Real Estate

Huge news March 19!!!! Bye bye stress test and hello 30-35 year mortgages

  • Last Updated:
  • Mar 20th, 2019 12:54 pm
[OP]
Jr. Member
Jan 17, 2017
104 posts
114 upvotes

Huge news March 19!!!! Bye bye stress test and hello 30-35 year mortgages

https://ca.finance.yahoo.com/news/rbc-m ... 36116.html

Liberals are in a huge hole thx to SNC and RBC has thrown them a lifeline to get people back on their side.

THE CANADIAN PRESS/Frank Gunn)

Finance Minister Bill Morneau does not have a “magic bullet” budget measure up his sleeve to meaningfully help millennials priced out of the housing market, Royal Bank of Canada warns.

The Trudeau government is set to release its pre-election budget on March 19. Morneau said in January that “affordable housing for millennials” will be addressed when the Liberals lay out their spending plans, without delving into specific details.



RBC has advised them to drop the new mortgage stress test.

“On the surface, ideas like relaxing the mortgage stress test, extending the maximum amortization period for insured mortgages, or increasing the amount of RRSP take-out for a first home down payment might bring short-term relief to buyers,” he wrote in a research note. “What millennials in Vancouver and Toronto really need is more inventory of homes they can afford, and a better mix of housing options – be it to own or rent.”
Last edited by Dealsfordina on Mar 3rd, 2019 11:31 am, edited 1 time in total.
Reason: Title edit
103 replies
Deal Fanatic
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Nov 13, 2010
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Scarborough
Yay its election yr get ready for freebies
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May 9, 2017
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Dealsfordina wrote:
Mar 3rd, 2019 11:31 am
https://ca.finance.yahoo.com/news/rbc-m ... 36116.html

Liberals are in a huge hole thx to SNC and RBC has thrown them a lifeline to get people back on their side.

THE CANADIAN PRESS/Frank Gunn)

Finance Minister Bill Morneau does not have a “magic bullet” budget measure up his sleeve to meaningfully help millennials priced out of the housing market, Royal Bank of Canada warns.

The Trudeau government is set to release its pre-election budget on March 19. Morneau said in January that “affordable housing for millennials” will be addressed when the Liberals lay out their spending plans, without delving into specific details.



RBC has advised them to drop the new mortgage stress test.

“On the surface, ideas like relaxing the mortgage stress test, extending the maximum amortization period for insured mortgages, or increasing the amount of RRSP take-out for a first home down payment might bring short-term relief to buyers,” he wrote in a research note. “What millennials in Vancouver and Toronto really need is more inventory of homes they can afford, and a better mix of housing options – be it to own or rent.”
Way to leave out the part where he says that increasing amortization and reducing the stress test is not the best solution.
"RBC senior economist Robert Hogue urges Morneau to “tread carefully,” adding that such measures fail to address the root of the problem, a lack of affordable housing options in the nation’s biggest markets."

He goes on to say:
"The solution, Hogue said, should be to remove barriers blocking home developers from responding quickly to demand for new housing.

“A more nimble and responsive supply side of the market would go a long way to address the needs of buyers on a more permanent basis,” he wrote. “Solving the supply issues isn’t the federal government’s responsibility alone, but requires a concerted effort across all levels of government.”
Deal Fanatic
Feb 29, 2008
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These clowns. Just playing around with the market for votes....doing some irreparable damage. Libs can GTFO!
[OP]
Jr. Member
Jan 17, 2017
104 posts
114 upvotes
Short term relief is all they win to keep at least a minority govt.
Deal Addict
Jan 23, 2016
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Kitchener, ON
So basically “let’s make the problem a bit worse before it corrects itself.”
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Jul 8, 2010
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What a stupid post, subject has nothing to do with article posted. Like all those click-bait articles.... When there is nothing to post, just invent a story....
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Feb 29, 2008
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Isostar wrote:
Mar 3rd, 2019 12:24 pm
What a stupid post, subject has nothing to do with article posted. Like all those click-bait articles.... When there is nothing to post, just invent a story....
You do know, they will do something though. They're going to relax the rules, I would bet a lot of money on that.
Deal Fanatic
Feb 9, 2009
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one is allowing people to shop around if they already have a mortgage and not do another stress test...not an issue in toronto but has been in calgary since they had a recession in 2015..
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JayLove06 wrote:
Mar 3rd, 2019 12:26 pm
You do know, they will do something though. They're going to relax the rules, I would bet a lot of money on that.
I do not have anything with Libs if they are doing anything there, just wait for march 19th to see. But posting as OP, that's the problem on this forum.... if mod, i would close this topic....
Member
Jun 1, 2017
358 posts
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After idiot Wynne imported foreigner buyer tax and rent control, the stress test is too much. The liberals should be coordinated instead of having duplicated rules.
Also stop bringing in more ‘refugees’ to screw tax payers and security.
Member
Jul 25, 2008
316 posts
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ottawa
Again,

The stress test is driven by beurocrats, not politicians.
The amortization changes were also driven by beurocrats, not politicians (Flaherty and CPC implemented it).

The article posted shows a BMO economist agreeing with the decisions OSFI and CMHC have made.

There are no credible rumors in Ottawa about any changes that would increase the debt load for buyers. Why? Because all parties agree that the debt load from housing is effecting the real economy, hindering both consumption and saving rates.

What do I expect the Liberals to do for first time buyers? Increase HBP limit, which they can justify by the fact they have strengthened CPP, and increase the FTHB tax credit, so they can help only young buyers of homes for them to live in, not 50 something's investing in rental condos. I expect this because this is the advice they are getting from beurocrats and economists. I think a CPC finance minister would make the same decision.
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Jan 6, 2012
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neilsmith43 wrote:
Mar 3rd, 2019 12:52 pm
After idiot Wynne imported foreigner buyer tax and rent control, the stress test is too much. The liberals should be coordinated instead of having duplicated rules.
i totally agree...i know a lot of people who have had to forfeit their deposits on pre-con homes, not necessarily because the home was way overpriced, but because they simply couldn't get qualified. its just shifting the problem, not solving it. if the govn't cared that much about lack of housing, they know how to fix it...build more housing- private/public partnerships to build entry level affordable housing like small towns/stacked towns that families greater than 2 people can live in. Instead they've just introduced duplicating rules after rules that make it virtually impossible for people to buy/sell homes, and forcing honest sellers to sell way below fair posted price, in some cases less than what the builders are posting for the sale price. how is that good for the economy? how are all these huge store chains- the bombay, town shoes, toys r us, payless shoes, and more closing down good for the economy?

This is just jealous bureaucrats angry that little people are able to make money off of legitimately flipping/selling homes that people are willing to pay for and buy. Unless all the money goes in the politicians' pockets, they dont want anyone else making money to support themselves and their families, rather we should all work for $11 bucks an hour, if so lucky to get a job. Nasty politics, imo, just collapsing markets all over GTA.
Deal Fanatic
Feb 29, 2008
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neilsmith43 wrote:
Mar 3rd, 2019 12:52 pm
After idiot Wynne imported foreigner buyer tax and rent control, the stress test is too much. The liberals should be coordinated instead of having duplicated rules.
Also stop bringing in more ‘refugees’ to screw tax payers and security.
Again, I was Liberal all the way but the last number of years really made me change. I don't know what I am politically but Libs come across as idiots. Just flying by the seat of their pants trying to pander to everyone and no one at the same time. They bring in stress test, foreign buyer tax and rent controls all at the same time along with a host of other rules to cool down the market. They did, but no one is happy. LOL. Buyers are not. Sellers are not. Renters are not happy and neither are landlords. And the government is losing a crapload of money since there are less buyers....less land transfer tax. These idiots couldn't foresee what many of us on here did?

What good is a debilitating sress test of 2% when rates are not going to go up that much overnight. They have been flat for how many years now? First time home buyers still can't enter the market which means less transactions overall, less money for the government. Get these fools out!
Member
Jun 1, 2017
358 posts
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That stupid OSFI just wanted to show public they're doing something although they might not know what they are doing. Before the stress test, many might not know the existence of this another government agency. Too many government departments overlapping. How much money do they waste?

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