babble is rabble.ca's discussion board but it's much more than that: it's an online community for folks who just won't shut up. It's a place to tell each other — and the world — what's up with our work and campaigns.
Red Alert Housing,CHMC is very concerned
October 17, 2016 - 8:11am
$$$$$
http://www.bnn.ca/cmhc-to-issue-first-red-warning-for-canada-s-housing-m...
I dont when the uglyless is coming but its coming. Maybe if we raised the alarm 3-4 years ago we could have saved us alot economic pain.
Jeez I get that wrong every time its cmhc.
http://www.cbc.ca/news/business/mortgage-bank-of-canada-interest-rates-1...
It does not mention the actualy interest rate invloved for stress test in article. But i just saw CBC TV 4.62% on 5 year term. If can not afford that rate then will not get the insurcance from on the housing insurancers. Instead of 5% down you have pay 20% down. I got from tv but try to find any article to back it up.
http://www.cbc.ca/news/business/mortgage-rules-stress-test-1.3808140
bingo. its 4.64%
They're also taking most non-bank lenders out of the picture. Not sure how credit unions will be affected.
I don't know if it's an intended consquence or not, but this is going to add new pressure to the already disastrous Metro Vancouver rental market. Think about it, a huge part of the first-time buyer segment can't buy anymore and will have to rent instead. Usually those people move on from their rental units, allowing for some vacancies.
Expect even more homelessness in the short-term.
Another article worth reading:
http://www.theglobeandmail.com/report-on-business/rob-commentary/the-int...
Looks like a gift to the insurance industry. Who else will benefit from forcing people to pay for mortgage insurance? I didn't see anything in the articles that said that only banks can get CMHC guarantees.
I still have two years left on a five year mortgage with IA out of Quebec and it is for a thirty year amoratization. I am not sure how this is going to affect my mortgage now or at renewal.
That is serious if they are after the shawdow banking sector too. It grew from 0 in 2008 to I seen estimates of now 12% of the market. Shadow banking(for those that may not know----fancy term for pools of money outside the statue law) is unregulated lenders, at the high you get wealhly hedge funds to low end you or I providing capitial. Let give you and example of retail(individuals) shadow banking this crazy but its happening. People are taking out equity from there homes through lines of credit and such at maybe at 5% interest then they lent the money at 9-12 % desperate home buyers or car buyers. Maybe there is reason these individal could not qualify for a traditional loans. Maybe its dangerous to lend at money 10% to individuals who could not get a loan at 5%.
The bubble/ponzi scheme is based on new money getting into the system to keep the bubble inflated. I think the poltical class is nervous, vancourer prices were rising at 30% a year. How can anyone rationlize that. Regardless when the bubble blows it going hurt, if these actions don't kill the bubble I will stunned.
The government building social housing is the only way that we will fix our broken system. Tweaking the finacial sector when most of our young retail workers are making under $13 an hour will not help any of them get decent housing at a price that they can afford.
"The government building social housing is the only way that we will fix our broken system."
Yes it would be nice to have some simple modest adjustments to the system of finance capital, asset inflationary bubbles, created by the Government in the first place through its zero interest to corporate banks ad nauseum...
Imagine the costs to buy land at hyperinflationary prices by Governments with their superinflated bureaucracies and regulatory and systems of control and surveillance? And build? to offered subsidized housing to the masses of people on the street?
(Vancouver's hostels are filled to capacity, now? months before the winter?)...
No it's a checkmate situation...the system will go through a readjustment , meaning a desperate depression for most....
so that we here! in these pages must be talking about real alternatives to this hyperinflationary real estate bubble, soon to burst, if not already in process!
http://www.canadianbusiness.com/economy/how-canadas-new-mortgage-rules-a...
I guess for some Canadian mortgage borrowers it means going to a major bank or that guy hanging around outside Tim Hortons. :P
Thank you for bringing this article to my attention. I thought shadow bank was more limited in scope and defintion.
No kiding, I bet that this kind of lending is on the major online bullition/message board services.