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Justin da Rosa | 16 Dec 2015, 08:15 AM Agree 0
Industry professionals will be hit hard by the new mortgage rules, according to one industry professional
  • John | 16 Dec 2015, 10:52 AM Agree 0
    I disagree. If someone can afford to pay the mortgage payments on an expensive home, he can also afford to save up 10 per cent commission. Years ago, people had to have 25% down payment. 30 years ago, prices dipped and all those people who put small down payments on homes, walked away, leaving banks with thousands of homes on their hand. Gimme a break. want another financial crisis on your hands?
  • greg | 16 Dec 2015, 10:54 AM Agree 0
    Except that most people that buy into those markets are already applying larger down payments than 5% across the whole purchase.
  • Matt | 16 Dec 2015, 11:20 AM Agree 0
    I Agree with Greg. I am in touch with a couple of mortgage brokers on weekly basis and the last time I checked, only AAA applicants would qualify for 5% down payment. People with 750 Credit scores, no revolving debt, and $100K income.

    And similar to John's point, those people could easily save up the extra down payment required.
  • LP | 16 Dec 2015, 11:31 AM Agree 0
    But your clients will be better protected against a change in the market. Hmmmm? In who's best interest should we be working?
  • Matt | 16 Dec 2015, 11:34 AM Agree 0
    I disagree as well. If you're able to get a mortgage for over half a million dollars, 10% (only for the portion above the 500k point) should be a fairly simple obligation. If it's not, then perhaps they shouldn't be looking in that range in first place!

    I also disagree with the comment that we, as REALTORS, will work harder and make less. To start off, anyone afraid of hard work shouldn't be in the business in the first place. And who's best interest are we supposed to be serving? If the client is better off looking at lower priced homes, then that is what they want, and it's our responsibility to keep their best interests at heart...not how much we're going to get paid based on the dollar value of the home.
  • agentblair | 16 Dec 2015, 01:05 PM Agree 0
    Inflammatory headline for a piece or crap opinion.
  • Spencer T. | 16 Dec 2015, 04:27 PM Agree 0
    I agree with both gentleman above. Any clients I have worked with that purchase a home over $500,000 have minimum 10% down as it is a move up price range in Calgary. (So they have a home to sell, with some equity)
    In the above scenario of a $750,000 purchase with only $50,000 down (minimum with new guidelines) would make your monthly payments $3300/month /-. Anyone that can afford that would typically have at least the $50,000 down required.
  • jeff | 16 Dec 2015, 05:14 PM Agree 0

    thank goodness the Gov't took this approach rather than raising interest rates to cool the hot markets, as that would have had a wide brush stroke negatively effecting markets that are more normal. not only in activity but in house prices. Buying a home up to 1 mil with 5 % down and CMHC underwriting is absolutely looney in the first place.

    CMHC has a sliding scale for insurance premiums why not apply a similar sliding scale for DP as well. It can always be adjusted as values increase/decrease/Cost of Living etc.

    2nd comment.
    Article headlines and text is all about "woe is me the Realtor" if this was a closed industry professional magazine, it might be fine, we can then talk about what this means to our clients and how we best serve them, how we handle the change.

    But this an open publication speaking to the public. This is a poor article talking about the sky is falling. (has anyone read about Chicken Little) ( my apologies if that is a generational thing). Worse it speaks to the public about how hard done by the agents are going to be.

    Totally wrong position to be taking, I don't think the general public is even going to blink once about how hard done by an agent will be as this is not about the agents, it is about the buyers and sellers.

    Doubt the buying and selling public will even blink once either as on a $750, 000 house given in the example the increase in the DP will only be $12,500. anyone that can afford a mortgage of that size with a 5% down can likely wait another month or 2 to save up another $12,500 for the additional DP. $37,500 to $50,000, that is all we are talking about. Even a Million property is only going to go from $75,000 DP up from $50,000. can you imagine that, you can buy a million dollar property with just $75,000 down.

    where some buyers may feel the pinch is if they are in that kind of income bracket they can probably get better than 3% on their investments, so why would they not want to just put up 5% DP add in some underwriting insurance and let CMHC take the risk.

    just my opinion but not likely to do anything except give writers and editors an opportunity to spout nonsense.

    ok i am going to step off my soap box now.

    have a great day

  • judy | 18 Dec 2015, 06:06 PM Agree 0
    LP's comment is incomprehensble to me.
    Whose (not who's) interests does he feel should be protected?
    Does not sound like the taxpayer's, who perhaps he feels should take the hit in case of a market turndown. Should a house be bought with 5% down and the buyer walk away if it was a bad investment?
  • | 19 Dec 2015, 01:19 AM Agree 0
    Lets face it,,,,there has been nothing wrong with 5 percent all these years,,,so why make changes that cost everyone money,,,,,,,and does not help the economy one bit,,,,if you qualify for the mortgage then you qualify,,,,simple as that,,,,,

    So why change something that works,,,,,

    We are bringing in all these refugees which is going to cost our country lots of money,,,,yet we make our life harder by making it harder for some of the buyers to buy that home today,,,,,,

    Lets get with it and tell the government to help out the Canadians that have lived here and love their country and offer them assistance in buying homes

  • | 20 Dec 2015, 07:46 PM Agree 0
    "A" for knowing how to get your name in lights!! Where do you get these guys?

    The new mortgage rules will have a minimal effect on sales and on agents. There are many way to finance a purchase.

    Vancouver, especially will hardly notice the new regulations.
    John McLennan
    Supreme Galactic Commander,
    Star West Realty Group
    #1 Remax Group in Vancouver
  • JWoods | 22 Dec 2015, 08:50 AM Agree 0
    I disagree. First time buyers are already leary of sale prices above $475,000 due to BC's provincial property transfer tax exemption requirements. Anyone spending more than $500,000 should have more than 5% to outlay on closing!
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