Calgary real estate prospects

[ExtraSlow]

Been a long time since I applied for a mortgage, but I recall being approved for about 50% more than the house I was buying.

[Tik-Tok]

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Been a long time since I applied for a mortgage, but I recall being approved for about 50% more than the house I was buying.

Same. They offered us up to $350g when we were buying our $200g house. Hindsight being 20/20, we should have bought a bigger/nicer home, but who would have predicted the early 2000's boom. Except P_o_R of course, who definitely predicted it in 2006.

[2Legit2Quit]

2.5 years ago we were approved for just about double the amount of the home we were purchasing.

Bought a new home in the past few months, were approved for about 15% less than last time, while making more and having one less car payment, good job banks?

[Buster]

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2.5 years ago we were approved for just about double the amount of the home we were purchasing.

Bought a new home in the past few months, were approved for about 15% less than last time, while making more and having one less car payment, good job banks?

it's almost like they updated their algorithm to reflect current economic conditions.

[dirtsniffer]

unrelated to Calgary, but in Ontario, people who had unconditional offers are starting to panic when the lenders current evaluation doesn't provide enough room to actually mortgage the overpriced condo they bought.

[Buster]

no need to worry folks. Real estate never goes down.

[Rocket1k78]

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Neighbours house just went on the market for $800k, considering that is 30%+ more than what we bought our place for in Nov 2019 and it isn’t nearly as updated, curious to see how accurate a sale price is vs honest door.

https://www.realtor.ca/real-estate/2...west-hillhurst

High 7's is my bet lol

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I have seen 3 "pending sale" properties come back onto the market in the past 3 weeks in an area I watch. I don't believe I've seen that happen twice in the last few years so either this is a step-change trend, or an anomaly.

My realtor was telling me his brokerage was already seeing a lot of deals fall through a month ago because buyers were over bidding and the banks weren't appraising as high, gonna be even less now.

[suntan]

Damn, my wife and I got preapproved for $1.2 million back in the day. The mortgage person REALLY wanted us to max that fucker out too.

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no need to worry folks. Real estate never goes down.

Long term it doesn't, but then again neither does anything else.

[ThePenIsMightier]

We got approved for a little over 2x our house price over 5 years ago with a new lender. Unbelievable!! I had to go home and Marth out what our payments would've been and it was feasible but amazing to me that they'd put someone that close to the wire.
Fast forward to switching lenders at end of 5 years and I'd had my worst year for income in like a decade and the bank douche held up a few of my shitty pay stubs said "we're gonna do you a favour and overlook this". I laughed so hard my mask came off in his shitty micro office, LoL! I think we owed only $250k around that time and now they're sO sCaRe that they're not going to recover that when a few years ago they were ready to back the Brinks truck up.

It's almost as if they have no idea what they're doing.

[suntan]

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It's almost as if they have no idea what they're doing.

Doesn't matter, they're in tight with the Liberals so they're totally safe.

[ercchry]

The stress test has been in place for years now… when rates where low the base rate dipped to ~4.89% and has since gone back to ~5.25%… but what’s back in play for the first time since this all started is the other part… rate + 2%, this is putting a whole lot of people well into the 6.xx% range to qualify which is probably a 20-30% haircut in affordability in the last 3-4 months

The over bidding becomes an issue as well as some lenders have put in policies a couple years back thanks to Ontario’s frenzy. Can speak to others but an example of this would be:

Home is appraised, the comps used were all sold over list, 0-5% over, no concern, 5-10% over, senior approval, 10-20% over 10% reduction in LTV, 20%+ 15% reduction

So what you guys are probably seeing is a combination of people not qualifying and people lacking capital, the capital part can usually be subsidized with a private lender, but this would require a broker being involved (aka: not going directly to your local branch for the mtg) but some people out there are shocked to see the true cost of capital that’s not being securitized and sold off the books

[suntan]

Time to start my loan sharking business.

[ThePenIsMightier]

I invested in a loaning sharks business.
Still waiting for :ToTheMoon:...

[ExtraSlow]

Walking into a bank for a mortgage is a sure sign you are wrong.

[suntan]

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Walking into a bank for a mortgage is a sure sign you are wrong.

Back when CIBC had FirstLine you'd talk to an actual human at the bank.

[Disoblige]

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Walking into a bank for a mortgage is a sure sign you are wrong.

This 100% lol.
The same person who does this tend to be the same person bitching about how expensive their electricity and gas bills are.

[Buster]

Do banks have a 4 square for mortgages?

[suntan]

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Do banks have a 4 square for mortgages?

Sweet Jesus.

[killramos]

Basically yes

[finboy]

Update, neighbours place marked as conditionally sold, house inspector had the drone out checking the roof, will see what the price is when conditions lift.