First time home buyers are fucked: CMHC tightening rules

[ercchry]

This quote is hidden because you are ignoring this member. Show Quote

I for one look forward to home prices eroding over the coming years. Assuming I can continue to stay employed...

You mean till that old dude that was going to retire and down size now has no equity left and decides to work 10 more years instead and that promotion you thought you would get is no more

[max_boost]

You seem quite worked up oer this ercchry

[Disoblige]

This quote is hidden because you are ignoring this member. Show Quote

You mean till that old dude that was going to retire and down size now has no equity left and decides to work 10 more years instead and that promotion you thought you would get is no more

Let's be honest. That old dude is gonna be forced to retire whether he likes it or not. And that position isn't getting a replacement

[ercchry]

This quote is hidden because you are ignoring this member. Show Quote

You seem quite worked up oer this ercchry

For me it’s just more an an annoyance... another nail in the coffin from the fucking boomers. We just can’t catch a break on anything

[max_boost]

My condo has already dropped over 100k lol another 18% will bring it to about 400k. It is what it is! We all in the real estate boat together right

The airbnb ballers must be really feeling it rn.

[ercchry]

This quote is hidden because you are ignoring this member. Show Quote

My condo has already dropped over 100k lol another 18% will bring it to about 400k. It is what it is! We all in the real estate boat together right

The airbnb ballers must be really feeling it rn.

Wonder how @rage2 buddy is doing in van... that scheme really was bulletproof.. landlords can’t even go after the rents yet

[killramos]

I don’t see this as much of an opportunity for anyone. People won’t crystallize their losses and will just sit on the homes. No one will be upgrading since they won’t be able to afford anything.

All this will mean is properties will either sit on the market longer or won’t be listed at all. Real losers are real estate agents, gonna be way fewer transactions rather than drop in prices.

Banks dgaf, people still need mortgages it will just be less risk on their books.

Landlords will be laughing their way to the bank, millennials are gonna be renting forever.

[ercchry]

Yup, realtors will feel it, might have to adjust that retirement goal to $7.1m

[pheoxs]

This quote is hidden because you are ignoring this member. Show Quote

I don’t see this as much of an opportunity for anyone. People won’t crystallize their losses and will just sit on the homes. No one will be upgrading since they won’t be able to afford anything.

All this will mean is properties will either sit on the market longer or won’t be listed at all. Real losers are real estate agents, gonna be way fewer transactions rather than drop in prices.

Banks dgaf, people still need mortgages it will just be less risk on their books.

Landlords will be laughing their way to the bank, millennials are gonna be renting forever.

I think that is what were already seeing. Sales are down but so are new listings. As a result we aren't seeing a significant build in inventory. It's only when the inventory swells up that people feel the pressure to drop prices and compete.

[Disoblige]

This quote is hidden because you are ignoring this member. Show Quote

I think that is what were already seeing. Sales are down but so are new listings. As a result we aren't seeing a significant build in inventory. It's only when the inventory swells up that people feel the pressure to drop prices and compete.

Yeah, we are seeing this now already...

Also feel like if you are buying a place now, be ready to live in it for a long time. Or don't buy, rent instead.
I know a group of friends who purposely sold their place a year or so ago and renting dirt cheap. They love it and are DINKs.

[riander5]

This quote is hidden because you are ignoring this member. Show Quote

For me it’s just more an an annoyance... another nail in the coffin from the fucking boomers. We just can’t catch a break on anything

Were you hoping to put a tiny DP on a super expensive house or something? This is great for young home buyers. They can't over leverage, and home prices will drop. Bring it on!

[rage2]

This quote is hidden because you are ignoring this member. Show Quote

Wonder how @rage2 buddy is doing in van... that scheme really was bulletproof.. landlords can’t even go after the rents yet

The clampdown on Airbnb happened way before COVID. He fucked off to Thailand last year and pretty much retired on the cheap.

[90_Shelby]

When should I buy another rental property?

[ercchry]

This quote is hidden because you are ignoring this member. Show Quote

Were you hoping to put a tiny DP on a super expensive house or something? This is great for young home buyers. They can't over leverage, and home prices will drop. Bring it on!

No, I was planning last year to buy the forever, ever home with a substantial DP in the next few years, but less likely when the two properties that would be liquidated for the purchase keep eroding equity every year. Living like a middle class nobody FOREVER now

[ExtraSlow]

This quote is hidden because you are ignoring this member. Show Quote

Yup, realtors will feel it, might have to adjust that retirement goal to $7.1m

Nearly spit out my coffee. Hilarious.

[pheoxs]

This quote is hidden because you are ignoring this member. Show Quote

Yeah, we are seeing this now already...

Also feel like if you are buying a place now, be ready to live in it for a long time. Or don't buy, rent instead.
I know a group of friends who purposely sold their place a year or so ago and renting dirt cheap. They love it and are DINKs.

That's roughly where I'm at. I rent the townhouse that I'm in and when the unit beside me went for sale last year I looked into it. All in I'd be spending about 600$/month more each month if I bought it though I'd be gaining about a grand a month in equity. That is a net benefit but only if the place maintains or appreciates in value (but also thats extra $ I have to fork out every month). When you factor in maintenance costs, if a hail storm happens, realtor fees, tax increases etc it's not much of a gain. I'd rather just pack all my savings into investments and get bigger gains for the near future. The place was built in 2002 and original owners so their carrying costs are pretty low so I think they're still making bank even under market value.

[Buster]

This quote is hidden because you are ignoring this member. Show Quote

Yup, realtors will feel it, might have to adjust that retirement goal to $7.1m

you fucking savage, lol

- - - Updated - - -

This quote is hidden because you are ignoring this member. Show Quote

Okay, first off... the insurance does NOT cover the borrower, they come after the person for everything, forever till they recover the loss. Second, for them to actually post up a loss the default rates would have to be massive as they are paid on not only every single high ratio loan, but also any insurable loan as well. With the lenders having to cover part of any loss on top of that as well their exposure is piss all. Cmhc will never post a loss, will never need a top up from tax dollars, and if they ever do we have way larger issues and you might as well be leveraged to the tits when that day comes as the gov will be seizing banks at that point and your money will be gone

The rhetorical question then is: why don't lenders "self-insure" the mortgages themselves, either by charging an insurance-type premium or raising interest rates to compensate for the additional risk?

[killramos]

This quote is hidden because you are ignoring this member. Show Quote

Yup, realtors will feel it, might have to adjust that retirement goal to $7.1m

Even I thought it was piling on to go there. Good show, absolutely hilarious.

[max_boost]

Where y’all finding women to go 50/50?

[ercchry]

This quote is hidden because you are ignoring this member. Show Quote

The rhetorical question then is: why don't lenders "self-insure" the mortgages themselves, either by charging an insurance-type premium or raising interest rates to compensate for the additional risk?

I’d assume OSFI says they can’t, but not sure. Above my pay grade haha