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reallyreal2
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Posts: 687
Joined: Fri Jun 03, 2016 11:30 am

OSFI - Nee Mortgage Rules

Fri Oct 20, 2017 7:33 am

Almost zero talk here about the one subject that can have the greatest impact on the RE market.

What does everyone think?

Cue the industry shills claiming these rules are unnecessary and will impact the economy
 
yzfr1
Real Estate Talker
Posts: 274
Joined: Tue Mar 19, 2013 8:35 pm

Re: OSFI - Nee Mortgage Rules

Fri Oct 20, 2017 10:09 am

It might force people to extend their amortization period to 35 years.

Uninsured mortgages are the best kind, with 20% down it shows the buyer has some sort of saving ethics.

As for this slowing the market down, if I want to buy something for $700,000 and I have $140,000 in downpayment. Am I just going to walk away with my hands in my pocket because I don’t qualify? I would just lower my standards and buy something cheaper.

Its not like they are raising the minimum down from 5% to 10% which would prevent a certain group from buying anything period.
 
reallyreal2
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Topic Author
Posts: 687
Joined: Fri Jun 03, 2016 11:30 am

Re: OSFI - Nee Mortgage Rules

Fri Oct 20, 2017 11:18 am

yzfr1 wrote:
It might force people to extend their amortization period to 35 years.

Uninsured mortgages are the best kind, with 20% down it shows the buyer has some sort of saving ethics.

As for this slowing the market down, if I want to buy something for $700,000 and I have $140,000 in downpayment. Am I just going to walk away with my hands in my pocket because I don’t qualify? I would just lower my standards and buy something cheaper.

Its not like they are raising the minimum down from 5% to 10% which would prevent a certain group from buying anything period.

So wouldn't that slow down the market?
When I say market, I mean downward pressure on prices.  Not necessarily less volume of sales. 
 
Geyser
Real Estate Talker
Posts: 3569
Joined: Tue Jun 05, 2012 5:26 pm
Location: In a van down by the river

Re: OSFI - Nee Mortgage Rules

Sun Oct 22, 2017 2:06 pm

So wouldn't that slow down the market?

When I say market, I mean downward pressure on prices.  Not necessarily less volume of sales.”


Absolutely not, remember “it’s different here” and even if it isn’t different here, “it’s different this time”. And even if it isn’t different this time you must remember that real estate prices only go up! 

The recent $500K drop in Vancouver’s Median SFH price  can’t be accurate.

Eyes closed, fingers in ears whilst loidly shouting “La, la,la, la, la,la, la, .........”

(Sarcasm off)
 
jimtan
Real Estate Talker
Posts: 5436
Joined: Tue Jul 31, 2007 10:59 pm

Re: OSFI - Nee Mortgage Rules

Tue Nov 14, 2017 8:46 am

"Canada’s Housing Agency Targets Shadow Lenders as Debt Ratios Rise

... Insured mortgages in the two most expensive housing markets are dropping, Siddall said. In Toronto, insured loans comprised 16 percent of the market last year, compared to 27 percent in 2010 and in Vancouver, those figures are 12 percent and 20 percent.

In addition, indicators of risk are rising for low-ratio mortgages -- those where the buyer has staked at least 20 percent of the purchase price up front, Siddall said. Some 27 percent of borrowers who took out low-ratio mortgage in 2016 had a loan-to-income ratio higher than 450 percent, up from 19 percent in 2014, CMHC said."

https://www.bloomberg.com/news/articles ... atios-rise


Only 12% of new Vancouver mortgages are insured?  :shock:

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