Author Topic: Garth Turner - Real Estate in Canada  (Read 488386 times)



alertmeipp

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Re: Garth Turner - Real Estate in Canada
« Reply #401 on: April 06, 2015, 08:22:14 PM »
Nuts.

But unless gov does something,  hard to see this stop.

FiveSigma

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Re: Garth Turner - Real Estate in Canada
« Reply #402 on: April 06, 2015, 08:38:13 PM »
We went to Td to get a Heloc set up. 

Uccmal, how did you get TD to give you a HELOC up to 80% of total LTV with your first mortgage NOT being with TD (i.e., with First National)?

In my very recent experience, every big-5 Canadian bank refuses to go second on a property with first mortgage that is not with them, including TD (had a phone conversation with them).

The only firm that agreed to do it was Home Capital group, but they cap total LTV (first+HELOC) at 65% of appraised property value.




Liberty

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Re: Garth Turner - Real Estate in Canada
« Reply #403 on: April 07, 2015, 03:45:12 AM »
Nuts.

But unless gov does something,  hard to see this stop.

What do you mean? You don't think that at a certain point incomes simply can't keep up, and interest rates will go up in the US, forcing the bank of Canada's hand (if they don't want the CAD to be even weaker -- Canada is still a net importer)? Or that some random shock to the economy (we already have mining in the dumps, and now oil) will be enough? Caring only about short-term monthly payments rather than the actual entire price of something is not sustainable.

The government is far from being the only entity that can do something. When they ease like they did recently, they are just kicking the can down the road and making it worse when we get there.
« Last Edit: April 07, 2015, 08:13:52 AM by Liberty »
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Uccmal

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Re: Garth Turner - Real Estate in Canada
« Reply #404 on: April 07, 2015, 05:37:32 AM »
We went to Td to get a Heloc set up. 

Uccmal, how did you get TD to give you a HELOC up to 80% of total LTV with your first mortgage NOT being with TD (i.e., with First National)?

In my very recent experience, every big-5 Canadian bank refuses to go second on a property with first mortgage that is not with them, including TD (had a phone conversation with them).

The only firm that agreed to do it was Home Capital group, but they cap total LTV (first+HELOC) at 65% of appraised property value.

I dont know.  I had one before the remortgage that was discharged at that time.  I hold all of my brokerage accounts with TD, and Visa cards with TD.  Maybe they are worried about losing that business?  So, I have been a long time customer... 30 years total. 

Your comment plays to my thesis that the big Canadian banks aren't going to be left holding the ball in a housing slowdown though.  Its the smaller finance companies of which there are dozens out there.
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Yours Truly

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Re: Garth Turner - Real Estate in Canada
« Reply #405 on: April 07, 2015, 07:09:59 AM »
I for one welcome our new Mainland Chinese overlords

bizaro86

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Re: Garth Turner - Real Estate in Canada
« Reply #406 on: April 07, 2015, 07:23:12 AM »
We went to Td to get a Heloc set up. 

Uccmal, how did you get TD to give you a HELOC up to 80% of total LTV with your first mortgage NOT being with TD (i.e., with First National)?

In my very recent experience, every big-5 Canadian bank refuses to go second on a property with first mortgage that is not with them, including TD (had a phone conversation with them).

The only firm that agreed to do it was Home Capital group, but they cap total LTV (first+HELOC) at 65% of appraised property value.

They'll do it if they think they have a chance at making you a relationship customer. My banker moved to RBC for awhile, and I took a new 1st mortgage on one rental and a second (behind a Scotiabank first) on a different rental. They had no problem doing it, and pushed hard to get the second as well, which I was planning to combine with the Scotia first mortgage.

gurpaul88

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Re: Garth Turner - Real Estate in Canada
« Reply #407 on: April 07, 2015, 08:03:42 AM »
I for one welcome our new Mainland Chinese overlords

+1


Phoenix01

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Re: Garth Turner - Real Estate in Canada
« Reply #409 on: April 07, 2015, 08:21:25 PM »
There seems to be a general sense that nothing huge can occur in the housing market.  This itself is a risk.

In a severe global downturn, risk aversion will take over and funds will run from risky assets.  The proverbial tide will go out and so many things will get clobbered simultaneously (junk bonds, EM bonds, stocks and currencies).  It has taken years to inflate global assets and it will take much less time for all of them to come back down to earth.

It is getting harder to sit back and watch everyone else making money in this environment, and that is exactly why those that can resist being drawn into the markets, will be well positioned when the inevitable will eventually occur.  Remember how Buffet was ridiculed because he would not board the tech wreck of the 90s?