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.
Well, it’s the end of another beautiful work-week and that means it’s time for another Friday free-for-all!
This is our standard 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:
–Vancouver down for the count
–Sales plunge 33%
–AirBnb registration system
–Government wants your opinion
–IMF lowers canadian economic outlook
–Foreign buyers almost disappeared
–2 years from retirement, buy a house?
–Why would anyone get into the market right now?
–West Van vacancy tax
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
Vancouver home sales have plunged by about a third in the last month or so, this been largely blamed on the foreign buyer tax.
But that tax focused on the city of Vancouver isn’t the only change to the real estate market, new rules and changes have the potential to affect the wider region and the nation as a whole. Southseacompany posted this summary from a Globe and Mail article in the comments:
“Four major changes to Canada’s housing rules”, Globe & Mail
1. Expanding a mortgage rate stress test to all insured mortgages.
2. As of Nov. 30, the government will impose new restrictions on when it will provide insurance for low-ratio mortgages.
3. New reporting rules for the primary residence capital gains exemption.
4. The government is launching consultations on lender risk sharing.
As Canadian Mortgage Trends puts it, is this the last nail in the coffin?
NOTE: disagreements are fine, but repetitive personal attacks and insults to other posters will get you an IP ban.
Do you feel like someone should have warned you that Vancouver real estate sales slumped dramatically in September? Well now you have been.
VANCOUVER — Real estate agents say home sales continued to fall dramatically in the Vancouver area last month and even hit a 10-year low in some neighbourhoods.
Agents say the high-end detached home market is seeing the most substantial losses, while the condominium and townhome market remains active.
The Real Estate Board of Greater Vancouver, which covers a large swath of Metro Vancouver but excludes several large suburbs including Surrey, is set to release its home sales data for the month of September tomorrow.
Read the full article over at the Vancouver Sun.
Autumn is here! Can you smell it?
This being the end of the week, let’s do another Friday Free-for-all shall we?
This is our regularly programmed end of the week news round up and open topic discussion thread for the weekend, we do this every week if you’re new here.
So let’s get to a few links to kick off the chat:
–Mayor: foreign buyer tax too little, too late
–Opinions? Share them with the city.
–Canadians, Aussies and Kiwis in same trap
–Bigger bubble than London
–Housing Crisis? Blame Canadians.
–Skook blogs again! Bowen and Coast stats
–Millenials: No Retirement for you!
–Correction to be painful.
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent bubble-filled weekend!