dont need to pray....watching it unfold live.....
Cracks appear in Toronto’s housing market as alternative mortgage lender Home Capital drops
- Last Updated:
- Apr 30th, 2017 11:31 am
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- SCORE+1
- joepipe
- Deal Addict
- Jul 3, 2007
- 4153 posts
- 4626 upvotes
- Toronto
- joepipe
- Deal Addict
- Jul 3, 2007
- 4153 posts
- 4626 upvotes
- Toronto
heres one for the condo pumpers.... selloff in progress
http://www.cbc.ca/news/business/rent-co ... -1.4084384
http://www.cbc.ca/news/business/rent-co ... -1.4084384
- mikeye9
- Jr. Member
- Nov 21, 2009
- 193 posts
- 75 upvotes
The weak hands will sell. The market is just too hot, lots of immigration happening.
- Sanyo
- Deal Guru
- Feb 9, 2009
- 12381 posts
- 11307 upvotes
just cause the company crashes doesnt mean people will start to default on mortgages...the portfolio will be picked up at a big discount by another bank. people cant just walk away from their mortgage obligations.
If we see a big 5 bank in trouble then I would start to sweat...
If we see a big 5 bank in trouble then I would start to sweat...
- Sanyo
- Deal Guru
- Feb 9, 2009
- 12381 posts
- 11307 upvotes
The funny thing is the ontario securities commission caused the panic and sell off lol... good ol' gov't
- WinterSleep
- Deal Addict
- Jan 26, 2016
- 2240 posts
- 2272 upvotes
- Toronto, ON
Makes zero sense. Most landlords make their calculations based on today's rents, and are happy to not increase rates if they have a good tenant. They have been pumping these news articles written by know-nothing journalists since 2008. They have been printing about impending doom, condo bubbles, over-building, etc., and none of it came true.joepipe wrote: ↑ heres one for the condo pumpers.... selloff in progress
http://www.cbc.ca/news/business/rent-co ... -1.4084384
When the rent covers the mortgage+util+tax, the landlord is "making" the principle portion, paying down the mortgage. That is never considered in these calculations, which is a major interest on the original downpayment.
And in 25 years, the landlord's mortgage will be fully paid off, and it's pure profits.
P.S. Condo prices are on the rise even after the gov. announced changes. At least in North York/Richmond Hill/Markham areas. Condos selling like hot cakes there.
- skipper1979
- Member
- Jan 9, 2012
- 314 posts
- 336 upvotes
I will wait for some further weakness to show up before shorting the banks.
Market goes up in staircase comes down in express elevator if they do.
There is a lot of money to be made within short window of opportunity.
Market goes up in staircase comes down in express elevator if they do.
There is a lot of money to be made within short window of opportunity.
- ilim
- Deal Addict
- Jan 17, 2006
- 2496 posts
- 2740 upvotes
- Toronto
Poor OP, can't sleep, can't eat, waiting for crash.
Cut your losses and buy something smaller, before it is too late for you.
Cut your losses and buy something smaller, before it is too late for you.
- jonkoktosen
- Member
- May 18, 2015
- 484 posts
- 686 upvotes
- Thornhill, ON
So, did you buy any?callwriter wrote: ↑ Total fud.
Perhaps some bad business there but represents only a small tiny portion of their book.
Probably a good time to buy their stock
They will make fine collectibles, along with your BRE-X and Nortel certificates:
Shares in alternative lender Home Capital plummet more than 57%
- callwriter
- Newbie
- Apr 11, 2017
- 52 posts
- 49 upvotes
No haven't bought yet but will start accumulating soonish.jonkoktosen wrote: ↑ So, did you buy any?
They will make fine collectibles, along with your BRE-X and Nortel certificates:
Shares in alternative lender Home Capital plummet more than 57%
Low default rates, asset prices are supportive. Risk is run on deposits. Worst case they will be acquired by entity that has capital to keep the wheels greased.
Tempest in a teapot
- Motoss
- Deal Addict
- Dec 27, 2006
- 1985 posts
- 978 upvotes
Billion Dollar Fund Manager Comes Out Of Retirement To Bet Against Canadian Real Estate
JUNE 28, 2016
https://betterdwelling.com/city/toronto ... al-estate/#_
JUNE 28, 2016
https://betterdwelling.com/city/toronto ... al-estate/#_
- Terala
- Newbie
- Dec 13, 2016
- 22 posts
- 12 upvotes
And what can happen in the worst case scenario? Is it possible the borrowers of that lender to be asked to pay off their mortgages immediately?
- Doubleshot
- Banned
- Dec 5, 2015
- 1338 posts
- 451 upvotes
- Thornhill, ON
- Doubleshot
- Banned
- Dec 5, 2015
- 1338 posts
- 451 upvotes
- Thornhill, ON
This again? That loser didnt retire..he lost all his money in managed "fund" by making bad betsMotoss wrote: ↑ Billion Dollar Fund Manager Comes Out Of Retirement To Bet Against Canadian Real Estate
JUNE 28, 2016
https://betterdwelling.com/city/toronto ... al-estate/#_
Lol
- callwriter
- Newbie
- Apr 11, 2017
- 52 posts
- 49 upvotes
Worst case scenario - Home Capital is insolvent due to liquidity issues (depositors flee). Either the company or just the loan book is sold off. The existing mortgages will continue to be serviced.
All in all, existing borrowers should not be worried. It's not as if their loans can be recalled. The OSC and the media has needlessly caused a bank run - sad but they've really harmed this company and shareholders by fearmongering over some disclosure issues from 2015 which have yet to be proven in court but has already been internally dealt with by the company.
- flafson
- Deal Addict
- Oct 29, 2010
- 4475 posts
- 811 upvotes
Where have you seen that he didn't retire and lost everything?Doubleshot wrote: ↑ This again? That loser didnt retire..he lost all his money in managed "fund" by making bad bets
Lol
This article is from June 2016, almost a year ago and he was able to predict HCG...
Makes me want to rethink my strategy of buying into a pre construction condo for investment that is being released for the public in the next week or so.
- joepipe
- Deal Addict
- Jul 3, 2007
- 4153 posts
- 4626 upvotes
- Toronto
Yes if no one wants to buy that book of mortgages.....happened with Accredited mortgages in 2008 when they went bankrupt , they were doing 107% mortgages and after the crash, clients were forced to refinance when no one wanted the book of disastrous mortgages and their LTV's...
https://www.canadianmortgagetrends.com/ ... ome-2.html
- Sanyo
- Deal Guru
- Feb 9, 2009
- 12381 posts
- 11307 upvotes
First we have to see if the Mtg will be bought out (most likely as there is only a 0.54% default rate in home trust mortgage portfolio)... upon renewal the new lender can decide to allow to re-new the mortgage or not... if the customer has been paying on time I don't see why the lender would not renew the mortgage, especially if cmhc insured.joepipe wrote: ↑ Yes if no one wants to buy that book of mortgages.....happened with Accredited mortgages in 2008 when they went bankrupt , they were doing 107% mortgages and after the crash, clients were forced to refinance when no one wanted the book of disastrous mortgages and their LTV's...
https://www.canadianmortgagetrends.com/ ... ome-2.html
- Doubleshot
- Banned
- Dec 5, 2015
- 1338 posts
- 451 upvotes
- Thornhill, ON
https://www.wsj.com/articles/SB122876612229588889flafson wrote: ↑ Where have you seen that he didn't retire and lost everything?
This article is from June 2016, almost a year ago and he was able to predict HCG...
Makes me want to rethink my strategy of buying into a pre construction condo for investment that is being released for the public in the next week or so.
That moron ran Cooper River Capital...and he made bad bets in 2008 and lost all it's assets in the Lehman collapse
So if you call losing a billion dollars and bankrupt your fund and forced to work as a chicken farmer because you're unemployable retirement..sure
After losing more than half its value in the past couple months, the Larkspur, Calif., hedge fund is liquidating and returning funds to investors
Last edited by Doubleshot on Apr 30th, 2017 11:29 am, edited 2 times in total.
- joepipe
- Deal Addict
- Jul 3, 2007
- 4153 posts
- 4626 upvotes
- Toronto
Hometrust has good LTVs in general 75% or less on the ALT sideSanyo wrote: ↑ First we have to see if the Mtg will be bought out (most likely as there is only a 0.54% default rate in home trust mortgage portfolio)... upon renewal the new lender can decide to allow to re-new the mortgage or not... if the customer has been paying on time I don't see why the lender would not renew the mortgage, especially if cmhc insured.