Canada's Mortgage and Housing Corp under the oversight of a federal regulator. - Page 2
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Thread: Canada's Mortgage and Housing Corp under the oversight of a federal regulator.

  1. #11
    Senior Member kcowan's Avatar
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    The problem is that, once the bubble bursts, there is no demand except people being forced to move by their companies.


  2. #12
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    There should be a correction of 25% I figure. Average home price should be 270,000 not 360,000. More should also be done to bring the price of owning a house down.

  3. #13
    Senior Member HaroldCrump's Avatar
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    Quote Originally Posted by emperor View Post
    More should also be done to bring the price of owning a house down.
    Ironically, it was EXACTLY that noble vision that ended up creating this bubble : i.e. the government should make it easy for people to own a home.
    As is the case with every government action - the net result is the exact opposite of what was intended.

    They did that in the US as well with Ginnie Mae, Freddie Mac, etc. and we all know how well that turned out.

  4. #14
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    Quote Originally Posted by emperor View Post
    There should be a correction of 25% I figure. Average home price should be 270,000 not 360,000. More should also be done to bring the price of owning a house down.
    What we have found out is that the general populace does not care what the home price is, they care what the monthly payment is. Reduce the monthly cost and they will just buy more.

  5. #15
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    Ya, your both right.

    It's still too bad though. Stupid Joneses, costs so much to keep up with them.

  6. #16
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    The problem with any RE correction is the massive layoffs created across the board and the persistent fear of losing your jobs including many people posting on this forum. Prices do not correct without a lot of fear and tears. Many do not realize what a huge snowball effect a RE correction causes in regards to employment. Construction, lawyers, banking, furniture, agents, movers, appliances, automotive etc, etc, etc. It has been said 30 businesses are effected when a home is bought and sold. We can thank our political system for letting this get way out of hand.

  7. #17
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    Oh..I was quite surprised, well thanks to you, for sharing this news to us. It's great to know this.Keep it up!!

  8. #18
    Senior Member Berubeland's Avatar
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    Landlord Rescue - Real Estate Blog

  9. #19
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    Quote Originally Posted by OhGreatGuru View Post
    Sounds like a sensible precaution to me. We all want CMHC to avoid the risks undertaken by the likes of Fanny Mae & Freddie Mac. CMHC was headed down the road of approving 40-year mortgages and zero down payment mortgages before the government stepped in.
    Did the 40 year mortgages and zero down payment allowances not come in during this government?

    In my opinion, this recent move is an attempt by Flaherty to shift blame away from his office if the market does hit a period of decline. This move allows him to blame the bank and OFSI - and point at the years of real estate prosperity thanks to his lenient demands for CMHC backed mortgages. It's political genius really - he has the opportunity without ha of walking away from the upcoming mess without having his knowledge called into question like Greenspan in the States.

  10. #20
    Senior Member the-royal-mail's Avatar
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    Zero down payment mortgages came in around 2003-04. Not Flaherty's doing.

    I think it might be worth thinking of the bigger picture. Regardless of who you might like to blame, I don't think that's the point. Just look at the overall net effect for the govt. In 10 years+ they've managed to double the costs of housing which has devastated the middle class and caused wage slavery for us. At the same time, the supply of good quality, affordable apartments has virtually dried up. Today, based on MPAC values in many populated areas being double what they were 10 years ago, the govt is collecting 2x as much from you in property tax. There is also GST, CMHC and other fees that end up in the pocket of the govt. These amounts are significantlly more than they were 10 years ago. So even if there's no crash and everyone walks away, the govt wins because their various policies (HBP, CMHC, 0 DP etc) have all artifically inflated housing prices and caused us all to pay much more in annual taxes and other fees.

    Sadly, no one seems to realize how much responsibility and burden this puts on middle class families having to spend $640K on a nice urban house. I place most of the blame for this on the govt.


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