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|reply to Gone |
Re: [Serious] Banking on your home resale price to retire?
said by Gone:I think the comparison is apt. Post-2006 Canadian banks were basically in the 'sup-prime' business. They would assign credit to anyone with a pulse because CHMC would back anything, including 110%+ financing for a home. You could buy a house with no proof of income, and get 10+% of the worth back as a home line of credit. You would then use part of this 10% to pay the CMHC premium in order to get the responsibility of the loan off the bank's books and onto the government's. Canadian banks were very happy with this arrangement. said by elwoodblues:
Yes and no, the problem was that these rules got introduced, the banks are happy to write the mortgages, since they're backed by CHMC. Do they care if you're underwater when rates go up? Nope.
Relatively speaking, the Canadian banks were far more conservative with how they lent money than the American ones. I'm not even sure if it's logical to try and draw a comparison between the two.
To get all politicky, it was Flaherty who made this is change as his first order of business upon becoming finance minister. Harper was complicit too, suspending Garth Turner from caucus for being critical of Flaherty's plan.
Now that CMHC insurance rules are strict again, the Canadian housing bubble is ready to burst. The American one busted very very hard, the Canadian one will be no cup of tea.
said by booj:Again for those that are overextended and will find themselves underwater if the housing prices drop.
The American one busted very very hard, the Canadian one will be no cup of tea.
The amount of Condo building in Toronto is insane, I went for a bike ride on Saturday for a few hours and it's like every little lot has a Condo/Townhouse going up. I find that single family homes are in being in the outer burbs (Eastern Scarborough out by Rouge Hill for example).
Downtown is just waiting to burst, it's coming, they're buying up properties like its going out of style.
No, I didn't. Honest... I ran out of gas. I... I had a flat tire. I didn't have enough money for cab fare. My tux didn't come back from the cleaners. An old friend came in from out of town. Someone stole my car. There was an earthquake.......