Short term AirBnB style property rentals are not permitted in Vancouver and the city can levy fines up to $10,000, but apparently there are still some of these short term rentals available.
“The difficult and complex thing comes when we move forward with prosecution,” Toma said, explaining that the city needs to connect the property owner to an online short-term rental listing without the help of a specific address.
Toma said a few cases against short-term renters are pending. Fines in those and other cases are up to the prosecutor, but staff recommend they recoup investigation expenses at minimum.
City staff are contemplating new tools to deal with the nuisance aspect of short-term rentals at the same time as assessing the industry’s impact, Toma said.
“We do have such a tight rental market,” Toma said, adding that she hoped staff could craft a smart and enforceable regulation that would also “find that sort of a sweet spot” for those sharing their home to meet their mortgage payments.
Of course there is one kind of short term rental that is currently allowed in Vancouver, but it comes with a few catches:
Bed and breakfasts are allowed in Vancouver, but under certain conditions. Homeowners need to live in the residence and they can host a maximum of four guests in two bedrooms, among other regulations. They also have to pay a one-time development and building permit fee, get a business licence and pass a safety inspection.
Read the full article over at the province.
An article over at the Financial Post by Garry Marr asks if recent hikes in mortgage insurance fees are targeting first time buyers.
The move by Genworth Canada, which matches an increase announced Thursday by Canada Mortgage and Housing Corp. will raise insurance costs by 15% for those Canadians with the highest debt-value mortgages allowed by Ottawa.
Of course lets keep things in perspective here – that 15% increase may result in an extra cost of about $5 dollars a month.
You’d have to be really stretched for that to be an issue.
Rob McLister, founder of ratespy.com, said insurers are padding their margins and doing it for loans that usually result in the least amount of money recovered during defaults.
Read the full article here.
Imagine that you own a nice apartment.
It’s cozy and comfortable with good neighbours.
Then these people move in upstairs.
With more than 1,100 complaints dating back to 2006, the strata council of the development in the 15200-block of Guildford Drive went to court to force Jordison to sell. While Jordison and her son Jordy obeyed a court injunction to move out, she appealed a B.C. Supreme Court decision forcing her to put her unit on the market — which would be the first such sale in B.C.
Residents alleged the Jordisons contravened the strata bylaws with excessive noise, abusive language, threats and harassment. Jordison also refused to pay $20,000 in fines.
Emmi brought up an interesting question on this bit:
She had been about $8,000 in arrears on her strata fees but her mortgage holder, TD Bank, paid those fees and added it to her bill. The bank halted its foreclosure hearings on the property pending the outcome of the case.
So . . . if the fee doesn’t push the total owed over the original mortgage amount, does CMHC cover this whole new amount for the bank?
You’ve probably heard over and over again that household debt in Canada is climbing to record levels.
And it’s probably not a surprise to you that mortgages due to the high cost of housing holds some blame there.
But did you know that the total amount of mortgage debt in Canada has nearly doubled in the last four years?
According to CAAMP the total national mortgage debt in 2008 was $664 billion. It now stands at a total of $1.2 trillion.
Over in the Vancouver Sun Barbara Yaffe sees this stat and seems to blame the little transaction fees for the high cost of housing.
But there’s a little four letter acronym conspicuously missing from her article: CMHC.
That would be the Canadian Mortgage and Housing Corporation, which has been flooding the market with insured mortgage money at a time of low interest rates.
So here’s the real question: Is Canadian mortgage debt so high because of our house prices, or are our house prices so high because of that mortgage debt?