Canada tightens mortgage rules to stop housing bubble

[JLM]

"Canada tightens mortgage rules to stop housing bubble"


So only the more wealthy people will be able to flip real estate.
Ah, the rich get richer and the not so rich get shafted. The usual SOP.

yep, and a lots of not so rich do it too. It's called fixing up old dumps and reselling them to buy another old dump and put some food on the table. I guess there is the upside if you're handy that way and you get to decide what hours you want to work.

 

[TenPenny]

It's not only the rich, it's just that you'll have to have 20% down.

Big deal. If you can't get 20% down on a flip, you must have watched too much tv, and you think it's too easy.

 

[Nuggler]

8O Yep, like there's a great big housing bubble here.


get a life.

:canada:

 

[SirJosephPorter]

8O Yep, like there's a great big housing bubble here.


get a life.

:canada:

There isn't, and now is the time to take preventive measures so that we don't have another one in the future. The time to act is now, not when we have another bubble.

 

[Nuggler]

There isn't, and now is the time to take preventive measures so that we don't have another one in the future. The time to act is now, not when we have another bubble.

RU fikkin serious. >?>> When was the last "bubble"?

 

[JLM]

Looks like you are right, S.J. - THIS ONE TIME

Housing credit squeeze likely to keep bubble at bay - thestar.com

 

[TenPenny]

8O Yep, like there's a great big housing bubble here.


get a life.

:canada:

There was here, locally. With the building of a new refinery planned, people were going full tilt on real estate, and now that it's been cancelled, I've heard of several people struggling to make payments on the income properties they bought in anticipation.

 

[SirJosephPorter]

Looks like you are right, S.J. - THIS ONE TIME

Housing credit squeeze likely to keep bubble at bay - thestar.com

This one time? Surely you jest.

 

[JLM]

This one time? Surely you jest.

I'll concede there were two other times when you were half right. :smile:

 

[justfred]

(Quote) The banks should be paying at least 8% to 9% on savings and term deposits."-

Um huh, and when that happens you can kiss Wall St. and the TSX good bye. No idiot is going to put their money where there is any risk. [/quote]

I am not sure where you are coming from saying the banks should be paying 8-9% interest on savings and term deposits. Please explain, if you can.

 

[justfred]

"Canada tightens mortgage rules to stop housing bubble"


So only the more wealthy people will be able to flip real estate.
Ah, the rich get richer and the not so rich get shafted. The usual SOP.

I read the rules to say that if you want the government to guarantee your loan principal and interest, when speculating in the housing market, put 20% down. Why should you, L. Gilbert, want speculators to increase your taxes because they speculated, lost and made you pay for it. Think it through.

 

[SirJosephPorter]

(Quote) The banks should be paying at least 8% to 9% on savings and term deposits."-

Um huh, and when that happens you can kiss Wall St. and the TSX good bye. No idiot is going to put their money where there is any risk.

I am not sure where you are coming from saying the banks should be paying 8-9% interest on savings and term deposits. Please explain, if you can.

That is why I said, some people need to take Economics 101. If the interests have to go so high that banks start paying 8-9% on current accounts and GICs, that will drive the economy into depression (or at least a deep recession).

 

[GreenFish66]

CBC News - Money - Ottawa mulls tighter mortgage rules -

New Canadian Gov /Bank rules are necessary to help People avoid Unforseable Cost Increases that could push their debt over the edge, over their Credit limits and into bankruptcy ..Losing everything they had planned for the future...Someone(human preferably) has to Regulate the Regulators...Whether the Gov. can be trusted with anything having to do with "The People" is always wide open to speculation...

I know 5 families, 2 single parents ( 2 Already going through bankruptcy) and Many others on the verge of losing their Houses when rates Climb ...

Banks need to be monitored and regulated...They have way too much Power/Control...

Save your money ... Take control of your finances now..(I know ,if only it was that easy )

 

[SirJosephPorter]

I know 5 families, 2 single parents ( 2 Already going through bankruptcy) and Many others on the verge of losing their Houses when rates Climb ...

Banks need to be monitored and regulated...They have way too much Power/Control...

Save your money ... Take control of your finances now..(I know ,if only it was that easy )

That is poor financial planning on the part of the families, Greenfish. It is wrong to borrow to the hilt when interest rates are low. Did they think that interest rates will stay low forever? What did they think was going to happen when interest rates climbed higher?

When a family takes out a mortgage, they must take into account that in future interest rates may rise and with it, their payments will rise. If they cannot afford to buy a house, nobody is forcing them to.

Most families get into financial trouble because of poor planning and failure to take the long range view.

 

[L Gilbert]

I read the rules to say that if you want the government to guarantee your loan principal and interest, when speculating in the housing market, put 20% down. Why should you, L. Gilbert, want speculators to increase your taxes because they speculated, lost and made you pay for it. Think it through.

I have no problem with people wanting to squelch housing bubbles. But, my point stands that just about everything the gov't does results in the rich getting richer and the gap between regular folks and the rich gets wider. Society is just geared that way.
(Just having fun sparking discussion)

 

[Kreskin]

Most banks have always qualified mortgages on the 3-year posted rate. This is just bumping it to 5. That's about a 1% difference. Realistically if one can't afford that, a decline is doing them a favour.

 

[Liberalman]

Economics 101 also says that if you got money in the bank and got a higher interest rate you will spend it on products and services that create jobs while protecting your nest egg.

Debt is a temporary solution not a way of life it should be higher and the people that worked hard and paid off their debts and are living within their means should be rewarded when keeping their money in the bank.

For the people that have too much debt they should get rid of it or go under.

When a person that goes under they do not have the opportunity to have credit for 10 years but they can have a secured credit card, which means when they put down $2,000.00 they have a limit of two grand.

If the government wants to help the people they should change that all credit card should be secured credit card by cash so if people run into problems down the road they can cancel their cards and the deposit is applied to the debt.

On a secured credit card there is monthly payments and an interest charged if the payments are late, you pay the interest and if it is late too many times it is cancelled.

In economics 101 Cash is King so if the banks are unwilling to pay more interest then it's time to pull the money out and put it elsewhere where it will earn more money and then the banks will raise their interest rates to get the money back and in economics 101 this is called supply and demand.

 

[Dixie Cup]

I work for a bankruptcy Trustee and let me tell you, we need to start educating our children about "finances". I know just working where I do my family has started to clean up our "act" so to speak. I've really had my eyes opened. While we have pretty much tried to watch our finances, we weren't doing nearly as good a job as we should have been. I've learned so much!!

We have had clients tell us that they've got $80,000+ in credit card debt "cause the credit card companies kept sending them" DUH!! I almost invariably want to ask them ..did you not think you'd have to repay them?? Most blame "the banks" for sending them. It's the usual "it's not my fault" senario.

The reason a lot of clients declare bankruptcy is because they lose their jobs and use credit cards to supplement their incomes. Through Financial Counselling, we emphasize savings in good times so that if one does lose their job they have a cushion until they can obtain another one. Even at that, we have 2nd and 3rd timers.
Some people never learn!

JMO

 

[JLM]

That is why I said, some people need to take Economics 101. If the interests have to go so high that banks start paying 8-9% on current accounts and GICs, that will drive the economy into depression (or at least a deep recession).

Maybe, back about 1981 when mortgage rates were at 21%, savings accounts were paying about 17% and we didn't go into any deep depression, But I still think the whole situation was stupid.
Anyway banks don't really set anything, beyond making the final button pushing moves. People have to start realizing that money is "live" and finds it's own levels.

 

[JLM]

I work for a bankruptcy Trustee and let me tell you, we need to start educating our children about "finances". I know just working where I do my family has started to clean up our "act" so to speak. I've really had my eyes opened. While we have pretty much tried to watch our finances, we weren't doing nearly as good a job as we should have been. I've learned so much!!

We have had clients tell us that they've got $80,000+ in credit card debt "cause the credit card companies kept sending them" DUH!! I almost invariably want to ask them ..did you not think you'd have to repay them?? Most blame "the banks" for sending them. It's the usual "it's not my fault" senario.

The reason a lot of clients declare bankruptcy is because they lose their jobs and use credit cards to supplement their incomes. Through Financial Counselling, we emphasize savings in good times so that if one does lose their job they have a cushion until they can obtain another one. Even at that, we have 2nd and 3rd timers.
Some people never learn!

JMO

Absolutely correct. It baffles me how many otherwise intelligent people have money problems, when all that is required is a little common sense. I see my contemporaries arriving at age 65 and are flat broke. I remember vividly when I was a green young kid in the work force and used to blow money like there was no tomorrow, but one thing I'm glad I did was start contibuting to a pension as soon as possible, whereas a lot of my work buddies postponed until it became a mandatory deduction (in those days you could defer it for three years- the most important three years of your life when it comes to building a pension) The Canada Pension was one of the best things our Gov't ever did (probably the only thing), but they should have doubled or tripled it (when we first started paying into it, it was costing us $80 a year). If they'd had made it $160, yes people would have been screaming but they wouldn't have had to raise it to the draconian levels it's at today (Several thousands of dollars annually I believe) When I first started in the work force cash was pretty well everything. Realiable people could run an account at the local grocer but it had to be paid in full on pay day & interest wasn't even charged. There were very few credit cards - a few with the oil companies & major dept. stores, but none of this VISA or Mastercard bullsh*t. That got started in the 70s. The only way to use them is to pay them off every month. Anyway I've already broken my cardinal rule about writing long posts, so I'll end it here.