Canada Housing/Debt: Trust me, I'm a landlord.

The Something Awful Forums > Discussion > Debate & Discussion > Canada Housing/Debt: Trust me, I'm a landlord.

etalian: Mar 20, 2006

basically the best cure for real estate bubble is preventing them from taking off in the beginning.

No special treatment for mortgage loans, no help from the government to insure bank private loans, more regulations for the snake oil real estate profession, no high risk no money down loans allowed and instead like Germany follow a housing policy that focuses on slight home appreciation/bigger incentives to rent instead.

# ? Mar 6, 2015 04:24

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# ? May 24, 2024 12:08

PT6A: Jan 5, 2006; Public school teachers are callous dictators who won't lift a finger to stop children from peeing in my plane

etalian posted:

basically the best cure for real estate bubble is preventing them from taking off in the beginning.

No special treatment for mortgage loans, no help from the government to insure bank private loans, more regulations for the snake oil real estate profession, no high risk no money down loans allowed and instead like Germany follow a housing policy that focuses on slight home appreciation/bigger incentives to rent instead.

I agree with you.

Why do you think I'm disagreeing with you? Reflex?

# ? Mar 6, 2015 04:26

Barrakketh: Apr 19, 2011; Victory and defeat are the same. I urge you to act but not to reflect on the fruit of the act. Seek detachment. Fight without desire.

Don't withdraw into solitude. You must act. Yet action mustn't dominate you. In the heart of action you must remain free from all attachment.

People can barely afford to buy in Montreal, anyways. If you're looking to buy a house, you've got to leave the island. The city is desperately trying to keep young families by waiving the "Welcome" tax for couples with a kid under 18, and young professionals with 10,000$ bursaries for first time condo buyers. Montrealers rent not by choice, but by necessity...

Ah, the joys of living in a city where wages have stagnated for 20 years and all the great industries have left.... I don't think it's begun a terminal decline, but the next decades will not be good for Montreal, much less Qu�bec.

# ? Mar 6, 2015 04:29

Rime: Nov 2, 2011; by Games Forum

To be fair that statement can be applied uniformly to every city in this godforsaken country.

# ? Mar 6, 2015 04:31

etalian: Mar 20, 2006

Barrakketh posted:

People can barely afford to buy in Montreal, anyways. If you're looking to buy a house, you've got to leave the island. The city is desperately trying to keep young families by waiving the "Welcome" tax for couples with a kid under 18, and young professionals with 10,000$ bursaries for first time condo buyers. Montrealers rent not by choice, but by necessity...

Ah, the joys of living in a city where wages have stagnated for 20 years and all the great industries have left.... I don't think it's begun a terminal decline, but the next decades will not be good for Montreal, much less Qu�bec.

Parallel universe ideal Montreal would have Vancouver's weather with GTA's job base.

# ? Mar 6, 2015 04:34

namaste friends: Sep 18, 2004; by Smythe

1000 years from now we'll have the technology to airlift the island of montreal to bc and drop it on top of the lower mainland. Preferrably with all vancouverites still in it.

# ? Mar 6, 2015 04:41

Barrakketh: Apr 19, 2011; Victory and defeat are the same. I urge you to act but not to reflect on the fruit of the act. Seek detachment. Fight without desire.

Don't withdraw into solitude. You must act. Yet action mustn't dominate you. In the heart of action you must remain free from all attachment.

Parallel Universe Ideal Montreal would have every contracting firm and every city bureaucrat who held office since the 60's drawn and quartered, their limbs scattered to the 4 corners of the island.

# ? Mar 6, 2015 04:48

Barrakketh: Apr 19, 2011; Victory and defeat are the same. I urge you to act but not to reflect on the fruit of the act. Seek detachment. Fight without desire.

Don't withdraw into solitude. You must act. Yet action mustn't dominate you. In the heart of action you must remain free from all attachment.

http://montrealgazette.com/news/local-news/residents-fear-le-triangles-promised-green-heart-is-in-peril

A while back, I wrote about how Griffintown's conversion into condos would be a mess: no schools, no buses, no hospitals, no parks, no markets compounded by poor quality condos supported by decrepit infrastructure. It's time for round 2. Welcome to Le Triangle.

# ? Mar 6, 2015 04:54

Baronjutter: Dec 31, 2007; "Tiny Trains"

sbaldrick posted:

There are always attempts to make the national code better but it gets overruled all the time because they haven't proven anything yet.

Let's just say most people consider multifloor wood condos a deathtrap waiting to happen but no studies are done yet.

Of a particular era or just as a class? I live in a really solid 1951 3 story wood frame apartment, am I going to die??

# ? Mar 6, 2015 05:01

namaste friends: Sep 18, 2004; by Smythe

http://www.theglobeandmail.com/report-on-business/economy/canadian-household-debt-growth-is-accelerating-says-rbc/article23311852/

quote:

Canadians are once again proving they have an insatiable appetite for debt.

Despite warnings by the Bank of Canada that the country�s economy is in for a bumpy ride this year, household debt grew by 4.6 per cent in January, a new report says. It was among the fastest pace of household credit expansion in the past two years.

Canadians have taken on $80-billion worth of mortgages, personal loans and credit card debt in the past year, Royal Bank of Canada found, with much of that growth coming in the past three months. Household debt totalled $1.82-trillion in January, eclipsing the country�s GDP, which stood at an annualized $1.65-trillion in December.

Most of the growth came from new residential mortgages, which rose 5.4 per cent in January compared to a year earlier, to nearly $1.3-trillion. Non-bank lenders, which represent about one-fifth of mortgages, drove the residential housing market over the past year, with outstanding mortgage debt rising 6.3 per cent compared to 4.3 per cent among banks.

Even as Canadians have plunged deeper into debt for their homes, they have been cutting back on other forms of debt. Credit card debt rose by just 2.7 per cent in the past year, while the total number of personal loans fell. Canadians held an average of $20,967 in non-mortgage consumer debt, credit monitoring agency Equifax said this week.

Consumers have been steadily piling into non-mortgage debt in the past two years, so the pullback in new loans and credit card debts in January may turn out to be a short-term reprieve, said RBC economist Laura Cooper, the report�s author.

At the same time, low interest rates are helping Canadians take on more mortgage debt. �We saw mortgage rates fall in the month to the lowest they�ve been in 10 years,� Ms. Cooper said. �So that may be encouraging some activity to be brought forward in the market.�

The shift from credit cards to mortgages should raise red flags among the country�s regulators, who have been tightening mortgage rules in an effort to cool the housing market. The Canadian Mortgage and Housing Corporation warned federal Finance Minister Joe Oliver about the risk of high home prices and rising levels of household debt in a confidential memo last May.

In the memo, which CMHC provided to The Globe and Mail, the housing agency said it was �concerned about reduced household flexibility resulting from elevated debt levels as well as diversion of capital into residential housing investments.�

High prices in some urban markets �further compound affordability concerns,� CMHC head Evan Siddall wrote in the heavily redacted memo, which also touched on a proposal for greater risk-sharing with mortgage lenders and the agency�s popular securitized mortgage program. With detached house prices rising above $1-million in Toronto and Vancouver in February, those fears of deteriorating affordability in the country�s largest housing markets seem to be proving true.

Such concerns also come amid mounting evidence that Canadians are struggling under the weight of their debts. The country�s household savings rate was headed to a five-year low in the final quarter of last year, Statistics Canada said this week.

Canada's household debt-to-income ratio rose more than any other country outside of Greece between 2007 and mid-2014, according to a recent analysis by McKinsey Global Institute. It hit a record high of 163 per cent in the third quarter of last year. Canada is one of a few countries in the Western world where household debt burdens are higher than they were in the United States at the peak of the global credit bubble, McKinsey said.

Homeowners weren�t the only ones taking on new debt. Business credit jumped 8.3 per cent in January, the fastest rate of expansion since 2007 as worries over the oil sector pushed more companies toward short-term loans, RBC said.

ha ha ha

# ? Mar 6, 2015 05:05

I would blow Dane Cook: Dec 26, 2008

quote:

Dead Darwin grandmother exhumed and cremated so grandson could sell burial plot

IN a bid to make some extra cash, a Darwin man had his grandmother's body exhumed and cremated so he could sell her burial plot to a desperate dying punter.

Darwin City Council alderman Gary Haslett said at a council meeting discussion on the reviewed Cemetery Act that a �black market� for people �just dying to be buried� at the general cemetery has emerged.

Darwin General Cemetery is full, except for grave sites purchased in advance, and is effectively closed.

Unless they have a plot waiting, dead Darwinites have no other choice than to be laid to rest in the plots of Litchfield�s Thorak Cemetery.

General manager of infrastructure Luccio Cercarelli said the council was not aware of any extreme measures to be buried in the cemetery, but the NT News understands people have gone to even more grave attempts to leave their mark in the ground.

The ex-wife of a man who had reserved a plot in the cemetery decided to plot against his potential burial and changed the reserved plot into her name.

The man died some years later and his new family, who were preparing for his burial, learned at the last minute that the man�s last wishes could not be met.

Mr Cercarelli said owners of an unoccupied existing grave were able to transfer or sell the burial rights to another party and this did happen from time to time and was a private transaction.

Locals would advertise their desire for a burial plot, or selling of, through the NT News, a local funeral director said.

The director, who wanted to remain anonymous, said sales were done very privately and finding out the going rate would be impossible.

One wouldn�t be able to claim any capital gains tax �either, because GST came in 2000, they said.

The only other cemeteries in Darwin are Pioneer Cemetery and Gardens Road Cemetery - both officially closed.

http://www.ntnews.com.au/lifestyle/...s-1227250917290

# ? Mar 6, 2015 05:15

etalian: Mar 20, 2006

Barrakketh posted:

http://montrealgazette.com/news/local-news/residents-fear-le-triangles-promised-green-heart-is-in-peril

A while back, I wrote about how Griffintown's conversion into condos would be a mess: no schools, no buses, no hospitals, no parks, no markets compounded by poor quality condos supported by decrepit infrastructure. It's time for round 2. Welcome to Le Triangle.

They are doing the same thing in GTA, basically building shitload of condos that aren't even close to jobs, mass transit or other required amenities.

Naturally honest real estate agents and developers pretty much told buyers the city would spend millions of dollars to make the area livable in the near future.

Cultural Imperial posted:

1000 years from now we'll have the technology to airlift the island of montreal to bc and drop it on top of the lower mainland. Preferrably with all vancouverites still in it.

Other advantage of the scheme is it would turn the area into a mass graveyard which would scare mainlanders away. Don't want to buy a house in a city that's overrun with lots of whiny ghosts.

etalian fucked around with this message at 05:43 on Mar 6, 2015

# ? Mar 6, 2015 05:36

namaste friends: Sep 18, 2004; by Smythe

http://business.financialpost.com/2015/03/04/the-real-cost-of-a-1-million-home-toronto-buyers-resort-to-sub-prime-loans-as-prices-soar/

quote:

Toronto buyers resort to sub-prime loans as prices soar

Vancouver has already passed this high water mark, but now it�s Toronto�s turn to experience the $1 million home as the new norm � a property that comes with so much debt even the federal government seems scared of it.

New statistics from the Toronto Real Estate Board released Wednesday show the average price of a detached home in the city reached $1,040,018 in February, the first time prices have crossed over the seven-figure threshold in any housing category.

Those buyers face a three-year-old rule that Ottawa imposed to cool the market, which bans any sort of government backing on homes worth more than $1 million.

As prices rise, some wonder whether insurers like Canada Mortgage and Housing Corp., the Crown corporation that backs bank loans, may have to revisit that threshold.

�Will it encourage insurers to benchmark or index their maximum home price?� asks Rob McLister, the founder of ratespy.com. �Now, a $1 million is an average house so you are basically saying [the government] is not going to insure an average house.�

Mr. McLister says once you get into $1 million plus, your choices of who you can borrow from change dramatically.

�A lot of people think �I�ve got a $1 million mortgage. I�m the man, give me the best rate.� But that�s not necessarily the case,� he says.

In fact, those people are paying even higher rates than those from the banks because their loans have no government backing. If they can�t come up with the minimum downpayment of 20% required by law to borrow from a major bank, they must seek a loan in the subprime market.

Just as in Vancouver, Toronto buyers are now scrambling to come up with the 20% downpayment or $200,000 on a $1 million home, if they want to borrow from a major bank. And, just as happened on the West Coast, Toronto buyers are turning to sub-prime lenders to get them over the hump, facing interest rates of close to 13%.

Yana Papanyan, vice-president of credit and underwriting at First Swiss Mortgage Corp., which is a major player when it come to helping this subprime segment of the market, says in a typical situation, a client might buy a property worth $1 million but only have $100,000 downpayment. First Swiss Mortgage will provide the other $100,000 under a second mortgage starting at 12.99%.

�Clients have to top up to 20% to get a bank to approve. We are filling that gap between what the client has as a downpayment and what the bank will accept,� said Ms. Papanyan. �About 80% of [First Swiss� mortgages] in Vancouver are high-priced properties.�

First Swiss is not regulated by the federal government; that interest rate is considered competitive based on risk factors including the fact it is a second mortgage behind the bank�s debt.

Why was $1 million chosen anyway?
One positive for these people is they do not end up paying mortgage default insurance, which can be as much as 3.15% of the value of a mortgage, based on current CMHC guidelines.

Benjamin Tal, deputy chief economist with CIBC, says rising prices and the $1 million government threshold is sending more consumers into the subprime market to borrow money. He estimates alternative lenders, who are major beneficiaries of that subprime market, now underwrite 2.2% of all mortgage loans, with the market having grown by 25% over the past year.

�When you say $1 million, people think �that�s extremely high expensive properties.� They are not. This [restriction on loans for homes worth $1 million or more] is leading to less regulated entities entering the market,� said Mr. Tal, adding his data for Ontario shows that people are borrowing just to get the downpayment.

Mr. Tal also wonders whether Ottawa is going to have revisit the rules on whether it is willing to insure homes worth than $1 million.

�It�s a legitimate question. Why was $1 million chosen anyway?,� said Mr. Tal. �This is probably not consistent with the spirit of what they want to do, because the spirit of CMHC is to make housing affordable for young people.�

That's a great question. Why is the CMHC insuring loans up to a million?

Also, lol the concept of financing your downpayment. Fortunately the good news is that you don't have to pay mortgage default insurance which would just increase the cost of buying a home!!!! drat the government and their red tape!!!!!!!!!!!!!

namaste friends fucked around with this message at 06:12 on Mar 6, 2015

# ? Mar 6, 2015 06:09

etalian: Mar 20, 2006

Cultural Imperial posted:

http://business.financialpost.com/2015/03/04/the-real-cost-of-a-1-million-home-toronto-buyers-resort-to-sub-prime-loans-as-prices-soar/

That's a great question. Why is the CMHC insuring loans up to a million?

Also, lol the concept of financing your downpayment. Fortunately the good news is that you don't have to pay mortgage default insurance which would just increase the cost of buying a home!!!! drat the government and their red tape!!!!!!!!!!!!!

it's cheaper since the subprime loan rate is skyhigh.

also lolling at Canadians who think their country is a special snowflake which isn't repeating just about every mistake from the US or Irish housing bubbles.

etalian fucked around with this message at 06:19 on Mar 6, 2015

# ? Mar 6, 2015 06:16

namaste friends: Sep 18, 2004; by Smythe

This week in gently caress alberta

https://twitter.com/kuldip_r/status/573715497205690368

# ? Mar 6, 2015 06:49

ocrumsprug: Sep 23, 2010; by LITERALLY AN ADMIN

What's with the BC rigs still at 60% production? Is that LNG, or BC's blind hubris?

# ? Mar 6, 2015 07:26

less than three: Aug 9, 2007; Fallen Rib

ocrumsprug posted:

What's with the BC rigs still at 60% production? Is that LNG, or BC's blind hubris?

We don't have any LNG projects that aren't vapourware, so it's something else.

# ? Mar 6, 2015 08:07

Professor Shark: May 22, 2012

Cultural Imperial posted:

One positive for these people is they do not end up paying mortgage default insurance, which can be as much as 3.15% of the value of a mortgage, based on current CMHC guidelines.

The degeneration of language is so terrible to watch. This guy writes for a living ffs.

# ? Mar 6, 2015 11:50

OhYeah: Jan 20, 2007; 1. Currently the most prevalent form of decision-making in the western world

2. While you are correct in saying that the society owns

3. You have not for a second demonstrated here why

4. I love the way that you equate "state" with "bureaucracy". Is that how you really feel about the state

HookShot posted:

When I was in Estonia I was on the like sixth floor of some super old tower fortress thing. Anyway, I saw the green exit sign and went "hmmm that's weird, I wonder what kind of exit it is" and went over to the window. There was another sign below it saying "emergency exit" and a window that opened directly onto a six story plunge down onto some grass.

What the gently caress, where was that? Because Estonia is a member of the European Union and they have pretty strict and rigid laws about safety and such.

Anyway, reading the news posted in this thread is giving me some idea what it would be like watch a train crash happen in slow motion.

# ? Mar 6, 2015 12:26

Saltin: Aug 20, 2003; Don't touch

Cultural Imperial posted:

http://business.financialpost.com/2015/03/04/the-real-cost-of-a-1-million-home-toronto-buyers-resort-to-sub-prime-loans-as-prices-soar/
Also, lol the concept of financing your downpayment. Fortunately the good news is that you don't have to pay mortgage default insurance which would just increase the cost of buying a home!!!! drat the government and their red tape!!!!!!!!!!!!!

This makes my head hurt and I would love to see some numbers on how prevalent it is. The banks are extremely careful about big mortgages where the CMHC is not involved because they are fully exposed to the risk. I can't imagine a scenario where they would see someone sidle up with 200k+ and not require disclosure regarding where it came from. If it came from a high interest secondary loan, there is no loving way they would loan you the other 80%.

I'm probably just hoping and dreaming.

# ? Mar 6, 2015 13:53

MickeyFinn: May 8, 2007; Biggie Smalls and Junior Mafia some mark ass bitches

Cultural Imperial posted:

http://business.financialpost.com/2015/03/04/the-real-cost-of-a-1-million-home-toronto-buyers-resort-to-sub-prime-loans-as-prices-soar/

quote:
�A lot of people [should] think �I�ve got a $1 million mortgage. [Housing is too expensive.]� But that�s not necessarily the case,� he says.

Fixed this for you, Mr. McLister.

# ? Mar 6, 2015 15:45

Reince Penis: Nov 15, 2007; by R. Guyovich

OhYeah posted:

What the gently caress, where was that? Because Estonia is a member of the European Union and they have pretty strict and rigid laws about safety and such.

Anyway, reading the news posted in this thread is giving me some idea what it would be like watch a train crash happen in slow motion.

Now imagine all your friends and loved ones are on the train, and no matter how many times you tell them it will crash they not only refuse to get off but encourage you to climb on too.

# ? Mar 6, 2015 15:48

HookShot: Dec 26, 2005

OhYeah posted:

What the gently caress, where was that? Because Estonia is a member of the European Union and they have pretty strict and rigid laws about safety and such.

Anyway, reading the news posted in this thread is giving me some idea what it would be like watch a train crash happen in slow motion.

I can't remember, it was too long ago and I climbed way too many random medieval towers that day.

There were definitely some super sketchy safety things there though. Including climbing to the top of a church spire and having a two foot wide walkway made of planks of wood, with only a chain link fence protecting you from the hundreds-of-feet drop below.

Estonia was awesome, I definitely recommend the slightly higher risk of death for how amazing it is.

# ? Mar 6, 2015 16:17

Rime: Nov 2, 2011; by Games Forum

Whelp, adding Estonia to the grand tour itinerary. That sounds awesome.

# ? Mar 6, 2015 16:36

Albino Squirrel: Apr 25, 2003; Miosis more like meiosis

Jumpingmanjim posted:

http://www.ntnews.com.au/lifestyle/...s-1227250917290

Correct me if I'm wrong, but isn't the Northern Territory mostly empty? It seems like it should be fairly simple to, I don't know, plot out another cemetery in the suburbs.

Or is most of the surrounding land covered under Aboriginal title and unavailable for that use?

# ? Mar 6, 2015 16:37

ocrumsprug: Sep 23, 2010; by LITERALLY AN ADMIN

Albino Squirrel posted:

Correct me if I'm wrong, but isn't the Northern Territory mostly empty? It seems like it should be fairly simple to, I don't know, plot out another cemetery in the suburbs.

Or is most of the surrounding land covered under Aboriginal title and unavailable for that use?

Sigh... They aren't making any new land, man.

I swear, it's like some of you just are not paying any attention.

# ? Mar 6, 2015 17:28

Rocks: Dec 30, 2011

sbaldrick posted:

There are always attempts to make the national code better but it gets overruled all the time because they haven't proven anything yet.

Let's just say most people consider multifloor wood condos a deathtrap waiting to happen but no studies are done yet.

Just wanted to pitch in. The OBC now allows mid rise wood buildings to be built in Ontario, and they know their poo poo in and out.

# ? Mar 6, 2015 18:03

sbaldrick: Jul 19, 2006; Driven by Hate

Rocks posted:

Just wanted to pitch in. The OBC now allows mid rise wood buildings to be built in Ontario, and they know their poo poo in and out.

And everyone in Canadian codes thinks they are deathtraps and I quote "Wouldn't want my family to live in one". They are basically consider to be a favor to the Wood industry and maybe in 5 or 6 years they will have the funding and ability to prove otherwise.

# ? Mar 6, 2015 18:51

Franks Happy Place: Mar 15, 2011; It is by weed alone I set my mind in motion. It is by the dank of Sapho that thoughts acquire speed, the lips acquire stains, stains become a warning. It is by weed alone I set my mind in motion.

sbaldrick posted:

And everyone in Canadian codes thinks they are deathtraps and I quote "Wouldn't want my family to live in one". They are basically consider to be a favor to the Wood industry and maybe in 5 or 6 years they will have the funding and ability to prove otherwise.

sbaldrick knows what's he's talking about, these new wood frame towers are a horrible idea and most people in the industry will privately tell you the same.

http://globalnews.ca/news/1598221/massive-fire-at-seniors-centre-under-construction-in-vancouver-not-suspicious/

http://www.cbc.ca/news/canada/british-columbia/owner-vows-to-rebuild-burnt-out-richmond-condo-project-1.1080936

http://www.cbc.ca/news/canada/ottawa/taller-wood-frame-buildings-raise-fire-risk-firefighter-group-says-1.2778608

# ? Mar 6, 2015 20:21

Baronjutter: Dec 31, 2007; "Tiny Trains"

To be fair those are all construction fires, which are by far the most dangerous part of a building's life-span. After the building is done and the sprinkler system is up and working and alarm system works there's of course the risk the building may burn down, but everyone will be long gone from it before it comes to that.

All these fire happen during construction because construction workers are lazy and don't give a poo poo about safety unless someone is watching. A good little money-maker for my office is a system of "hot works permits" which we invented. It's like these little carbon paper tags and ANY hot-works being done at a site have to fill them out listing what the scope of the work is, what they're doing to mitigate fire risk, and a sign off that they've inspected the area and then a further sign-off showing they've implemented a fire-watch in the area for X many hours after.

It's the fire-watch after that they don't do. So some dude comes in to cut some metal beam or something in a wood frame building. It tosses some hot metal all over the place but they look around and it seems fine. What they don't know is that some tiny little ember went between a wall and is smoldering away next to something combustible. They are supposed to then do a fire-watch for like 6 hours, meaning there is someone in the area inspecting and watching for smoke or any sign of fire. But this grinding work was done at 3:30pm and everyone wants to go home and the contractor doesn't want to actually pay anyone to stay over night. Ooops your condo is a raging inferno. Oh hey your insurance demanded you follow hot-works procedures and you don't have a paper-trail you prove it? Good, gently caress you.

# ? Mar 6, 2015 21:37

Franks Happy Place: Mar 15, 2011; It is by weed alone I set my mind in motion. It is by the dank of Sapho that thoughts acquire speed, the lips acquire stains, stains become a warning. It is by weed alone I set my mind in motion.

The issue being illustrated here has nothing to do with fire suppression systems, it's that the entire building as a single entity is highly flammable. The industry claims the wood itself is fire resistant, and we've seen exactly what that's worth: an 80% complete structure being a four-alarm inferno so quickly that the fire department can't even respond.

So yeah, sprinklers will help (assuming everything is installed correctly, which of course never happens), but how much? Once that first-line safety system has been compromised (which happens even in concrete buildings), how fast does the fire spread? The answer: too fast to save lives.

# ? Mar 6, 2015 22:00

Rime: Nov 2, 2011; by Games Forum

A less flammable alternative:

# ? Mar 6, 2015 22:06

Juul-Whip: Mar 10, 2008

Since we're on the subject

You'd think they'd use a photo of them actually putting out a fire instead of "Welp there's no saving this one, stand back boys!"

# ? Mar 6, 2015 22:59

Baronjutter: Dec 31, 2007; "Tiny Trains"

I like that those wood condo fires get so out of control so quickly that by the time the FD arrives it's basically impossible to fight, all you can do is barely contain it and wait for it to burn out.

# ? Mar 6, 2015 23:28

etalian: Mar 20, 2006

Saltin posted:

This makes my head hurt and I would love to see some numbers on how prevalent it is. The banks are extremely careful about big mortgages where the CMHC is not involved because they are fully exposed to the risk. I can't imagine a scenario where they would see someone sidle up with 200k+ and not require disclosure regarding where it came from. If it came from a high interest secondary loan, there is no loving way they would loan you the other 80%.

I'm probably just hoping and dreaming.

Yeah basically the brilliant CMHC system encourages bad practices such as poor underwriting or doing high risk no money down loans.

One more reason why the government is such a big part of the control loop that creates housing bubbles.

# ? Mar 6, 2015 23:59

Lexicon: Jul 29, 2003; I had a beer with Stephen Harper once and now I like him.

Saltin posted:

This makes my head hurt and I would love to see some numbers on how prevalent it is. The banks are extremely careful about big mortgages where the CMHC is not involved because they are fully exposed to the risk. I can't imagine a scenario where they would see someone sidle up with 200k+ and not require disclosure regarding where it came from. If it came from a high interest secondary loan, there is no loving way they would loan you the other 80%.

I'm probably just hoping and dreaming.

Yeah, seriously. What banker is going to put 800k on the line, in a massively inflated housing market no less - so the collateral is shaky, when it's not at all clear how the joker in front of you with 200k cobbled it together?

# ? Mar 7, 2015 00:10

etalian: Mar 20, 2006

Lexicon posted:

Yeah, seriously. What banker is going to put 800k on the line, in a massively inflated housing market no less - so the collateral is shaky, when it's not at all clear how the joker in front of you with 200k cobbled it together?

Well in the case the CMHC you have the classic case of moral hazard since it backs a vast percentage of the loans now.

In the past you could even use a CMHC backed loan to get a secondary home before they tightened the rules somewhat.

Even better similar to the US trainwreck you have CMHC doing securization of loans, so banks can offload their risky loans to investors.

# ? Mar 7, 2015 03:08

Lexicon: Jul 29, 2003; I had a beer with Stephen Harper once and now I like him.

^ Yeah, I meant in the non-CMHC case - over the $1M threshold. That's when the bank's actual rear end is on the line, risk wise - I'd sure as hell want to know how that down payment was generated.

# ? Mar 7, 2015 03:12

cowofwar: Jul 30, 2002; by Athanatos

The CHMC should drop it to $500k. The government should be helping out first time home buyers, not luxury home upgrades.

# ? Mar 7, 2015 03:52

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# ? May 24, 2024 12:08

Rime: Nov 2, 2011; by Games Forum

cowofwar posted:

The CHMC should drop it to $500k. The government should be helping out first time home buyers, not luxury home upgrades.

Nah, drop it to $300k. :kheldragar:

# ? Mar 7, 2015 04:31

The Something Awful Forums > Discussion > Debate & Discussion > Canada Housing/Debt: Trust me, I'm a landlord.

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