tag:blogger.com,1999:blog-31427364.post5926927828199506793..comments2024-03-26T03:52:23.395-07:00Comments on Housing Analysis: Finance Minister to Move on Housing?mohicanhttp://www.blogger.com/profile/06094213357140749289noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-31427364.post-89380449826707249952009-12-22T23:20:28.798-08:002009-12-22T23:20:28.798-08:00Another offer from a different Canadian Bank...
h...Another offer from a different Canadian Bank...<br /><br /><a href="http://www.scotiabank.com/cda/content/0,1608,CID10969_LIDen,00.html" rel="nofollow">http://www.scotiabank.com/cda/content/0,1608,CID10969_LIDen,00.html</a><br /><br /><i><b>Scotia Free Down Payment Mortgage</b><br /><br />A helping hand to get started<br />Coming up with a 5% down payment isn’t always easy, especially when you still have to cover closing costs, moving expenses, renovations, and all the other costs that come with buying a home. <b>Let Scotiabank pay the 5% minimum down payment on your behalf</b> when you take out an affordable insured 5 or 7 year fixed rate mortgage."</i>casual observerhttps://www.blogger.com/profile/17802647397113775005noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-31443999412545416892009-12-22T23:15:00.392-08:002009-12-22T23:15:00.392-08:00In July 2008, he made his first tentative move to ...<b>In July 2008, he made his first tentative move to defuse the housing sector by requiring homebuyers to put down at least 5% of the purchase price of a home.<br /></b><br /><br />This is completely false. Almost anyone can still buy a home with NO MONEY DOWN through one of the major Canadian Banks. They call it their "Cash Back" Mortgage.<br /><br /><a href="http://www.cibc.com/ca/mortgages/flexible-downpayment-mortg.html" rel="nofollow">http://www.cibc.com/ca/mortgages/flexible-downpayment-mortg.html</a><br /><br /><i>"If you are a first-time home buyer, coming up with your downpayment just became easier. You can purchase the home you want now with as little as 5% down with CIBC's flexible downpayment options. The funds for your 5% downpayment can be borrowed from a variety of sources <b>or taken from a 5% cash back.</b></i><br /><br />The bank will give you the 5% down payment if you take their posted interest rate. CMHC even knows about this and charges a small premium on the mortgage insurance for a "non-standard" down payment. It is reckless on the part of CMHC to allow this to take place.<br /><br />On top of it all, as Canadians we get to be all smug and say that we don't have any of those zero down mortgages in Canada, so we're OK.casual observerhttps://www.blogger.com/profile/17802647397113775005noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-22140455953784652882009-12-22T15:36:56.114-08:002009-12-22T15:36:56.114-08:00RS, more often than not a layoff from a "depa...RS, more often than not a layoff from a "department" based company is a blessing in disguise.<br /><br />Increasing required DP on government backed mortgages (i.e. CMHC insurance) sounds like a good way of going, in the absence of removing the government backstop from CMHC altogether (which is unlikely to happen IMO).jessehttps://www.blogger.com/profile/02155122147972263497noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-18099755116387947422009-12-22T12:21:21.289-08:002009-12-22T12:21:21.289-08:00I would be surprised if he does anything. Right no...I would be surprised if he does anything. Right now all the big wigs are just blowing smoke to try to scare people out of overbidding on a house. <br /><br />I really dont think it will work, in fact, I think it is doing the oposite. If carney says "rates rise in june" then there is a flood of buyers eager to lock into a 5 year mortgage before then, hoping to "cash in" on the low rates. At best they go 5 years, but they figure by then they will be earning more money, the economy will be back in full force and the price of their home will be higher. If they are right then it all works out. But if they are wrong they are in a heap of trouble. <br /><br />They need to stop making warnings and just do something. None of this "i am doing X in 2 months" because that just spurs demand for the next 2 months. <br /><br /><br />RentingSucks,<br /><br />Sorry to hear about your job. If you are serious about moving the US offers a cost of living that is much better relative to incomes in the short term. I think they will probably be pegged with inflation and higher taxes in the long term, but for the next few years it would make financial sense to live there IF (and this is a big if) you can find a decent paying job there. <br /><br />Whatever you choose good luck and I hope it works out for you.Unknownhttps://www.blogger.com/profile/16361217381016612518noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-17507260963265065922009-12-22T10:11:00.634-08:002009-12-22T10:11:00.634-08:00I think he's rattling the saber since if he ac...I think he's rattling the saber since if he actually tightens up the requirements it will kill the housing market possibly catastrophically. It's his only in between option. It's pretty obvious in Vancouver that if you want to buy in this market and you don't already own you have to go 35 years and possibly variable. It's the only way the numbers make sense. Not sure where we go from here that's a good place. If inflation arrives to save home prices it's going to drive up borrowing costs. Is limping along for the next 10-20 years better than a quick down and recovery? I'm not sure.<br /><br />On a side note my job has become a victim of the recession along with all the people in my department. Jobs being moved offshore. So I'm done with the housing market for now until I can re-stabilize in another job. I also have to think seriously about moving somewhere where the median income to median house ratio makes more sense although it seems like it's expensive everywhere just ridiculously expensive in Vancouver.AndrewJhttps://www.blogger.com/profile/04813082701244060724noreply@blogger.com