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Mortgage Broker News | 02 Dec 2016, 08:15 AM Agree 0
Domestic factors are primarily to blame for the seemingly unstoppable price growth in Vancouver, CMHC data suggests
  • KJL | 02 Dec 2016, 09:07 AM Agree 0
    So why all the changes from these bo hunks in Ottawa. Silly fools. Jeopardizing the life of young Canadians ...
  • Omer Quenneville | 02 Dec 2016, 09:55 AM Agree 0
    The problem with the market in Toronto has little to do with foreign buyers however, they shouldn't get a free pass. I do believe a tax is in order. Why should someone else be able to walk in and take advantage of our market that has not contributed in any way to our system. That being said the real problem is the double whammy of the land transfer tax. This is what is causing the reduced inventory needed to keep the market in check. The cost for a first time buyer to trade up to their second home is way to high. For a homebuyer to trade up from a $350,000 condo to a $700,000 house is not less then $60,000.00 in costs/expenses and that assuming they haven't got themselves roped into a fixed mortgage with a huge discharge penalty. Most homeowners can not afford to give up $60,000.00 on a trade up. Housing is supposing to be tax free for your principle residence as it is paid for with after tax dollars with no tax breaks on your mortgage interest unlike in the united states where you can claim your interest. The double land transfer tax should be eliminated on personal residence. If I remember correctly it was brought in by the out going mayor at the time Miller to help pay for transit and infrastructure. If this is the case, then what happened to that money and why do we now need road tolls? Feel free folks to wake up at any time or bend over the choice is yours.
  • James Shinners | 02 Dec 2016, 10:21 AM Agree 0
    IMHO this is pure BS. If CMHC's statements were true, then every major city in Canada should be seeing the same appreciation as Toronto & Vancouver. Perhaps it is the definition of Foreign Buyers that needs to be more clearly explained. How many new immigrants are granted Canadian citizenship purely based on their wealth, purchase property(s), and then return to their country of origin to continue working or operating a business there? I would include those people in the "foreign buyer" category. Including those people, I suspect "foreign buyers" are closer to 25% to 30%. I grew up in Vancouver and I saw how the provincial government sold Vancouver to foreign investors after Expo 86.
  • Rob Campbell, Broker Financial Group | 02 Dec 2016, 11:03 AM Agree 0
    Wow, that's really weird that a policy would be put in place by the Government without thorough analysis....
  • Jay | 02 Dec 2016, 11:55 AM Agree 0
    Goldman Sachs sold nothing but A grade paper when he was there as well... I don't trust this guy!
  • BJ | 02 Dec 2016, 01:10 PM Agree 0
    I'm having a hard time wrapping my head around this quote: “When a white person buys a house, we don’t know. When a person of a different colour does, we do, and that’s not good economics.”
  • Omer Quenneville | 02 Dec 2016, 02:32 PM Agree 0
    The problem with the market in Toronto has little to do with foreign buyers however, they shouldn't get a free pass. I do believe a tax is in order. Why should someone else be able to walk in and take advantage of our market that has not contributed in any way to our system. That being said the real problem is the double whammy of the land transfer tax. This is what is causing the reduced inventory needed to keep the market in check. The cost for a first time buyer to trade up to their second home is way to high. For a homebuyer to trade up from a $350,000 condo to a $700,000 house is not less then $60,000.00 in costs/expenses and that assuming they haven't got themselves roped into a fixed mortgage with a huge discharge penalty. Most homeowners can not afford to give up $60,000.00 on a trade up. Housing is supposing to be tax free for your principle residence as it is paid for with after tax dollars with no tax breaks on your mortgage interest unlike in the united states where you can claim your interest. The double land transfer tax should be eliminated on personal residence. If I remember correctly it was brought in by the out going mayor at the time Miller to help pay for transit and infrastructure. If this is the case, then what happened to that money and why do we now need road tolls? Feel free folks to wake up at any time or bend over the choice is yours.
  • Omer Quenneville | 03 Dec 2016, 12:41 AM Agree 0
    The problem with the market in Toronto has little to do with foreign buyers however, they shouldn't get a free pass. I do believe a tax is in order. Why should someone else be able to walk in and take advantage of our market that has not contributed in any way to our system. That being said the real problem is the double whammy of the land transfer tax. This is what is causing the reduced inventory needed to keep the market in check. The cost for a first time buyer to trade up to their second home is way to high. For a homebuyer to trade up from a $350,000 condo to a $700,000 house is not less then $60,000.00 in costs/expenses and that assuming they haven't got themselves roped into a fixed mortgage with a huge discharge penalty. Most homeowners can not afford to give up $60,000.00 on a trade up. Housing is supposing to be tax free for your principle residence as it is paid for with after tax dollars with no tax breaks on your mortgage interest unlike in the united states where you can claim your interest. The double land transfer tax should be eliminated on personal residence. If I remember correctly it was brought in by the out going mayor at the time Miller to help pay for transit and infrastructure. If this is the case, then what happened to that money and why do we now need road tolls? Feel free folks to wake up at any time or bend over the choice is yours.
  • Ronnie Kartman | 04 Dec 2016, 03:08 PM Agree 0
    If you are prepared to buy into the notion that only 1-2% of all sales were of foreign origin, then perhaps (as an old saying goes) I can sell you a piece of The Brooklyn Bridge! Whether foreign nationals are buying direct or funneling their purchases through friends/business associates who already live in the country, I strongly believe that foreign ownership has been highly unreported and/or estimated. It will not be the first time that CMHC has been wrong. The market in Toronto continues because the same tax has not yet been imposed. The stage is being set for a repeat of what happened in 1989-1992, where once a flattening or slight decrease in sales of condos occurs, those foreign buyers (who have absolutely no personal ties to the community or the property itself) will become like rats on a sinking ship...all running toward the single-door exit in hopes of salvaging as much of their profit as possible. For those small investment companies with $20 Million + invested in Toronto real estate 2 years ago, when the dollar dropped to .68 cents, they are up almost 10 percent just on the exchange alone. Last year saw an increase of 17 percent in property value.

    For those realtors and mortgage brokers who only entered the business within the last 15 years of so, if the houses don't increase by more than 8% for the year, it is considered a "correction." If the property values don't increase by more than 3 percent for the year, they consider it a "crash." I hope I'm wrong, but we could be on the edge of the abyss with regards to property values. I recommend hanging on to your suspenders.
  • Isee | 06 Dec 2016, 03:56 PM Agree 0
    Ronnie Kartman on 2016-12-04 3:08:16 PM

    What are you talking about. Annual appreciation of 3.5% was considered normal for Toronto. Further out of town was less. Anything above that was looked under microscope. I used to underwrite, and number of commitments went out below expectations unless one could demonstrate substantial improvements. Not only "new roof" or "new windows" was accepted as you could not have occupied house without it. Now, whoever thinks that new Fed guidelines should only address our used to be two idiot markets Vancouver and Toronto, now it's Toronto last standing dumbo, should have their head checked out if you believe that the house in Timbucktwo, Ontario is worth the asking. GTA houses need to come down 65-70% to restore lives beyond work, home and renovation. Million dollar houses needs to get down to real values of $350K. Less discount for out of town properties. These days we lost importance of appraisal house valuation as appraisers have nothing to base their studies on. Family income? LOL. Or how about rental income applicable to single family detached. What would 6% cap ratio correspond to in rental income. $12,000 monthly? Is that attainable? Probably only in your dreams hotshot microeconomiacs.
  • Werner K | 12 Dec 2016, 10:22 AM Agree 0
    Comments, exchanging opinions is good is part of everyday life. Unfortunately they have no impact whatsoever. The condo salesman Brad Lamb says 50% of condos are foreign owned. Money laundering is another story...
    According to CMHC foreign buyers are not the problem. Sure...
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