said there has been no service drop shows that you are lying and a willful traitor.
“Asking home prices fall by double digits in Metro Vancouver as BC budget begins to bite”, ThinkPol
https://thinkpol.ca/2018/02/24/home-prices-fall-73-metro-vancouver-bc-budget-begins-bite/
“Asking prices for homes in Metro Vancouver are falling ‒ in one case by as much as 73% ‒ suggesting that budget measures announced by the NDP government to promote affordable housing by tackling rampant crime, corruption and speculation in the real estate market is beginning to work even before they come into force.”
Asking prices haven’t fallen by 73%. These places were priced way too high. You have always had places prices way to high. Nothing to do with budget.
the chineeze are running scared now. i just saw a group of them run past my place carrying large duffle bags.
Name – and Chinese car leases are dropping like a stone. That must be why they’re running.
Bringing transparency to Ponzi schemes and money laundering always causes criminals to run.
UBC has genetically engineered pumpkins to make them theft proof….
Lol. Let’s not try to hard to brainwash the naive here.
Duffle bags may carry TFW or Aecon workers for Site C dam…
THIS guy clearly needs to work on his marketing. https://www.usedcowichan.com/classified-ad/–Attn-Buyers-and-Sellers-REDUCED–_31347398
“For those looking to sell or buy, the current downward trend in the market with falling sales and prices will be amplified by these measures. And with rising interest rates with more planned this year, and the new B20 mortgage rules that lessen credit for new buyers, the pressure is mounting. Now is the time to buy! ”
In brief: Something something, now is the time to buy. LOL.
i asked my barber if i need a haircut and he said yes i do.
Name – and I asked myself: with falling prices, is now a good time to buy? My answer back was: NO, not unless you want to get scalped!
Also, I LOLd at this. https://www.thebeaverton.com/2018/02/bitcoin-dangerous-bubble-unlike-safe-secure-bubble-toronto-real-estate/
“Bitcoin is a dangerous bubble, unlike the safe, secure bubble of Toronto [Vancouver] real estate”
“The short sighted, short term investing that has led to bitcoin value rapidly rising is bad for the economy, and I know a bunch about money because my Toronto house has doubled in value in the last 10 years.
There is simply no way bitcoins are worth what people are paying for them. You should invest in something that has intrinsic value, like the 1.6 million dollars my two bedroom one bath semi detached is intrinsically worth.”
Rich….
“There is simply no way bitcoins are worth what people are paying for them.”
There is no way to value bitcoin, it’s impossible. You can’t say the price is too high at $10K, but it’s a fair price at $1. It doesn’t matter what the price is, it’s impossible for anybody to say what it’s worth.
Bitcoins are worth nothing, but price is different. Price is whatever someone is willing to pay.
People will pay a lot of money for worthless things for one reason only, they believe they can profit from it.
At this time post 2 of 3 is awaiting moderation….
(1 of 3) Note: The “submit a story” option seems to have disappeared from the site, so I’ll have to parcel this post out as it contains links.
So much to track now that things seem to be in motion. The empty homes cluster will take time to show movement http://vancouversun.com/news/local-news/empty-homes-tax-city-of-vancouver-releases-heat-map-showing-clusters-of-undeclared-properties, while more obvious things like inventory, asking, and sales prices will give is a picture a bit sooner. But what use is data if we can’t use it to make predictions and make good decisions based on it?
The develeopers have hired a small army of twitter people and are attacking the housing tax changes.
Rob Shaw of the Vancouver Sun is leading the charge and the people that want housing change are now outnumbered. Please get a twitter account and attack these people or else the legislation will be watered down.
Speak up!!
Oracle – legislation will not be watered down, no matter how much the shills cry and scream. Governments engineered this bubble up, and now governments are going to engineer it down.
Just wait until the true story starts to come out. Imagine the public’s reaction when they find out the truth about the shell corporations, money laundering, tax evasion.
This is going to get real ugly.
I have to admit that Rob Shaw is, to say the least, annoying. Not sure about his motives, but he seems to think that lower prices are anathema. Even if coming down from the insane levels where we are now.
Of course Rob Shaw of the Vancouver Sun is angry that prices are going to plunge. Where do most of the Vancouver Sun’s advertising dollars come from? That’s right, the real estate/finance industry. Does he own a lot of real estate himself? If he does, he might be worried about his own investments. We can’t know for sure.
These guys act like they care while the bubble continues to grow, but it’s only when the bubble reverses that you see their true colors.
And you think you are not insane and annoying?
The fact you attack me is a point of honor for me.
It means I am doing something right.
Keep it up!
Hmm… be PC with the patient. One should not take advantage of full-retard and Confucius Academia grad for a self justification .
and such irony that the really insane and annoying one is calling the sane one insane….
Thinkpol: Asking home prices fall by double digits in Metro Vancouver as BC budget begins to bite
https://thinkpol.ca/2018/02/24/home-prices-fall-73-metro-vancouver-bc-budget-begins-bite/
Cherry pick. It lists several price reductions and the head line said home prices fall double digits in metro Vancouver. You must have pea brains to buy into these kinds of write-ups…right Just Me!
bestplaceonearth – there are going to be price reductions coming out the yin yang in the near future. Real estate will return to the mean.
their headline was revised to add the word “asking” so do you feel better now?
Sounds like Thinkpol is being as bad as agents, trying to cause a panic with cherry-picked data. Just lost a bit of respect for them.
They all sell out in a heartbeat.
Better Dwelling no better. They are increasingly jumping on the low interest rate mantra.
Someone ask them why Kelowna prices aren’t equal to richmond prices then.
“The only reason the bubble kept going for so long was the fact the the BC Liberals turned a blind eye to crime and corruption in our fentanyl-fuelled industry.”
“The criminals know that [Attorney General] David Eby means business,” the whistleblower concluded. “They’re now cutting their losses and fleeing, and the market will correct itself to align with fundamentals.”
That’s all well and good, but WEAR EEBEE??!!!
Motherfuckers still should be generously treated with the shitty sticks while they are fleeing. At least for memories sake.
It’s one thing for you and I to display hostility towards the lying, cheating, thieving, scamming mainland locusts that have come here to rape and pillage our country.
It’s quite another when a new provincial government does the same.
But yeah, I want them to go back to their shithole of origin by the thousands, whether by choice or by force, and get spat on by their victims as they’re leaving.
As many here know, there have been a lot of shenanigans with asking and sold prices. Who knows what those price changes mean.
A place assessed at 1 million bought at $5 million launders a lot of money. The owner and buyer know each other even though listed on mls. When multiple dipping done, price lowered to sell out of circle.
Agree….
Dirty money laundry….crooks don’t care if they lose money, moreso as they didn’t really earn it…they simply want to make as much of it legit as possible.
How many of these RE deals involved sales to an inner circle ? Then this sets new benchmark for neighbourhoods…… increased assessments….etc
“The industry insider warned that the industry reaction will go well beyond mere press releases expressing concern.
“The industry is fighting tooth and nail to water down the budget measures,” the whistleblower added. “They’ve hired troll farms to infiltrate social media platforms and push the real estate industry narrative that NDP is ‘punishing’ homeowners.”
The whistleblower is confident that Premier John Horgan’s government will prevail despite industry push back.
“But I don’t believe any amount of narrative control is going to help the industry,” the insider said. “The only reason the bubble kept going for so long was the fact the the BC Liberals turned a blind eye to crime and corruption in our fentanyl-fuelled industry.”
If it was an anonymous single source on any other topic the morons would be screeching “fake news!”.
Somebody should remind them that people used to blame the local weed “industry” until a convenient foreign scapegoat was found, or perhaps even mention how government policy draws buyers into the market who have no place there.
I never use the term “fake news” and I don’t like people who do….
😉
Actually back then is was the RE industry that was promoting the idea the foreign buyers were driving up prices (yellow helicopter Cam Good), we were denying it…then things flipped once the public started asking for action…suddenly the RE industry starting denying the effects.
If there isn’t any pushback, then the changes aren’t working.
Developers should be most concerned. Construction costs are going through the roof and if presales drop off because people are dumping them, or avoiding buying, then it’s a perfect storm for some condos to stall half way through construction. This happens in every correction more or less. But probably a lot more this time.
Dave – “If there isn’t any pushback, then the changes aren’t working.” So true.
Will be interesting to see if developers start cancelling projects. If so, labor costs will start coming down. Maybe people will get back to actually producing something.
The money laundering must be staggering.
Why are construction costs so high? Is it simply competition for materials and labour amongst developers? Or something else?
Shortage of labour. Materials are a global market so that’s less of an issue.
Workers have to live somewhere as well. Their pay reflects that to some extent.
Housing costs cut both ways.
Incidentally, the B.C. association of contractors has openly lauded the NBC budget (both their childcare and housing plans, actually).
“Developers should be most concerned.“
I disagree. If land prices come down enough, they will be just fine, They build, and land is a cost to them.
The people who will lose are speculators, domestic and foreign. And they should lose. They add nothing to society.
A lot of developers are facing tight margins right now. That’s the reason that New West project stalled out. The big guys are fine because they’ve all banked land and have better cost control. The small to mid sized developers could be in trouble if prices move down.
Developers should be directed to build rental and public housing from now on, using whatever carrots and sticks necessary.
They’ve built more than enough condos for the foreign and domestic speculators.
We shall see. I think the middle class that foots the bill for rental and public housing should benefit from lower prices first. It makes no sense for young people to foot the bill for others when they can’t afford a place to live and raise a family to begin with. Those people have been footing the tax bill for rich foreigners long enough as it is.
What we need more than anything is a set of motivated leaders with cool heads, who ignore the noise and keep doing what is necessary to lower house prices in a reasonable time span.
We need lower prices to bring back the city to a semblance of order and legality.
Just me – I think what we’re seeing now ARE motivated leaders who ARE ignoring the noise. Prices need to return to the mean.
Andrew, you are such dissapointment…
http://www.cbc.ca/beta/news/canada/british-columbia/greens-housing-james-moderate-market-1.4547527
Weaver is asking fair questions. If the NDP have a plan they should make it public. What is their goal? We went from protecting home owners equity to moderating prices in weeks. What will they say in a couple more weeks? Will we be back to protecting home owners if prices go down 10%? What are the details on this 2% spec tax? Half the housing stuff the NDP put in their last minute budget we still don’t have any details on.
WEAR EEBEE?!!!
SQUAAAWWKKK!!!
Good question. We are still missing 50% of his housing promises. Where is the foreign buyers tax on presales like Eby promised and squawked about when he was in opposition. How about the bare trusts? Or farm land restrictions?
YVR – all in good time, YVR, all in good time. You can’t dismantle a Ponzi overnight.
Bare trusts? Point #9
Farm land? Point #11
I don’t recall any promise for an FBT on pre-sales, but would like to see one. Actually I would like to see a total ban on foreign buying of pre-sales.
https://www.scribd.com/document/371984758/NDP-30-Point-Housing-Plan-2018#from_embed
keep trying to dig out of that hole YVR HA HA HA !
Noise, The current BC government wants lower prices. As it should be.
It was elected into office with exactly that mandate. And now they are delivering.
If prices in 3 years time are significantly lower, they will be re-elected.
No they most certainly will not be re-elected if the market tanks. You are just wish projectioning
Strata Hacker – yes, they will be re-elected. Most people don’t care if prices go up or down because their houses were bought as a “place to live”. People do not like what’s been done to their city.
If prices go down, half the pulsation of metro Vancouver is going to be very happy. Of the other half, a big chunk will be indifferent.
The only ones who will be really pissed off are those speculating or who happen to be forced to sell at the wrong time.
Metro Vancouver will boost the NDP even more than it already did. You are underestimating the amount of anger about high house prices.
Right nw the NDP is more popular than at any time over the last 12 months. Ask yourself why.
Weaver appeals to the latte sipping baby boomers that feel they’re virtuous by voting Green, despite being the most selfish generation in history that got rich off the Chinese money influx.
As long as the latte sippers’ vehicles are electric, who cares how many working people have to sleep in their gas guzzlers.
Serves them right for not choosing zero emission.
http://www.news1130.com/2018/02/25/china-proposes-removing-2-term-limit-for-president/
this is bad news for china and not in a good way …
Shite,,
I thought Andrew Weaver was going to pull the same stunt in China as he did here…namely tell the Communist that he will hold a gun to their head and force an election unless they capitulate to the Green agenda.
Quick question for Bulls: Should I buy an assignment in Burnaby (corner Kingsway and Edmonds) w/ 5% down?
Sure. Go ahead.
I am assuming that the condo has not been built, Is the end game to own and live or flip down the road.
IMHO, its like buying GOLD..never buy the certificate…buy the actual physical unit.
Look into newer condos say 1-5 yeasr old …kick the tires…problems should have exposed themselves by now
Owen Bigland (local realtor ) has a lot of good YOUTUBE videos on RE..especially condos.
He advises people to buy stratas in good locales ( ie A, B, C grade) He strongly advises against condos built on or near busy roads for various reasons.
ALSO: keep in mind in hot markets good trades are had to find….shoddy workmanship can be common..ONNI is notorious for not paying trades and not backing up their warranty.
No they’re not. Maybe like 20 years ago, but not now.
“Should I buy an assignment in Burnaby (corner Kingsway and Edmonds) w/ 5% down?”
What are you talking about exactly? A down payment only comes into play when you buy an actual property (which could be closing time if you hold a pre-sale).
Use a fake name and put the condo in a blind trust. Negotiate less down but buy more units.
They won’t be able to find you if the market tanks. Hahaha
You should not ask this specific question on the anonymous blog. Discuss it with your mortgage broker, realtor, financial adviser. If an assignment allows you to take it with 5% down, it’s very low and even unheard of now a day.
I just saw another development drop the deposit amount.
Start of a trend?
really – then what are you waiting for?
…for prices to drop over the next months/years…
They won’t drop much over years as. Othing is written in legislation.
Twitter is being overwhelmed by homeowners demanding light legislation.
They will get it unless people start fighting back.
Are these the real estate industry troll farms that they put you in charge of?
No B-20 stress test for BC credit unions by order of Horgan. Strange for someone trying to cool housing. Coast Capital offering 4% – 33 month GIC for “new money” only. Looks like mortgages are going gang busters at BC credit unions and they are looking for more capital.
How will they offer 4% on deposits and then offer 3.54% mortgage rates?
Did you do the math on this?
They are likely using the 4% deposits for other loans like LOC, business loans, etc. and then they can use all existing capital for mortgages. They may also be trying to get market share. They may take a slight loss on the short term to gain a long term customer or mortgage that will renew many times. You can put your partisan blinders on if you want and pretend all is good.
Credit unions desperately need something to give them a leg up on big banks.
YVR likes to make assumptions:
“They are likely…”
“They may also…”
“They may…”
so in other words you have no clue about any of this.
the 4% is only on offer until march 20 for new deposits and realistically won’t bring in enough new funds to make any difference in their mortgage lending. one cu does not make the lending market. this is just more desperate straw grasping by YVR.
YVR – what is your motive?
What is your motive? To suppress information to on the account of your NDP partisanship? If you don’t want to question or read about the polices that are in place to pump housing then go somewhere else.
YVR – I seldom comment here, but I do read the “Comments” section. You appear very angry that someone is finally trying to address the housing situation. Again, what’s your motive?
I don’t see any. I see the NDP favouring them. Wonder why. YVRs motive? You need to se the big picture.
Oracle – an idiot could see the big picture, it’s so blatant. What’s very telling is all of the people, like yourself, who want to prevent people from seeing it.
Coast Capital is going federal, attracting more people by doing agreesively.
and by going Federal they are under the OSFI umbrella …. therefore B20
Credit unions have much higher capital requirements than banks. They won’t be able to pick up the slack.
YVR has been pumping this credit union angle since last year when B20 was first announced. It has been pointed out to him many times that CUs won’t fill the gap but as he is now grasping at straws it is all he has left. Keep digging YVR !
“pointed out to him many times that CUs won’t fill the gap”
Because you said so? Until we see a sign on the doors of credit unions stating mortgages are no longer available the gap is being filled. When BC credit unions start offering 4% – 33 month GICs when the going rate is 2.5% at best that tells you there is demand for capital at the BC credit unions like never before. Gee I wonder why. All this could be stopped by Horgan with a stroke of pen which would not only help cool the market but would protect BC tax payers from picking up the tab on these subprime loans if things blow up.
Credit unions won’t be able to fill the gap? Lol
Next 30 yr amorts won’t be able to fill the gaps. Lol
Sure.