Comments on: Canada’s Bank Regulator Wants Tighter Rules To Address Real Estate Risks

By: Julian

Julian — Thu, 19 Jan 2023 11:49:16 +0000

Rather, prices must fall to a normal level relative to average wages so that homes become affordable and no one has to fight for their right to own property. And why should the lenders be punished so that the beneficiaries can sleep peacefully paying off their mortgages?!

By: Julian

Julian — Thu, 19 Jan 2023 11:45:15 +0000

In reply to Concerned Homeowner. Rather, prices must fall to a normal level relative to average wages so that homes become affordable and no one has to fight for their right to own property. And why should the lenders be punished so that the beneficiaries can sleep peacefully paying off their mortgages?!

By: Julian

Julian — Thu, 19 Jan 2023 11:38:46 +0000

every homeowner with a mortgage should be terrified and ready to fight to keep what they worked for.
Rather, prices must fall to a normal level relative to average wages so that homes become affordable and no one has to fight for their right to own property. And why should the lenders be punished so that the beneficiaries can sleep peacefully paying off their mortgages?!

By: Concerned Homeowner

Concerned Homeowner — Mon, 16 Jan 2023 22:16:54 +0000

You’re talking 225K income for a $1M home (in the Greater Toronto Area in ON that’s under the average home price)
225K is still 4.5x. I can tell you for sure the average homeowner or couple is not making 225K per year let alone more. “Median income levels In 2021, the median total household income in Toronto was $84,000” source – Toronto.ca. I’d say “Decimate” is the perfect word to use, every homeowner with a mortgage should be terrified and ready to fight to keep what they worked for.

By: Timmie O'Toole

Timmie O'Toole — Mon, 16 Jan 2023 17:33:43 +0000

In reply to Paul. technically they're limiting LTIs in excess of 4.5% to 25% of originations, so decimate might be an exaggeration. What share of originations require LTI > 4.5 at your lender?

By: Concerned Homeowner

Concerned Homeowner — Mon, 16 Jan 2023 04:35:12 +0000

This is disgusting… we already have insanely stringent stress testing to ensure only over qualified buyers are entering the market. Hence the reason VERY few people can qualify for a mortgage right now for purchase or refi. Stress test being at 8%+ for a AAA bank mortgage on top of the TDSR restrictions. These regulators already have the market in a choke hold, this is a targeted nationwide collapse that is going to cost current mortgaged homeowners dearly… all for what? so the people who don’t want to do anything more than work a regular 9-5 and whine about the housing market can afford to purchase a house? These heavy handed moves are doing far more harm than good to the people that worked hard to get to where they are today.

By: Paul

Paul — Sat, 14 Jan 2023 18:52:18 +0000

I am a mtg broker in bc. Have been for 11 years. I am very successful, have done over $1 billion in lending over that period of time. I have a degree in economics.

LTI of 4.5 would DECIMATE real estate in BC and ONT. As in; sell all your property now or go bankrupt.

By: Mike

Mike — Sat, 14 Jan 2023 13:52:37 +0000

Bang on Freddy OSFI wants to push buyers forward.Bet new rules will be in effect end of April.😤😤😤

By: Miff Tacklem

Miff Tacklem — Sat, 14 Jan 2023 12:18:35 +0000

In reply to Ray. I hope so. For the sake of all future generations of Canadians, the price needs to crash. Young people won't stay here if the Canadian lifestyle includes rental serfdom with the bonus of 6 month long winters.

By: Freddy

Freddy — Sat, 14 Jan 2023 04:41:23 +0000

These all sounds like great ideas to stop people from borrowing their brains out. The problem is, OSFI usually gives a 6 month warning before implementation of new rules.

People end up borrowing their brains out ahead of the new rules being implemented, trying to front run the new rules.

Kind of ironic but the new rules will usually cause a frenzy of borrowing activity.