Huh?

When the concept of shared equity mortgages burst upon the nation in the budget late Tuesday, some people flipped. “How on earth would this not have the effect of increasing the cost of housing?,” Joe asked me. “Eventually (or quickly) wouldn’t this just get factored into selling prices? If yes, there would be a net benefit of $0 to buyers, a substantial benefit to sellers, and the tax payer would be on the hook to guarantee an interest free loan via CMHC, correct?

“Frankly, this seems like madness rather than a “clever idea”. Am I missing something?”

Yes and no. On one hand, this is a fat nothingburger. On the other, it’s wicked scary.

First the facts. Here’s what we know about SEM.

It starts in September. The feds, through CHMC, will foot the bill for 5% of the mortgage on a resale purchase and 10% of the financing on a new home in a program costing  taxpayers about $1.25 billion over three years. Ottawa says this will turn 100,000 renters into mortgaged buyers which, for some reason, is considered a good thing.

But it’s seriously narrow in scope. Buyers must be first-timers, possess a 5% down payment, and have total  household income under $120,000. The kids still have to pass the 5.34% stress test, which means we’re talking about purchases in the $400,000 range.  The mortgage amount plus the shared-equity hunk cannot exceed four times the household income. Go see what that buys you in Toronto or Vancouver.

The portion of the mortgage footed by taxpayers is interest-free. No payments required. But when the property’s sold, the funds must be returned. If the house has risen in value the profit on that equity-shared mortgage is payable to the government. So the feds now have a stake in rising property values, which this program encourages. Can you say, ‘moral hazard’? If there’s a loss, taxpayers eat it. Mortgage guru Robert McLister calcs if the housing market tanked 20% and 120,000 people had used the program to buy $400,000 houses, the hit to us all might conceivably be $3 billion.

The savings for buyers are weensy – about a hundred bucks a month on a sub-$500,000 house. But the big thing is that by throwing free money on the table the feds make it possible for the moisters to qualify for bigger loans. That, says McLister, will allow buyers to go after a 4.8% more expensive resale house or a new condo costing an additional 10.2%.

Cue the scary part.

First, shared equity buyers qualify for bigger loans, allowing them to bid more and potentially jack up house prices, hurting everybody else and making real estate less affordable. Well done, Bill Morneau.

Second, the psych value here is huge. Moisters are into the sharing economy as no previous generation, and this plays perfectly to that meme. If the Libs are elected again this autumn, you can bet on an expansion of this program of public participation in private mortgages, leading to more demand.

(It was interesting that RBC economist Craig Wright called it “a solution looking for a problem.” When 70% of people own houses, why are we pushing more into them? This is political, he says, not policy-related “Demand will show up now, while supply will show up later, and in the near term prices could move higher so … you may make it less affordable to own a home.”)

Third, the share-equity thing comes hand-in-hand with new rules allowing a bigger raid on RRSPs for house-buying. Effective today a couple can take $70,000 from their retirement savings for a downpayment, and not pay it all back until 2037. Of course this is a further corruption of the RRSP concept, letting people remove funds from tax-free growth during the height of their working lives to dump into a single asset. Besides, it’ll cost taxpayers another $145 million.

To be fair, the shared-equity mortgage – in its current watery form – is probably less damaging to real estate than bringing back 30-year amortizations (which was widely anticipated). That would have been grabbed immediately by most borrowers who’d happily trade lower monthlies for more interest later. Myopia is us.

Well, there you have it.

We’ve crossed the Rubicon.

The government is buying houses for people with tax dollars.

Lavalin? What Lavalin?

166 comments ↓

#1 Penny Henny on 03.20.19 at 3:23 pm

Bitcoin, back over $4000. Just doesn’t want to die

#2 The Real Mark on 03.20.19 at 3:28 pm

I can totally see this program being subject to abuse, especially if there are significant changes in the value of housing. Losses may very well be exaggerated (and the real value paid through some sort of side deal), so as to cheat the government out of its equity. Gains may very well be deliberately minimized.

For example, a typical scenario is that when a house is bought or sold, the appliances associated with the house are also bought and sold. There’s nothing that fundamentally stops a transactor from selling a $500k house as a $250k house + a $250k refrigerator/stove/laundry set or gold coin collection, to effectively deprive the government of $12,500.

#3 When the Whip Comes Down on 03.20.19 at 3:32 pm

BC libs implemented a version of this in January 2017. It was expected to see participation of 42,000 applicants over 3 yrs. Only 3000 apps were received in the first year before they the NDP canned the program in 2018. More generous cap on price ($750,000) and matched contribution of up to 5 pct or the purchase price. Interest free for 5 yrs. No income cap on applicants like that under the proposed federal plan. Did basically nothing to increase prices in the market. Was looked at as a flop – bc residents didn’t enroll in it at the level thought.
Guess we’ll see what it does Canada wide. Looks like it may drive some speculators into Montreal…..

#4 Millions ... billions ... on 03.20.19 at 3:32 pm

what’s the difference anymore?

#5 Red_falcon on 03.20.19 at 3:37 pm

Stocks are the way to go! Dividends are good… yum yum. And… 2nd!!

#6 rates are going nowhere on 03.20.19 at 3:51 pm

Garth, the Fed has gone ultra dovish today. They’re obviously stuck. RE is boring. The money is in stocks. Thanks, JP

#7 LTL_FTC on 03.20.19 at 3:52 pm

Shouldn’t a gentleman named McLister be selling real estate and not mortgages?

#8 NEVER GIVE UP on 03.20.19 at 3:52 pm

Just another example of market distortion for election purposes.

What other frauds are we going to see before the election?

We in BC are shell shocked from Government market manipulation! Our young people look like the “Walkers” in “The Walking Dead”

#9 aerozone on 03.20.19 at 3:52 pm

Round up a selection of farmers, loggers, oilpatch service, office folks and engineers, some small business people and a few nurses, firemen and EMTs, some accountants from Saskatoon or Winnipeg, pay them a LOT of money and let them run the federal government from Calgary.

…problem solved…

#10 Arctic Gringo: Qalunaaq on 03.20.19 at 3:53 pm

He’s (T2) come undone…
He didn’t know what he was looking for…

…It IS too late.

#11 Shell Game on 03.20.19 at 3:53 pm

Nothing more than a political distraction that will have future negative consequences. What are they hiding for such a deception to be manipulated away from the greater issues at hand? Can you spell corruption at the highest levels of government?

#12 Governments Trying to "Game" the Market Never Works on 03.20.19 at 3:57 pm

OH – What a goose I am. Like I am going to believe a beauracrat or a politician when they say it will bring a good result for me and my family. What a load of hogwash. They only look after themselves, their families, their friends and supporters!

#13 Smartalox on 03.20.19 at 4:00 pm

I was concerned about the budget’s ‘Shared Equity Plan’ but the fact is that urban buyers are not the target demographic for this scheme.

I suspect that this scheme is geared towards northern and remote regions where decent housing is in short supply, and while people may have jobs, the capital required for building homes is scarce, while traditional financing (i.e.: from the big banks) is unlikely to be forthcoming.

This plan for federal government-backed ‘shared equity’ is intended to help create wealth and a culture of ownership and responsibility in communities where it may not have existed before.

Some in urban communities may also qualify for the program, but I expect that the qualifying criteria are restrictive for good reason.

#14 James on 03.20.19 at 4:01 pm

When Caesar crossed the river with his army he knew had committed treason against the Senate and sprung the Roman Civil War that would eventually end the Republic and give rise to the Roman Empire. So does this mean that Caesar should hold onto his home until next year? Does that mean my bronze asses and denarius and now going to become denarius aureus? Don’t sell Caesar and don’t finch hold tight but beware the Ides of March!

#15 Sprawl on 03.20.19 at 4:02 pm

So Canada isn’t Libya right ? It’s just dumb or bad timing, the Developer of Pickering’s Seaton, dropped prices $40,000 to under $500,000 a few months back. A North American largest, 40,000 townhouse development. Surely isn’t that important for the Feds to risk Budget secrecy. http://s220234876.t.en25.com/e/es?s=220234876&e=315534&elqTrackId=08a28ffe7a67483f80c9cad2328918d2&elq=be3a2bbe8e8d49e59bdad5904dc33988&elqaid=3607&elqat=1

#16 marcus on 03.20.19 at 4:07 pm

Canadians have lost their minds. Being a Globalist test bowl really sucks. Too bad they have no clue. A happy slave is a compliant slave.

#17 Jonathan on 03.20.19 at 4:08 pm

#3 When the Whip Comes Down

Yup came here to mention the same thing about the Christy Clark flop a few years back. I remember at the time of unveiling it was met with great fanfare and lots of high-fives all around with people proclaiming buy now or be priced out forever. Which, as history shows, turned out somewhat untrue (prices did go up but wasn’t driven primarily because of that program because of low participation/qualification).

It will indeed be interesting to see how this plays out across Canada, but at a max of $480k for a property, slim pickings in Vancouver and Toronto. On top of that you still need to be a first-time home buyer and assuming you inflated your income somehow to try to get the max grant amount of $480k.

I sincerely hope this is just a nothingburger like some said, just a marking slogan that sounds good and makes you feel good, but doesn’t derail the nice slow deflation of the market happening now (which I hope to continue, as it is not healthy for any of us).

#18 James on 03.20.19 at 4:10 pm

Lavalin? What Lavalin?
Great move by T2 to hold on to his crumbling little empire of Liberal cronies.
Pay no attention to that man behind the curtain!
Fall 2019 will tell if Canadians are dumb as a stump and easily distracted by shiny things.

#19 As Is Old Man on 03.20.19 at 4:18 pm

As has been noted, this program will only make affordability worse. It has been tried for decades (e.g. England, and in Australia in response to the 2008 crisis, etc.) More forms. More billion dollar databases no doubt. Who will bear the cost of administering this nonsense? Pathetic vote buying.

#20 Remembrancer on 03.20.19 at 4:18 pm

#2 The Real Mark on 03.20.19 at 3:28 pm

For example, a typical scenario is that when a house is bought or sold, the appliances associated with the house are also bought and sold. There’s nothing that fundamentally stops a transactor from selling a $500k house as a $250k house + a $250k refrigerator/stove/laundry set or gold coin collection, to effectively deprive the government of $12,500.
——————————————————
Double huh?? Guess I need to reread the program description again. You’re saying its actually a 10% equity stake in perpetuity, not a $50,000 interest free loan? So if prices go uppa uppa, say 20% from that $500K purchase, the guberment gets $60,000 at time of sale??

#21 Leo Kolivakis on 03.20.19 at 4:25 pm

I was talking about this with a friend last night. We noted the CMHC is backing this up and it’s a dead giveaway to Millennials, but more importantly we both agreed it’s a bit of a desperate attempt to reflate the real estate market. We also said if Canadians weren’t able to save enough through their TFSAs to put a decent down payment on a home (decent for us is 25% of total), maybe they shouldn’t be buying one. My friend thinks it’s ok to take money out of your RRSP to put to a down payment if done prudently, I’m far less enamored by this proposal even if I understand his viewpoint. Think most Canadians retiring on next to nothing should never take money out of their RRSP, it will hurt them over the long run.

#22 Wahlberg on 03.20.19 at 4:32 pm

In yesterday’s article you suggested in joining the Yellow Vest Canada movement.

Paul Fromm, Wolves of Odin, Canadian Infidels and European Defender have taken over the Yellow Vest movement, and are more fixated on the genocide of Muslims and Jewish people, labelling all Jews as part of a conspiracy of “globalists” (one Yellow Vest member threatened to murder Justin Trudeau and a Jewish political ally), reducing immigration and using Indigenous peoples as a justification that Canada should be “European”.

Please don’t mix with that crowd. They have hate, vitriol and will likely be on the RCMP radar for their genocide propaganda post-Christchurch.

The day you take me literally, the joke is on you. – Garth

#23 Willy H on 03.20.19 at 4:37 pm

Was this blog post supposed to be for April 1st?

Cannot believe what I am reading!

#24 Frank Castello on 03.20.19 at 4:39 pm

So much for higher interest rates. The 10 year, 30 year Canada bond benchmarks are 1.67%, 1.98%.

When will they are rise, 10, 11 years now wince 2008, 5% bond and GIC rates are gone forever. What a bunch of liars the media is.

Silly conclusion. Central banks have altered the course of monetary policy because of economic data. The media has nothing to do with it. – Garth

#25 Bob on 03.20.19 at 4:47 pm

We used to be a rugged people in a rugged country….
…no longer.

That tide went out about 30 years ago..

#26 Howard on 03.20.19 at 4:56 pm

#22 Wahlberg on 03.20.19 at 4:32 pm

Nobody has “taken over” the Gilet Jaune movement and it is unfair for you to judge the millions of overtaxed fed-up working class French based on a minuscule number of fringe activists attempting (and failing) to hijack it.

Btw, reducing immigration would be a rational response to chronically stagnant wages and a housing crisis. You must be lucky enough to be untouched by either of those two issues.

#27 Buying In Toronto on 03.20.19 at 4:59 pm

Forget it because the GTA is a turkey well done and cooked. Here is something to think about carefully before you buy. The cheaper the price has present and future consequences of asset value. You get what you pay for, and who needs to be holding the bag forever. One has to pay a great deal more for a quality residence that most cannot afford.

#28 Howard on 03.20.19 at 5:00 pm

I’d dearly like to lay this at the feet of Eau bros (Trud & Morn) below average IQs. However I cannot in all honesty say that the Conservatives wouldn’t have unveiled a similar scheme/scam. Bernier’s the only one who might tell the realtor cartel to go suck an egg.

#29 BlogDog123 on 03.20.19 at 5:02 pm

I guess rental properties aren’t sexy enough for a budget.

Howabout instead of subsidizing their house purchases, or making it easier to bid higher-and-higher on a house, they remove all sorts of barriers and red tape to building multi-unit rentals. The more rentals available helps everyone up the food chain (lowering rental rates and keeping some from foolishly buying homes in a tight rental market)… hmmmm this doesn’t buy votes.

#30 mj on 03.20.19 at 5:07 pm

if this takes place in September, and we have an election in October. Hopefully the liberals will be out, then I’m sure the next government will get rid of it.

#31 Smoking Man on 03.20.19 at 5:10 pm

So as we enter the spring market this policy will make the demand sit on the sidelines till Sept.

What’s that going to do to supply and demand.

Get out of the way. Big Crash around the corner. Till sept anyway.

#32 One Got It on 03.20.19 at 5:12 pm

Seems someone predicted the 10% increase in prices because of the shared equity program that is outlined in this post.
——–

#25 Again and again on 03.19.19 at 5:33 pm
No need to fiddle with the stress test when you have shared equity mortgages that just juiced the market prices by 10%! Oh my, patient and prudent bears just got hopped again. For the 11th year in a row. Ground hog day all over again with this market. Spring is gonna rock for the market! As was predicted here so many times recently. Funny how no one is talking about these stimulative measures
——–
Don’t get too excited. Income and pricing caps on this program, and the equity share is just 5% on resales. – Garth

Read my comment above. Stands. – Garth

#33 You know on 03.20.19 at 5:17 pm

I say we vote to share the government give all parties equal term to govern say 2 years each then out you go bringing the next GUMMERMENT… pass the juicy fruit please!!

#34 Blacksheep on 03.20.19 at 5:19 pm

“So the feds now have a stake in rising property values, which this program encourages. Can you say, ‘moral hazard’? If there’s a loss, taxpayers eat it”

“First, shared equity buyers qualify for bigger loans, allowing them to bid more and potentially jack up house prices, hurting everybody else and making real estate less affordable.”

“If the Libs are elected again this autumn, you can bet on an expansion of this program of public participation in private mortgages, leading to more demand”
————————————————————
I have long been advocating aligning one investment interests, with those of the systems, but I was of course speaking, metaphorically.

It’s not the scale of the $ commitment by system that’s telling, it’s the fact that young adults, with decades of future voting influence ahead of them and the system, would now share a common financial interest, that’s almost unbelievable.

This is not going to affect the core of Van much, (TO?) but come on out to the Valley where some apartments can be purchased starting at about 200K and watch what happens to RE values.

“Well we’re movin on up,
To the east side.
To a deluxe apartment in the sky.”

“Movin on up
To the east side.
We finally got a piece of the pie.”

#35 Re-Cowtown on 03.20.19 at 5:20 pm

Prices are dropping in 75% of the markets. Although Millenials as a group are mathematically illiterate (ask one to make change for a $50 at Starbucks and see a full blown ativan craving panic attack) they do understand fear of missing out (FOMO) and it’s flipside, fear of losing out (FOLO).

FOMO drove RE prices up.

FOLO will drive them down.

Nothing to do with math; just fear. People use math to rationalize and justify the decisions that they make based on fear.

T2’s new programs will accomplish sweet tweet but they will make all of his FOLO nightmares come true.

#36 AGuyInVancouver on 03.20.19 at 5:20 pm

If this kicks in September, who will be buying this Spring? Why is the CMHC even involved in this chicanery? Rather than push homebuying in a country that has one of the highest rates of home ownership in the world, they should get back into the business of providing affordable rentals. In Vancouver and Toronto it is no longer economically feasible for the private sector to deliver that anymore.

#37 Brian Ripley on 03.20.19 at 5:22 pm

On my Vancouver housing chart
http://www.chpc.biz/vancouver-housing.html

… I have noted the BC government’s cash helicopter drop on the chart and you can see the result; the strata market prices zoomed and SF detached prices sailed on a short lived speculation.

When the cash dropped was cut short, the spec and FOMO crowd immediately thinned.

Mr. Trudeau campaigned on Electoral Reform, but abandoned the promise after the election.

Instead of appealing to weak hands to get into a bubbly real estate market, Electoral Reform would have been a much better addition to the social contract.

#38 Mike on 03.20.19 at 5:23 pm

.
We want high house prices, and our HELOCS to grow
So, we want back drug money laundering
We want casinos to launder even more
We can’t afford housing prices going down

BRINK CRISTY CLARK BACK !!!! NOW !!!

BRINK CRISTY CLARK BACK !!!! NOW !!!

#39 Brett in Calgary on 03.20.19 at 5:25 pm

So what the Libs are saying is my wife has to lose her job for a while so we slide under 120k/year, then once we’re in the clear with our shared equity she can go back to work. This program is totally dumb, but so are the majority of folk in our beautiful country. No surprises.

#40 Wait There on 03.20.19 at 5:26 pm

On this shared equity plan. Has the government considered the effect of carrying costs to own a property.
What happens when a major repair needs to happen?

What about condo special assessments. Some of these assessments could be high.

Complete moral hazard, and is in line with the thinking behind SNC. Wonder who thought this plan up? Another plan Just Not Ready.

#41 Linda on 03.20.19 at 5:28 pm

Based on the explanation, few people will be able to take advantage of this pre-election largesse. However, the concept that taxpayers should now actively aid people to acquire property by supplying an interest free loan in exchange for a share of the profits when & if said property is sold is definitely not what I want our government to spend our tax dollars on. First of all, how much is it going to cost to track any such deals? Or is that handy little tax form that is now required when selling property expected to be the stop gap measure that will ensure those funds are collected down the road? I can just imagine how well that will work, especially since the sellers may have forgotten (or hope the government will have forgotten) that that ‘loan’ must be paid back.

‘Helping’ Canadians to become mired in debt acquiring property they were unable to qualify for on their own & gambling that the property will rise in value, resulting in a nice profit when the property is sold is not the ‘good government’ that I expect as a taxpayer. Renting is not the same as being homeless or am I missing something here?

#42 Who's Next on 03.20.19 at 5:33 pm

Someone just left the Liberal caucus, and is sitting as an Independent. T2 doesn’t get along with women anymore, and he holds himself out being a feminist for us all. LOL

#43 Victoria Real Estate Update on 03.20.19 at 5:35 pm

Garth is all over it again.

Distraction before an election – perhaps the oldest trick in the democratic election book.

At most this could result in a (temporary) increase in lower-end transactions in some markets – as Garth has indicated. This bit of debt-building market manipulation can only affect the lower end.

It’s unlikely that this destructive move will have much of an effect on house prices at the higher end of markets through speculation – the way that 2015’s two rate drops did.

If any market advances result from the latest kick the can down the road move by Canadian policy makers – they will prove to be temporary. The end result will be negative as this will make the inevitable worse in Canada.

More debt only adds to Canada’s major debt and housing bubble problems.

And 200 years of world housing bubble history shows that it’s impossible to “manage” a housing bubble until “incomes catch up to house prices”.

The “it’s different here” crowd will keep dreaming that it’s different in Canada until Mr. Market proves it isn’t.

#44 tccontrarian on 03.20.19 at 5:49 pm

Question about “first-time buyer”:

If you’ve been a home owner in the past, but sold and rented for “X” years, do you ever qualify again?

I sold in 2015 and been renting ever since – not that I would be inclined to go-to-bed with the CMHC in this evil scheme, but wondering just the same.

Anyone know?

TCC

#45 Dolce Vita on 03.20.19 at 5:50 pm

RateSpy got it right today with their 1 Twitter hashtag conclusion about SEM:

#PolicyDud

Besides, we’ll be in recession or very slow growth by September. The Libs well get blamed for that and lose the election.

Never mind their current #snclavalin woes and the soon to come gong show in August:

#admiralnorman

And on that note,

#Buonanotte @garthturner.

#46 The Wet One on 03.20.19 at 5:51 pm

I’m none too impressed by this stupid program.

But then when the alternatives are Mr. Can’t be Bothered to Not Share A Stage With Avowed White Supremacist Without Denouncing Them Scheer or Mr. Can’t Name Muslims As Targets Or Victims of NZ Homicidal Maniac Scheer, is the alternative (i.e. threats to my and my family’s personal well-being and continued survival won’t automatically be denounced by Scheer), well…

I’m left with Trudeau and Singh as options. Bernier is obviously out given that he’s practically a declared white supremacist.

Maybe it’s time to vote Green. I like the environment and I’d like my daughter to be able to enjoy it someday when she can walk and talk.

Lordy.

At least I have this many choices.

Americans have two. And both of them are, so far as I can tell, far fouler than anything we have on offer.

So there’s that much to be thankful for.

Yay me!

:-/

#47 Sail away on 03.20.19 at 5:52 pm

Why the discrimination against the rich in the new budget? Here are some highlights:

• There’s a $5,000 incentive to buy a hokey second-rate electric or hydrogen car, but anything over $45,000, including the most technologically advanced Teslas, are excluded. Are expensive electric vehicles somehow less good for the environment?

• The worker training benefit is only applicable to those making less than $150k salary. Don’t we want well-trained senior professionals as well?

• Interest-free CMHC homebuyer equity donation is only available to those making less than $120k salary.

The injustice of it all. No wonder the wealthy exploit tax loopholes.

#48 Shawn Allen on 03.20.19 at 5:55 pm

What’s Next Government Equity in Your RRSP!

That would be like if your RRSP doubles, the government’s tax take when you cash out would double.

Oh wait, that is exactly how it works today. The government effectively funds a share of your RRSP equal to the tax deduction.

In a 50% tax bracket, the tax refund effectively funded 50% of “your” RRSP.

And upon withdrawal the government takes back a share equal to your marginal tax rate which could (in theory) range all the way from zero percent to probably over 60% counting the clawback.

If you make an extra dollar in “your” RRSP, the amount going to the government rises by whatever will be your marginal tax rate upon retirement.

The government has always been a silent equity partner in “our” RRSPs. Now they want in on houses too.

On a proper net worth statement the dollars in an RRSP HAVE to be reduced by your expected marginal tax rate. You’re poorer than you thought. No one shows that reduction but it is the only way to make an RRSP dollar comparable to actual cash or dollars in a TFSA.

#49 Dedication Song on 03.20.19 at 6:00 pm

I cannot understand for the life of me why Members in Parliament are calling the PM a fake feminist.

https://www.youtube.com/watch?v=w700qJE2exY

#50 The Wet One on 03.20.19 at 6:07 pm

BTW,

Related to yesterday’s post and the discussion of taxes, I gotta ask, what is a proper income tax rate (if we have one at all)?

For my part, I’m pretty sure that taxes here are too damned high. The top marginal rate threshold is too low in my view.

I was pretty fond of Alberta’s flat tax while it lasted, but that was only possible due to oil and gas royalties and was never going to last (which I knew years ago when the flat tax was introduced). I note that Kenney has no solution to this revenue problem and I’m pretty sure that all Albertans aren’t too fond of the idea of swinging the service cut axe to fix the issue. It’s not like the schools and hospitals that the NDP are building and / or renovating / repairing aren’t needed or wanted by the Alberta Public.

Were it up to me, I’d just cut everything to the bone and keep the tax rates the same. Kill off the federal deficit, hammer the debt some (same goes for the province). I’m a financial tyrant that way and more than willing to make Canadians and Albertans suffer to get the fiscal house in order. We’d live. Well most of us anyways. Some people would die without a doubt. But that’s fine. Government policy regularly involves people suffering and / or dying as a result of choices made. Hell, we used to no have healthcare and let people pay for what they could afford or die. We could do that again. That’d kill of the deficit in a snap and wipe out the debt in good order (10 – 20 years). And yes I’m serious about that. And people would drop like flies for lack of ability to pay for medical care. Hell our longevity would almost certainly drop, but mostly at the proper end of the stick (i.e. old people dying) where we spend most of the healthcare money. But old people are supposed to die. Not live forever as seem to futilely try to do with a huge portion of our healthcare dollars. Or do I have that wrong?

Needless to say, I’ll never be elected.

Which is just as well. I got better things to do. Like write on Garth’s blog.

:-)

#51 Lost in Abbotsford on 03.20.19 at 6:15 pm

“if the housing market tanked 20% and 120,000 people had used the program to buy $400,000 houses, the hit to us all might conceivably be $3 billion”

some people experience math differently:

10% * $400,000 * 20% = $8,000
$8,000 * 120,000 people = $960,000,000

Not exactly $3 billion.

#52 Dolce Vita on 03.20.19 at 6:15 pm

Philosophically, the Libs are acting stupidly and arbitrarily with their new budget spending measures.

Scheer today finally said something sensible, in as many words:

I’ll give you all this spending back in tax cuts.

Let the people decide what they want to do with their tax money.

What a novel and not bad idea if you ask me.

Whereas Pierre ought not to have let Junior read his office credenza copy of “The Prince” – Junior took the “Divine Right” parts a bit too seriously.

#53 Barb on 03.20.19 at 6:17 pm

The government listed on your mortgage document is sleeping with the enemy.

#54 The Real Mark on 03.20.19 at 6:29 pm

“On a proper net worth statement the dollars in an RRSP HAVE to be reduced by your expected marginal tax rate.”

Very true Shawn Allen. Additionally, I’d just add, there is a significant mis-estimation of marginal tax rates due to the plethora of benefits that are eliminated as income rises. For example, many provinces index their pharmacare benefits to personal income. Social housing, and even long-term care are often income-based. A low income person can often face marginal tax rates that are actually quite eye-popping, sometimes even 100% or more, if they are low-income and would otherwise just receive OAS/GIS.

That’s ostensibly why the Tories introduced the TFSA, to benefit those who would be caught in the trap of RRSPs. Unfortunately the TFSA has many flaws, namely that it provides a disproportionate tax benefit to those who are better investors. And provides no creditor protection, so its really not a true long-term equivalent to the RRSP/RPP/IPP for the entrepreneur types who may legitimately face the prospect of at least one bankruptcy due to business failure in their career.

“40 Wait There on 03.20.19 at 5:26 pm
On this shared equity plan. Has the government considered the effect of carrying costs to own a property.”

The assumption being made here is that the government won’t pay any of the costs, but will not charge rent on its partial ownership of the property. Given bubble pricing, certainly that’s not that unreasonable of a proposition since there are no economic returns on homeownership in the major Canadian cities at current pricing.

However, another big problem I just thought of, is what happens if a 90% homeowner makes a re-investment in the property? Does the government’s position remain at 10%, or is the homeowner allowed to dilute the government’s position through the re-investment? What if the re-investment is done with one’s own labour, what’s a reasonable amount of compensation to attribute to such? If someone who ordinarily works as a $200/hour engineer (for example) renovates his own home and bills his labour rate, that could really dilute the government’s position awfully fast.

#55 Penny Henny on 03.20.19 at 6:32 pm

To Shawn Allen, see comment 260 yesterday

#56 Nonplused on 03.20.19 at 6:32 pm

How did they come up with the numbers of 5% & 10%? Why 2 different numbers? Is there influence here from home builders? Did they do some sort of economic calculations that indicated 10% was the perfect number to solve the millennial housing crises? When they don’t have jobs? Why not 50%? Or is that the long term goal? Why not 100%? If the government is going to be owning 10% of the new houses, why stop there?

Oh well at least it’ll create a bunch of jobs to administer it. More government jobs doing things like tracking government programs is always good for the deficit, er, I mean economy.

Smells like more political pandering to me. And creeping socialism. Kind of sucks for all the kids that bought a house in the last couple of years though. How come they don’t qualify?

How come I don’t qualify? I don’t have a mortgage, but if I could get 10% of my house’s value from the government now and not have to pay it back until I sell, I could invest it! That would be sweet! I’d take a lot more than 10% if it was available under these terms.

And what’s next? Shared equity auto loans? Shared equity credit cards?

Also, if the government now owns 10% of these houses, are they responsible for 10% of the maintenance? Do you pay for the furnace repair and then submit a receipt for reimbursement?

This program, like most of the stuff this government has come up with, smells like turd. Any sort of program that targets such a narrow range of the population usually does.

The single biggest thing the government could do to lower the price of housing, especially new housing, is issue more building permits and relax zoning restrictions. Once that is done the price of housing will eventually fall towards the cost of construction. Once it reaches the cost of construction it does not make sense to interfere in the market with all kinds of programs, it is what it is and you can either afford it or you can’t.

#57 Reximus on 03.20.19 at 6:33 pm

I can’t see how this program would have any effect in most parts of Ontario…the price limits in it make most properties to not qualify.

This could make a difference in cheaper regions like the maritime provinces and encourage people to move out there and that would be a welcome thing I suppose

#58 reynolds531 on 03.20.19 at 6:35 pm

I think my tin foil hat is on too tight. Thoughts of the next steps…that look a lot like the USSR.

#59 gimme stuff on 03.20.19 at 6:35 pm

Also they are making sure baby boomers take CPP.

#60 Dolce Vita on 03.20.19 at 6:37 pm

#51 Lost in Abbotsford

“some people experience math differently…not exactly $3 billion”

Well, then there’s:

Close enough for Government work.

and, the Math author is probably a “2 Fer 1” SME down payment Liberal or does part time budget calculations for CBC The National.

#61 Penny Henny on 03.20.19 at 6:38 pm

“if the housing market tanked 20% and 120,000 people had used the program to buy $400,000 houses, the hit to us all might conceivably be $3 billion”
??????????????

Hit to us all?
I think only to those who took part in the program.
And only if they realized losses by completing a sale when the market dropped it’s pants 20%.
And wouldn’t those buyers/sellers still be hit with the same losses whether they were in this program or not?
So much drama.

#62 theoryAndPractice on 03.20.19 at 6:45 pm

#44 tccontrarian on 03.20.19 at 5:49 pm

‘first time buyer’ definition resets, under certain rules described here :

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/participate-home-buyers-plan.html#first-timehomebuyer

#63 catralph on 03.20.19 at 6:46 pm

Shared equity mortgages and increased RRSP withdrawals do nothing for potential purchasers in Toronto and should saddened potential sellers who were hoping for further price escalation which probably would have occurred with a lower stress test and 30 year amortization.

#64 Reximus on 03.20.19 at 6:48 pm

so if someone sold at a loss and the net proceeds were insufficient to pay the mortgage and the CMHC debt…who would get paid first…the bank or the govt?

#65 Remembrancer on 03.20.19 at 6:48 pm

#40 Wait There on 03.20.19 at 5:26 pm
#54 The Real Mark on 03.20.19 at 6:29 pm
et al

Jeez guys, isn’t it simply a interest free loan with a to yet be publicized repayment of principal or principle + % of appreciation upon sale? The rest is just semantics and pre-election fluffing… Mayhap you’re overthinking this not yet fully laid out first time home buyer at a certain income level repayable on sale GRANT a tad too much?

I shudder to think what the costs are to manage this over likely decades… The story should be how much will this cost to administer?

https://www.cbc.ca/news/business/budget-cmhc-home-buyers-1.5063204

#66 I Can't Even F'n See Lavalin Anymore! on 03.20.19 at 6:53 pm

Great distraction, Justin !

Four more years comin’ up……

#67 Penny Henny on 03.20.19 at 6:54 pm

Garth sometimes I think your blog is just a social experiment to see how much people over react when only given part of the story. Sort of like newspaper headlines.
I would advise all to get your ‘news’ from a variety of sources, some that agree with your viewpoint and some that don’t.
What a bunch of mamalouks.(endearing term for gullible people).

#68 confused on 03.20.19 at 6:57 pm

This will probably start in B.C. and then on to the ROC.

Now that the feds will own 5/10% of each of these homes, they will have ready-made housing for each surge in ‘irregular immigration’.

They own part of your home so why shouldn’t they occupy it as they see fit.

#69 Timmy on 03.20.19 at 6:57 pm

Why even write about this? Waste of time and won’t do anything to make housing more affordable it will just become factored into existing prices. Morneau is incompetent.

#70 RR on 03.20.19 at 7:02 pm

I couldn’t come up with a better vehicle to lure in more Greater Fools no matter how much if I tried!

Well played, feds.

#71 Shawn Allen on 03.20.19 at 7:08 pm

A Penny’s Worth of Taxes

#55 Penny Henny on 03.20.19 at 6:32 pm

To Shawn Allen, see comment 260 yesterday

****************************************
Yes, I saw where you and your wife can have $66,000 cashflow and pay very little income tax. $24k from RRSP

$10,000 withdrwaw from TFSA. (Which you say you will put back in, so why bother)

Other funds from dividends and investments much of it tax advantaged.

It’s a good plan for minimizing taxes.

Everyone’s situation is different.

Some will have far higher incomes in retirement and pay more tax.

I’ll pay in Alberta 30.5% on RRSP withdrawals. Unless my income is over about $96k and then it goes to 36%.

I suspect my marginal tax rate at time of contribution was generally over 35% so in the net my net contributions to the RRSP (net of refunds) will have grown tax free. No complaints.

#72 WUL on 03.20.19 at 7:14 pm

Alberta’s stark election choice on April 16 summed up nicely in one short article:

https://www.thebeaverton.com/2019/03/alberta-election-called-voters-face-stark-choice-between-environmental-devastation-and-environmental-devastation-with-slightly-better-schools/

#73 Long-Time Lurker on 03.20.19 at 7:20 pm

#272 Sail away on 03.20.19 at 3:11 pm
Such rare company here. So many 1%ers. And all so humbly modest.

Jeff Bezos and I have a combined net worth of $146,280,000,000 USD. To be honest, though, most of that is on Jeff’s side.

>Thinking of Jeff Bezos: In the early 90’s Bezos started Amazon in his garage and was selling books through the internet and mail order. I heard about it and thought, “This guy has a future?”

Steve Jobs started Apple in his garage, as well.

#74 Long-Time Lurker on 03.20.19 at 7:22 pm

>I’ve been wondering about this for a while now. Meme = fad. Right?

https://www.merriam-webster.com/dictionary/fad

fad noun (1)
‘fad
Definition of fad (Entry 1 of 2)
: a practice or interest followed for a time with exaggerated zeal : CRAZE

#75 Long-Time Lurker on 03.20.19 at 7:27 pm

>Zimbabwean hyperinflation…

https://www.theguardian.com/money/2016/may/14/zimbabwe-trillion-dollar-note-hyerinflation-investment

When the Zimbabwean dollar first came into existence in 1980 it had a similar value to the US dollar, writes Patrick Collinson. But by 2009, $1 was worth Z$2,621,984,228,675,650,147,435,579,309,984,228. The Bank of England worries if inflation in the UK goes over 2% a year; in Zimbabwe it hit 79.6 billion per cent…

…The country’s central bank could not even afford the paper on which to print its worthless trillion-dollar notes. President Mugabe issued edicts to ban price rises, of comedic value were it not for the devastation that hyperinflation wrought upon the people. The miserably low savings and incomes of the impoverished population were wiped out; shopkeepers would frequently double prices between the morning and afternoon, leaving workers’ pay almost valueless by the end of the day.

In 2009 the government scrapped the currency, leaving US dollars and South African rand as the main notes and coins in circulation. To this day, Zimbabwe still has no currency of its own, although the government last year offered to swap old deposit accounts into US dollars, giving savers $5 for each 175 quadrillion (175,000,000,000,000,000) Zimbabwean dollars.

In an extraordinary irony, Zimbabwe now suffers among the world’s worst deflation, currently at -2.3%.

#76 Nonsense on 03.20.19 at 7:30 pm

This shared equity mortgage is nonsense.
The purpose of the stress test was to stop millennials from borrowing from the Bank of Mom for a 20% down payment. But wait! Bill the Bozo has a solution! Borrow the money from CMHC instead! HUH? Exactly.

The gov’t should not be helping first time buyers to purchase their first home at nosebleed prices. Where is the logic in this? It’s sheer idiocy.

#77 Linda on 03.20.19 at 7:31 pm

#56 ‘Nonplused’ – building permits & zoning are municipal government, not federal. As for relaxing ‘the rules’, just try to build anything that the local residents don’t want in their neighborhood – low income housing, for example. NIMBY is definitely not a thing of the past.

#78 Corporation 12% tax on 03.20.19 at 7:32 pm

Castle guy from yesterday was dead on how to pay yourself if your in corporate. Hats off to him. I’m in same boat as him. I pay myself 30k per year. I pay corporate tax on on average 250k per year so 30k. I don’t pay into cpp I invest that money every quarter. We have 3 kids and wife makes 18k per year. We get about 1k from government for kids ect.. we live cheap. That’s the quickest way to become a 1%er

#79 not 1st on 03.20.19 at 7:33 pm

Garth how are the big 5 banks going to handle being on the title along with CMHC? Who gets the house when they moistures have to turn the keys in? Say you cant make a payment one month, who misses theirs the bank or CMHC? And in provinces where there is no default, its now the bank and the govt hounding you forever. This is the worst idea in the history of housing. Are millennials really that stupid?

#80 X on 03.20.19 at 7:37 pm

So the gov’t just juiced the lowest part of the RE market, saying they were helping the lowest earning families get into home ownership, yet, just made that markets valuations higher, thus just made RE more unaffordable for those who are least able to afford it.

Well done, Rich guy who has no idea how the sheep really live.

With any luck the Liberals get the boot, and the Cons eradicate that within a year.

No mention of the money going towards RE/tax circumvention in BC or Ont?

#81 Out Of Work CEO, Will Travel on 03.20.19 at 7:44 pm

As a renter in a major southern Ontario city, the property tax that is part of my rent that I pay is much higher than residential home owners. Why is it fair to baby and coddle home owners when it comes to tax? As a renter living in a tiny rental my environmental footprint is negligible. I use tiny amounts of hydro and water. The Liberals are supposed to be green; renting is green. Using less space to live is green and this proves the Liberals are playing at being green.

#82 expat on 03.20.19 at 7:59 pm

What we just witnessed with this stupid CMHC policy is this. A repeat of the financial crisis.

In 2004/05 in the US politicians pushed Fannie Mae and Freddie Mac into loosening loan provisions so poor folks could buy a house…..

Well. 4 years later Bear Stearns tipped when the CDO debacle blew up. Frediei MAc and Fannie Mae were nationalized and the bad loans buried in a trust.

What this really is – is a bunch of dismal scientists/economists sitting in a room and dreaming up a new pitch for an old tired policy which we clearly are repeating.

And here we sit

We know from history when politicians push people into homes who should be renting – it ends badly.

I honestly thought a recession was baked in for Canada.
It is now clearly moving into financial crisis and Depression…..

Why? Just drive through Timmy’s and read the nameplates on the truck and cars.

Jiffy Mortgage Brokers, JoJo’s dancing heat pumps, Mickie’s plumbing, Nine toothed Home renos.

Then we move to the government jobs connected to prosperous real estate…..

Crisis is a process not an event…

One Sunday night CBC is gonna have a live special as some bank or trust can’t make good.

Remember this – everything is connected…

#83 expat on 03.20.19 at 8:01 pm

Some folks are calling for 62 cent Cdn Dollar. After this clown group is finished I’d say that is the high forecast

#84 expat on 03.20.19 at 8:06 pm

60-90 billion in new debt in 3.5 years

#85 Thanks on 03.20.19 at 8:11 pm

Just a quick thanks to you Garth for a well laid out explanation of this. Best financial blog out there!!

#86 greyhound on 03.20.19 at 8:16 pm

Canadian economist David Rosenberg on Twitter: “The Canadian budget should have been labelled the “Justin Society”. No break for taxpayers (an understatement for those risk-takers paid in stock options) but lots of pre-election goodies for mortgage debtors, drug users (not cannabis!), seniors and the media. Buy your vote here!”

#87 yvr_lurker on 03.20.19 at 8:19 pm

I think that this shared equity idea with the Gov’t being involved in house purchases is ridiculous. Moreover, since 2010, after the crisis, the Gov’t has given what is now forgivable huge loans to PRIVATE companies (autos, bombardier etc…). PRIVATE citizen getting equity sharing from Gov’t and PRIVATE company getting free handouts. Both equally bad. Oh, but we are saving jobs…. and then the company decides a few years later to leave Ontario and shutter everything down anyway… No corporate bailouts either please…. let Mr. Market decide as Garth would say…
However, I am all in for taxing the *&**(*(& out of vacant homes in inner YVR, banning all foreign purchases of housing stock, and taxing flippers and speculators of all sorts so that they pay their fare share of tax. Go after big tax cheats in a serious way. Worldwide reporting of income for permanent residents identified and then taxed… no hideouts in panama, virgin islands, bermuda etc….

#88 The Real Mark on 03.20.19 at 8:27 pm

“Garth how are the big 5 banks going to handle being on the title along with CMHC? Who gets the house when they moistures have to turn the keys in?”

If there’s a mortgage, certainly the rights of the mortgage holders are senior to that of minority equity holders, ie: the GoC in this case.

Any disruption to the ordinary course of capital seniority, of course, would be devastating for the Canadian financial system’s financing of mortgages.

#89 Long-Time Lurker on 03.20.19 at 8:31 pm

>This goes along with the other Zimbabwean hyperinflation comment. I didn’t want to put too many comments up together. Also, Amazon ate Sears’ (catalog) breakfast, lunch, and dinner.

https://www.economicshelp.org/blog/390/inflation/hyper-inflation-in-zimbabwe/

Hyper Inflation in Zimbabwe
Tejvan Pettinger November 13, 2017 inflation

In 2008, Zimbabwe had the second highest incidence of hyperinflation on record. The estimated inflation rate for Nov 2008 was 79,600,000,000%

That is effectively a daily inflation rate of 98.0. Roughly every day, prices would double. It was also a time of real hardship and poverty, with an unemployment rate of close to 80% and a virtual breakdown in normal economic activity. The hyper-inflation was caused by printing money in response to a series of economic shocks…

…Solving hyperinflation

The government eventually stopped printing Zimbabwe dollars and normalised the practice of using the US dollar…

…Note printing money does nothing to increase Real output, Real GDP. It is a basic economic paradox that you can’t get richer by printing more money. But, it doesn’t stop people in desperate situations trying.

#90 Chopping Broccoli on 03.20.19 at 8:41 pm

If the Feds own a piece of the equity, do they pay a portion of the property taxes ?

#91 Smoking Man on 03.20.19 at 8:44 pm

T2 loses another female caucus member today.

The chicks are starting to figure out that he’s a mansplaner fake feminist. What else could go wrong?

#92 PeterfromCalgary on 03.20.19 at 9:03 pm

“If you can’t dazzle them with brilliance, baffle them with bullshit.”

― W.C. Fields

The Liberal Party of Canada which is a wholly owned subsidiary of SNC-Lavalin is trying to change the channel before the next election.

#93 Where's My Money Greedeau? on 03.20.19 at 9:20 pm

I’ve got a good one for you.
CRA sent me a tax package that was supposed to be based on my last 20 years of filing, which hasn’t changed, because I phoned them last year due to local Shoppers Drug Marts being out of General Tax packages.
So what do they send me, a tax package that has my only deduction omitted from both the form but the booklet.
How does that happen?
The CRA phone call center took 20 minutes to figure out why this happened, and still had no answer why!!!!!!
I’m now getting a general tax package sent to me, but, the CRA call center employee wanted to send TWO packages to me, even though he knew a Post Office and General Tax forms was a block from where I lived and I had the one that was sent to me to practice on.
This gov’t is abysmal, a hippo unto itself, spoiled by local interests.
Another scenario on how gov’t wastes your money: at one time I had a rental property for ONE year in the early 2000’s and claimed it, then for the next 10 years I was sent a floppy disk pertaining to rental properties, even though every year I told them in a phone call not to send them anymore since I no longer rented the place and was living in it and was assured by CRA that it would not be sent.
I have had to shred >10 floppy disks that I’m sure cost taxpayers $10,000’s to administer.
This gov’t is criminal, every dept. for themselves, to get the related funds to scam the taxpayer, that’s all. Doesn’t matter who is in the driver’s seat.
Look at your Prime Ministers, they are at the head of these scams!!!!!!
And if they don’t know about this, they are unfit to govern!

#94 Vampire Studies on 03.20.19 at 9:29 pm

2 Real Mark

“There’s nothing that fundamentally stops a transactor from selling a $500k house as a $250k house + a $250k refrigerator/stove/laundry set…”

I see a $245k cap gain on the appliances…..

#95 Doomsday prepper on 03.20.19 at 9:35 pm

If the clowns in Ottawa can’t even administer a payroll system I hardly think they will be organized enough to run a fiasco in the making.
It’s so sad. There really is no one worth voting for.
Every leader, every party… corrupt, lying, incompetent. So sad.

#96 WiseGuy on 03.20.19 at 9:38 pm

So let me understand this. If you take a 10% loan to buy that $400,000 house and then sell it to your brother for $1, then the government takes the loss?

Then you can buy it back for $2 and that erases the need to pay the government their share.

Obviously this could be disguised a lot easier 10 years down the road with a selling price of $400,000, so no red flags are raised.

#97 crossbordershopper on 03.20.19 at 9:40 pm

people laughed when i proposed this a year ago.
i said why stop here, have the government own all the houses, every single one of them, everything, we simply pay the money, rent or mortgage payments call it whatever, shared whatever to the government. in the end the government gives free houses to everyone, if you dont have money or are in a poor job you get a lousy house.
if you have a better job, no probem a nicer house for you, but we all dont own anything, the government controls everything.
i said that tough in cheek , but its started, in the end Canada will be weird place to live,
i have a huge problem with old people working and getting free money with the GIS and then still being able to work and not having to repay the GIS.
i have no idea whey anyone goes to work in canada, its a total joke of a leadership and a joke.
everyone in canada retired will be on social assistance via the GIS.

#98 Ace Goodheart on 03.20.19 at 9:50 pm

So a castle is being sold power of sale. An actual Canadian castle (I didn’t think we had such a thing).

No, it’s not really all that old. They actually finished it last year.

It does have turrets. And a draw bridge (but I think the bridge is fake). It has a moat with what look like lily pads (but you could really jump it if you took a good run, and it doesn’t look that deep – though some of those frogs look pretty threatening).

A few years back some folks decided to purchase, for about $3,000,000.00, a run down old house one one of Mississauga’s most famous roads, where a family member also lives. So we drove past about every six months or so, while the broken down old white board house was bulldozed, and gradually replaced with an actual castle, complete with copper rooftops, turrets, the above mentioned frog and lily pad filled moat, a fake draw bridge that doesn’t actually lift up, and lots and lots of ramparts.

This thing was massive. Upon completion, some very expensive looking German cars showed up and made the draw bridge and the long driveway behind it into their new home.

We never saw the owners. I was told they were involved in mortgages. Really high up on the ladder.

So a few weeks ago we noticed that the castle is now being sold power of sale.

This thing must be worth at least $10,000,0000.00 It is this massive stone structure, could probably withstand most French artillery from the 1700’s. Napoleon would have wasted his time on this thing with his grapeshot. Would have just bounced off, maybe scratched the paint on the deep set window frames a bit.

But seriously, who builds a $10 million dollar castle, with borrowed money and then can’t pay the mortgage?

Who does that?

Sometimes people surprise me.

Sometimes, they shock me.

Sometimes, they just downright frighten me.

And sometimes, they build a 10 million dollar castle with borrowed money, and then go into default on their mortgage.

Sheesh………….

#99 Al on 03.20.19 at 9:54 pm

A resale in Markham just jacked up the asking price despite having languished for over a year!

#100 theoryAndPractice on 03.20.19 at 9:55 pm

#90 Chopping Broccoli on 03.20.19 at 8:41 pm
If the Feds own a piece of the equity, do they pay a portion of the property taxes ?

Good point, that made me think the followings :
if they are in the business they must take on their fair share.

What about capital gains tax if the property is altered, put a new door and rented ? That 5% or 10% ownership of gov’t are they willing to pay the capital gains on the altered and rented piece of their share ? Will they tax themselves ? I think they should…

What about write offs for home based business ? How will they claim the % of the house ? Should it be the business owner in the premises must claim 10% or 5% less than the allowed amount if they used the ‘shared-equity mortgage’? It is not gov’t doing the business after all, but using taxpayers money to provide that 10% or 5% …

What about insurance? Gov’t will get free insurance for their part? or will they have to pay the piece of house insurance?

#101 Paul on 03.20.19 at 9:56 pm

#94 Vampire Studies on 03.20.19 at 9:29 pm
2 Real Mark

“There’s nothing that fundamentally stops a transactor from selling a $500k house as a $250k house + a $250k refrigerator/stove/laundry set…”

I see a $245k cap gain on the appliances…..
————————————————————————————————
There’s always a party pooper, lol

#102 Stupesing in Cabbagetown on 03.20.19 at 9:57 pm

At a time when almost two in five insolvency filings in Ontario now come from the millennial generation, our federal government put in place incentives for “moisters ” to acquire even more debt. Huh?

#103 Lana on 03.20.19 at 9:57 pm

So Garth,
Pretend you were the finance minister and tell us all what should be done. In your humble words, with no labeling or name calling. In your humble conservative opinion.
Lana

#104 crowdedelevatorfartz on 03.20.19 at 10:00 pm

@#16 James
“Does that mean my bronze asses and denarius and now going to become denarius aureus? ”

+++++

Interesting conundrum.
Perhaps if you look to the sky for answers you can answer this…
Is there an aura around Uranus?

#105 SoggyShorts on 03.20.19 at 10:04 pm

4 comments ↓
#1 Penny Henny on 03.20.19 at 3:23 pm
Bitcoin, back over $4000. Just doesn’t want to die

———————————-
#15 not too late on 11.05.17 at 1:39 pm
for people that feel it is too late to get in RE or TSX….

You have approximately one week left to ever buy bitcoin below cad$10k.
Pass on it now, and you will either not buy it ever, or pay more than that.

—————————-
Heheheeh

#106 crowdedelevatorfartz on 03.20.19 at 10:07 pm

@#91 Smoking Man
“The chicks are starting to figure out that he’s a mansplaner fake feminist. What else could go wrong?”

******

He realizes he has no caucus?

#107 yorkville renter on 03.20.19 at 10:18 pm

politically, Shared Equity is a good move.

I think people in big cities forget that $400K buys a great first time house in a lot of Canada. This move addresses people who were affected by the Stress Test but aren’t buying in the crazy markets.

This plan does ZILCH for Toronto and Vancouver. Markets pooched.

First-time buyer self-financed $35K loan? Yes, I like it.
I bet most first-time buyers don’t have $35K in an RRSP.

#108 dakkie on 03.20.19 at 10:20 pm

Risks of Financial Instability “Appear to Be Elevated But Contained”: Australia’s Central Bank on Housing Bust
http://www.investmentwatchblog.com/risks-of-financial-instability-appear-to-be-elevated-but-contained-australias-central-bank-on-housing-bust/

#109 Remembrancer on 03.20.19 at 10:25 pm

#74 Long-Time Lurker on 03.20.19 at 7:22 pm
Meme is a fad, right?
—————————————-
Nope, not the way you mean…

Meme:
an element of a culture or system of behavior that may be considered to be passed from one individual to another by nongenetic means, especially imitation.
a humorous image, video, piece of text, etc., that is copied (often with slight variations) and spread rapidly by Internet users.

#110 DON on 03.20.19 at 10:32 pm

#22 Wahlberg on 03.20.19 at 4:32 pm

In yesterday’s article you suggested in joining the Yellow Vest Canada movement.

Paul Fromm, Wolves of Odin, Canadian Infidels and European Defender have taken over the Yellow Vest movement, and are more fixated on the genocide of Muslims and Jewish people, labelling all Jews as part of a conspiracy of “globalists” (one Yellow Vest member threatened to murder Justin Trudeau and a Jewish political ally), reducing immigration and using Indigenous peoples as a justification that Canada should be “European”.

Please don’t mix with that crowd. They have hate, vitriol and will likely be on the RCMP radar for their genocide propaganda post-Christchurch.

The day you take me literally, the joke is on you. – Garth
******************

Oh Sh$t…I already ordered like over a million of the designer vests from Gucci. And I trusted you Garth.

#111 Mr Canada on 03.20.19 at 10:39 pm

This won’t end well for anyone —–

#112 Frances on 03.20.19 at 10:40 pm

Let’s not forget that there are lots of wealthy people out there who don’t technically have high incomes (house wives, wealthy college kids, early retirees etc.) but can still take advantage of this loophole. You want to buy your college-aged kids a GTA condo so they can make it to their downtown internship? The government will now kick in 5% on a resale condo and 10% on a new build! A great way to gift your kids 480k…they should be able to pay back the interest-free loan of 24 to 48k in 5 to 10 years when the condo rises in value anyway. Or they can air bnb the place while they take some time off to backpack Europe – a great family investment made possible by the Liberals!

#113 BlorgDorg on 03.20.19 at 11:07 pm

SEM is a (clever, but twisted) attempt to make the real estate market look as though it’s still doing well through the summer, until election time. This is all about masking the stats.

How? By specifically targeting new buyers and limiting the mortgage amount, SEM can only effectively be used in most major markets for condos. A bump in prices in the low-end will make the TREB Franken-HPI go up, and since that’s what the media love to parrot, the cartels can start quoting MoM price increases and “mission accomplished”.

Also historically, condos are the first housing class to pile up inventory at the beginning of a collapse. How many tens of thousands of new units are coming online in 2019? We can’t have inventory spiking or people will suspect what’s coming next. Instead, we can point to “an increase in sales” (which again, happen more at the lower end since the units are cheaper) and once again MISSION ACCOMPLISHED.

Someone please turn the FOMO machine back on. But just for like, 6 months. Until it runs out of FOMO.

#114 DON on 03.20.19 at 11:11 pm

#96 WiseGuy on 03.20.19 at 9:38 pm

So let me understand this. If you take a 10% loan to buy that $400,000 house and then sell it to your brother for $1, then the government takes the loss?

Then you can buy it back for $2 and that erases the need to pay the government their share.

Obviously this could be disguised a lot easier 10 years down the road with a selling price of $400,000, so no red flags are raised.
************

Dam it! I was just telling my first time buyer siblings to do just that. Another loop hole will be closed.

I wonder if you want to renovate will you have to consult with your new surrogate mom (the guberment)?

It obvious that the movie Idiocracy is coming true.

So rural and remote urban areas in the non trendy areas have all the high paying jobs that are required to attract first time buyers who can pass the stress test?

@ Penny Henny

This blog is more like a Port in a Storm. Balanced analysis in a sea of fake everything.

#115 DON on 03.20.19 at 11:15 pm

#104 crowdedelevatorfartz on 03.20.19 at 10:00 pm

@#16 James
“Does that mean my bronze asses and denarius and now going to become denarius aureus? ”

+++++

Interesting conundrum.
Perhaps if you look to the sky for answers you can answer this…
Is there an aura around Uranus?

***************8ball

Aha ha ha – nice one. Thanks for the laugh, #106 as well.

#116 T-Rev on 03.20.19 at 11:23 pm

Call me old fashioned, but WTF is the government doing handing out tax money to new home buyers interest free? That’s MY effing money, and I’d prefer it in my pocket where I can get a relatively stable return of 6-8% in a well balanced portfolio as opposed to helping some man-bun wearing hipster with hair on his face and none on his sack buy a place to bring his tinder dates home to that’s “all his”. Gag.

When I was a young man and couldn’t afford much house, know what I did? Took a good job in bad town out in the sticks where houses were cheap, men were men and the women were lonely, bought a one-bedroom 560 ft2 house (yes, houses come in that size in forgotten railroad towns), renovated it myself, worked my arse off at that job, and forswore every creature comfort known to man for years until I’d saved enough money to move up, on, and out of that place.

We’ve gone soft. I can’t keep up to the rate of pansy-fication I’m witnessing in the world around me anymore, and I’m still under 40. I can’t imagine what the older generations think when they see these nitwits eating a steady diet of government cheese and constantly whining for more between gulps at Trudeau’s teat.

#117 js on 03.20.19 at 11:29 pm

So if the program is called shared equity why does the government claim the profit by itself? Crazy!!!
But in the event of a loss, it’s the taxpayers money! How is that “reasonable” by any standard? Seems like a very convenient arrangement for the feds!

#118 Nonplused on 03.20.19 at 11:43 pm

#77 Linda

I am aware that zoning and permitting are municipal, but that is where the bottleneck is. Unless it really does cost so much to build a house now that nobody can afford it. But I don’t know, when I look around Calgary there seems to be a lot of land that is just growing hay.

#119 crowdedelevatorfartz on 03.20.19 at 11:59 pm

25.7 deg C in Squamish today……smashing all previous high temp records for Mar21st
Similar high record temps all over BC.
Another long hot burning summer awaits…

#120 Ronaldo on 03.21.19 at 12:15 am

#107 Yorkville renter

This plan does ZILCH for Toronto and Vancouver. Markets pooched.
——————————————————————-
Agree that there are lots of places in Canada where you can buy a nice place for under 400 grand. The only thing that will help Vancouver and Toronto is a 50% drop in prices. Even at that most people could not afford to buy there. Pooched for sure.

#121 Al on 03.21.19 at 12:20 am

A problem looking for a solution indeed. More public money transferred to private capital owners .

#122 WHere's My Money Greedeau? on 03.21.19 at 12:22 am

So here’s another one.
I ordered a portable Air Conditioner thru Costco.ca and was I surprised that they had it available in 3 days when I was originally told that it would be shipped minimum 4 to 10 business days. So Friday afternoon to Tuesday; product is no doubt in the Vancouver area.
Shipped via UPS; what a joke. Hate the a-holes at UPS call center, liars all the way!!!
I just moved (renting) and told them in 3 phone calls, even the day of delivery, that they had to keep it in their closest warehouse and I would pick it up because they couldn’t contact me at the front door (no names) unless they phoned me and I met them at the door, but no, they said they would be able to contact me, not by phone and the package would be delivered.
So they make me wait at my place ALL day just to send me 2 emails at the end of the day (contract states 3) stating that they could not contact me at my residence because they couldn’t find my name on the buzzer.
The effin’ scumbags then place the blame on me because they couldn’t contact me and make me go to their warehouse to get my package.
To top it off, the effin AC doesn’t work!!!!!!!!!!
So after 6 hours on the phone today I manage to get Costco to agree to send me another one even though I just wanted the manufacturer (Danby) to help run the AC properly, to no avail. What experts they are. And what org. would want to send a new one and incur that loss just because some front end call center person can’t figure it out from their fact sheet.
I never once spoke to anyone who had ANY credentials in appliance repair at Danby or Curtis, their parent nor Costco Concierge.
What the eff is wrong with this scenario.
So they then tell me that there is no more ACs in my model anymore, but with more investigation, I find that there is lots!, and they will be available in a week or so. So they tried to get me to accept their faulty product in the guise of not having any more of the same model available and it was all my fault trying to get this problem righted. They even took offence that I wanted to stay on the phone to get an answer to this problem, denying my consumer rights and expecting me to taker it deep.
Looks like the Fed. Liberals’ lies to me, and all gov’ts.
And they want to send the new one to me by UPS!!!!! I guess I have to just ignore the game and pick it up at the warehouse.
Maybe we should treat ALL big companies and gov’ts like they treat us; like shit and expect them to crawl back like little plebs.
And I used to l-l-l-love Costco.

#123 ShawnG in TO on 03.21.19 at 12:39 am

#4 Millions … billions … on 03.20.19 at 3:32 pm
> what’s the difference anymore?

a billion here, a billion there, soon it adds up to real money.
millions, who cares.

#124 Smoking Man on 03.21.19 at 1:29 am

The 4400. I might have had something to do with it.

God damn Nictonights.

#125 WUL on 03.21.19 at 1:50 am

My circadian rhythm is totally out of whack.

Turner’s fault.

Like totally.

It’s late here. I have not seen midnight in about 20 years. And here I am at 1:45 a.m. Hogtown Standard Time (HST).

The brilliance of the commenters here has me enthralled. I learned a lot tonight and had a lot of yucks.

Many thanks from the Great Plains and the Stampede City in the Valley of the Bow.

Turner, never close this comment section. If you do, lawyer up.

#126 Ronaldo on 03.21.19 at 1:50 am

I cannot see where this federal program for 1st time buyers could even apply in a place like Nanaimo for single family homes where a lot alone is valued at $250,000. What contractor is going to build a house valued at $230,000 in order to comply with the $480,000 cap? They would have to build a house that is 800 s.f. and that makes no sense whatsover.

Maybe what we will see instead is 1600 s.f. apartment condo’s starting at $480,000. For that family income would have to be $120,000. Currently you can purchase apartment condos here for around 300 s.f.

For incomes less than $120,000, lower square footages would apply. e.g. $100,000 you get 1200 s.f., $80,000 you get 1000 s.f., etc.

I don’t see single family homes being built here under this program. Property prices just too high.

#127 Robert Ash on 03.21.19 at 2:18 am

I am trying to Understand the Bond market, and frankly the logic and difficulties facing our Central Bankers.. The Concept of “Duration in the Bond Markets, is a complex one, but I think is the reason, the Central Bankers are hestitant to raise the Discount Rate. Raise the Discount rate even a quarter of one percent, and reduce the Yield on Bonds, ETF Bond Funds, … I was not able to find Duration calculations, for our current low coupon rate, market place… Can anyone comment. Thx

#128 Dolce Vita on 03.21.19 at 2:51 am

MP Celina Caesar-Chavannes quits the Liberal Caucus.

To be fair, she was not going to run in Whitby in the next election. I guess she had had enough of Mr. Feminist and his BS. Here he is, not so happy about it all (French speaking MSM ruthless in their questioning):

https://twitter.com/i/status/1108432342488674304

Yet, she was gracious about her exit (unlike the above):

https://twitter.com/i/status/1108464529925697537

———————————-

AND maybe an EARLY FEDERAL ELECTION call by the PM?

Michelle Rempel asking for donations today Mar. 21:

https://twitter.com/MichelleRempel/status/1108575035587911680

Who knows if it is rumor or truth?

———————————-

If I were the PM an early election may be the smart thing to do. Maybe he can eek out a Minority and seek NDP support (after all, the Lib platform was purloined from the NDP platform – unlikely they will vote down their own ideas).

In August he is facing an assured MSM frenzy and gong show with #admiralnorman, #LavScam will not go away, any support for his budget has been muted or received with criticism…and the bad news list just keeps going on.

Get it over with Justin. Bring it on.

Buona Mattina Garth.

#129 Gordon on 03.21.19 at 3:04 am

DELETED

#130 Dolce Vita on 03.21.19 at 3:12 am

Sorry Garth for the oversight and not including this in my last belated Comment:

SNC-Lavalin CEO said AT NO TIME DID HE MENTION Jobs or moving HQ:

https://twitter.com/i/status/1108479909880446977

Maybe somebody else did at SNC?

Well, now we know from where the “buck stops” that Butts, the PMO, Wernick, the PM, Morneau, et. al. may be summarized as:

LIARS. PANTS ON FIRE.

What @Puglaas had to put up with and could not talk about boggles the mind.

October cannot come soon enough.

——————————–

And here I was hoping for a quiet read this AM in recessione tecnica Italia – expel espresso lungo all over my PC screen instead.

#131 NEVER GIVE UP on 03.21.19 at 3:23 am

#98 Ace Goodheart on 03.20.19 at 9:50 pm
So a castle is being sold power of sale. An actual Canadian castle (I didn’t think we had such a thing).

=============================
Not sure in this case but a common scam in BC was to purchase a property and somehow get it valued at much more than they paid for it. The seller is in on the scam as well.
They borrow the max on the property, much more than the skin in the game and high tail it back to whatever country they came from or can hide in.

#132 adee on 03.21.19 at 3:42 am

at this point tbe government should just start a crown Corp to get into the residential development business. if people want to bid up the price of units the windfall goes to tbe government, and it can be used to build more housing or for general revenues. each complex could be spun off into its own home owners assoociation

#133 Ace Goodheart on 03.21.19 at 6:02 am

“This all started when the good ol’ boys at SNC-Lavalin were caught bribing and spending money on prostitutes, and then the Prime Minister and his good ol’ boys said to them, ‘Don’t worry, we’ll take care of it,’” Ms. Bergen said. “However, a woman, the former attorney-general, then said no to the good ol’ boys – and she was promptly fired and silenced.”

Candice Bergen and Michelle Rempel, MPs

Best. Comment. Ever…….

#134 Captain Uppa on 03.21.19 at 6:03 am

Yeah, no fishy business in GTA RE. Noooo, it’s all the locals’ fault for being dumb enough to want to own a home.

https://www.thestar.com/news/canada/2019/03/21/dirty-money-is-driving-up-toronto-real-estate-prices-report-says.html

Of course real estate values are our own fault. – Garth

#135 Gordon on 03.21.19 at 6:58 am

DELETED

#136 jess on 03.21.19 at 7:17 am

https://publicintegrity.org/environment/companies-polluted-western-waters-taxpayers-are-picking-up-the-tab/

The remnants of an abandoned gold and silver mine scar the Little Rocky Mountains just south of the Fort Belknap Indian Community in Montana, bleeding polluted orange water into streams that meander through the reservation. Warren Morin remembers drinking the once-pristine water while he was growing up in the 1970s. Now it’s so acidic it makes his skin burn and turn red on contact.”….

Pegasus Gold Corp., a Canadian company that owned that mine and several others in the state, went bankrupt and folded 20 years ago. That left a legacy of water pollution and a cleanup bill nearing $100 million — with no end in sight…

….”While Pegasus set money aside for reclamation as legally obligated, it proved to be tens of millions of dollars less than the bill so far. Taxpayers remain on the hook for the shortfall. Every year, the state spends up to $2 million to contain water pollution at Zortman-Landusky — on top of what the cleanup already cost.

“That site’s an example of where we and the industry just didn’t maintain our full responsibilities, so we’ve taken that one on the chin, rightfully so,” said Chris Dorrington, administrator of the Montana environment department’s Air, Energy and Mining Division.

#137 jess on 03.21.19 at 7:33 am

why even consider a next year?

At a police board meeting Wednesday, Larkin said police responded to 205 calls. Officers laid 514 charges, and 18 people were arrested. The majority of charges were for liquor-related offences. Last year, the police laid 495 charges.

Police said more officers will be needed next year to manage the party, which he said is “unlawful and unsafe.”

https://www.therecord.com/news-story/9231451-police-report-514-charges-18-arrests-at-st-patrick-s-day-bash-on-ezra-avenue-in-waterloo/

#138 Penny Henny on 03.21.19 at 7:42 am

“The Real Estate Commission Ripoff”

https://fattailedandhappy.com/the-real-estate-commission-ripoff/?utm_source=Daily+AR&utm_campaign=b040354301-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_c08a59015d-b040354301-144097405

A good read, suggests that sellers pay for their agent and buyers pay for their agent.

#139 maxx on 03.21.19 at 8:18 am

@ #18

True. All that glitters is not gold.

Most Canadians are not really that dumb, but far too many are simply indolent and ignorant. They are in the dark with respect to the goings on in their political landscape and how it affects them. The elected know this and capitalize on it.

Ignorance and stupidity = huge profit.

Huge.

#140 Tater on 03.21.19 at 8:21 am

#44 tccontrarian on 03.20.19 at 5:49 pm
Question about “first-time buyer”:

If you’ve been a home owner in the past, but sold and rented for “X” years, do you ever qualify again?

I sold in 2015 and been renting ever since – not that I would be inclined to go-to-bed with the CMHC in this evil scheme, but wondering just the same.

Anyone know?

TCC
————————————————————–
Assuming they use the rules from the HBP, yes, you could be eligible as a first time buyer. years is the magic number, but they calculate it in an odd way. See the link below.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/participate-home-buyers-plan.html#first-timehomebuyer

#141 Raging Ranter on 03.21.19 at 8:24 am

@#13 Smartalox, since when is rural Canada a key voting bloc for the Liberals? This is an election year budget and this program is a shiny election year bauble.

#142 crowdedelevatorfartz on 03.21.19 at 8:36 am

@#134 jess
“a Canadian company that owned that mine and several others in the state, went bankrupt and folded 20 years ago. That left a legacy of water pollution and a cleanup bill nearing $100 million — with no end in sight…”

++++

Old news.
Canadian Mining Co’s are notorious world wide for abandoning toxic trailing ponds/mines and leaving the locals to dea with the mess for generations.
The U.S., Africa, Asia, South America….the list is endless.
And then we have Mt. Polley in our own back yard…

https://www.cbc.ca/news/canada/british-columbia/mount-polley-suspended-1.4969241

The owners of the mine were major money contributors to the BC Liberal party during their “reign of error”.
The recieved a slap on the wrist for what happened.

Some other light reading about “do no harm” Canadian Mines…

https://www.bcbusiness.ca/Rocked-Canadian-mining-companies-deal-with-fallout-from-Supreme-Court-ruling

Hopefully the days of “Cut, ruin and run” may be over for the wild west polluters known as Canadian mining.

#143 not 1st on 03.21.19 at 9:04 am

No rate hikes for the entire yr from the fed. Garth, sorry but this was all forecast for you about 2 months ago and you didn’t believe it. Something is lurking although the US is in a much better position to handle it, Canada is going to be roadkill.

Next prediction, is a 50 basis point cut by June Canada and US. Book it. You will see a 2-2.5% mortgage rate again from all the majors.

No rate cut is expected by markets. If a half-point drop did occur, we would be in very serious shape. Fortunately, it will take place only in your mind. – Garth

#144 dharma bum on 03.21.19 at 9:18 am

This shady government scheme really reminds me of a mafia loan shark deal.

It’ll be fun when the government “agents” come collecting!

https://www.youtube.com/watch?v=fCdU753XMZ4

#145 Sam on 03.21.19 at 9:26 am

my wife are born first generation Canadians. Canada provided an opportunity for our parents. Hard working people. Am so grateful to Canada.

I’m a ‘1%’, worked my ass off in University, healthcare professional. Was planning on retiring at about 60, am 52 now. Unfortunately , Canada has changed dramatically. Housing is largely unaffordable in major urban centres and taxation has lost its way. We’re transitioning my practice for its sale in 2-3 yrs. We have decided Madeira will be our home.

I hope for the sake of Canada that Mr Trudeau is not voted back in. If he is, speaks volumes about Canadians

have a good day all. Great blog Garth, thank you for sharing your thoughts

#146 not 1st on 03.21.19 at 9:31 am

Here Garth you can start writing your future blog post a few months early;

https://calgaryherald.com/news/economy/fidelity-sees-loonie-testing-62-cent-low-amid-slowing-economy/wcm/fd933818-33c0-4d14-8bbc-b4a5fb57d25a

#147 PastThePeak on 03.21.19 at 9:37 am

#143 not 1st on 03.21.19 at 9:04 am
No rate hikes for the entire yr from the fed
….
+++++++++++++++++++++++++++++++++++

Amid all the cheering of this decision, most seem to forget that it implies poor economic conditions as viewed by the Fed.

And no wonder. China has slowed considerably, the larger EU members are in or close to recession, UK economy is hobbled by Brexit, Canada and Australia are on the down slope.

Of major countries, only the US economy is growing at a reasonable rate. And that has slowed down from its strong phase. Not to mention that total US debt is growing faster than GDP, questioning the underlying health of the economy (Canada the same of course).

So, lots of storm clouds on the horizon. Not sure that will be beneficial to RE, regardless of lower interest rates in future. Check out charts that show US Fed rates prior to recessions – a period of raises, flat, and then decline just before the recession kicks in.

#148 Stoner on 03.21.19 at 9:45 am

#106 crowdedelevatorfartz on 03.20.19 at 10:07 pm
@#91 Smoking Man
“The chicks are starting to figure out that he’s a mansplaner fake feminist. What else could go wrong?”

******

He realizes he has no caucus?

—————–
HAHAHAHAHAHA. You sly devil, you…

#149 James on 03.21.19 at 10:45 am

#31 Smoking Man on 03.20.19 at 5:10 pm

So as we enter the spring market this policy will make the demand sit on the sidelines till Sept.
What’s that going to do to supply and demand.
Get out of the way. Big Crash around the corner. Till sept anyway.
___________________________________________
Old Man September will come and go just like your time on this planet. It is October that counts, programs can easily be scrapped. Trudeau and his cronies have assumed tribunician powers, which made him sacrosanct and allowed him to push this accord, which is until October when the walls come down.

#150 Shawn Allen on 03.21.19 at 10:55 am

Reports of the Death of the Construction Industry…

…Are greatly exaggerated.

January data showed growth overall with residential construction increasing versus December. Multiple dwelling is showing growth while there was some decline in single family.

The release did not focus on the year-over-year data which may tell a different story. Digging into the data I see that single family construction investment was up 3.8% in January versus the year ago figure. Not dead, not even ailing.

As always, the data, including time periods compared, can likely be cherry-picked to support whatever view anyone already holds. Enjoy. The main data table is NOT seasonally adjusted so be careful comparing December to January.

https://www150.statcan.gc.ca/n1/daily-quotidien/190321/dq190321c-eng.htm?CMP=mstatcan

#151 Remembrancer on 03.21.19 at 11:06 am

#138 Penny Henny on 03.21.19 at 7:42 am
“The Real Estate Commission Ripoff”

A good read, suggests that sellers pay for their agent and buyers pay for their agent.
—————————————————–
Interesting perspective, though at the end of the day, the buyer is paying for both either way – if the seller wasn’t pricing in the commission on an accepted offer then caveat venditor…

#152 Ubul on 03.21.19 at 11:09 am

Lavalin? What Lavalin?

The question is more like how governing is implemented in the Canadian political system.

The party in majority has the decision making power, whether a potential criminal corruption of the party needs to be investigated or not.

Sounds ridiculous? Yes, because it is ridiculous.

Where is the independent judiciary, independent process, that would allow to request, initiate criminal investigation in any matter, whether the ruling party agrees or not?

#153 Ponzius Pilatus on 03.21.19 at 11:24 am

Just read:
Prince Harry will take paternity leave after birth of baby.
Fricking freeloaders.

#154 mikethengineer on 03.21.19 at 11:41 am

Garth et al:

What the government did:

Stupid rules for Stupid People.

It is so confusing, even I am shaking my head.

They already had a system. It worked. Prices inflated. Inflated prices killed the system. So instead of letting the system self adjust (ie let prices deflate naturally), they come up with a beautiful set of rules to Juice the system.

Stupid rules from Stupid People.

What a messed up country…..

#155 Phylis on 03.21.19 at 12:22 pm

…so, can the next formed government waive the previous attorney client privledge enjoyed by the current government? I dont mind waiting a few months.

#156 James on 03.21.19 at 12:33 pm

#104 crowdedelevatorfartz on 03.20.19 at 10:00 pm

@#16 James
“Does that mean my bronze asses and denarius and now going to become denarius aureus? ”

+++++

Interesting conundrum.
Perhaps if you look to the sky for answers you can answer this…
Is there an aura around Uranus?
_______________________________________
Cute, castigat ridendo mores.
LMAO

#157 Penny Henny on 03.21.19 at 12:39 pm

#71 Shawn Allen on 03.20.19 at 7:08 pm
A Penny’s Worth of Taxes

#55 Penny Henny on 03.20.19 at 6:32 pm

To Shawn Allen, see comment 260 yesterday

****************************************
Yes, I saw where you and your wife can have $66,000 cashflow and pay very little income tax. $24k from RRSP

$10,000 withdrwaw from TFSA. (Which you say you will put back in, so why bother)
//////////////////

You are right. Why bother.
In practice it makes no sense.
Just showing that TFSA was also an expected source of monies.

#158 jess on 03.21.19 at 1:10 pm

142 crowdedelevatorfartz on 03.21.19 at 8:36 am

old news is today’s news

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5429369/

https://www.desmogblog.com/2019/03/18/norway-sovereign-wealth-fund-divesting-oil-gas-exploration-climate

The Monster Underground.”
https://news.vice.com/en_ca/article/3kpj9k/more-than-half-of-first-nations-communities-in-canada-are-affected-by-industrial-pollution

Most people want higher taxes on rich to support poor – OECD

‘Deeply troubling’ survey of 21 countries finds 60% believe they are not getting ‘fair share’

https://www.theguardian.com/business/2019/mar/19/most-people-want-higher-taxes-on-rich-to-support-poor-oecd

#159 n1tro on 03.21.19 at 1:47 pm

y#61 Penny Henny on 03.20.19 at 6:38 pm
“if the housing market tanked 20% and 120,000 people had used the program to buy $400,000 houses, the hit to us all might conceivably be $3 billion”
??????????????

Hit to us all?
——————————————
Yeah all of us. Any losses is backed by CHMC which uses tax payer money to back it. The small CHMC loan given is also written off against the tax payer.

The bank being the primary lender will always be made whole. CHMC is a secondary lender and doesn’t need to be made whole since it has virtually unlimited tax dollars an arm’s length away.

#160 Ubul on 03.21.19 at 1:52 pm

#155 Phylis on 03.21.19 at 12:22 pm

…so, can the next formed government waive the previous attorney client privledge enjoyed by the current government? I dont mind waiting a few months.

It looks like the government in power can do whatever it wants to do. Opposition not so much. Public? They can watch the show, whatever is put the program for them to watch.

#161 Shawn Allen on 03.21.19 at 2:01 pm

Royal Freeloaders?

#153 Ponzius Pilatus on 03.21.19 at 11:24 am
Just read:

Prince Harry will take paternity leave after birth of baby.
Fricking freeloaders.

************************************
Well he did serve (at some risk to his life) in the Army… You?

What about the Queen who is still working at age 90? Prince Philip finally cut back at age 95.

The tourist money alone probably easily pays for the cost of the Royals.

And what about the comfort of having a constitutional monarch just in case the U.K. or Canada ever elected the likes of Trump?

Jealousy (about Price Harry) does not become you.

#162 jess on 03.21.19 at 2:05 pm

crispr -bulls can’t make milk and roosters can’t lay eggs, xx xy gene, called SRY,
In January, British researchers announced plans to raise chickens with an immunity to influenza. A small genomic incision, they hypothesized, could prevent the virus from infecting its hosts. That would not only save chickens from untimely demise but also cut out a likely conduit for a devastating human pandemic. You may not like the idea of Crispr meddling with grandma’s chicken pot pie recipe, but would you relent if it could stop the next Spanish flu?

https://www.wired.com/story/crispr-gene-editing-humane-livestock/?BottomRelatedStories_Sections_1

#163 Figure it Out on 03.21.19 at 3:09 pm

“Mortgage guru Robert McLister calcs if the housing market tanked 20% and 120,000 people had used the program to buy $400,000 houses, the hit to us all might conceivably be $3 billion.”

Aside from the arithmetic issues, is McLister really positing a scenario where 100% of the people using the program sell at the bottom tick??? He oughta know better. Most people keep paying their mortgages while employed. If unemployed, most people drain their savings to pay their mortgage, even RRSPs which would be sheltered in bankruptcy. He’s a pro; he knows this.

#164 Garth's other dog on 03.21.19 at 4:08 pm

“shared-equity mortgage”

Doesn’t this break rules 1 to 7 of Garth’s rule of never buying a house with someone you’re not sleeping with?

#165 Tater on 03.21.19 at 4:39 pm

#164 Garth’s other dog on 03.21.19 at 4:08 pm
“shared-equity mortgage”

Doesn’t this break rules 1 to 7 of Garth’s rule of never buying a house with someone you’re not sleeping with?
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Well, we may not be sleeping with the government but we are still getting……..vital public services in exchange for our tax dollars. Get your mind out of the gutter, people.

#166 M on 03.22.19 at 12:36 pm

“First, Jake, let’s acknowledge humans love to think they live in unique times.”

I am one of those people who believe that. I count my blessings that my parents brought me to a country like Canada. We came from Afghanistan.