Comments on: Can the New Mortgage Rules Deflate a Housing Bubble? http://blog.canadian-dream-free-at-45.com/2010/02/18/can-the-new-mortgage-rules-deflate-a-housing-bubble/ A Blog About Early Retirement and Happiness Tue, 07 Sep 2010 17:54:28 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Canadian Dream: Free at 45 » Blog Archives » Reader’s Question #17 - Generational Housing Bubble http://blog.canadian-dream-free-at-45.com/2010/02/18/can-the-new-mortgage-rules-deflate-a-housing-bubble/comment-page-1/#comment-41006 Canadian Dream: Free at 45 » Blog Archives » Reader’s Question #17 - Generational Housing Bubble Mon, 08 Mar 2010 12:36:33 +0000 http://blog.canadian-dream-free-at-45.com/?p=1392#comment-41006 [...] this question came in right after my post on the new measures to deflate the housing bubble.  So obviously the government has tried to take a [...] [...] this question came in right after my post on the new measures to deflate the housing bubble.  So obviously the government has tried to take a [...]

]]> By: Financial Student http://blog.canadian-dream-free-at-45.com/2010/02/18/can-the-new-mortgage-rules-deflate-a-housing-bubble/comment-page-1/#comment-40475 Financial Student Tue, 23 Feb 2010 15:52:24 +0000 http://blog.canadian-dream-free-at-45.com/?p=1392#comment-40475 Another thing I just found out is that for the Total Debt Ratio only 50% of the gross rent can be used to reduce this. This is down from the current 80%. This I think will have the biggest impact on investors. Another thing I just found out is that for the Total Debt Ratio only 50% of the gross rent can be used to reduce this. This is down from the current 80%. This I think will have the biggest impact on investors.

]]> By: Candidate # 2 (The Rat) http://blog.canadian-dream-free-at-45.com/2010/02/18/can-the-new-mortgage-rules-deflate-a-housing-bubble/comment-page-1/#comment-40430 Candidate # 2 (The Rat) Mon, 22 Feb 2010 14:10:26 +0000 http://blog.canadian-dream-free-at-45.com/?p=1392#comment-40430 @Canadian Money - true, but investors are not always looking for just one property @Canadian Money – true, but investors are not always looking for just one property

]]> By: Canadian Money http://blog.canadian-dream-free-at-45.com/2010/02/18/can-the-new-mortgage-rules-deflate-a-housing-bubble/comment-page-1/#comment-40411 Canadian Money Mon, 22 Feb 2010 06:41:40 +0000 http://blog.canadian-dream-free-at-45.com/?p=1392#comment-40411 I think it is a positive step. Going back to what worked well before. Perhaps a little late. An investor with a good credit rating can still buy a home for little down by using a personal loan to finance a portion of the 20 % down payment. But I guess the new rule may keep the more risky guys from getting such a loan. I think it is a positive step. Going back to what worked well before. Perhaps a little late.

An investor with a good credit rating can still buy a home for little down by using a personal loan to finance a portion of the 20 % down payment. But I guess the new rule may keep the more risky guys from getting such a loan.

]]> By: Candidate # 2 (The Rat) http://blog.canadian-dream-free-at-45.com/2010/02/18/can-the-new-mortgage-rules-deflate-a-housing-bubble/comment-page-1/#comment-40297 Candidate # 2 (The Rat) Thu, 18 Feb 2010 23:28:17 +0000 http://blog.canadian-dream-free-at-45.com/?p=1392#comment-40297 Personally, I think it's hard to say. Minister Flaherty has also hinted that more changes could come down the pipeline if need be. I think the new regs will spark some to fast-track some purchases, particularly business people having real estate plans for rental properties. We could see a spike leading up to the spring before the April deadline. Cheers, The Rat Personally, I think it’s hard to say. Minister Flaherty has also hinted that more changes could come down the pipeline if need be.

I think the new regs will spark some to fast-track some purchases, particularly business people having real estate plans for rental properties. We could see a spike leading up to the spring before the April deadline.

Cheers,
The Rat

]]> By: Financial Student http://blog.canadian-dream-free-at-45.com/2010/02/18/can-the-new-mortgage-rules-deflate-a-housing-bubble/comment-page-1/#comment-40286 Financial Student Thu, 18 Feb 2010 18:25:01 +0000 http://blog.canadian-dream-free-at-45.com/?p=1392#comment-40286 I think they should help a little, but you can't fix stupid. I think 35 year amortization is dumb, but I don't think we should force people to make intelligent decision. Only stop them from being a burden on the rest of us. Due to the CMHC buying more mortgage-backed securities, I'm not sure the banks were actually ensuring people could afford the payments. Also, for some stupid reason people get variable when rates are low and then switch when they go up. Even though almost every time you end up ahead with variable. I think overall it's a good change. Too stringent of a change too quickly would have catastrophic effects on the market I think. So regardless I think it has to be done in small steps. I think they should help a little, but you can’t fix stupid. I think 35 year amortization is dumb, but I don’t think we should force people to make intelligent decision. Only stop them from being a burden on the rest of us.

Due to the CMHC buying more mortgage-backed securities, I’m not sure the banks were actually ensuring people could afford the payments. Also, for some stupid reason people get variable when rates are low and then switch when they go up. Even though almost every time you end up ahead with variable.

I think overall it’s a good change. Too stringent of a change too quickly would have catastrophic effects on the market I think. So regardless I think it has to be done in small steps.

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