new mortgage rules?

[LennyR]

I do agree with the reporting to CRA for the capital gains when selling the primary residence to stop foreign buyers from using this loophole.
I was just glad that it is still tax free and only reportable under certain conditions which does not effect 99 percent of us canadians.

That is a good thing for sure, this was necessary.

 

[rzrgade]

I do question why everyone has to report this though , when it clearly asks if you are a foreign citizen elsewhere ? Why would a Canadian have to report it ?
Something fishy here , prepare for a capital gains tax on the PR I would assume is being researched by our cash strapped fed gov ......


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[deaner]

You're right , it's gonna hurt the independent brokers business huge, it's gonna be subtle and not discussed openly even denied, but they want those 20-50 basis points back. To many options create to much competition, to many mortgage privileges. This may turn out to be a benefit to bank clients who have a lot of horsepower or are preferred customers, The way it is now the in branch people don't have a lot of flexibility on rates and privileges to differentiate between clients, even if they want to.
One of the issue I have with this whole thing is the market manipulation aspect, this is designed to affect prices, and that should in my opinion be left to supply and demand, not some government group who have proven time and time again that they react to market conditions typically 1-2 years late, if something like this was needed , it was about 18 months ago in Vancouver and Toronto, maybe a couple other places, but across the board, no way.
The other thing that I'm always amazed at is banks and mortgage insurers are the ones who approve these people who they now say are not responsible enough to keep their debt at reasonable levels, but they seemed fine when they were approving these loans and wiggling consumers debt portfolios around so that they could assume more debt, but now, now these people are irresponsible debtors and they need to be reigned in by these same people who allowed those levels to exist. Failures have happened primarily because of the Economy, losses are being experienced, from defaults on loans they approved, but of course they have no culpability, it's totally consumers fault. Cough, bull$hit, cough, this is about bank profits, plain and simple, and getting rid of the cost of mortgage brokers and the competition they bring to mortgage rates.

Couldnt agree more.

 

[Cyle]

I like number 5.


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Same here, I had to drop rent to keep tenants this summer, can't wait to raise them back up

 

[rzrgade]

Such a great time to
Buy now ! Wonder in a while how many will be saying ,.... Chit should of bought in 16/17....lol


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[Cyle]

Such a great time to
Buy now ! Wonder in a while how many will be saying ,.... Chit should of bought in 16/17....lol


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Agreed. If it was easier to purchase more rentals i'd be jumping all over it right now. The thing a lot of people don't seem to get is even if prices drop 1-2% after purchasing getting a low mortgage rate locked in for 5 years more then offsets in. If mortgage rates even jump 1%, prices would need to drop around 5% to offset that. Despite what some people predict, the sky isn't falling. There is still a ton of work around in edmonton right now. A lot of crap companies are just getting sorted out and folding right now, which is good for everyone. In my experience if someone isn't busy in construction right now, there is a reason for it, and it's not the economy.

 

[overkill19]

Rates can sky rocket please!
Made my last payment last week.. im soooooooo Done!!!

 

[rzrgade]

Rates won't go up anytime soon ... Not the way JT is destroying the economy lol



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[j335]

Rates won't go up anytime soon ... Not the way JT is destroying the economy lol



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I agree. Rates ain't going up anytime soon, global economies are barely hanging on.
Rates may go down even more...

 

[Cecil C. Wood]

Hi,
Yes, the government of Canada has brought about new rules regarding the mortgage. I hope it would be more beneficial for the people. Few of the mortgage rules will definitely influence qualification requirements and the type of mortgages the borrowers get. Since the financial crisis, as the lenders have tightened their lending standards, the new rules won’t affect the majority of the people who are seeking to buy a home or refinance. But, for the borrowers who are seeking larger mortgages, might be affected. You can check this article for the latest mortgage news : [url]http://www.nbmortgageteam.com/blog/latest-mortgage-news/[/URL] . Hope this would help you.

Thank you

 

[somethingnuw]

Lots of good comments on this , especially guys paying $100 k for a truck and $80-100 k for an RV and then bitching that real estate costs are to high !!! And I understand what the D of F is doing , but I don't agree with it. First of all , IMO, a big part of this is an issue that the competition bureau should be looking into. Huge subtle initiative to minimize and create a situation where they start to claw back the deals that are presently being brought by independent brokers, and the basis points (commission) that they are paying out. When this happens, you're gonna see interest rates start to rise a bit , because of the decrease in competition options for consumers. Banks are basically predators when it comes to issues involving consumers, anyone who believes differently will be an easier victim.
Now you bet , I agree there needs to be checks and balances in place but this move is like killing a fly with a 12 gauge, way to much collateral damage. By far the majority of financial failures is brought about from debt outside the mortgage on principal residences, ie, lines of credit, rv loans, vehicle and Atv and vacation home loans, borrowing for holidays, furniture etc. these are the places the parameters should be tightened huge, if the goal is truly to lessen consumer debt. At worst, these changes should have been implemented regionally, cause Vancouver and Toronto probably needed these changes the rest of Canada doesn't.
This is about the big banks colluding to increase profits, disguised as an initiative to protect consumers from themselves in debt situations.

great post cause the big winners are the bank...the small mortgage companies are going to go extinct cause they don't have the cash for bail out insurance....the big 5 will rape and pillage...loss of competition is never good for us....

all other comments about credit are good...but I'm afraid every time govt stick it nose in free markets they screw it up....wanna help young folks...don't tax them so much, bring back tax free savings accounts and stop sales of land to foreigners....making it harder for a kid to get a mortgage to protect them is bs....making rules on how many times someone can sell a house and reporting it on ur tax return is bs...that's how people claw their way up...oh course I heard a developer support those rules...ya sure cause that their business and no one else can make money...I have 4 boys I'd like yo sell my house and leave it to them...govt is now wanting to tax that....I'm mean fak me...let's pay tax on money we paid tax on...then at the same time they wanna say their helping? I don't get it

 

[somethingnuw]

That is a good thing for sure, this was necessary.

but that's the first step to coming after you...don't you get it soon they will tell you how long you must live in that principle residence for....they made the law soon they will amend it when no one is watching....best money I ever made in my life was selling my home...I used it to clear debt and set some aside for my kids....

 

[the_real_wild1]

We have been variable for the last 8 or so years and just redid our mortgage. Signed yesterday. We the uncertainty going in we locked this one down at 2.39 for the next fours years. I'm ok with that. It is one less thing we have to worry about.

 

[rzrgade]

Let's not overthink this ! JT has taxed everything he can ALMOST... Plus his best source of revenue, Canada's energy sector , he chooses to destroy ... What's left ? Tax capital gains ...?? It's coming .
when you travel the world throwing away billions of our tax $$ , the revenue has to be made up somewhere.

Of course Harper warned us about this pre election, but "give the new kid a chance , what could go wrong "....
Well we are finding out quite a bit , apparently!!