Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
No more 30 year amortizations in Canada
Old 06-20-2012, 10:07 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/
__________________

__________________
Frugalityisthenewblack is offline   Reply With Quote
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!

Old 06-20-2012, 10:15 PM   #2
Thinks s/he gets paid by the post
Lakewood90712's Avatar
 
Join Date: Jul 2005
Posts: 1,316
That is the way it should be , here in the US too.
__________________

__________________
Lakewood90712 is offline   Reply With Quote
Old 06-20-2012, 10:31 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.
__________________
Frugalityisthenewblack is offline   Reply With Quote
Old 06-20-2012, 11:12 PM   #4
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Quote:
Originally Posted by Lakewood90712 View Post
That is the way it should be , here in the US too.
Sure, you go first. Good luck buying into the Hawaii market.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 06-20-2012, 11:20 PM   #5
Thinks s/he gets paid by the post
Lakewood90712's Avatar
 
Join Date: Jul 2005
Posts: 1,316
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.
__________________
Lakewood90712 is offline   Reply With Quote
Old 06-20-2012, 11:25 PM   #6
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Quote:
Originally Posted by Lakewood90712 View Post
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...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 06-20-2012, 11:27 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,018
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!
__________________
Meadbh is offline   Reply With Quote
Old 06-21-2012, 02:27 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Nov 2005
Location: North of Montana
Posts: 2,753
Quote:
Originally Posted by Frugalityisthenewblack View Post
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).. .Ottawa tightening mortgage rules; no more 30-year amortizations - The Globe and Mail
I beg to differ, see my bolded text. While I like most of the proposals, you may have missed something. Read this part in your attached link.
Quote:
CIBC economist Benjamin Tal described the changes as a “gentle push,” since the government didn’t make alterations to the minimum downpayment required on mortgages, which stands at 5 per cent.
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
kumquat is offline   Reply With Quote
Old 06-21-2012, 08:33 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!
__________________
Frugalityisthenewblack is offline   Reply With Quote
Old 06-21-2012, 08:57 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.
__________________
kombat is offline   Reply With Quote
Old 06-21-2012, 09:02 AM   #11
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
Quote:
Originally Posted by Lakewood90712 View Post
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
Bestwifeever is offline   Reply With Quote
Old 06-21-2012, 09:07 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,977
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: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 06-22-2012, 07:45 AM   #13
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,544
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.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 06-23-2012, 06:07 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 ?
__________________
Cessna5354 is offline   Reply With Quote
Old 06-24-2012, 05:54 AM   #15
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,544
Quote:
Originally Posted by Cessna5354 View Post

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.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 06-24-2012, 06:50 AM   #16
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,465
Quote:
Originally Posted by Cessna5354 View Post
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.
__________________
MichaelB is offline   Reply With Quote
Old 06-24-2012, 07:44 AM   #17
Thinks s/he gets paid by the post
Huston55's Avatar
 
Join Date: Jul 2011
Location: The Bay Area
Posts: 1,802
Quote:
Originally Posted by Frugalityisthenewblack View Post
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 View Post
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.
Huston55 is online now   Reply With Quote
Old 06-27-2012, 06:58 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by Meadbh View Post
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.
__________________
clifp is offline   Reply With Quote
Old 06-27-2012, 07:04 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by Frugalityisthenewblack View Post
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.
__________________
clifp is offline   Reply With Quote
Old 06-27-2012, 07:13 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,610
30 years ago, and maybe still for all I know, 50 year mortgages were common in Germany.
__________________

__________________
Pas de lieu Rhône que nous.
braumeister is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 09:57 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.