Wonder how that happened. In Canada if you put down less then 20 percent on a house you have to pay a Fee to CHMC which is a government agency that insures the mortgages. The fee is a percentage of the mortgage. Can't remember the numbers as It's been 10 years since I bought mine. If their clients without CHMC (which have at least 20 percent down) are defaulting, theirs got to be some equity to collect.
That only started within the last few years, and also i think there is an exception for first time home buyers where its only 5 percent. Plus in places like B.C. incompetent government morons havent learned a damn thing, the B.C. government is giving loans to people for downpayments essentially bringing back zero down homes. You got to figure out some way to keep the gravy train rolling, and the bubble from bursting when the average house price is now over a million dollars. Love this quote from the article below: The new loan program was greeted with praise by developers, the real estate industry, mortgage brokers and some housing analysts who argued it will help those who would already qualify for mortgages speed their entry into the market. Yeah because 0 down homes has such a proven track record of success, cant believe only a decade out from one of the worst financial crisis in history, the government is dumb enough to repeat the same mistake all over again. B.C. first-time homebuyers loan program sparks debate, concern VICTORIA — First-time homebuyers struggling to cobble together a down payment for a home could soon get an interest-free loan from the B.C. government, a move some experts say undermines Ottawa’s attempts to curtail risky mortgages to overstretched buyers. Premier Christy Clark announced Thursday that a new provincially backed loan program would match the amount a first-time buyer has saved for a down payment — up to $37,500, or five per cent of the home’s purchase price. Clark painted the move as an attempt to help middle-class British Columbians overcome the hurdle of saving for expensive down payments. Not everyone has a parent they can borrow money from to get into the housing market, and some need government’s help, she said. But down-payment requirements, set by Ottawa to curb risky lending, exist to weed out buyers who might overextend themselves on properties they can’t afford if interest rates increase. “I hate it. To be very clear, I think it’s really bad economics,” said Tom Davidoff of the University of B.C.’s Sauder School of Business. “Big picture, it’s a step in the wrong direction. We have too much demand chasing too little supply.” Davidoff said the move could be an attempt by government to prop up a real estate market that is at risk of a sharp decline in 2017. The new loan program was greeted with praise by developers, the real estate industry, mortgage brokers and some housing analysts who argued it will help those who would already qualify for mortgages speed their entry into the market. read more at: http://vancouversun.com/news/local-...s-down-payment-loans-to-first-time-homebuyers
I've owned my own home in Toronto since 1990. So I experienced the last housing "crash" and long term it had zero impact on investors or me. Would I buy now ? Not this year, it's an overheated market, but it's no bubble. Latest figure I saw was Metro Toronto grows by 120K in people every year.
Ok, so you day traded news, big deal. Pull up a 30 year chart of TD. Try to maintain some perspective here. If you want to be taken seriously, don't post a thread claiming Home Capital is "Canada's biggest mortgage lender".
LOL, Canada hardly even pulled back in 2008 cause we werent as over extended, that wasnt much of a crash compared to whats coming now. This is what goes for a million dollars in toronto right now, if you dont think thats a bubble then you have your head up your ass.
Is HCG totally fucked? I'm long and very wrong right now. I hate to add to losers but their income statements don't indicate as much of an issue as would the month's price action.
If there is a pullback in the housing market they are definitely screwed, if its just a slowdown maybe they can whether the storm, my bet right now is on a pullback, but the canadian dollar keeps getting weaker so the market might be able to hold up a little longer.
Wish I had this issue. On east coast of Canada is almost think prices are going down. Lack of industry has drove everyone to Alberta oil country. Which isn't doing so good either. BC has always been expensive. It has the the mildest winters, some of the most beautiful wilderness and ocean coast line. Most the issues with Toronto and Vancouver are from foreigners.
Yeah i read somewhere that sometimes up to 25% of houses are owned by foreigners in some of these markets, plus with the way our immigration system is setup, its pretty easy to get citizenship in Canada if you just build a house, i think you have to invest like 500k in Canada to almost be guaranteed citizenship.
I'm not sure that expensive housing to Toronto and Vancouver is a problem. In theory, that should be an incentive for businesses and people to move to areas like where you live. Some have. The foreigners impact on Toronto is overstated, it might be relevant this year or so but it's more the supply/demand for housing that impacts on price not speculators. There are a lot of people making good money in Toronto and they don't all want to take the Go Train to go home or sit on the parkway 3 hours a day.