First time home buyers are fucked: CMHC tightening rules

[Buster]

You have it backwards. The government spent decades inflating an asset bubble in real estate.

[max_boost]

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You have it backwards. The government spent decades inflating an asset bubble in real estate.

Knowing what I know now I should have just bought more stocks. Grade 10 Math teacher Mr. Hartley at Forest Lawn high school “compound interest” all you need to know son.

Anyway, same reason why Buffet has 1 big house - stocks make money, housing no lol

Housing = Greater fool? Garth Turner

I was lucky to catch the 05 wave but pretty sure whatever appreciated I gave back lol luckily my day job has saved my ass and also thank you Trump

[Misterman]

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You have it backwards. The government spent decades inflating an asset bubble in real estate.

Yes they've made their bed and now they have to sleep in it. If you make your bed that way, it doesn't help you in anyway to then take a big steaming shit in the same bed you have to now sleep in.

[ExtraSlow]

That's the same argument the Taxi owners have about keeping Uber out. Gotta protect the value of those taxi medallions.

[ercchry]

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That's the same argument the Taxi owners have about keeping Uber out. Gotta protect the value of those taxi medallions.

That’s someone building a better mousetrap, and protectionism laws... there is no alternative to shelter, and this is protecting no one. It’s not “making things more affordable” it’s not protecting the banks as all business is built on growth, and it’s not protecting the current owners who now won’t have the equity to even move to a new lender

[Masked Bandit]

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it’s not protecting the current owners who now won’t have the equity to even move to a new lender

I never thought of this angle before, is it possible that with the new rules in place the renewals from lenders because a lot less attractive because they know their clients are pretty much stuck with whatever the renewal offer is?

[ercchry]

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I never thought of this angle before, is it possible that with the new rules in place the renewals from lenders because a lot less attractive because they know their clients are pretty much stuck with whatever the renewal offer is?

Yup, and the lack of new volume coming in means they’re goi to pass those losses on when they can

[ExtraSlow]

I am super happy that I got my mortgage done when I did. Not only locked in a great discount (thanks Tim!), but also had no issues switching lenders. My renewal offer was already horribly noncompetitive, I can't imagine how bad it would have been with these rules in place, and if I had no other options. Guess in three or four years I should pay attention to what the next renewal options will look like. Equity vs property value etc. Very happy to have a few years to let the market adjust to this, and the next changes which I'm still certain will come.

[Buster]

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Yes they've made their bed and now they have to sleep in it. If you make your bed that way, it doesn't help you in anyway to then take a big steaming shit in the same bed you have to now sleep in.

at some point you have to unwind gov't subsidies. It's never pretty.

[Misterman]

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That's the same argument the Taxi owners have about keeping Uber out. Gotta protect the value of those taxi medallions.

If the city created Uber to undercut the cabs, then yes it would be the same argument.

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at some point you have to unwind gov't subsidies. It's never pretty.

No government subsidies in this case, but it would be a lot prettier if done in a more responsible manner. And it would also start to fix some of the issue they claim they're trying to fix.

[Buster]

Yes, there are gov't subsidies. It is the difference in the gov't rate for the insurance and what the market would charge if it had to price in the risk.

[Misterman]

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Yes, there are gov't subsidies. It is the difference in the gov't rate for the insurance and what the market would charge if it had to price in the risk.

When the equation is flipped like in this case and the government charges an exuberant premium above what private insurance would need to charge. That's not a subsidy, that's a government theft.

[Buster]

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When the equation is flipped like in this case and the government charges an exuberant premium above what private insurance would need to charge. That's not a subsidy, that's a government theft.

what would private insurance charge?

[ExtraSlow]

Aren't Genworth direct competitors to CMHC for these products?

[ercchry]

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Aren't Genworth direct competitors to CMHC for these products?

I dunno if I’d call genworth or CG “competitors” in the true sense, I believe they’re still backstopped by CMHC, neither are following suit as of today which is nice to see... but I doubt that will last long. CG is known to offer some special products to some lenders but besides that they all operate similarly to Bell/Telus/Rogers

[MalibuStacy]

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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

PREACH, I cannot say this enough some days

[speedog]

Should I be apologizing for being a boomer?

[killramos]

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Should I be apologizing for being a boomer?

Oppression

[MalibuStacy]

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Should I be apologizing for being a boomer?

I mean, knowing you the way I do, you don't really fit this role, but l'll let someone else call you out haha

[speedog]

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I mean, knowing you the way I do, you don't really fit this role, but l'll let someone else call you out haha

They can call me out if they wish.

All I know from my very limited time I've had on this big ball of dirt is that every generation is critical of the one that came before it and every generation also thinks it knows better than the one that came before it.

Ffs, our first mortgage was at something around 18% - people would absolutely shit their fucking drawers every god damn minute if they had to pay those rates now but it was just something that was part of the deal back then. You made sacrifices and made it work - no different than now. All that's happened is the goal posts have changed, blaming another generation for your inability to adapt is just a cop out - we didn't point a finger at anyone because of the hurdles we faced when we bought our first home. We just dug in and got it done because we wanted four walls and a yard that were ours.