|
|
No more 30 year amortizations in Canada
06-20-2012, 09:07 PM
|
#1
|
Recycles dryer sheets
Join Date: Dec 2008
Posts: 129
|
No more 30 year amortizations in Canada
The government is tightening rules for mortage lenders in Canada. No more 30 year amortization...and a minimum of 20 % down. (For government insured mortgages).. . http://www.theglobeandmail.com/repor...rticle4358876/
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
06-20-2012, 09:15 PM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 2,223
|
That is the way it should be , here in the US too.
|
|
|
06-20-2012, 09:31 PM
|
#3
|
Recycles dryer sheets
Join Date: Dec 2008
Posts: 129
|
I've always thought it funny--that we Canadians are seen as very liberal in many aspects....but our fiscal policies are more conservative than our neighbours to the south. It is curious.
|
|
|
06-20-2012, 10:12 PM
|
#4
|
Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
|
Quote:
Originally Posted by Lakewood90712
That is the way it should be , here in the US too.
|
Sure, you go first. Good luck buying into the Hawaii market.
__________________
*
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
|
|
|
06-20-2012, 10:20 PM
|
#5
|
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 2,223
|
Hey Nords , can you lend me say 100k or so , off the books, so I can get the down payment for that Maui condo I plan to retire to next year ? I'm good for it.
|
|
|
06-20-2012, 10:25 PM
|
#6
|
Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
|
Quote:
Originally Posted by Lakewood90712
Hey Nords , can you lend me say 100k or so , off the books, so I can get the down payment for that Maui condo I plan to retire to next year ? I'm good for it.
|
I still remember 40-year mortgages, and Fidelity's brokerage-financed mortgage service...
__________________
*
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
|
|
|
06-20-2012, 10:27 PM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
|
Last week I spoke with a Canadian who upgraded to a "bargain" holiday home in Hawaii for $750K. I gulped. Only someone who lives in Vancouver could think that $750K is cheap!
|
|
|
06-21-2012, 01:27 AM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Nov 2005
Location: North of Montana
Posts: 2,769
|
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
|
|
|
06-21-2012, 07:33 AM
|
#9
|
Recycles dryer sheets
Join Date: Dec 2008
Posts: 129
|
You're right kumquat....I should have stated a minimun refinancing at 80% Ottawa caps insured mortgages at 25 years - Business - CBC News
We might have a finance minister who looks like the comedian Nathan lane...but the politician is not joking around!
|
|
|
06-21-2012, 07:57 AM
|
#10
|
Full time employment: Posting here.
Join Date: Sep 2007
Posts: 514
|
Our government is desperately trying to gently ease down housing prices, in the hopes of avoiding a US-style crash, but many analysts believe that the die is cast and a crash is unavoidable, particularly in chronically-overheated markets like Vancouver and Toronto. Canadians' debt-to-income ratio is over 150%. The average home in Vancouver costs more than 8 times the average income of a Vancouverite. More condos are being built in Toronto than in New York. We're in for a rough ride, when this bubble eventually does pop.
|
|
|
06-21-2012, 08:02 AM
|
#11
|
Moderator Emeritus
Join Date: Sep 2007
Posts: 17,773
|
Quote:
Originally Posted by Lakewood90712
That is the way it should be , here in the US too.
|
The cool-the-housing-market horse left the US stable about five years ago:
Quote:
The moves are designed to cool the housing market and limit the record levels of personal debt Canadians have amassed in recent years.
|
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
|
|
|
06-21-2012, 08:07 AM
|
#12
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,200
|
Interesting development, but not that earthshaking capping mortgages at 25 years. Seems reasonable. I wonder how common 15 year mortgages are vs 30 years in the USA (I Googled but didn't find an answer)?
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
06-22-2012, 06:45 AM
|
#13
|
Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,299
|
Probably that is the wiser course to take, but I can't help but remember that after my divorce I got into a house in late '85 with a 5%-down FHA-insured loan. Perhaps I'm an outlier in that it was paid off in 14 years although admittedly the first two or three years were a struggle. Although I always kept a minimum of $2k in savings at one point my checking account had literally two cents in it.
__________________
When I was a kid I wanted to be older. This is not what I expected.
|
|
|
06-23-2012, 05:07 AM
|
#14
|
Recycles dryer sheets
Join Date: May 2012
Posts: 99
|
Used to be a great idea to finance an appreciating asset, but with home market on its head, no more.
Walt, I grew up in Weirton, are you close ?
|
|
|
06-24-2012, 04:54 AM
|
#15
|
Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,299
|
Quote:
Originally Posted by Cessna5354
Walt, I grew up in Weirton, are you close ?
|
Not even near. We live in the "other panhandle" composed of Morgan, Berkeley, and Jefferson counties. The locals call it the panhandle, I don't know why.
__________________
When I was a kid I wanted to be older. This is not what I expected.
|
|
|
06-24-2012, 05:50 AM
|
#16
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,580
|
Quote:
Originally Posted by Cessna5354
Walt, I grew up in Weirton, are you close ?
|
That's where most of my family are from, and still have lots of relatives in the area.
|
|
|
06-24-2012, 06:44 AM
|
#17
|
Thinks s/he gets paid by the post
Join Date: Jul 2011
Location: The Bay Area
Posts: 2,736
|
Quote:
Originally Posted by Frugalityisthenewblack
I've always thought it funny--that we Canadians are seen as very liberal in many aspects....but our fiscal policies are more conservative than our neighbours to the south. It is curious.
|
Quote:
Originally Posted by kombat
Our government is desperately trying to gently ease down housing prices, in the hopes of avoiding a US-style crash, but many analysts believe that the die is cast and a crash is unavoidable, particularly in chronically-overheated markets like Vancouver and Toronto. Canadians' debt-to-income ratio is over 150%. The average home in Vancouver costs more than 8 times the average income of a Vancouverite. More condos are being built in Toronto than in New York. We're in for a rough ride, when this bubble eventually does pop.
|
Policies maybe but, evidently, individual behavior not so much. US personal debt/income peaked at about 130%, whereas Canadian personal debt/income is peaking ~150%.
One thing that unnerves me In these discussions is the comparisons to Japan, which is not a happy slog if that's the path we end up taking.
Not to derail the thread but, what AA and investments would you all make now if you knew with certainty that the Japan-style path is where we're going?
__________________
You may be whatever you resolve to be.
100% x 10% > 10% x 100%
Small pensions & SS cover essentials
|
|
|
06-27-2012, 05:58 PM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
|
Quote:
Originally Posted by Meadbh
Last week I spoke with a Canadian who upgraded to a "bargain" holiday home in Hawaii for $750K. I gulped. Only someone who lives in Vancouver could think that $750K is cheap!
|
750K is bargain for both Vancouver and Hawaii.
|
|
|
06-27-2012, 06:04 PM
|
#19
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
|
Quote:
Originally Posted by Frugalityisthenewblack
I've always thought it funny--that we Canadians are seen as very liberal in many aspects....but our fiscal policies are more conservative than our neighbours to the south. It is curious.
|
Several years ago I read that Canadian banks were also more conservative than their American counterparts. On the other hand a few weeks ago I got an "opportunity" to invest in a Toronto commercial high-rise and I ran some numbers. I am no expert on commercial real estate and am clueless about Canadian RE, but the numbers looked pretty unattractive.
|
|
|
06-27-2012, 06:13 PM
|
#20
|
Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,198
|
30 years ago, and maybe still for all I know, 50 year mortgages were common in Germany.
__________________
I thought growing old would take longer.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|