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Mortgage Broker News | 28 Feb 2017, 08:15 AM Agree 0
Sparking speculation that further mortgage rule changes could be in the offing
  • Scott | 28 Feb 2017, 09:43 AM Agree 0
    How about getting rid of the land transfer tax? The main reason prices are so high is supply and demand. We live in the heart of the market and wouldn't dream of selling because we can renovate for the cost of the tax bill we would pay to move. Why doesn't anybody question the governments' roles in this "bubble" like the green belt and the ever worsening congestion. How about easing restrictions on development and adding proper transit in places like Scarborough?

    And so what if the market corrects? There will be winners and losers. Life isn't fair. I never thought I would be able to own a house (circa late 80's). Then presto the market turned and I became a home owner!
    • Carlos | 01 Mar 2017, 10:17 AM Agree 0
      Scott, there is absolutely no S&D issue here, 92k empty units means SPECULATION. There are way more supply for people looking to buy!
  • Tony | 28 Feb 2017, 10:18 AM Agree 0
    If you get rid of the land transfer tax, you just encourage more speculators to enter the market for a few months/years and resell the house. I would recommend doubling or even tripling the LTT for everything other than someone's primary residence.
  • Dave | 28 Feb 2017, 10:40 AM Agree 0
    Foreign buyer tax 20% , speculation / flipping tax 10% , empty home tax 5% per year....problem solved

  • Dan | 28 Feb 2017, 11:03 AM Agree 0
    It is truly laughable at how the government has handled the problem of foreign buyers in this city, and how bodies like TREB are trying to mask the problem. Recent estimates of foreign buyers accounting for 5% of transactions are NOWHERE near actual levels. I personally know agents working for some of the GTA's largest developers who have admitted that it is closer to 60% - in many cases, foreign brokers are being wined and dined by developers prior to the release of a new project as they buy multiple units at a time for their foreign clients. On top of that, they often let the completed units sit vacant as they have no interest in obtaining tenants (the condos are literally being used as safety deposit boxes). Adding to the problem is the fact that relevant curbing measures have been implemented in Vancouver, which has diverted even more foreign capital to Toronto. The government needs to take similar steps to the ones used in Vancouver or nothing will change.
  • No its totally sustainable and normal | 28 Feb 2017, 11:04 AM Agree 0
    Toronto real estate free riders are in for a world of pain. Who ever buys a home thinking its just magically going to keep going up and they are going to get rich for doing nothing are in for massive Pain in the next 5 years. Median household income in Toronto is 80k, median household income to buy a home required is $200,000 of which 3% of Canadians earn, most of whom already own a home. Do not jeopardize your entire life savings and down payment to get into massive debt hoping it will continue, You will be totally effed in the next 3 yrs if you do and will be US on 2008 but 100 times worse. Canada is not an economic powerhouse where ppl earn massive incomes. Canada is a joke and these prices are for rich countries. Toronto is not a rich city at all, nor will it ever be, its a pure bubble and you will see what happens in the next 3 yrs. Canadians have an income to debt ratio of 180 percent, in 2007 the US rate of income to debt was 160 percent, but lets just ignore all the RED LIGHTs and hope it goes well. Fake news MSM is fully complicit in this hysteria and bubble. And no foreign buyers will not be able to bail us out. A nation can not be 100 percent dependent on a foreigners importing money to keep it afloat, it will always eventually resort back to fundamentals and its own economy, which can only sustain prices, 1/2 what they are, but lets keep ignoring fundamentals and red lights keep hoping a semi does not hit us head on. Oh she will....wait and see what happens in the next 3 yrs. Also most business owners I know in Toronto do not earn anywhere near 200k a year and are all barely profitable.
  • Kevin | 28 Feb 2017, 11:08 AM Agree 0
    Put the flipping tax to 20% as an up front fee.
  • | 28 Feb 2017, 11:22 AM Agree 0
    One of the biggest issues in the Toronto area is the bidding war that the real estate agents create. They will list the property for under value put it on the market and say we will accept offers on a specific day and time. This is creating a frenzy as potential buyers are paying higher for the home, which increases the property taxes ....
    If the government wants to get involved it should first regulate RICO to cease all bidding war practices. List the house a proper market value, have potential buyers look at it and have the real estate agent do his / her job and help the buyer make an informed decision if this is the right house for them or not...
    This would help to cool the market and then look if other measure would need to be taken...
    • Des | 28 Feb 2017, 11:31 AM Agree 0
      We should have access to the sale price of the house, and I agree completely there should be rules around how much higher than the list price the sale price can be to discourage agents creating bidding wars.

      I was looking at a house that was listed for $650,000 yet went for $1,105,000 that's $500,000 OVER (five. hundred. thousand. over asking). There were 18 offers. That house should have never been listed for the price it was. The real estate agents have lost all shame.
  • | 28 Feb 2017, 11:28 AM Agree 0
    Unbelievable that the government is doing nothing about this. This was obvious to a layperson last year and yet the people responsible are just letting it go. We have Vancouver as an example of how bad it can get, why are the politicians waiting??
  • | 28 Feb 2017, 12:59 PM Agree 0
    What ever political entity gets involved, or what ever measures are adopted let's all hope they are regional adjustments and not another round of broad stroke changes. People in communities all over the country are getting pretty tired of sweeping changes meant to curb problems in a handful of postal codes.
  • smart banker | 28 Feb 2017, 01:00 PM Agree 0
    Well the bank CEOs should stop lending to these valuations.

    When I worked in Commercial Banking for one of the 5 banks, we only lent money to a real estate value that the bank actually agreed to. We took the lowest of purchase price, appraisal and bank's internal calculated value. The 3rd item was the kicker... you couldn't finance the building if you overpaid because the bank's value wasn't based on prior transactions. It was based on real fundamentals.

    In residential, the banks lend based on purchase price and appraisal. But appraisals are based on prior transactions ... so it is a self fulfilling prophecy.

    If the CEOs are concerned, then they should NOT lend to purchase prices greater than X!
  • | 28 Feb 2017, 01:48 PM Agree 0
    If a property is flipped within a 2 year period I believe the government taxes the profit as income.
    • Des | 28 Feb 2017, 02:23 PM Agree 0
      There's primary residency exceptions. That's why you see 20 year old foreign buyers "buying" 1mil houses with cash transactions.
  • Bra babe | 28 Feb 2017, 02:04 PM Agree 0
    It's OK for The banks to make billions of dollars in profits while basically operating a utility company that has monopolies across Canadian banking? Notably the bank President who offers commentary is paid millions of dollars annually. The risk aversion in the near mortgage monopoly helps to keep the "elites" elite..... So average Canadians making money on real estate upsets the elite! Bank presidents should be prosecuted for the collusion and market fixing that they actively pursue in an effort to retain the millions of salary and stock benefits that their insider position entitles gives to them.
  • Torontoreee | 28 Feb 2017, 02:16 PM Agree 0
    Foreign buyer tax 20 percent is needed nationally not only in tnro and van both tory and Wynne are asleep at the housing switch and we are going to have to pay the conseqences when the housing crash comes.
  • Alex | 28 Feb 2017, 04:21 PM Agree 0
  • Double Bubble | 02 Mar 2017, 04:57 PM Agree 0
    How about you just leave the market to do what it always does, adjust accordingly.
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