Bye Bye any mortgate over 25 years.

[Cos]

.

[Type_S1]

I got approved for a 30 year on Tuesday...

If they change it to 25 years I can back out of the house I bought...

[revelations]

Even though it will affect me negatively, I feel its fiscal prudence on behalf of the govt.... and since most Canadians dont practice this, it should be a net positive in the long run.

[Sorath]

more renters for my rental property

[l/l/rX]

I like it!

[Pacman]

Since I'm in the remedial class, what happens to someone who signed a 35 or 40 year mortgage 5 years ago, and now it's time for them to renew with the bank?

Do they get grandfathered in, or will the bank now force them to comply with the new rules? What happens if they are unable to qualify under the new rules?

[dr_jared88]

Maybe I missed reading this, but does this affect people that already have longer mortgages that require renewal? Not that this will affect me, I'm just curious if someone that has a 40 year mortgage that is due for renewal has to now qualify for 25 year payments?

Edit: Pacman beat me to the punch

[Type_S1]

I do think this is a good move by the government. Quick letting people who can't afford houses into the market.

I am wondering if I should bite the bullet and take the 25 years which is still within my budget or back out of the house...hmmmm!

[dj_patm]

Buying a starter house is becoming impossible for a single income in Calgary.

Will Townhouse prices drop from this?

[Toma]

Smart move. I would have advocated differential interest rates across the country

and adjust them just BEFORE booms which are obvious.

Like Alberta is out of control, and interest rates need to be higher here. Eastern Canada is in recession, and needs the cheap rates.

But this almost does the same thing. Only people that need 30+ year are ones In regions like Alberta with a bubbling real estate market, that can't afford a $500,000+ house at 25 years.

Guy in Nova Scotia paying $100,000 for a house doesn't need a 40 year mortgage.

So this isn't bad.

My complaint is it should never have been allowed in the first place. Fucking retarded. SO now you are putting people out.

[realazy]

Correct me if I'm wrong, but from what I remember, existing mortgages longer than 25 yrs can be renewed with the same lender with no issues. You're just stuck with the same lender for the entire mortgage.

[Toma]

Originally posted by dj_patm
Buying a starter house is becoming impossible for a single income in Calgary.

Will Townhouse prices drop from this?

Not likely.

I suspect like in 2008, we will see a "compression" of prices.

Cheap property will go up artificially because it is what people can afford. Supply and demand.

However, Expensive property may drop due to fewer buyers that can qualify

[canadian booster]

Originally posted by dj_patm
Buying a starter house is becoming impossible for a single income in Calgary.

Will Townhouse prices drop from this?

i agree, this is BS! me and my wife both work and our son is daycare, between costs for his daycare and rent we never have enough to save anything, how is anyone supposed to get a starter home anymore in a family or single income?

it's just not possible unless you're one of the lucky ones who has family to help, not all of us are that fortunate. My rent is the same as a mortgage but i'll never save $20,000 not in a million years

[Cos]

.

[Goo_wak_jai]

Can someone please comment on a home thats about to be built that is 700K+. Will prices come down as well?

I am planning to build one but haven't signed anything and was just wondering if I could ask for a price adjustment with the builder?

Thoughts?

[dj_patm]

I hate to wish this on everyone (including my parents who just upgraded) but damn it would be nice if this bubble could pop this fall

[Tik-Tok]

Originally posted by Pacman
Since I'm in the remedial class, what happens to someone who signed a 35 or 40 year mortgage 5 years ago, and now it's time for them to renew with the bank?

Do they get grandfathered in, or will the bank now force them to comply with the new rules? What happens if they are unable to qualify under the new rules?

Originally posted by realazy
Correct me if I'm wrong, but from what I remember, existing mortgages longer than 25 yrs can be renewed with the same lender with no issues. You're just stuck with the same lender for the entire mortgage.

Yep. Stuck with the same institute, unless they can afford to renew at a 25 year amortization elsewhere.

[Aleks]

I think it's a good move too. 25 yrs is plenty long.

Now time to stop Hyundai from offering 96 month financing on new cars

[Cos]

.

[phil98z24]

Originally posted by Toma


Not likely.

I suspect like in 2008, we will see a "compression" of prices.

Cheap property will go up artificially because it is what people can afford. Supply and demand.

However, Expensive property may drop due to fewer buyers that can qualify

While I don't often agree with you on many things... I'm with you on this one.

I think this is a prudent move that really, should never have had to take place due to the ridiculous changes they implemented when they first took power; but, I think like you said, this will put some softer downward pressure on prices for the higher end property and bring the lower end up a bit due to supply and demand issues.

Long term I think that will force people into making smarter financial decisions (hopefully!) budget more appropriately, or think twice before jumping into something they simply can't afford.

The way I see it, that huge house someone buys on "cheap" money which isn't cheap at all, has a ripple effect on so many things both short term and long term (discretionary spending on a daily basis all the way down to retirement savings long term), and benefits very few who aren't the seller, the realtor, or the bank. I may be wrong on this, and if I am someone correct me.

Anyways, fingers crossed that this will have the desired effect. I think this country is teetering on the edge of a personal debt disaster, especially when you look at the income/debt percentages since the early nineties.