Da hammer

In three weeks it gets tougher for the kids to score a mortgage. CMHC’s badass boss Evan Siddall warned us the hammer would drop. Here it comes.

These are the changes:

First, borrowers will get less financing based on their income. The maximum share of earnings that can go towards a home loan is dropping from 39% to 35%. The gross debt ratio (mortgage payments plus credit cards and other monthlies) also declines. Second, no Bank of Mom borrowing (or other unsecured loan) will be accepted as downpayment equity when calculating what a person can borrow. Third, credit scores of borrowers must top 680, instead of 600.

This is not changing:

5% down. Yes, evil Evan hinted to MPs recently he’d be asking the Trudeau cabinet to double the minimum downpayment, but apparently he was denied. Too bad.

This is why:

CMHC (and a mess of credible economists and forecasters) think brokers are blowing smoke when they say the pandemic will have no lasting impact on real estate values. Not believable, says Siddall. Not with double-digit unemployment, an economic contraction and several industries on their knees. The feds are forecasting a national price plop of up to 18% – shaving a quarter million off SFHs in 416 and YVR.

The move, says Siddall, is to “protect home buyers, reduce government and taxpayer risk and support the stability of housing markets while curtailing excessive demand and unsustainable house price growth.” The big fear: a mess of underwater homeowners two years from, tipping the market into chaos.

This is what it means:

In general, first-timers will be borrowing about 12% less next month than now. In a sane world, that would reduce prices.

This is the reaction:

“If the government proceeds with this, the dampening of housing activity will worsen the economic pressures, further impairing the economy,” says housing economist (and booster) Wilf Dunning. “On the surface, it is remarkably poorly timed,” says Scotiabank’s economist. “Restricting access to credit in a period of economic need is certainly an unconventional policy approach.” And, says blogger/broker Rob McLister, “Regulators usually make such changes when times are good, not when housing is teetering on the edge.”

So, yeah, it’s controversial. In the short-term (this month) the changes will actually increase sales, demand and prices – just as local economies start to open and real estate agents vibrate and grow damp with anticipation. Since the CMHC announcement, showings (virtual and in hazmat garb) have exploded. Listings are rising rapidly. Offers are starting to fly. As Re/Max lashes out at the federal housing agency it and other property-floggers are telling buyers that normal has returned.

Meanwhile the lowest mortgage rate in history has just been bestowed upon us by the predatory lender known as HSBC. Yes, 1.99% for a five-year, fixed-rate term. (The variable also drops, to 1.75%)

Yikes. This is like dangling a drippy ribeye in front of a MAGA camo dude. Cheap money certainly undercuts the regulator’s efforts to curb house lust and debt snorfling. And that’s why the stress test is in place – regardless of how big a discount the lender’s giving, you still have to lump over that qualifying hurdle.

For someone renewing these days, 1.99% is irresistible. It’s a total slam-dunk rates will be far higher when that mortgage term expires. In fact, they’ll be fatter 12 months from now. This is a gift – so long as you don’t try to end the contract early. (HSBC has a high mortgage-break fee structure, just like the banks.)

So, here’s the nut of this debate. CMHC says the virus “has exposed long-standing vulnerabilities in our financial markets, and we must act now to protect the economic futures of Canadians.” It’s hard to argue that when eight million people are on the dole and a million homeowners aren’t making payments. Joblessness may still be double-digits come Christmas.

But, but, but.  Look at what Mr. Market says. Last Friday’s employment stats threw more gas on an historic rally that continued Monday. In little more than 50 days stocks have gained 40%. Is there a giant contradiction here? Will real estate rebound just as fast as equities?

Short-term, maybe. June’s numbers will be thrilling to the Audi set, as sales volumes and average prices inflate from pandemic levels amid pent-up demand, cheap mortgages and beat-the-new-rules action. But beware of the bull trap. This rally does not have legs.

Facts are facts. Household debt is rising. Employment income has fallen. Millions will see their government cheques phased out. Major industries (airlines, hospitality, travel, tourism, conventions, theatres, sports) aren’t coming back for years. Meagre savings have been consumed, Banks, stung by deferrals and setting aside billions for bad loans, will be more risk-averse. There’s a case for saying Peak House was the spring of ’17 – those idyllic, bubbly, care-free, multiple-bids, naïve days of our innocence.

Remember when the only thing we had to worry about were rockstar realtors? You dunno what you got till it’s gone.

Today’s factoid: Zillow has discovered homes with black doors sell for an average of $6,271 more than expected.

169 comments ↓

#1 not 1st on 06.08.20 at 2:06 pm

I imagine Trudeau and his minions will paying mr Siddall a visit shortly. Cant short circuit Canadas bogus FIRE business. Siddall obviously didn’t get the memo.

And people say oil is unsustainable.

#2 FreeBird on 06.08.20 at 2:16 pm

Zillow has discovered homes with black doors sell for an average of $6,271 more than expected.
———————-
So close. We painted the front door great shade charcoal grey last year but seems to be popular. We added nickel hardware and will add a kick plate. I read this article last year. Not sure all the colours work in our house but we’re keeping in mind. The glossy red and black doors found in London England are my favourite. Special paint and a lot of coats but wow they look good in the right setting!

Zillow article:

http://zillow.mediaroom.com/2018-06-20-Homes-with-Tuxedo-Kitchen-Cabinets-and-Black-Front-Doors-Can-Sell-Up-to-6-000-More-than-Expected

#3 Ace Goodheart on 06.08.20 at 2:18 pm

So today is an historic day.

Today all seven of my portfolios are ahead from where they were, at the date of the “great COVID-19” crash of March 2020.

So I have officially made money over the course of COVID.

Ridiculous.

And you still can’t sell a house for more than about 1.3 million in Toronto, without apparently accepting a conditional offer.

#4 smartalox on 06.08.20 at 2:19 pm

Timely and topical: looking to get qualified for a mortgage this week after 10+years of waiting and saving. No trouble qualifying under the new conditions, but will probably wait until October or so – weed out the first timers and let the pressure build on sellers for a little while longer.

#5 Sail away on 06.08.20 at 2:32 pm

“Today’s factoid: Zillow has discovered homes with black doors sell for an average of $6,271 more than expected.”

————

Naturally. Black doors matter.

#6 Leftover on 06.08.20 at 2:35 pm

Last week in Vancouver 149 houses sold, but 431 were listed, a sales to new listings ratio of 34.6%. If you sell real estate you know just how bad that is.

https://www.zealty.ca/stats-daily.html

Siddall’s -18% warning could be too low.

All this, combined with political mayhem with the US election only a few months away, makes buying a house a good idea…in 2021.

#7 Brian Ripley on 06.08.20 at 2:39 pm

My chart of CANADIAN EMPLOYMENT RATES in Vancouver, Calgary, Toronto, Montreal and their Provinces is up with May data:

http://www.chpc.biz/earnings-employment.html#Rate

Employment rates, both seasonally adjusted and not adjusted, are negative double digits when measured over 10 years (as the chart and table depicts). Apparently Calgary and Alberta were the canaries in the oil patch.

For those who have not seen Paul Schmelzing’s (Bank of England) introduction to his 110 page thesis that “By the late 2020s, global short term real rates will have reached permanently negative territory and by the second half of this century, global long-term real rates will have followed.” … here it is

http://www.chpc.biz/history-readings/suprasecular-decline

ie: low rates are with us going forward for a protracted period if the last 500 years of trend continues to play out… regardless of fiscal and monetary policies.

So if your balance sheet is in peril, repair it. This is a credit bust.

#8 My Friend Joseph on 06.08.20 at 2:41 pm

As a home owner myself, we tend to convince ourselves that there is a reason our home will remain over priced. The “it’s different over here” syndrome.

I just thank Chinese Buyers and Bitcoin. Joseph says it all in his article below. He looks more experienced than all of us. Lol.

Chinese Buyers Are Kickstarting A Generational Housing Market Rally, And Bitcoin May Be Next

https://www.forbes.com/sites/youngjoseph/2020/06/07/chinese-buyers-are-kickstarting-a-generational-housing-market-rally-and-bitcoin-may-be-next/

#9 Rainman on 06.08.20 at 2:46 pm

Rates will be down for a long long time. Maybe not 1.99%, but under 3% for the foreseeable future.

#10 Don Guillermo on 06.08.20 at 2:50 pm

#130 Westcdn on 06.08.20 at 11:31 am
The house beside me remains unsold and I feel for the people who renovated for a flip – decent people as far I can discern through they are from away. Anyway they have begat home improvement in the neighbourhood – small houses on large lots. I chatted with the guy pouring cement the next door over. He said this area is amazing for renovations. I am not sure what that means but I may end up with the cheapest house on the block. Don’t get me wrong but keeping up is just being decent for me, sides, I don’t have the money. I would build a solarium to replace my back deck if I did – goals.
******************************************
I hear you. I live in a small 1952 (1100 sq ft) inner city bungalow in Calgary. It’s one of the few R1 zones in the inner city so all the new houses around are huge and strangely enough, still seem to be selling. This one just went on the market for over $1.6 M. Very pro hi level production video c/w babes… we’ll see how it goes. Young couple (20’s or 30’s) came to view it last week driving new McLaren GT. I like having the smallest house on the block.

https://youtu.be/tbwoigNVeKU

#11 Yeah but, on 06.08.20 at 3:08 pm

Genworth and Canada Guaranty aren’t following CMHC’s lead.

The bulk of lending comes from the banks. They are – Garth

#12 Tim123 on 06.08.20 at 3:17 pm

I have to agree that Real Estate is about to crash. There is usually a correlation between unemployment rate going up and housing prices going down. There is an interesting variation this time in that the stock markets have been on a real rocket upward, while the real economy is in the doldrums, usuallywhen the economy is bad, the stock market is bad. In theory, if people were invested in the equity markets, they should be flush with cash. I wonder what the percentage of the population is of people who invest in the equity markets. I wonder what the people who are buying houses today at inflated prices are thinking. I wonder whether the majority of people have connected the dots. I suspect that the people who are buying houses today and later this year do not think there will be a coronavirus impact to the economy. I guess we will see who is right. In the meantime the market run up has been great but it seems like it is overbought so I have been taking profits and putting on some protection to the downside.

#13 YouKnowWho on 06.08.20 at 3:23 pm

“Here is $50k in cash sweetie.”

How does CMHC know that money was gifted by mom?

Declaration of source of funds. If fraudulently completed Mom can also make bail. – Garth

#14 ElGatoNerodeYVR on 06.08.20 at 3:24 pm

While I still (wishfully? ) think that the RE in select markets will not correct significantly on the 3 year term ,afterall RE is local and some “local markets ” are more desirable than others, it is positive that there is an attempt to save people from themselves. Still think that total housing cost ( mortgage, insurance, property tax, utilities) should not exceed 30% for middle class and not more than 40-50% for anybody else.

#15 NSNG on 06.08.20 at 3:25 pm

Thought for the day:

you should only love money as much as it loves you

#16 Overheardyou on 06.08.20 at 3:26 pm

Perhaps house prices will rebound like equities. Since there’s no real consumer debt ceiling now is there?

#17 wallflower on 06.08.20 at 3:43 pm

#13 YouKnowWho on 06.08.20 at 3:23 pm
“Here is $50k in cash sweetie.”

How does CMHC know that money was gifted by mom?
——
When did you last go through a mortgage process? Surrender your life…. every single penny being allocated has to be accounted for. They want statements with dates, etc. If that 50K is sitting in your bank account, the statements will show when it got there and the question will be, what is the source? The BANK wants to know.

#18 Gdlighth on 06.08.20 at 3:53 pm

I agree with the measures that CMHC is implementing but wish they also went ahead with the 10% down payment, but over the course of 1% increase over 5 years to avoid a large shock.

My question though is how will banks and CMHC know the source of a down payment came from the bank of mom?

Hard to understand why this question keeps being asked. A borrower has to declare the source of funds. Lying is fraud. – Garth

#19 akashic record on 06.08.20 at 3:58 pm

Can a family trust purchase real estate?

#20 James on 06.08.20 at 3:58 pm

This is not changing:

5% down. Yes, evil Evan hinted to MPs recently he’d be asking the Trudeau cabinet to double the minimum downpayment, but apparently he was denied. Too bad.
____________________________________________
The newbies entering the market are going ogle over the open opportunities that will present themselves from the previous newbies that are about to fail. This is going to go on for years. Recycle…….

#21 Ponzius Pilatus on 06.08.20 at 4:07 pm

Not sure about facts.
They have a habit of catering to our confirmation biases.
Trump hailed a 13.7% unemployment rate in May.
Turns out due to an “miscalculation error” the unemployment rate should have been 16.7%.
“Errare humanum est”

#22 Atrain on 06.08.20 at 4:09 pm

I can only speak anecdotally:
Purchased our first home in Toronto a few weeks ago (set to close end of July) for around $50k below asking. House was in the market for a couple of months and but we were still surprised that our offer was accepted with conditions (financing).

Going through the mortgage process was relatively simple since my wife and I make good money and we had more than a 20% down. Also, per the Rule of 90 we were way ahead of and have plenty of headroom asset wise. Rate we got from RBC variable was 2.25%.

Looking at the way our experience unfolded I’d say it was like being in the eye of the hurricane. A lot of the buyers that prop up the market weren’t going out which left low ball offers only. At the end of the day, the house wasn’t the cheapest but the price we paid we felt was pretty fair.

#23 TurnerNation on 06.08.20 at 4:12 pm

All good in the hood in the SubPrime Slime dept:

“Genworth MI Canada Inc. has no plans to change its underwriting policy related to debt service ratio limits, minimum credit score and down payment requirements. One of the company’s competitors announced changes to its internal underwriting guidelines with respect to the aforementioned underwriting criteria on June 4, 2020.”

………
So..how’s everybody liking the New System thus far? It’s been three months and in the USA test cities the police department is being dismantled, as per MSM.
(Toronto’s police chief just stepped down too of note).
The replacement system, which was planned years ago is known as UN Community Policing. For the UN Smart Cities of course.
A.I. will play an increasing large role.

– A few months ago in the GTA the news (aka predictive programming) said two police departments were using Clearview AI technology.
– The US already uses Plantir’s technology if you google it.
This was all planed years ago and now executed with dare I say military precision. Every mayor is tweeting approvals, police continent-wide are kneeling down in submission.
A very very fast at masterfull rollout of UN Agenda 21.
Gotta hand it to our elites.
The Crown Virus is being used to dismantle the Old System.

http://www.palantir.com › solutions › law-enforcement
For federal and local law enforcement agencies, Palantir Law Enforcement equips officers and agents with the tools they need to easily analyze intelligence, …

globalnews.ca › news › clearview-ai-canada-privacy-data
Mar 6, 2020 – The software, which markets itself as a “new research tool used by law enforcement agencies to identify perpetrators and victims of crimes,” has …

#24 Howard on 06.08.20 at 4:18 pm

How are they going to know if the DP comes from the Bank of Mom or not?

These changes are a big fat nothing burger.

#25 Ponzius Pilatus on 06.08.20 at 4:18 pm

Amidst the cries “scamdemic” one should not forget that there are real humans affected by this thing.

https://www.richmond-news.com/opinion/letters/letters-every-covid-cloud-has-a-silver-lining-1.24146754

#26 jerry on 06.08.20 at 4:24 pm

“But beware of the bull trap. This rally does not have legs”

Are you referring to housing or the current stock market activity?

Was the post about houses or stocks? – Garth

#27 SunShowers on 06.08.20 at 4:27 pm

“Declaration of source of funds. If fraudulently completed Mom can also make bail. – Garth”

Sounds only slightly different from an Unexplained Wealth Order.
I’ll back the former if you back the latter.
Deal?

#28 joblo on 06.08.20 at 4:34 pm

So Walmart, Costco, Crappy tire, your barber etc. all open.

But (dis) Service Kanada nope, too afraid to go to work.

And Kanada Revenue agency whatta joke!

#29 Timmy on 06.08.20 at 4:37 pm

5% down, what a joke? And we wonder why we have an inflated housing market? It should be 25% down, then people could afford houses.

#30 TurnerNation on 06.08.20 at 4:39 pm

PS and here it comes in Toronto. Every city is on the same script, a timeline for rollout.
I would not want to own property here…no wonder T2 just banned even more home protection devices.

https://nationalpost.com/news/canada/toronto-councillors-put-forward-motion-to-defund-police-budget-by-10-per-cent

#31 Ace Goodheart on 06.08.20 at 4:42 pm

This just in. T2’s gang, after offering free money to the masses, are now making it into an offence, punishable by jail time, to fraudulently collect the CERB.

Looks like the chickens are coming home to roost:

https://www.theglobeandmail.com/politics/article-ottawa-planning-fines-imprisonment-for-fraudulent-cerb-claims/

#32 IM in C on 06.08.20 at 4:42 pm

Homes were selling well in Calgary, until mid March. Then sales hit a wall, and a rush of new listings piled up behind them.

#33 SoggyShorts on 06.08.20 at 4:43 pm

#143 Faron on 06.08.20 at 1:59 pm
#136 SoggyShorts on 06.08.20 at 12:57 pm

Good on ya for hanging on w/ 100% equities. Must feel relieved right now.

*********************
Thank you, I do indeed feel a huge sense of relief. I had more than a few close calls and lost quite a bit of sleep.
I’m down about 1.5% YTD as of right now and it seems like not only will I keep my 23% gains from last year, but I might even add to it? Insane.

As soon as I figure out if I’m keeping my XRE, VWO, XEF I want to go 80/20 with that 20 being IEF or HTB.

#34 Paul on 06.08.20 at 4:48 pm

Today’s factoid: Zillow has discovered homes with black doors sell for an average of $6,271 more than expected.
————————————————————————————————
Well Black doors seem to matter!

#35 TurnerNation on 06.08.20 at 4:49 pm

Every system has been turned against us <—
Your house will become a target. But the police are being slowly disbanded. Insurance will skyrocket. Forcing people out of rural areas (little to no policing/long response time.) Into cities.
Man these elites are good, so many steps ahead of us.
CERB is paying for these drugs:

"Opioids, COVID-19 represent 'dual public health crises'
The Board of Health also approved a range of recommendations around the city's overdose prevention plan, including one that would effectively decriminalize drug possession.

The recommendation says the city must urge Ottawa "to permit the possession of all drugs for personal use for all Canadians, at least for the duration of the COVID-19 pandemic.""

#36 TurnerNation on 06.08.20 at 4:52 pm

HERE it comes….the death of private property rights.
We are in this together. Communism.

https://www.bnnbloomberg.ca/ontario-government-halts-commercial-evictions-in-pandemic-1.1447373

#37 Paul on 06.08.20 at 4:54 pm

#24 Howard on 06.08.20 at 4:18 pm
How are they going to know if the DP comes from the Bank of Mom or not?

These changes are a big fat nothing burger.
————————————————————————————————
Some banks want to see a bank statement. Most times when the ‘kids’ are looking just feed the funds into the account.

#38 Reflektor on 06.08.20 at 4:56 pm

Rental pricing for a two bedroom condo in downtown Vancouver has come within the $2200-$3200 range, and there is more than a few units to choose from.

That’s a much more realistic average price than what it has been over the last few years. A soft rebalancing of rental affordability, in our tiny slice of the country at least, seems to be a welcome a consequence to many couples who a crammed in a overpriced shoebox.

#39 John on 06.08.20 at 4:58 pm

The post is never about stocks unless it’s positive. Wall Street (1%) are loving the market rebound. Main Street (The rest) are still trying to make ends meet either a 9-5 diner job. Oh, and I’ve been waiting for a real estate crash since 2003. True story bro.

Thinking just 1%ers own stocks, bonds, ETFs, REITs, funds or have RRSPs, TFSAs or RESPs for their kids is the hallmark of a financial illiterate. – Garth

#40 yorkville renter on 06.08.20 at 5:04 pm

Not sure why a gift would have to be claimed – you don’t need to explain the gift to the CRA, why should a bank care?

Because the bank is assuming risk in lending money to somebody who couldn’t even cough up their own downpayment. Duh.- Garth

#41 Andrewski on 06.08.20 at 5:05 pm

How can people continue to be so financially illiterate?

#42 willworkforpickles on 06.08.20 at 5:13 pm

If the US and Canadian Governments keep up with the free handouts after next month by the trillions and billions and it looks like they will be pressured to do so, then all interest will have to move up soon after over the sudden increase in national debt to service the debt and appease the debt holders. It’s an int. rate taxation and inflation tsunami underway where the waters are currently receding.

#43 Deplorable Dude on 06.08.20 at 5:17 pm

And in other news….

The WHO announced today that Covid19 asymptomatic carriers are not contagious…appears to be very rare for them to infect others.

Or in a nutshell no need for masks or social distancing unless you have symptoms, in which case self isolate.

https://www.cnbc.com/2020/06/08/asymptomatic-coronavirus-patients-arent-spreading-new-infections-who-says.html?__source=twitter%7Cmain

#44 Yukon Elvis on 06.08.20 at 5:20 pm

I don’t think housing will see much of a downturn. Maybe down a few percentage points, then stable, then up again. Low low interest rates are here to stay. I think free covid cash will be around for a while yet and will morph into ubi. I just don’t see a big plunge in housing. The “hammer” of which we speak will not change much.

#45 Drew on 06.08.20 at 5:22 pm

Wasn’t Feb the end of 10 years of good times? The rates hardly went up at all and probably should have.

#46 n1tro on 06.08.20 at 5:22 pm

The narrative is now changing. To justify all the crowds of protestors not getting fined or shamed for not socially distancing….

https://www.cnbc.com/2020/06/08/asymptomatic-coronavirus-patients-arent-spreading-new-infections-who-says.html

Yeah…the same shit they justify we all should stay at home just in case we unknowingly infect others is now found to be “rare”.

#47 SunShowers on 06.08.20 at 5:26 pm

“Thinking just 1%ers own stocks, bonds, ETFs, REITs, funds or have RRSPs, TFSAs or RESPs for their kids is the hallmark of a financial illiterate. – Garth”

The wealthiest 10% of people own 84% of all financial assets.

It’s close enough, honestly.

#48 Flywest29 on 06.08.20 at 5:31 pm

Oops…….

https://www.cnbc.com/2020/06/08/asymptomatic-coronavirus-patients-arent-spreading-new-infections-who-says.html

#49 David Pylyp on 06.08.20 at 5:32 pm

You say this like its a bad thing!

TDS dropping from 39% to 35%. The gross debt ratio (mortgage payments plus credit cards and other monthlies) also declines. Second, no Bank of Mom gift (or other loan) will be accepted as downpayment equity when calculating what a person can borrow. Third, credit scores of borrowers must top 680, instead of 600.

BAM

David Pylyp
Etobicoke and Toronto

#50 Piano_Man87 on 06.08.20 at 5:34 pm

It’s not a gifted downpayment.

Yesterday I mowed my parents’ lawn, and they gave me $100,000 for the work.

#51 Toronto_CA on 06.08.20 at 5:34 pm

For those saying the down payment would be a gift rather than a loan – I did hear from a family law attorney who said that many family gifts for down payment are legally structured as loans so that in the event of a divorce the family who gave the money doesn’t lose half the equity.

I suppose in many cases the down payment would exceed 20% and not be subject to CMHC rules, but still, a consideration.

#52 Jeff in Vic on 06.08.20 at 5:38 pm

Hi Garth,
I need to let you know that you can still borrow from the bank of Mom and Dad as a gift for the deposit. What you can no longer do is borrow the down payment amount as a loan (Unsecured Credit Line or personal loan) for the down payment. My Mortgage broker of 25 years just clarified this.

#53 Trojan House on 06.08.20 at 5:55 pm

You don’t think pro sports will return for years???

By the way, the Trudeau’s have separated:

https://buffalochronicle.com/2020/05/14/sophie-gregoire-has-separated-from-justin-trudeau/

#54 Pete from St. Cesaire on 06.08.20 at 5:56 pm

Not sure why a gift would have to be claimed – you don’t need to explain the gift to the CRA, why should a bank care?
Because the bank is assuming risk in lending money to somebody who couldn’t even cough up their own downpayment. Duh.- Garth
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The banks don’t risk anything; the ‘money’ they lend out is money they create out of thin air. The banks (their owners) want you to default so they can repossess the house and that way they obtain it without actually paying for it and they get to make the borrower look like the bad guy. It just furthers the overall plan to eliminate private property.

#55 Stone on 06.08.20 at 5:57 pm

#10 Don Guillermo on 06.08.20 at 2:50 pm
#130 Westcdn on 06.08.20 at 11:31 am
The house beside me remains unsold and I feel for the people who renovated for a flip – decent people as far I can discern through they are from away. Anyway they have begat home improvement in the neighbourhood – small houses on large lots. I chatted with the guy pouring cement the next door over. He said this area is amazing for renovations. I am not sure what that means but I may end up with the cheapest house on the block. Don’t get me wrong but keeping up is just being decent for me, sides, I don’t have the money. I would build a solarium to replace my back deck if I did – goals.
******************************************
I hear you. I live in a small 1952 (1100 sq ft) inner city bungalow in Calgary. It’s one of the few R1 zones in the inner city so all the new houses around are huge and strangely enough, still seem to be selling. This one just went on the market for over $1.6 M. Very pro hi level production video c/w babes… we’ll see how it goes. Young couple (20’s or 30’s) came to view it last week driving new McLaren GT. I like having the smallest house on the block.

https://www.youtube.com/watch?v=tbwoigNVeKU&feature=youtu.be

———

Was…that…house porn?

How tight were their pants? My question includes the guy. Or was that body paint?

#56 Matt Imhoff on 06.08.20 at 5:58 pm

You can still use gifted down payment from family members as that is part of the traditional down payment. It is the non-traditional down payment that will no longer accepted.

#57 the Jaguar on 06.08.20 at 6:20 pm

Everybody will have an opinion on where the real estate market will land when the Covid Cuffs come off, but to mess with an old Tip O’Neill saying on politics I would venture that “All real estate is local”. That said, the doctor is in…’prognosis unfavourable’.

Or…, since the subject of ‘Badass’ has come up, you could just turn to the smartest guy in the room for his opinion. Who is that you ask? It’s them actually. Those ‘BadAss’ Canadian Banks.
Much as they hate being dragged out of their hiding places for our scrutiny, pleading and with hopeful eyes, they are the ‘Border Collies’ of the financial hierarchy. It’s nature, not nurture. They are always one step ahead of any crisis. Even the ones they did not anticipate.
Don’t bother looking to your Liberal government or its collaboraters, look to the ‘Titans’.

They have increased their collective loan loss provisions in the gazillions. This impairs their profitability. Gives them heartburn and messes up their vacation plans on Lake Rosseau in the Muskoka’s this August, but they have very good analytics on what is likely to happen based on what has already happened. Ten years ago, last month, last week, or last night while you were wetting the bed. Anything else and they will just hold a ‘Seance’ and make contact with the dead to determine the next course of action.

But don’t stay up nights hand wringing about their well being. They’re the same guys who showed Moses how to part the Red Sea. Life Rule # 1. –Watch what people do, not what they say.

As for my ‘mensch’ Evan Siddall, he is exercising his integrity and honour, even if it means being carried out on his shield. I salute you Sir Evan Siddall, protector of those who are too damned stupid to do it for themselves. Thank you also for those of us who do not wish to be dragged down into the quicksand with those same damned stupid.

Oh…and as for this… “Today’s factoid: Zillow has discovered homes with black doors sell for an average of $6,271 more than expected.”
That’s because a black door says ” I made my money the old fashioned way………”I earned it”.
And of course black is the eternal neutral for good taste, elegance, Audrey Hepburn in that little black dress in Breakfast at Tiffany’s, James Bonds tuxedo, black & white tuxedo cats, etc. etc. Too many examples to list. Mercy.

#58 Steven Rowlandson on 06.08.20 at 6:21 pm

Real estate price inflation is a pandemic disease just like government debt and the cure is extreme interest rates that don’t go away. Super spenders need to be taken to the woodshed and whooped until they would rather die than borrow.

#59 Headhunter on 06.08.20 at 6:25 pm

35 TurnerNation on 06.08.20 at 4:49 pm
But the police are being slowly disbanded.

_______________
They wont leave you high and dry.. there will still be law and order I guess
if the plan works the UN will be the cops. De-miltarize every hood in the USA. Door 2 door with the tank outside.”uh ur guns please”

George Floyd family has requested the UN come and get the cops guns in America. Not a joke. This movie is moving faster by the day

#60 Flop... on 06.08.20 at 6:29 pm

#133 dosouth on 06.08.20 at 11:52 am
#35 Flop… on 06.07.20 at 3:26 pm
#32 dosouth on 06.07.20 at 2:57 pm

We lost one of our pups to heart failure at Christmas, a blue merle mini Aussie who was 12. Always have two pups to keep each other in check, so we adopted a Chihuahua/Aussie 6 weeks ago…life goes on.

/////////////

Next time something happens to your Aussie, call me, I will fill that void short-term.

I will come around your house, shred all your curtains, eat all your food, and then poop on the floor…

M45BC
————————————————————

Guess who needs a hug….mom and dad not love you. Get over yourself.

//////////////////

I was…uh… trying to make you laugh.

You know….me being an Aussie and all.

By the way, for me it’s Mum and Dad, because I’m…..ahhhh who cares anymore.

Nevertheless, it would appear all the uptight and humourless people on this blog survived the pandemic…

M45BC

#61 AR on 06.08.20 at 6:31 pm

Why is the stock market going up?

All the same doom as in the housing market applies – unemployment, debt etc. ? Doesn’t seem
like we are anywhere near back to normal economy yet… is the market signaling a return to normal? No second wave pandemic?

#62 SOMETHINGS UP on 06.08.20 at 6:36 pm

A borrower has to declare the source of funds.

“I got it from under my mattress”

End of story. Gimme my mortgage.

#63 Nonplused on 06.08.20 at 6:37 pm

“Second, no Bank of Mom gift (or other loan) will be accepted as downpayment equity when calculating what a person can borrow. ”

I’m not sure how to interpret that sentence as written. Did the size of the down-payment ever affect the amount one could borrow? Dropping from 39% to 35% of earnings would, but I thought the % earnings was the main number. Having a large down-payment affects how much you can pay for a house with the same mortgage. In fact I would think the bank would look favorably on a large down-payment because it means more equity in the house if it goes into foreclosure. I’m not sure why they would care where the money came from as long as it was legally obtained, but they are always on the lookout for that already for any transaction over $10,000.

The ability to service the loan as a % of income seems to me to be the overriding measure when it comes to how much one can borrow. That measure incorporates both the borrower’s income and the interest rate. But I guess we need rules and more rules even if they don’t do anything.

#64 CL on 06.08.20 at 6:40 pm

Sorry, Garth, while we may think the country is falling apart and people are in trouble, I just don’t see it. Traffic jams, Air BnB seeing a “surge in demand” (what else should they say I suppose…), people are relieved that their shopping life can continue….and rents….they are NOT dropping. Not in Calgary that I can see. Rents are increasing. Hard to believe after 5 years of a beating, and now even more economic challenges, that Calgary is acting like there’s nothing wrong. So, even though the economy has apparently been destroyed, oil was killed and is still too low for profits, there is nothing to see here.

I don’t even know what to say anymore. With so much government intervention the markets simply cannot work as they would (and should) without intervention.

Real estate is the real pandemic that just wont die.
Everyone should buy a house/real estate in Canada because it is 100% indestructible.

#65 crowdedelevatorfartz on 06.08.20 at 6:46 pm

@#50 Piano Man
“Yesterday I mowed my parents’ lawn, and they gave me $100,000 for the work.”

++++

Alzheimers?

#66 crowdedelevatorfartz on 06.08.20 at 6:50 pm

@#53 Trojan Man

The buffalo chronicle? Really?
Yeah I got sucked in by their spam a year or so ago.
Russian “news” is more reliable.

#67 crowdedelevatorfartz on 06.08.20 at 6:53 pm

@#60 Floppie
“Nevertheless, it would appear all the uptight and humourless people on this blog survived the pandemic…”

++++
No worries Floppie…..I’ll still laugh at you……errrr
I’ll still laugh ,at your jokes….

:)

#68 Hanna Peterson on 06.08.20 at 6:55 pm

smartalox, big mistake, mortgage rates will be higher by October-2020. You will see. I don’t know if an extra $75 to $200 a month will make a big difference over 5 years for you but that is what it could cost you. Good luck.

I am debt free for 35 years now and even thought I am getting only 2.6% to 3.1% on my GIC’s, I would rather be debt free and get my non-registered, TFSA, $15,000 a year interest which supplements my $20,000 a year C.P.P., OAS and small RRIF annual withdrawals of $4,000 a year.

#69 crowdedelevatorfartz on 06.08.20 at 6:55 pm

A shout out to Smoking Man!

Keep fighting the good fight Smokie.

You may smell of stale cigarettes and JD but we still luv ya buddy!

#70 Shirl Clarts on 06.08.20 at 7:04 pm

Zillow has discovered homes with black doors sell for an average of $6,271 more than expected.
^^^^^^^^^^^^
I knew it! It’s no coincidence that Rideau Cottage has a black front door! Those daily press briefings are designed to subconsciously turn on your house lust! Liberal house pumpers!!

#71 Young Boomer on 06.08.20 at 7:10 pm

“Major industries (airlines, hospitality, travel, tourism, conventions, theatres, sports) aren’t coming back for years.” …and Small Business is being devastated in Canada — yet Trudeau is after a UN seat & selling us out to those involved in ‘The Great Reset’
https://youtu.be/X6pzXrEBqR0

#72 Nottawa Housing Bust on 06.08.20 at 7:12 pm

Can anyone explain what is happening in the markets.

HTZ filed for bankruptcy. Stock is up 114 % since then. JCPNQ filed for bankruptcy. Up 96%. CHK about to file for bankruptcy, up 175% in one trading day.

WhT is going on here. Is the QE money. Or some type of algo trading. Who is bidding up bankrupt companies and why????

#73 earthboundmisfit on 06.08.20 at 7:12 pm

Stage 2 = Wave 2. Keep yer powder dry.

#74 Ponzius Pilatus on 06.08.20 at 7:13 pm

#62 SOMETHINGS UP on 06.08.20 at 6:36 pm
A borrower has to declare the source of funds.

“I got it from under my mattress”

End of story. Gimme my mortgage.
—————
If you wanna deposit > 10k at a bank, you must declare the source.
End of story.
But you can always try your local drug dealer.

#75 TRON on 06.08.20 at 7:16 pm

We have seen the beginning of what will be a very difficult times for Joe average and their families. We have no idea what it will look like nor do we know how long it will last.

Governments can’t go nuclear on creating fake money without a nuclear fallout. If this were the first time they spent more than they collected then we may have had a chance. However since 2008 the out of control forgery by governments all over the world is finally going to hit hard on the backs of it’s people.

While all this is happening the average person is focussed on racism, correct gender pronouns and feelings. Too bad we are not financially literate as this entire mess could have been avoided if we were. Most high school graduates can point out countries on a map they’ll never visit but can’t tell you the difference between deficit and debt.

Hey I’m an optimist.

#76 not 1st on 06.08.20 at 7:17 pm

Getting us good and softened up for the eventual tax hammer. Justin will get himself a majority off the backs of the tax payer then claw it all back from the naïve. Man are Canadians clueless.

https://www.msn.com/en-ca/news/politics/why-canada-might-need-a-temporary-covid-19-tax-and-repayment-fund/ar-BB15cXgb?ocid=spartan-ntp-feeds

#77 sailedaway on 06.08.20 at 7:18 pm

DELETED

#78 Rowdie on 06.08.20 at 7:18 pm

My tally on Real Restate in B.C., too high too buy for now, wait a few months. Figure the right percentage of drop is 50%, the house lust and greed here should be white washed. I know the revenue from house’s sold here were high, now reality check! Debt is high,reality check! We are now living in a different times people, the good times are over. You own a home for living NOT for investment and profit. I hope the next generation have more brains to figure this out.

From a Senior who is still wanting to buy a decent, low price home to live the rest of their lives in.

#79 Billion Dollar Whale on 06.08.20 at 7:27 pm

Why waiting on the sidelines could remove you from ever acquiring a property in Canada.

More proof of Canadian desire: to buy a house. That is the end game.

#80 Pandemic on 06.08.20 at 7:29 pm

I for one agree with the experts who are warning that there will be a spike in covid cases shortly as a result of the BLM and Antifa riots. I mean if we couldn’t even go to church a few weeks ago, not even a drive in church service, and the kids still can’t play soccer, how on earth can riots in the middle of a pandemic not spread the virus unless the whole covid thing was a crock in the first place?

So assuming covid wasn’t an elaborate hoax, it seems to me we will be in quarantine again by mid July. Get your hair cut before then.

Also it seems to me that even without covid the riots would have had far reaching economic impacts on things like travel and retail. Who in their right mind would travel to New York right now? And when the riots calm down (assuming they ever do) what will be left to visit? I ain’t going I can tell you that.

And now the mayor of New York and several other cities are entertaining the idea of “defunding the police”. Have people completely lost their minds? We are seeing right now what happens when the “thin blue line” gets breached, imagine what society will look like once it is removed. It won’t be pretty. No society has ever existed without some form of law enforcement. Even the wild west had sheriffs. It will end badly.

Police brutality is a horrible thing and the issue needs to be addressed, but in the overwhelming majority of cases where it occurs the victim was resisting arrest for a crime. That appears to include George Floyd. And if the arresting officers had identified him before hand they would have known he served time in Texas and might have assumed he was thus dangerous. That doesn’t excuse what happened, he should not have been held in a subjugation position for 8 minutes, but the thing is when you want to fight with the police or point a gun at them one thing is going to lead to another. The police are human too and at some point the survival instinct kicks in.

I remember clearly an incident some years back where the RCMP went to shut down a grow-op outside Sundre (before Trudeau) and the guy was laying in wait for them. 4 RCMP officers never made it home to their families again. But yet we expect them to deal with these sorts of people and not maybe over react from time to time? We have to keep in mind who their “clients” are, and they are the worst society has to offer. And getting rid of the police will not get rid of these people. Does anybody of sound mind really think that getting rid of the police will get rid of the criminal element? Nope. We’ll all be back to defending ourselves and our neighborhoods with shotguns.

It is often said that the police are terrible at preventing crime, but that is not true. The fact that you probably will get caught and incarcerated eventually is a strong deterrence. Without that deterrence enforcing the law reverts to the people themselves, forming posses to sort things out. That prospect is not better, folks. You’ll be the one that has to track the criminals down and deal with them as you will while they deal right back at you as they will. And trust me, there are no rules to the game they play.

The world has gone insane.

#81 Flop... on 06.08.20 at 7:32 pm

If I don’t have a credit card, or owe anyone any money, what’s my credit score?

Zero?

I have the Benjamin Button of credit scores.

You’re going the wrong way buddy…

M45BC

#82 no blog for old men on 06.08.20 at 7:38 pm

@#78 Rowdie on 06.08.20 at 7:18 pm
My tally on Real Restate in B.C., too high too buy for now, wait a few months. Figure the right percentage of drop is 50%, the house lust and greed here should be white washed. I know the revenue from house’s sold here were high, now reality check! Debt is high,reality check! We are now living in a different times people, the good times are over. You own a home for living NOT for investment and profit. I hope the next generation have more brains to figure this out.

From a Senior who is still wanting to buy a decent, low price home to live the rest of their lives in.
_____________________________________

50% drop? not likely, but i kinda hope so.
anyone with half a brain has made out like a bandit thanks to the fomo housing market

#83 Nick on 06.08.20 at 7:42 pm

Garth- “ In a sane world, that would reduce prices.”

Me- “There is no sanity in Lower Brainland. So prices will go up”:

#84 not 1st on 06.08.20 at 7:42 pm

Walmart to Shut Down 269 Stores, Including 154 in US

https://abcnews.go.com/Business/walmart-shut-269-stores-globally-including-154-us/story?id=36315019

#85 Flop... on 06.08.20 at 7:52 pm

This post is for all the girls on the blog.

I heard a great line from the trailer for the new series Mrs America, staring Aussie Cate Blanchett.

It’s what you do in North America, when you want the job done properly, for a discount, import an Aussie.

Here’s the quote, probably not exact as I only had one pass, but close enough.

Women are like tea bags.

You don’t know how strong they are until they get into a bit of hot water…

M45BC

#86 yorkville renter on 06.08.20 at 7:53 pm

#83 – that article on WalMart is over 4 years old…

#87 Yukon Elvis on 06.08.20 at 7:57 pm

#83 not 1st on 06.08.20 at 7:42 pm
Walmart to Shut Down 269 Stores, Including 154 in US

https://abcnews.go.com/Business/walmart-shut-269-stores-globally-including-154-us/story?id=36315019
………………………………..

Hahahaha. That story is from 2016.

#88 -=withwings=- on 06.08.20 at 8:04 pm

@#46 Nitro
The narrative is now changing. To justify all the crowds of protestors not getting fined or shamed for not socially distancing….

https://www.cnbc.com/2020/06/08/asymptomatic-coronavirus-patients-arent-spreading-new-infections-who-says.html

Yeah…the same shit they justify we all should stay at home just in case we unknowingly infect others is now found to be “rare”.

Millions of man hours by hundreds of thousands of tracers all over the world, all put together into a single database for analysis so we can learn new things about this virus.

But you already knew this was a very rare virus that didn’t spread asymptotically, didn’t you? You are that special.

#89 Do we have all the facts on 06.08.20 at 8:33 pm

CMHC has projected that total home sales across Canada will decline to 400,000 sales in 2020.

Based on past years approximately 45% of all home sales (180,000) involve first time home buyers.

After March 19, 2020 first time home buyers can deduct up to $35,000 from their RRSP without a withholding tax

In September the Government of Canada introduced a program to provide interest free loans to households that intend to purchase their first home. Households whose Gross income does not exceed $120,000 would qualify to purchase a home valued a a maximum of four times their total income. Purchase of a new home could qualify for a 10% loan while the loan for purchase of a resale home would be limited to 5%.

Fewer than 2,200 first time homeowners have requested financial assistance under this plan since October 2019.

Qualified first time buyers still have the option of limiting their downpayment to 5% of the purchase price providing the the gross debt servings costs do not exceed 35% of gross household income.

Based on my assessment of current market conditions I have great difficulty in believing that there are 180,000 households who would qualify to purchase their first home in 2020 unless average house prices across Canada were to decline.

In 2018 Statistics Canada determined that the median household pre-tax income of first time home buyers across Canada was around $60,000. At 35% of gross income the average gross debt service ratio for first time home buyers was in the range of $1,750/month before incomes were affected by Covid 19. If we assume that average property taxes, insurance, and heating across Canada were $450.00/month this would leave an average of only $1,300/month for mortgage payments.

Even with mortgage rates at 2.0% the maximum mortgage amount that can be carried for $1,300/month is $300,000. In 2018 only 18% of first time home buyers received help from their family to purchase their home. The balance relied on net household income.

Since the greatest demand for accommodation by first time home buyers is in major cities and the average price of a house across Canada in February 2020 was $530,000 the metrics to support the purchase of 180,000 dwellings by first time buyers in Canada in 2020 don’t appear to exist.

It might be wise to listen to what CMHC was saying.

the monthly gross debt

. Average housing prices in most major cities would require

Mortgage rates at an all time low

#90 Macronical on 06.08.20 at 8:39 pm

THIS is the Macronical. Where the prediction starts on your today’s blog post.

#91 Ponzius Pilatus on 06.08.20 at 8:42 pm

#83 not 1st on 06.08.20 at 7:42 pm
Walmart to Shut Down 269 Stores, Including 154 in US

https://abcnews.go.com/Business/walmart-shut-269-stores-globally-including-154-us/story?id=36315019
—————
About time!
They closed their last store in Germany 2 years ago because of low demand for their inferior products.
Good news for the smaller local merchants.

#92 Ponzius Pilatus on 06.08.20 at 8:46 pm

Re: Walmart
Pulled the trigger too fast.
Better should fact check next time,

Comment still stands.

#93 Attrition on 06.08.20 at 8:46 pm


#36 TurnerNation on 06.08.20 at 4:52 pm

HERE it comes….the death of private property rights.
We are in this together. Communism.

https://www.bnnbloomberg.ca/ontario-government-halts-commercial-evictions-in-pandemic-1.1447373

If the vast majority of these new temporary measures are reversed in an election cycle or two, we should all be allowed to stand in line and kick you in the arse with a frozen safety boot.

If the vast majority of these temporary measures aren’t reversed in an an election cycle or two, I’ll be the first to bow down, kiss your ring, and proclaim you Grand Seer of The Democratic People’s Republic of New Kanukistan.

Cause you’re either seeing it coming, or you’re only seeing in the rear view mirror.

#94 crowdedelevatorfartz on 06.08.20 at 9:19 pm

Well well well
In the annals of RCMP “oops”
We have the bizarre situation of a mid air collision between an RCMP helicopter and a drone last February during the National gas pipeline protests in Northern BC.

And it wasnt just any drone…..it was an RCMP drone worth $150,000.00 and it hit an RCMP helicopter that immediately landed……The RCMP helicopter was then lifted out by another , bigger helicopter from oil producing Alberta….

Taxpayers love this shite…..but lets all “take a knee” like the PM in a big, non social distancing, crowd of potential covid19 spreaders…….

#95 SoggyShorts on 06.08.20 at 9:21 pm

#50 Piano_Man87 on 06.08.20 at 5:34 pm
It’s not a gifted downpayment.

Yesterday I mowed my parents’ lawn, and they gave me $100,000 for the work.
**********************
Knock knock knock
“who’s that?”
-“It’s the CRA, and we’re here for our 40k”

#96 BobC on 06.08.20 at 9:23 pm

What kind of country do you live in? If I want to gift my son or daughter $50k or $100k whose business is it? It’s a gift. I gave it to them for a down payment so they can live in a nicer area with a lower monthly payment. Isn’t it my business and my business only?
Is the government jealous or are the voters jealous because I worked my butt off for my kids. What possible harm does it cause banks or the communist government if I help my kids? Unbelievable

#97 Sail Away on 06.08.20 at 9:30 pm

#87 -=withwings=- on 06.08.20 at 8:04 pm
@#46 Nitro

The narrative is now changing. To justify all the crowds of protestors not getting fined or shamed for not socially distancing….

https://www.cnbc.com/2020/06/08/asymptomatic-coronavirus-patients-arent-spreading-new-infections-who-says.html

Yeah…the same shit they justify we all should stay at home just in case we unknowingly infect others is now found to be “rare”.

—————–

Millions of man hours by hundreds of thousands of tracers all over the world, all put together into a single database for analysis so we can learn new things about this virus.

But you already knew this was a very rare virus that didn’t spread asymptotically, didn’t you? You are that special.

——————

Don’t get your drawers in a knot. I suspect n1tro is pointing out that this wasn’t a particularly dangerous or unique cold/flu in the first place, and it’s sort of funny that as this becomes more accepted, the ‘official’ word on it gets less restrictive.

Or maybe that’s just my take. In my opinion, the whole boondoggle was sheer idiocy. Luckily, knowing this, it made my fortune. Or at least a very nice start to it.

#98 JM on 06.08.20 at 9:39 pm

Right now real estate looks more attractive then markets. Equities are looking like the mother of all bull traps. Mr/mrs market are always right… but why does this feel so wrong…

#99 the Jaguar on 06.08.20 at 9:46 pm

@#63 Nonplused on 06.08.20 at 6:37 pm

You’re forgetting the most important of the five ‘C’s.
Character. Did they show the discipline to actually save for their own down payment?
Mortgage lenders don’t make loans to seize assets regardless of the amount of equity (cash) into the purchase. It’s bad press and tiresome. Better to lend money to those who will pay like clock work and let the loan sharks swim with the rest.

#100 T on 06.08.20 at 10:10 pm

#72 Nottawa Housing Bust on 06.08.20 at 7:12 pm
Can anyone explain what is happening in the markets.

HTZ filed for bankruptcy. Stock is up 114 % since then. JCPNQ filed for bankruptcy. Up 96%. CHK about to file for bankruptcy, up 175% in one trading day.

WhT is going on here. Is the QE money. Or some type of algo trading. Who is bidding up bankrupt companies and why????

——————

Filing for bankruptcy protection does not equal bankruptcy. In many cases the protection provides companies the latitude to restructure and renegotiate debts and come out of protection in a much stronger position.

#101 The real Kip (Ret) on 06.08.20 at 10:14 pm

Evan Siddall better hope CERB is extended. He will soon be on it if he thinks a minority government is going to make it harder for Canadians to buy or continue to own houses. If anything they’re making it easier.

#102 Michael in-north-york on 06.08.20 at 10:17 pm

Because the bank is assuming risk in lending money to somebody who couldn’t even cough up their own downpayment. Duh.- Garth

On one level, that makes perfect sense. But, sorry, how is the bank going to prove that the downpayment comes from the Bank of Mom, if the Offspring claims otherwise and has the cash in their account?

Even if they were to demand the account history .. No problem, Mom pays the Offspring’s everyday living costs for a few months, and the Offspring saves almost all salary. The downpayment is cooked and ready to serve.

#103 TurnerNation on 06.08.20 at 10:23 pm

A great time for a rolling recap of what I’ve been laying out for months: every system that was designed to protect you has been turned against you.

1. The courts where you could get a fair jury trial are closed.
2. Landlords no longer are protected at tribunal. Squatters may take over your private property.
3. All over, governments are tearing up commercial real estate contacts and law. Ontario is latest place to be following this script.
4. Old age homes failed to protect and actively extinguished people. Currently locked down like a prison. You’ll never know.
5. Police are being defunded. Of course they will work to rule in protest. This means answering only top priority call. I.e. not yours.
6. The US FDA has relaxed food labeling laws several times in past months. Do you trust the handful of large corps owning most of our supply?
7. Doctors were ordered to deny preventative and needed procedures and surgeries.
8. Banks closing a majority of branches. Expect their ATMs removed, too. Cashless society is the ultimate plan.

Have I missed anything? Is there a system still on your side?

#104 Sail Away on 06.08.20 at 10:29 pm

#91 Ponzius Pilatus on 06.08.20 at 8:46 pm

Re: Walmart

Pulled the trigger too fast.

Better should fact check next time,

—————

Why start now?

#105 DON on 06.08.20 at 10:43 pm

#11 Yeah but, on 06.08.20 at 3:08 pm

Genworth and Canada Guaranty aren’t following CMHC’s lead.

*****************

You may want to google bloomberg for what they are saying about these alternative lenders lately. Risk is high.

#106 april on 06.08.20 at 10:46 pm

#64 – unless the Great Reset-#71- gets you… takes your assets to raise the living standards of the poorer countries…….who believes this stuff…?

#107 Bobby13 on 06.08.20 at 10:55 pm

The housing and the stock market are so far in the stratosphere it’s looking like the central bank will keep throwing the kitchen sink at them to keep them inflated.

ITM calls last while has been incredible.

#108 Faron on 06.08.20 at 10:55 pm

#72 Nottawa Housing Bust on 06.08.20 at 7:12 pm

Can anyone explain what is happening in the markets.

HTZ filed for bankruptcy. Stock is up 114 % since then. JCPNQ filed for bankruptcy. Up 96%. CHK about to file for bankruptcy, up 175% in one trading day.

WhT is going on here. Is the QE money. Or some type of algo trading. Who is bidding up bankrupt companies and why????

—-

I don’t know. I just watched a video about bag, gun, liquidate as a strategy. It was in reference to airlines. A huge portion of total shares are trading premarket, the price pops at open and then profit is taken.

I just had AC go up 35% in a week. Sold it today. Watch this space for tears if it continues to skyrocket.

#109 gary on 06.08.20 at 10:57 pm

“Zillow has discovered homes with black doors sell for an average of $6,271 more than expected”

So how much more than expected do other colours sell for?

#110 DON on 06.08.20 at 11:02 pm

As Ponzi said those original unemployment numbers were higher than originally forecast, but nobody reads the updated stories. The FOMO crowd only reads the headlines that allow them to keep their head firmly planted in the sand.

And those companies who provide all those jobs (and are taken federal money) are actually getting rid of jobs (Sysco is a recent example, there were more as well).

The movie ain’t over, but summer is here and the crowd is out to play and pay no notice of events until the fall. Doesn’t matter that the World was tittering on recession prior to the Virus outbreak.

Adding to what the Jaguar said, People are self made stupid when they ignore the realities of any given situation. Their are limits on consumerism as well.

‘Watch what people do…not what they say’. So very true…Dr. Seuss? ‘Lessons of life’ another one is ‘Button your lip’. I am not very good at that one, but getting better in certain situations.

The Banks are setting up risk provisions, and they are RICH! Much like seeing the bomb squad running in the opposite direction from the bomb. What way will you run? lol

#111 DrC on 06.08.20 at 11:15 pm

Let’s face it. With 1.99% (or 2.24% for uninsured) for a fiver + lots of house hungry people we won’t see any reduction in house prices ever. I could buy a house in 2013. I didn’t. That’s my mistake. The pandemic didn’t scare anybody. Banks are lending and the people are buying. I’m waiting until October. But to be honest I give it a 10% probability anything will change until then. Let’s not forget the amount of money printed and injected as well. This brought the RE prices back from 2008 and will easily bring them back now. You’re right, it’s not different!

#112 Alphonse Kehaulic on 06.08.20 at 11:20 pm

#43 Deplorable Dude

If Dr WHO says that this is now the case, then we who show zero symptoms should expect the entreaties to stay home, keep our distance and wear a suffocating mask to be lifted soon, yes?

By the way have you noticed the lucky timing of the metaphorical “I Can’t Breathe” slogan?

Why are so many small businesses still being prevented from opening if asymptomatic spread is very rare? No need to worry about those asymptomatic folk, and the sick ones, well surely they’re at home in bed or in hospital suffering, certainly not going out shopping right?

On the other hand, how much credibility does Dr WHO have now?

Interesting to note that the original headline of the CNBC article was: asymptomatic coronavirus patients aren’t spreading new infections.

#113 David on 06.08.20 at 11:22 pm

At this point tightening underwriting standards seems like an afterthought. People hoping for a soft landing might be disappointed. There was complete denial of a bubble when prices continued to race upwards. The market might wind up seizing on the way down.

https://www.fool.ca/2020/05/21/warning-canadas-housing-bubble-could-burst-in-2020/

https://wolfstreet.com/2020/06/01/head-of-canadas-mortgage-housing-agency-cmhc-warns-homebuyers-to-question-motives-of-those-saying-prices-will-rise/

#114 SoggyShorts on 06.08.20 at 11:29 pm

#95 BobC on 06.08.20 at 9:23 pm
What kind of country do you live in? If I want to gift my son or daughter $50k or $100k whose business is it? It’s a gift. I gave it to them for a down payment so they can live in a nicer area with a lower monthly payment. Isn’t it my business and my business only?
Is the government jealous or are the voters jealous because I worked my butt off for my kids. What possible harm does it cause banks or the communist government if I help my kids? Unbelievable
*******************
Exactly! And I should be allowed to gift my employees whatever I want instead of paying them, just like my clients pay me and its none the gov’s business!
In fact, ALL transactions should bypass the dern gobmint and they can pay their own taxes!

But seriously, isn’t the idea of a down payment partly to prove you are a good bet to loan money to? I mean if you can’t come up with 5% of a house on your own, what makes the bank think you’ll make your payments?

#115 Gregor Samsa on 06.08.20 at 11:41 pm

#64 CL

I just negotiated a $100/month off my rent in Calgary. Had them by the balls because we both knew that if I moved their chances of finding another good employed tenant within a couple months was next to nil, so the logical conclusion was to lower my rent. There are hundreds of places to rent at good prices.

You have to be willing to do two things a) negotiate and b) actually move if negotiations fail.

The true idiots are the ones still buying property.

#116 Don Guillermo on 06.09.20 at 12:00 am

#70 Shirl Clarts on 06.08.20 at 7:04 pm
Zillow has discovered homes with black doors sell for an average of $6,271 more than expected.
**************************************
Apparently, Black Doors Matter

#117 Nonplused on 06.09.20 at 12:01 am

#98 the Jaguar on 06.08.20 at 9:46 pm
@#63 Nonplused on 06.08.20 at 6:37 pm

You’re forgetting the most important of the five ‘C’s.
Character. Did they show the discipline to actually save for their own down payment?

———————–

I never did see a “character” rating on a credit score. Maybe they have one somewhere in the back but I think they mostly look at whether you’ve kept current on your payments. Also, if it were me, I might take it to mean that if you got a gift of $50,000 from your parents that means you were raised in a fiscally prudent and industrious household, and the apple doesn’t fall far from the tree. It also implies potential assistance if the job market goes bad, or an inheritance coming sometime down the line. It certainly doesn’t say anything bad from a financial perspective. If your parents have done well and managed their money well chances are some of it is coming your way eventually. What does it matter if they want to give you a bit of a push earlier? And it does tend to be the case that parents that have some money to talk about tend to talk about managing money with their children a lot more than parents who don’t. Sort of like how most of the people that comment here and read this blog are thinking about their money too, because they have some.

————————

#94 SoggyShorts

That’s exactly what I was thinking. And I don’t know why one would declare it as income when there is no law against gifting. As long as pops has paid his taxes he can give the money to his mistress if he likes. It’s only when the money crosses the weird line of being income that tax is due.

When I pay off my trophy wife’s credit cards she doesn’t have to pay tax, because I already have. When I pay my kids’ tuition they don’t have to pay tax because I already have. If I give my kids $50,000 for a down-payment I’ve already paid tax on that too. I think the main concern the banks and the CRA have is what was the source of the funds. If it turns out to be something illicit that is what they are looking for. When $50,000 shows up in someone’s bank account all of a sudden the question comes up “where the heck did that come from???”

#118 Where's My Money, Gweedeau? In The French Riviera "cottage"? on 06.09.20 at 12:52 am

Re: #17 wallflower on 06.08.20 at 3:43 pm
#13 YouKnowWho on 06.08.20 at 3:23 pm
“Here is $50k in cash sweetie.”

How does CMHC know that money was gifted by mom?
——
When did you last go through a mortgage process? Surrender your life…. every single penny being allocated has to be accounted for. They want statements with dates, etc. If that 50K is sitting in your bank account, the statements will show when it got there and the question will be, what is the source? The BANK wants to know.
+++++++++++++++
Yeah, and when the shady lawyer comes in the door with a nice check the “BANK” will just accept with no questions asked, like what has been happening for the last 10+ years in BC. Especially if that check was written from the local casino….One big happy familia….

#119 Paul on 06.09.20 at 12:52 am

#95 BobC on 06.08.20 at 9:23 pm
What kind of country do you live in? If I want to gift my son or daughter $50k or $100k whose business is it? It’s a gift. I gave it to them for a down payment so they can live in a nicer area with a lower monthly payment. Isn’t it my business and my business only?
Is the government jealous or are the voters jealous because I worked my butt off for my kids. What possible harm does it cause banks or the communist government if I help my kids? Unbelievable
————————————————————————————————
Yes it is your business, but people think they have the to know plus stick their nose in.There was a time they would have gotten a tap on the beak.

#120 would-be buyer on 06.09.20 at 2:41 am

First off, I am a perma-bear on housing who missed the run-up when I didn’t buy in 2010. So, my advice is suspect. But, I was told by my RBC advisor that as long as any family “gift” was in my account for 90 days it became mine. Problem solved. Also, I am a high-income earner and I only have one friend (who is already rich as…) that was laid-off. The rest of us are working from home collecting our full paycheques. I do know a couple of service workers (hospitality industry; hair) that are hurting, but let’s face it, they were never in the RE buying position. Now Hong Kong ex-pats might be returning home to VA. I so want RE to crash so I can finally buy a place for my family, but I am a cynic and don’t see it happening anytime soon. Oh, and a colleague of mine just bought a new house for $2M on the east side of VA. Can’t wait for the house warming party. Nothing to see here.

#121 n1tro on 06.09.20 at 3:49 am

#87 -=withwings=- on 06.08.20 at 8:04 pm
@#46 Nitro

Millions of man hours by hundreds of thousands of tracers all over the world, all put together into a single database for analysis so we can learn new things about this virus.

But you already knew this was a very rare virus that didn’t spread asymptotically, didn’t you? You are that special.
——-
First it’s not a rare virus like ebola. It’s a new one which came about from a mutation of other similar Corona viruses or a lab depending what you believe.

Second, I don’t have to know anything because this new “revelation” is coming from the same idiots who gave us…
1. There was no pandemic
2. Then there is a pandemic
3. Don’t call it the China Corona virus because it is is hurtful despite its origin
4. No need to ban air travel from China
5. Oops… travel restrictions are needed
6. No need to wear face masks
7. Well, err….wearing masks couldn’t hurt…
8. Need to “flatten the curve”
9. When curve was flatten….we need to stop the spread
10. 2M people will die
11. Asymptomatic people can still spread the virus so stay indoors
12. Protestors who wanted freedom from lockdown are selfish rednecks
13. 2 weeks later, protestors rioting and marching in the streets for social cause….silence
14. And now….Asymptomatic people unlikely to cause spread of virus…

The original narrative was that we are all guilty of potentially killing our friends and family if we stepped outside our homes.

Entire economies have shut down on the guesses pulled out of the butts of these people. The dude that engineered the UK’s lock down was out and about cheating on his wife banging his mistress.

Trudeau preaching about distancing while first day from his self isolation, goes to BLM march to pose for a photo opp.

When you chronicle the events and what they advised, all you see is flip flopping scare mongering.

#scamdemic2020

#122 BillyBob on 06.09.20 at 4:36 am

#95 BobC on 06.08.20 at 9:23 pm
What kind of country do you live in? If I want to gift my son or daughter $50k or $100k whose business is it? It’s a gift. I gave it to them for a down payment so they can live in a nicer area with a lower monthly payment. Isn’t it my business and my business only?
Is the government jealous or are the voters jealous because I worked my butt off for my kids. What possible harm does it cause banks or the communist government if I help my kids? Unbelievable

===============================================

No one cares if you give your kids a gift. But the entity lending your kid money has a reasonable right to know your kid’s ability to repay it. The chunk you give them wasn’t earned from their income so can’t logically be included as equity from their declared income – which is actually the true indicator of their ability to repay.

A business protecting their profits is pretty much the polar opposite of communism.

And no one is forcing you reveal anything unless you want a bank loan. Give your entitled darlings the entire purchase price if it offends you. The new policies will make that more feasible by lowering prices.

#123 Westcdn on 06.09.20 at 4:38 am

I believe in people to get things done. One thing I like about the military if their efference on getting “assets” at the right time and place but things can change fast. I have a particular affinity with sergeants in the line. They make tough calls and have to live with it- some better than others.

I think I took the best from my parents. They both had lots to teach and would share experiences. I learned not be judgmental – stereotyping is too easy a way out.

Both parents would change/fight problems. IMO, my mother grew faster than my father. He took up logging with horses at 65. He thought it was the right thing to do.

#124 Howard on 06.09.20 at 5:12 am

#95 BobC on 06.08.20 at 9:23 pm
What kind of country do you live in? If I want to gift my son or daughter $50k or $100k whose business is it? It’s a gift. I gave it to them for a down payment so they can live in a nicer area with a lower monthly payment. Isn’t it my business and my business only?
Is the government jealous or are the voters jealous because I worked my butt off for my kids. What possible harm does it cause banks or the communist government if I help my kids? Unbelievable

———————————–

It matters if your kid is being insured and backstopped by the taxpayer-funded CMHC but taking on more debt than he/she could otherwise afford. People who had the discipline and acumen to build up a down payment on their own without parental help are surely less likely to default or find themselves in dire financial circumstances. Far less risky to the taxpayer.

For mortgages that leave out the taxpayer, I agree with you.

#125 baloney Sandwitch on 06.09.20 at 6:35 am

#123 Howard.
You are not required to get CHMC insurance if you have a downpayment on > 20%. Leveraged beggars can’t be choosers. Mom cannot loan sonny 5% and palm off the 95% risk to the taxpayer.

#126 Steven Rowlandson on 06.09.20 at 6:47 am

RE#72
If I had to take a guess I would say that someone is after enough ownership to take control of the physical assets of the companies or someone is promoting the companies to get a buying frenzy and price rise going to facilitate taking a profit while there are still plenty of suckers to sell to. One is a buy out opportunity and the other is a watch out warning.

#127 Wrk.dover on 06.09.20 at 7:21 am

A week or two ago I opined on the poor prospects for Being.

On Squawk this morning they point out it is up 92% since May 18.

Sure Mack! no cure for the Max, etc. etc.

The dividends they pay will be rubber cheques backed by J. Powel for sure!!!!

#128 Wrk.dover on 06.09.20 at 7:23 am

edit Boeing

#129 Howard on 06.09.20 at 7:31 am

#118 Paul on 06.09.20 at 12:52 am
#95 BobC on 06.08.20 at 9:23 pm
What kind of country do you live in? If I want to gift my son or daughter $50k or $100k whose business is it? It’s a gift. I gave it to them for a down payment so they can live in a nicer area with a lower monthly payment. Isn’t it my business and my business only?
Is the government jealous or are the voters jealous because I worked my butt off for my kids. What possible harm does it cause banks or the communist government if I help my kids? Unbelievable
————————————————————————————————
Yes it is your business, but people think they have the to know plus stick their nose in.There was a time they would have gotten a tap on the beak.

—————————-

You’re saying lenders don’t have a right to ask about the source of a prospective borrower’s funds?

Is it also communist for a car insurance company to review a potential client’s crash history?

#130 Love_The_Cottage on 06.09.20 at 7:48 am

“I’m concerned because many of our seasonal residents are not feeling as welcome. And they are welcome,” Phil Harding, mayor of the Township of Muskoka Lakes

https://www.bnnbloomberg.ca/muskoka-welcomes-bay-street-bankers-in-summer-of-covid-19-1.1446420

#131 crowdedelevatorfartz on 06.09.20 at 8:20 am

@#95 BobC
“If I want to gift my son or daughter $50k or $100k whose business is it? It’s a gift.”
+++

Would you adopt me…..dad?

#132 Handsome Ned on 06.09.20 at 8:33 am

If you are worried about gifting your children for a house, just buy in greater Vancouver. Send your kid with a duffle bag of cash and badda boom. 100k cash for a new BMW…here is the keys. Money laundering is Vancouvers main industry. The government tuts tuts about it, but they love it, no pipelines or clear cuts.

#133 Phylis on 06.09.20 at 8:45 am

#94 SoggyShorts on 06.08.20 at 9:21 pm
#50 Piano_Man87 on 06.08.20 at 5:34 pm
It’s not a gifted downpayment.

Yesterday I mowed my parents’ lawn, and they gave me $100,000 for the work.
**********************
Knock knock knock
“who’s that?”
-“It’s the CRA, and we’re here for our 40k”
——————————-
Yes, people aren’t aware of “means tested income”. Say, that’s a nice watch and car. Barista eh? Now give it to me. Signed, your government.

#134 TurnerNation on 06.09.20 at 8:55 am

It’s coming so clear. For weeks I posted that the lockdowns will continue until the New System is ready to be rolled out. Ontario kept extending theirs – for ‘no reason’ – then tacked on an extra 10 days of lockdown. So scientific.
Why? To roll out this? Ta-da. Slow erosion of property rights

https://www.bnnbloomberg.ca/ontario-government-halts-commercial-evictions-in-pandemic-1.1447373

#135 Feeling unwelcome on 06.09.20 at 8:59 am

#129 Love the Cottage

The local Muskoka papers are full of comments about how the locals don’t want us cottagers and don’t need our business to survive (seriously, obviously not business owners making those comments).

That’s fine, I am driving to Barrie tomorrow to buy a $15k spa, not even going to look at the local dealer.

Tired of paying a premium to locals and besides, far better selection in Barrie.

#136 Dharma Bum on 06.09.20 at 9:07 am

I saved up that $200,000.00 down payment from my paper route, delivering the Toronto Telegram!

https://www.cbc.ca/archives/this-is-it-the-day-the-toronto-telegram-folded-in-1971-1.4884371

#137 Sky on 06.09.20 at 9:20 am

DELETED

#138 not 1st on 06.09.20 at 9:22 am

Geez you guys act like banks are law enforcement or something.

They have NO right to anything especially where you get a downpayment from and you have ZERO obligation to disclose that. If they don’t like it, there is another lender down the street and your entire account can move in a heartbeat.

Treat the bank like the greedy fools they are.

#139 crowdedelevatorfartz on 06.09.20 at 9:36 am

@#135 Dharma Bum

Save that link from 1971, Ponzie wants to share it as proof the economy is failing….

#140 SimplyPut7 on 06.09.20 at 9:37 am

Federal government spends $3.6 billion a week on the CERB, now they are looking at ways to end the program.

This should be interesting.

https://www.msn.com/en-ca/news/canada/john-ivison-federal-government-seeking-exit-strategy-from-cerb-through-new-legislation/ar-BB15d6xv?li=AAggNb9

#141 No correction on 06.09.20 at 9:41 am

No corrections, depressions, recessions, crashes or resets allowed….ever again. Mass money printing with zero accountability whatsoever, has thrown all fundamentals out the window especially in the perverse and warped stock markets where bankrupt corporations are up 1000% with communistic Fed interventions. The 1st ever 4 week bear market? Just laughable.

If a pandemic and economic shutdown doesn’t bring nosebleed real estate prices back down to earth, then nothing will. It just simply is no longer permitted. Garth there is no point in trying to make sense of insanity, and that especially applies to your beloved Mr Market that rejoices with unthinkably atrocious data with market rallies thanks to Jerome’s 24/7 printing press.

All asset values positively delusional and all it is on the backs of the taxpayers. Central banks must be stopped.

#142 TurnerNation on 06.09.20 at 9:43 am

#92 Attrition why don;t you ask all the other first world countries where also these “temporary” measures are in place? Hey Income Tax was a temporary measure to fund WW1.
This is a global plan and we got our UN boy in charge. 4 more years. Things are moving SO fast – as I stated here 6 months ago and into Q1
Same script , every city and country.

#143 Kevin on 06.09.20 at 9:44 am

Mom gives me $50k to buy RRSP’s. I wait 90 days. Call up broker and buy under first time program. Yup, I’m going to use the $50k in my RRSP for down payment. Ok, Please provide us with 90 days history on funds. No problemo…. Mommy gave me funds and you can’t tell ;-)

#144 Greg on 06.09.20 at 9:45 am

#17 “ When did you last go through a mortgage process? Surrender your life…. every single penny being allocated has to be accounted for. They want statements with dates, etc. If that 50K is sitting in your bank account, the statements will show when it got there and the question will be, what is the source? The BANK wants to know.”

Been about 30 years since my last mortgage. If the “BANK wants to know,” how did money laundering and drug $ become such a factor in real estate? Or was that yesterday?

#145 LP on 06.09.20 at 9:47 am

#126 Wrk.dover on 06.09.20 at 7:21 am
A week or two ago I opined on the poor prospects for Being.***************************

On some level, you might have been right in the first instance.

#146 Don Guillermo on 06.09.20 at 10:04 am

My buddy in Boston just sent me this text. Seems everyone is frustrated. Haha.

“Survived until June and toilet paper making it back to the shelves. Trust all is well in Calgary and the government has allowed the Flames to begin practice. The governor is still mulling that over and may have a proposed date to propose the rules and regulations to establishing a date to explain the rules and regulation and a proposed date when he can announce a proposed date that practices can resume in their closed to the public training facilities. Last Saturday the rules and dates for restaurants was announced, but only outside tables 6′ or just shy 2 meters apart, plastic utensils, one use menus but you can remove your mask to eat. Most reservations are for tables for 2 near the dumpster. Sorry just wondering what’s next like cancel Christmas and New Years because of the cold and flu season.”

#147 JB on 06.09.20 at 10:11 am

#69 crowdedelevatorfartz on 06.08.20 at 6:55 pm

A shout out to Smoking Man!
Keep fighting the good fight Smokie.
You may smell of stale cigarettes and JD but we still luv ya buddy!
……………………………………………………………………
Echo that shout out to the fallacious prognosticator! Cancer sucks!

#148 JB on 06.09.20 at 10:14 am

Hey Smoking Man it must be comforting to be back here at home in Canada where your family and friends are all around you during this time. Spend your time well while fighting this monster.
P.S. Please stop smoking it won’t help you.

#149 IGV on 06.09.20 at 10:24 am

How true.

“If everyone is holding stocks just to pass on to the next greater fool, and if the greatest fool is a central bank with infinite liquidity to buy them, then, yes, prices will keep going up,” according to a note from Rabobank on Tuesday.

#150 Orange Man....Orange on 06.09.20 at 10:30 am

Defund the Government!

#151 Ponzius Pilatus on 06.09.20 at 10:31 am

Stones song lyrics:
I see a red door and want to paint it black.

#152 the Jaguar on 06.09.20 at 10:40 am

@116 Nonplused on 06.09.20 at 12:01 am
#98 the Jaguar on 06.08.20 at 9:46 pm
@#63 Nonplused on 06.08.20 at 6:37 pm

Credit Bureau reports can show far more than just a record of payments, i.e. number of enquiries, who enquired, tendency to seek credit, etc. The number of collections for those who stiff cell phone companies and don’t pay speeding tickets, especially the out of province tickets says a lot. Maintenance Enforcement items also show up. Tell me that doesn’t reek of a lack of character. As for kids coming from industrious households and the ‘apple not falling far from the tree’, the opposite is unfortunately often true. Second generation wealth often slips through their fingers for a variety of reasons. Maybe it also explains why some parents, after providing a written declaration to the bank that funds were ‘gifted’ and are not ‘repayable’ will actually register a second charge on title to the property that the ‘kids’ just bought. Guess that sense of ‘trust’ in their little “apple” didn’t have enough gas in the tank.

#153 Faron on 06.09.20 at 10:45 am

#143 Greg on 06.09.20 at 9:45 am

Been about 30 years since my last mortgage. If the “BANK wants to know,” how did money laundering and drug $ become such a factor in real estate? Or was that yesterday.

With those kinds of $$$ there is no lender.

#154 RyYYZ on 06.09.20 at 11:25 am

#95 BobC on 06.08.20 at 9:23 pm
What kind of country do you live in? If I want to gift my son or daughter $50k or $100k whose business is it?
==================================
It’s CMHC’s business, if you want them to insure your mortgage. You’re still free to deal directly with the mortgage providers and whatever their documentation requirements are without involving CMHC.

#155 JB on 06.09.20 at 11:38 am

ole Slew Foot is doing his dance around the questions address right now.

So I guess our taxes are going up?
I really wish he would shave that damn beard off he looks like an old guy with a hairpiece.

#156 Sail away on 06.09.20 at 11:42 am

I do like my cash and always hold a whackload for opportunities. If I need to buy something, that’s my business and the seller’s business, nobody else’s.

Car? cash
Home renos? cash
Lumber? cash
Sailboat? cash
Barrel of managers’ dram Talisker? cash
Original art? cash
Remote acreage? cash
Long term vacation rentals? cash

When buying something, why would anyone invite the government to sniff around?

Nearly every worthwhile item is best bought used anyway. You get tried and true proven quality.

IH knows what I’m talking aboot.

#157 Toronto_CA on 06.09.20 at 12:00 pm

Assuming you made $100,000/year in all of these roles pre lockdown; coming out of June 2020 would you rather be:

– a commercial airline pilot
– owner of a dry cleaning business
– a real estate agent
– events manager for a convetion center

I don’t know who’s prospects look the worst…

#158 Attrition on 06.09.20 at 12:32 pm


#155 Sail away on 06.09.20 at 11:42 am

I do like my cash and always hold a whackload for opportunities. If I need to buy something, that’s my business and the seller’s business, nobody else’s.

When buying something, why would anyone invite the government to sniff around?

Nearly every worthwhile item is best bought used anyway. You get tried and true proven quality.

IH knows what I’m talking aboot.

Same here. Especially with vehicles.

With a ten+ year old vehicle, everything likely to go wrong should have already gone wrong. Just simple maintenance for the next ten or twenty years.

The miles you put on an older vehicle are known as the cheap miles. The original owner encountered all the costs, the depreciation, the interest, the early repairs outside of warranty.

The new owner gets to enjoy a very low cost of ownership because of this.

As I’ve said before, my old Dodge is powered by the depreciation absorbed by the original owner. Tried and true is an understatement for the old beast. Puts my previous Tacoma (10 years newer) to shame too.

#159 Faron on 06.09.20 at 12:32 pm

#155 Sail away on 06.09.20 at 11:42 am

Original art? cash

That would be the form following function variety I assume.

#160 kingston boy on 06.09.20 at 12:53 pm

@#137 not 1st on 06.09.20 at 9:22 am
Geez you guys act like banks are law enforcement or something.

They have NO right to anything especially where you get a downpayment from and you have ZERO obligation to disclose that. If they don’t like it, there is another lender down the street and your entire account can move in a heartbeat.

Treat the bank like the greedy fools they are.

maybe greedy opportunist is more appropriate.
the fools are the ones who bend over for the banks

#161 kingston boy on 06.09.20 at 12:57 pm

@#134 Feeling unwelcome on 06.09.20 at 8:59 am
#129 Love the Cottage

The local Muskoka papers are full of comments about how the locals don’t want us cottagers and don’t need our business to survive (seriously, obviously not business owners making those comments).

That’s fine, I am driving to Barrie tomorrow to buy a $15k spa, not even going to look at the local dealer.

Tired of paying a premium to locals and besides, far better selection in Barrie.


ever see the movie Deliverance?
Thats what muskoka is without cottager $$$s

#162 Sail away on 06.09.20 at 1:12 pm

#158 Faron on 06.09.20 at 12:32 pm
#155 Sail away on 06.09.20 at 11:42 am

Original art? cash

————–

That would be the form following function variety I assume.

————–

Haha.. Oh, I do like art that shows true form following function, such as, for example: animals moving as nature intended, sailboats sailing in accordance with laws of physics, high-quality woodworking and joinery, carvings, and, a bit contradictory maybe, depictions of life in large bold colours such as Ted Harrison and Rie Munoz.

#163 Howard on 06.09.20 at 1:37 pm

#137 not 1st on 06.09.20 at 9:22 am
Geez you guys act like banks are law enforcement or something.

They have NO right to anything especially where you get a downpayment from and you have ZERO obligation to disclose that. If they don’t like it, there is another lender down the street and your entire account can move in a heartbeat.

Treat the bank like the greedy fools they are.

———————————-

Of course they have a RIGHT to ask for such disclosures. Asking does not mean forcing.

You have a right to say no and take your business elsewhere.

#164 Ronaldo on 06.09.20 at 2:11 pm

#33 SoggyShorts on 06.08.20 at 4:43 pm

As soon as I figure out if I’m keeping my XRE, VWO, XEF I want to go 80/20 with that 20 being IEF or HTB
——————————————————————
Why would you want to dump XTR? Paying almost 6% and is back to its normal trading range, low mer, low to med. risk. Lots of upside. One of the better etfs out there.

#165 BillyBob on 06.09.20 at 2:22 pm

#156 Toronto_CA on 06.09.20 at 12:00 pm
Assuming you made $100,000/year in all of these roles pre lockdown; coming out of June 2020 would you rather be:

– a commercial airline pilot
– owner of a dry cleaning business
– a real estate agent
– events manager for a convetion center

I don’t know who’s prospects look the worst…

=================================================

I’m the first one on that list and have no complaints.

All of those industries will eventually recover. It just won’t be soon, even, or linear.

#166 MagnumMtl on 06.09.20 at 2:24 pm

the Nasdaq hit 10,000 today!

#167 Paul on 06.09.20 at 2:35 pm

#134 Feeling unwelcome on 06.09.20 at 8:59 am
#129 Love the Cottage

The local Muskoka papers are full of comments about how the locals don’t want us cottagers and don’t need our business to survive (seriously, obviously not business owners making those comments).

That’s fine, I am driving to Barrie tomorrow to buy a $15k spa, not even going to look at the local dealer.

Tired of paying a premium to locals and besides, far better selection in Barrie.
————————————————————————————————
It’s working divide and conquer. City people against country people, rich against poorer, white against black.
police against the fringe.

#168 Calgary on 06.09.20 at 3:00 pm

https://www.youtube.com/watch?v=92DvhClP1iE#action

Will Canadian cities be like American cities? Is it time to move to the rural or suburb?

#169 Stuart Moir on 06.10.20 at 7:48 pm

Will Canadian cities be like American cities? Is it time to move to the rural or suburb?

Yes. Crowded cities will be dangerous in future pandemics. Apartments and care homes are the worse places to be in crowded cities. The worse the crowding the greater the risk of losing our liberties. I don’t want to be forced into a lockdown as if I lived in a jail. Corrupt government’s want big brother 1984 surveillance they misleadingly label contact tracing. When I retire I will sell my home in the city and move to small town where I hope to find some sanity. Small town Canadians are the least like Idiocracy in the world. Intelligent wealthy people from crowded cities where the idiocrats are in charge will flock to these communities. We have to appreciate on a world scale how few such safe and beautiful places there are in the world. Like Switzerland in migration will be restricted by high prices.