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Strong evidence of problematic conditions persists in real estate market: CMHC

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Mortgage Broker News | 26 Jan 2017, 01:15 PM Agree 0
Canada's federal housing agency says strong evidence of problematic conditions continues to exist in the national housing market
  • Robbie Ryan | 26 Jan 2017, 01:29 PM Agree 0
    So pretty much every major market in Canada except Ottawa and the east coast
  • steve | 26 Jan 2017, 01:30 PM Agree 0
    Hmm, I'm not sure billionaires care about the same things that a person making $60,000 year cares about.
    Surely, only students and billionaires can afford to buy in Vancouver and Toronto now; so why does the government share these alerts and make decisions as if people who make $60,000 year impact a Vancouver or Toronto market?
    CMHC is lost. They don't know who is buying because these buyers cannot use CMHC to got over $1 mil anyway. They don't know the strength and fallback of these owners. They assume prices will fall because poor people cannot buy these houses and we will run out of billionaires.
    I live in a community of 100,000 people. Rents are 2400 for a house you could buy for $350,000. If you don't build these people some new houses then I can tell you their rent will be $2500 per month next year and the house will probably be worth $360,000 because of the demand for rentals.
    CMHC is hurting the little guy, so they can keep billionaires safe and that's not ok with me
  • BG | 26 Jan 2017, 01:45 PM Agree 0
    Way to tell us there are problems do that you can justify your increases with your billions of dollars every year and less than a 1% default rate. cashcow
  • Debbie | 26 Jan 2017, 02:41 PM Agree 0
    I agree with BG. All the steps taken to cool the markets involve huge cash grabs. There is no way that increasing insurance premiums would cool the market. You did that when you implemented the stress test. IMO that was simply a way for the banks to raise mortgage rates without having to align with the bank rate. Now the way I see it is if you can qualify at 4.64% your gonna love any rate lower than that, what a selling feature. All of these measures have hurt the little people, and they aren't the ones driving the Vancouver markets anymore, they can't afford it!! Tell me how many mortgages you have to insure on a p/p of $1,000,000 where they put 5% down??, unless I'm really naive, I don't see that as a commonplace deal. The price increases in those markets are either cash deals or very low LTV deals. come on now admit it, you don't really want to solve this problem. Real Estate and mortgages are the only part of the economy still rolling. Kill that and everything is dead.
  • Angelo | 29 Jan 2017, 02:09 PM Agree 0
    I don't think the government or CMHC has any desire to cool the market. As it was stated already, that is the only thing in Canada (other than big bank profits) that is working. Without this insane market, where would Canadian GDP be?
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