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eyesthebye2
Real Estate Talker
Posts: 1206
Joined: Sun Jul 27, 2014 6:41 am

Re: Is the boom over?

Wed Mar 07, 2018 5:05 pm

are underwater 10% that can have real implications on your ability to refinance your property come renewal time


Actually, you won't have any problems renewing. You only qualify for the first mortgage - for the renewals, your mortgage holders simply send a you the paperwork to sign. No qualifying.
If you want to change banks that's a different matter.
You obviously have never held a mortgage
 
rofina
Real Estate Talker
Posts: 1550
Joined: Fri Feb 06, 2009 6:39 pm

Re: Is the boom over?

Thu Mar 08, 2018 10:23 am

eyesthebye2 wrote:
are underwater 10% that can have real implications on your ability to refinance your property come renewal time


Actually, you won't have any problems renewing. You only qualify for the first mortgage - for the renewals, your mortgage holders simply send a you the paperwork to sign. No qualifying.
If you want to change banks that's a different matter.
You obviously have never held a mortgage

I missed you eyes! Condescending as always! 
You wont have to pass the official stress test, if you resign with the current lender. If you change lenders, you do. 
If your lender views your position as higher risk upon renewal they get to choose under what terms, and rate they will renew your mortgage. This means a likely premium on the interest rate, and the ability to ask the homeowner for a "top up" of their mortgage to bring their ratios more inline with lending standards. 
All this means, as a leveraged buyer you are taking on inordinate amount of risk in this market. 
To be clear - if you're coming in with a hefty DP, can afford to hold for 10 years, I think the above is a moot.

If you're like most buyers today, borrowing DP's from Government or parents, using credit to meet monthly shortfalls, or relying on 3% interest rates for term of mortgage, that's a completely different scenario.  
 
eyesthebye2
Real Estate Talker
Posts: 1206
Joined: Sun Jul 27, 2014 6:41 am

Re: Is the boom over?

Thu Mar 08, 2018 11:25 am

rofina wrote:
eyesthebye2 wrote:
are underwater 10% that can have real implications on your ability to refinance your property come renewal time


Actually, you won't have any problems renewing. You only qualify for the first mortgage - for the renewals, your mortgage holders simply send a you the paperwork to sign. No qualifying.
If you want to change banks that's a different matter.
You obviously have never held a mortgage

I missed you eyes! Condescending as always! 
You wont have to pass the official stress test, if you resign with the current lender. If you change lenders, you do. 
If your lender views your position as higher risk upon renewal they get to choose under what terms, and rate they will renew your mortgage. This means a likely premium on the interest rate, and the ability to ask the homeowner for a "top up" of their mortgage to bring their ratios more inline with lending standards. 
All this means, as a leveraged buyer you are taking on inordinate amount of risk in this market. 
To be clear - if you're coming in with a hefty DP, can afford to hold for 10 years, I think the above is a moot.

If you're like most buyers today, borrowing DP's from Government or parents, using credit to meet monthly shortfalls, or relying on 3% interest rates for term of mortgage, that's a completely different scenario.  


if the market turns say 15 or 20% and you are underwater 10% that can have real implications on your ability to refinance your property come renewal time


Looks like you're backing off your original comments.
Someone has to check and balance the bullshit posts that are seen here.
 
rofina
Real Estate Talker
Posts: 1550
Joined: Fri Feb 06, 2009 6:39 pm

Re: Is the boom over?

Thu Mar 08, 2018 12:41 pm

eyesthebye2 wrote:
rofina wrote:
eyesthebye2 wrote:

Actually, you won't have any problems renewing. You only qualify for the first mortgage - for the renewals, your mortgage holders simply send a you the paperwork to sign. No qualifying.
If you want to change banks that's a different matter.
You obviously have never held a mortgage

I missed you eyes! Condescending as always! 
You wont have to pass the official stress test, if you resign with the current lender. If you change lenders, you do. 
If your lender views your position as higher risk upon renewal they get to choose under what terms, and rate they will renew your mortgage. This means a likely premium on the interest rate, and the ability to ask the homeowner for a "top up" of their mortgage to bring their ratios more inline with lending standards. 
All this means, as a leveraged buyer you are taking on inordinate amount of risk in this market. 
To be clear - if you're coming in with a hefty DP, can afford to hold for 10 years, I think the above is a moot.

If you're like most buyers today, borrowing DP's from Government or parents, using credit to meet monthly shortfalls, or relying on 3% interest rates for term of mortgage, that's a completely different scenario.  


if the market turns say 15 or 20% and you are underwater 10% that can have real implications on your ability to refinance your property come renewal time


Looks like you're backing off your original comments.
Someone has to check and balance  the bullshit posts that are seen here.

I also see your reading comprehension has not increased in the last decade. 

A correction has the potential to seriously impact buyers ability to renew their mortgages. Period. What exactly are you even arguing? 
 
reallyreal2
Real Estate Talker
Posts: 728
Joined: Fri Jun 03, 2016 11:30 am

Re: Is the boom over?

Thu Mar 08, 2018 12:48 pm

ETB just assumes that things will continue on like they have always.... 
 
eyesthebye2
Real Estate Talker
Posts: 1206
Joined: Sun Jul 27, 2014 6:41 am

Re: Is the boom over?

Thu Mar 08, 2018 8:30 pm

rofina wrote:
eyesthebye2 wrote:
rofina wrote:
I missed you eyes! Condescending as always! 
You wont have to pass the official stress test, if you resign with the current lender. If you change lenders, you do. 
If your lender views your position as higher risk upon renewal they get to choose under what terms, and rate they will renew your mortgage. This means a likely premium on the interest rate, and the ability to ask the homeowner for a "top up" of their mortgage to bring their ratios more inline with lending standards. 
All this means, as a leveraged buyer you are taking on inordinate amount of risk in this market. 
To be clear - if you're coming in with a hefty DP, can afford to hold for 10 years, I think the above is a moot.

If you're like most buyers today, borrowing DP's from Government or parents, using credit to meet monthly shortfalls, or relying on 3% interest rates for term of mortgage, that's a completely different scenario.  


if the market turns say 15 or 20% and you are underwater 10% that can have real implications on your ability to refinance your property come renewal time


Looks like you're backing off your original comments.
Someone has to check and balance  the bullshit posts that are seen here.

I also see your reading comprehension has not increased in the last decade. 

A correction has the potential to seriously impact buyers ability to renew their mortgages. Period. What exactly are you even arguing? 


My reading comprehension?
Why not learn the correct words?
"Renewing" is easy, sign the papers.
"Refinancing" might be difficult.
Do you know the difference between the two?
 
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SethM
Real Estate Talker
Posts: 1014
Joined: Thu May 27, 2010 3:32 pm

Re: Is the boom over?

Fri Mar 09, 2018 1:45 am

reallyreal2 wrote:
ETB just assumes that things will continue on like they have always.... 

Had to edit this post because eyes is right! But is rude.
Last edited by SethM on Sun Mar 11, 2018 3:17 pm, edited 1 time in total.
 
rofina
Real Estate Talker
Posts: 1550
Joined: Fri Feb 06, 2009 6:39 pm

Re: Is the boom over?

Fri Mar 09, 2018 7:57 am

eyesthebye2 wrote:
rofina wrote:
eyesthebye2 wrote:



Looks like you're backing off your original comments.
Someone has to check and balance  the bullshit posts that are seen here.

I also see your reading comprehension has not increased in the last decade. 

A correction has the potential to seriously impact buyers ability to renew their mortgages. Period. What exactly are you even arguing? 


My reading comprehension?
Why not learn the correct words?
"Renewing" is easy, sign the papers.
"Refinancing" might be difficult.
Do you know the difference between the two?

Renewing is easier only in the process sense. No need to get T4's and pay stubs, etc. If that's what were talking about, you're correct.
Renewing can now become an issue for various reasons though; 
  1. You will not get to choose a lender, you have to renew with same.
  2. If your lender declares your financial situation precarious, they will give you a sub-prime rate to compensate for risk. You have no bargaining chips.
  3. If you're underwater, they can require a cash infusion, in addition to #2.
  4. Don't like any of the above? Then you need to stress test to refinance with a new lender, which will be even more onerous.
Eyes - you need to relax. Not everyone is trying to attack you, and you don't need be grand standing prick every time you reply. Sunny day, Friday, nice weekend ahead, enjoy life a little.  
 
User avatar
SethM
Real Estate Talker
Posts: 1014
Joined: Thu May 27, 2010 3:32 pm

Re: Is the boom over?

Fri Mar 09, 2018 9:16 am

eyesthebye2 wrote:
rofina wrote:
eyesthebye2 wrote:



Looks like you're backing off your original comments.
Someone has to check and balance  the bullshit posts that are seen here.

I also see your reading comprehension has not increased in the last decade. 

A correction has the potential to seriously impact buyers ability to renew their mortgages. Period. What exactly are you even arguing? 


My reading comprehension?
Why not learn the correct words?
"Renewing" is easy, sign the papers.
"Refinancing" might be difficult.
Do you know the difference between the two?

Eyes is right. Renewals are easy.
Last edited by SethM on Sun Mar 11, 2018 3:16 pm, edited 1 time in total.
 
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thompson2
Real Estate Talker
Posts: 317
Joined: Fri Dec 13, 2013 6:37 pm

Re: Is the boom over?

Fri Mar 09, 2018 2:18 pm

Hi SethM, glad to see you around!!
Seems like you still have an unsettled issue with ETB?  :D
 
User avatar
SethM
Real Estate Talker
Posts: 1014
Joined: Thu May 27, 2010 3:32 pm

Re: Is the boom over?

Sun Mar 11, 2018 3:08 pm

thompson2 wrote:
Hi SethM, glad to see you around!!
Seems like you still have an unsettled issue with ETB?  :D

Hi Thompson! Great to see you around! The only issue I have with ETB is the rudeness and arrogance. I was only replying to someone else calling out his rudeness.
 
User avatar
SethM
Real Estate Talker
Posts: 1014
Joined: Thu May 27, 2010 3:32 pm

Re: Is the boom over?

Sun Mar 11, 2018 3:20 pm

eyesthebye2 wrote:
are underwater 10% that can have real implications on your ability to refinance your property come renewal time


Actually, you won't have any problems renewing. You only qualify for the first mortgage - for the renewals, your mortgage holders simply send a you the paperwork to sign. No qualifying.
If you want to change banks that's a different matter.
You obviously have never held a mortgage

My apologies to Eyes. Yes, he is right about this. Here is my conspiracy theory. The banks lobbied the government for tougher rules because they were losing too much business to monolines that were securitizing the mortgages allowing them to offer lower rates than balance sheet lenders.
With the new rules, the banks are better able to keep their renewals. And I am sure the renewal rates will not be competitive as a consequence.

https://globalnews.ca/news/3897942/new- ... ada-guide/

If you’re renewing your mortgage next year

Lenders don’t have to apply the stress test to clients renewing an existing mortgage.
This means that if you fail the stress test, you’ll probably get stuck renewing with your current financial institution, without being able to shop around for a better rate.

In some cases, “renewing borrowers may be forced to accept uncompetitive rates from their current lenders,” Dunning noted.

Eyes, my apologies for not reading your previous post.
 
jimtan
Real Estate Talker
Topic Author
Posts: 5470
Joined: Tue Jul 31, 2007 10:59 pm

Re: Is the boom over?

Sat Mar 17, 2018 1:08 pm

"These Charts Show Higher Canadian Rates Are Starting to Bite

... Mortgage interest payments rose 3.7 percent in the fourth quarter, the fastest pace since 2007, according to Statistics Canada data. That compares with 1.3 percent growth in disposable income over the same period. “We don’t think this is the end of the world but clearly it ate into fourth-quarter consumption, and is likely a headwind for now that may cause the BoC to pause," said Pearkes."

https://www.bloomberg.com/news/articles ... ng-to-bite
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SethM
Real Estate Talker
Posts: 1014
Joined: Thu May 27, 2010 3:32 pm

Re: Is the boom over?

Mon Mar 19, 2018 2:13 am

Thanks JT but I am seeing lots of strength still in the Vancouver real estate market. Let's wait  and see what happens once the NDP housing policies to filter through though. That's the elephant in the room. 
 
reallyreal2
Real Estate Talker
Posts: 728
Joined: Fri Jun 03, 2016 11:30 am

Re: Is the boom over?

Mon Mar 19, 2018 8:33 am

SethM wrote:
Thanks JT but I am seeing lots of strength still in the Vancouver real estate market. Let's wait  and see what happens once the NDP housing policies to filter through though. That's the elephant in the room. 

I follow N Burnaby quite closely - inventory is very low.  Lot of sold signs.  Not sure what prices are doing but I think buyers outnumber sellers.  Speaking to a realtor a few months ago - he said that there is essentially a cap on what people can afford because of financing rules but that hasn't stopped anybody.

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