Comments on: New Mortgage Rules For Canadians Starting April 19th 2010 http://wheredoesallmymoneygo.com/new-mortgage-rules-for-canadians-starting-april-19th-2010/ A personal finance blog written by Preet Banerjee Thu, 24 May 2012 10:29:13 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Erik Raymond http://wheredoesallmymoneygo.com/new-mortgage-rules-for-canadians-starting-april-19th-2010/#comment-1414 Erik Raymond Tue, 30 Mar 2010 12:17:26 +0000 http://www.wheredoesallmymoneygo.com/?p=1688#comment-1414 #3 I think will cause a lot of problems with new-home-owners, I understand that it might be a ploy to get rid of house flippers and leasers that have swarmed the market the past 20 some odd years. These type of home owners are causing all kinds of problems with the market (not to offend anyone here) but taking a house off the market that was worth $100,000 and flipping it to a grand total $400,000 in a few short months or renting it is all fine and dandy, but then potential new-home-owners get discouraged from buying anything. Now that rule #3 is in play starting next month, you'll see a lot of people renting and a lot of overprice real-estate not selling. At the end of the day, the loan companies will get their money but they will loose hundreds of thousands of new clients #3 I think will cause a lot of problems with new-home-owners, I understand that it might be a ploy to get rid of house flippers and leasers that have swarmed the market the past 20 some odd years. These type of home owners are causing all kinds of problems with the market (not to offend anyone here) but taking a house off the market that was worth $100,000 and flipping it to a grand total $400,000 in a few short months or renting it is all fine and dandy, but then potential new-home-owners get discouraged from buying anything. Now that rule #3 is in play starting next month, you’ll see a lot of people renting and a lot of overprice real-estate not selling. At the end of the day, the loan companies will get their money but they will loose hundreds of thousands of new clients

]]> By: Just me... http://wheredoesallmymoneygo.com/new-mortgage-rules-for-canadians-starting-april-19th-2010/#comment-1413 Just me... Wed, 24 Mar 2010 00:27:40 +0000 http://www.wheredoesallmymoneygo.com/?p=1688#comment-1413 I agree that tend to bite off more than they can chew and choosing a variable mortgage can be a bad choice if you're on a fixed income. That's why I agree with #1 and #2 above. I don't agree with #3 though. I've been paying $500+ rent to a landlord for over 15 years and have been working at the same location for over 9 years. I have the ability to pay for a roof over my head and have been paying for many years. I'm not looking for a variable mortgage and would prefer to have fixed that I know I can afford the mortgage payment. I don't like risk anymore than the lenders. I'm not looking for a big mortgage or an expensive house. I'm talking $100,000 to $125,000 here which is peanuts compared to most mortgages. Being on a fixed income though means that although I pay for my rent, bills, food, etc for day to day living, I don't have the ability to save $20,000. So I ask, am I really a huge risk to lenders just because I don't have the ability to save $20,000? I agree with risk management, but I feel that sometimes they go too far. I agree that tend to bite off more than they can chew and choosing a variable mortgage can be a bad choice if you’re on a fixed income.

That’s why I agree with #1 and #2 above.

I don’t agree with #3 though. I’ve been paying $500+ rent to a landlord for over 15 years and have been working at the same location for over 9 years. I have the ability to pay for a roof over my head and have been paying for many years. I’m not looking for a variable mortgage and would prefer to have fixed that I know I can afford the mortgage payment. I don’t like risk anymore than the lenders.

I’m not looking for a big mortgage or an expensive house. I’m talking $100,000 to $125,000 here which is peanuts compared to most mortgages.

Being on a fixed income though means that although I pay for my rent, bills, food, etc for day to day living, I don’t have the ability to save $20,000.

So I ask, am I really a huge risk to lenders just because I don’t have the ability to save $20,000?

I agree with risk management, but I feel that sometimes they go too far.

]]> By: 786 http://wheredoesallmymoneygo.com/new-mortgage-rules-for-canadians-starting-april-19th-2010/#comment-1412 786 Thu, 18 Mar 2010 03:07:21 +0000 http://www.wheredoesallmymoneygo.com/?p=1688#comment-1412 As per Jim in #3 "Mortgages for homes in which the borrower will not occupy will now require a 20% down payment. It was 5% previously." so, i own a house and i am living in there. i also booked a brand new house last August year 2009 for which i will get the possession in march 2011. i m kinda stuck here cuz i already gave away 20G's for the booking. where does that lead me, do i have to pay 20% as well, i dont want to sell my current house, i want to rent it out... or It doesnt apply to me because it says "IN WHICH THE BORROWER WILL NOT OCCUPY"..... SO what if i live in the new house and rent out the old one..... really confused... anyone in the same boat As per Jim in #3 “Mortgages for homes in which the borrower will not occupy will now require a 20% down payment. It was 5% previously.”

so, i own a house and i am living in there. i also booked a brand new house last August year 2009 for which i will get the possession in march 2011. i m kinda stuck here cuz i already gave away 20G’s for the booking. where does that lead me, do i have to pay 20% as well, i dont want to sell my current house, i want to rent it out…
or
It doesnt apply to me because it says “IN WHICH THE BORROWER WILL NOT OCCUPY”….. SO what if i live in the new house and rent out the old one….. really confused… anyone in the same boat

]]> By: Bob M http://wheredoesallmymoneygo.com/new-mortgage-rules-for-canadians-starting-april-19th-2010/#comment-1411 Bob M Fri, 05 Mar 2010 05:58:13 +0000 http://www.wheredoesallmymoneygo.com/?p=1688#comment-1411 Dear Mr Banerjee, Please could you let readers including myself know of any additional small changes in the Canadian mortgage laws in April 2010? Specifically, one question has come up: I was told that there was a specific (lower) down payment required, if one already lives in a house (as a leaseholder for example) and elects to purchase that house. Any advice and information on this question or other minor changes affecting personal buyers would be very appreciated. Bob Dear Mr Banerjee,

Please could you let readers including myself know of any additional small changes in the Canadian mortgage laws in April 2010?

Specifically, one question has come up: I was told that there was a specific (lower) down payment required, if one already lives in a house (as a leaseholder for example) and elects to purchase that house.

Any advice and information on this question or other minor changes affecting personal buyers would be very appreciated.

Bob

]]> By: Canadian Tax Filing Deadline – April 30 and Plutus Awards « Daily News http://wheredoesallmymoneygo.com/new-mortgage-rules-for-canadians-starting-april-19th-2010/#comment-1410 Canadian Tax Filing Deadline – April 30 and Plutus Awards « Daily News Sun, 28 Feb 2010 11:27:19 +0000 http://www.wheredoesallmymoneygo.com/?p=1688#comment-1410 [...] New Mortgage Rules For Canadians Starting April 19th 2010 : WhereDoesAllMyMoneyGo.com [...] [...] New Mortgage Rules For Canadians Starting April 19th 2010 : WhereDoesAllMyMoneyGo.com [...]

]]> By: Preet http://wheredoesallmymoneygo.com/new-mortgage-rules-for-canadians-starting-april-19th-2010/#comment-1409 Preet Mon, 22 Feb 2010 14:10:49 +0000 http://www.wheredoesallmymoneygo.com/?p=1688#comment-1409 @Jordan - yes, I do think we are in a housing bubble in areas of the country, notably Vancouver and Toronto. I think the real acid test will be the rising interest rates in the years to come. I'm not too worried about CMHC, as our system is a bit more fool-proof than the US in many respects, but I'm not altogether happy either! :) @Jordan – yes, I do think we are in a housing bubble in areas of the country, notably Vancouver and Toronto. I think the real acid test will be the rising interest rates in the years to come. I’m not too worried about CMHC, as our system is a bit more fool-proof than the US in many respects, but I’m not altogether happy either! :)

]]> By: The Rat http://wheredoesallmymoneygo.com/new-mortgage-rules-for-canadians-starting-april-19th-2010/#comment-1408 The Rat Sat, 20 Feb 2010 04:56:28 +0000 http://www.wheredoesallmymoneygo.com/?p=1688#comment-1408 I think one of the most notable changes that will impact investors is the new minimum down payment of 20%. This is a huge difference and it may entice investors to scramble and seal a few deals before April comes around. Nice thread. I think one of the most notable changes that will impact investors is the new minimum down payment of 20%. This is a huge difference and it may entice investors to scramble and seal a few deals before April comes around.

Nice thread.

]]> By: Jordan http://wheredoesallmymoneygo.com/new-mortgage-rules-for-canadians-starting-april-19th-2010/#comment-1407 Jordan Sat, 20 Feb 2010 04:03:16 +0000 http://www.wheredoesallmymoneygo.com/?p=1688#comment-1407 Hey Preet what do you think, is Canada in a housing bubble? I know in the Vancouver market housing costs 9x the avg annual income. How can the most expensive housing in the world not be in a bubble? Are you worried that the CMHC has more debt then the entire federal deficit? Doesn't it seem like we're following the exact same story as the US did a few years ago? Hey Preet what do you think, is Canada in a housing bubble? I know in the Vancouver market housing costs 9x the avg annual income. How can the most expensive housing in the world not be in a bubble?

Are you worried that the CMHC has more debt then the entire federal deficit? Doesn’t it seem like we’re following the exact same story as the US did a few years ago?

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