VHB
Member
April 19th is the day the new CMHC rules apply. Will it be a big deal? Or a big boxcar of nothing? I have no clue.
But I do know one thing.
It is VITAL that we have a countdown thread to await the great day of April 19th.
Let the countdown begin! SEVEN days until April 19th!
VHB
Member
Say that a few months ago you were qualified for a floating rate mortgage using the 3-yr rate of 3.3%. I'm told that was standard.
What changes now?
If you get a term less than 5 years, you have to qualify at the five year POSTED rate. Let's take RBC's new 6.1% as the example there.
If you get a term of five years +, you can use the contract rate. Let's use PC Financial's 4.4% as the example here. (Is this as low as you can get for a discounted 5 year rate? I don't know.)
We'll max out these guys to 420 periods (35 years) because that's fun.
We'll say that you can spend 40% of your Gross Income on your mortgage + taxes/insurance, and set taxes/insurance at $500.
We'll take household income as 100K.
Your max loan at 3.3% is 707,875. With 5% down, you can bid $745,131.
Your max loan at 4.4% is 610,405. With 5% down, you can bid $642,532.
Your max loan at 6.1% is 496,342. With 5% down, you can bid $522,466.
The drop in purchasing power if you stay with the floating rate is 29.9%, as you have to qualify using 6.1% instead of 3.3%.
The drop in purchasing power if you move to a 5-yr fixed is 13.8%, as you now have to qualify at 4.4% not 3.3%.
chico
Member
Hey this is a great party!
Those bozos out there better start selling some serious real estate before A19-Day.
CMHC, the Financial Post and local mortgage brokers are bringing them quality leads. Any GVR realtor who can't close this weekend just aint't up to the task!
VHB
Member
REKNAB posted yesterday about getting your 'deal' through before Monday the 19th. He said that it might be possible to get the paperwork through even on the weekend. I don't know if that means just Saturday or Sunday. But let's give our debt-crazed buyers the benefit of the doubt: you have TWO days left to get the condo of your dreams for never-to-be-seen-again prices. (But 'never to be seen again' doesn't mean what your realtor says it means . . . )
GO BUY CONDOS NOW. HURRY HURRY WE ARE ALMOST OUT OF TIME! ON MONDAY ALL UNSOLD CONDOS ARE SUCKED INTO A BIG BLACK HOLE AND EVERYONE WHO DOESN'T OWN ONE WILL BE ROUNDED UP AND FORCED INTO REAL ESTATE RE-EDUCATION CAMPS, COURTESY OF OZZIE'S 'REAG'!!!!
(btw, REAG is the WORST acronym ever. Maybe it sounds better in German. No wait, it doesn't.)
BUY NOW OR YOU WILL DIE !!!!!!!!!!!
JUST TWO DAYS!
VHB
Member
Here we are. The Zero Hour has arrived.
ZERO:
ZER0: 
Some music to accompany this day. The music is a little dark maybe, but it is a dark day for sellers!
http://www.naden.de/blog/bbvideo-bbpress-video-plugin -->
Some history:In 1775, the revolutionary war in the US started.
1971 Charles Manson sentenced to death
2010 CMHC rules come into effect
This day shall live in our memories forever!
VHB
Member
Serious question: Could someone who knows explain how long it takes for sales to get booked through the system?
Imagine I had walked into a condo open house on Friday the 16th and decided to immediately present an offer. The owner accepted it that night. When would this sale appear in the daily data? What are the steps between 'offer accepted' and 'appears in data'?
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