tag:blogger.com,1999:blog-7123542260692860177.post8526625199048381831..comments2023-12-02T00:38:46.467-08:00Comments on House Hunt Victoria: New CMHC Financing Insurance RulesHouseHuntVictoriahttp://www.blogger.com/profile/07456914359088891317noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7123542260692860177.post-8197921733422781312008-10-16T07:48:00.000-07:002008-10-16T07:48:00.000-07:00People should read this.People should read this.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-75523706817084471922007-04-25T10:51:00.000-07:002007-04-25T10:51:00.000-07:00G&S,are you thinking that this move was meant to k...G&S,<BR/><BR/>are you thinking that this move was meant to keep the market bouyant? I wasn't looking at it that way... if anything, you'd have to think that they would reduce rates on high ratios for market inflationary reasons... the only people that this may help out are RE investors, which used to have to have 25% down for secondary and subsequent purchases... but they typically buy and rent, which should have the opposite effect should it not?<BR/><BR/>I can't see how this move equates to any sort of jump in market prices.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-49065184422808522072007-04-25T09:08:00.000-07:002007-04-25T09:08:00.000-07:00CMHC is offloading the risk for mortgages with rat...CMHC is offloading the risk for mortgages with ratios that are close to old traditional standards back onto financial institutions.<BR/><BR/>Why should CMHC be insuring mortgages with downpayments in the 23% range? In Victoria, that would be a downpayment potentially in the $115,000 range, on a median price house.<BR/><BR/>With downpayments like that, let the banks develop their own standards as to insurance required.<BR/><BR/>It frees up CMHC from being on the hook for mortgages that are rather large, in which the buyers invested a lot of equity, if there is ever a significant downturn.<BR/><BR/>They are also helping affordability a bit by not charging the insurance on those loans in the 75-80% range anymore - so there is a little bit more juice there to support the market in a downturn.<BR/><BR/>I don't think it will matter though, because once a tipping point is reached, the market will go down no matter what CMHC and David Dodge do.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-43621410045061845172007-04-25T07:16:00.000-07:002007-04-25T07:16:00.000-07:00Mixed feelings about this one. I don't believe th...Mixed feelings about this one. I don't believe that CMHC likes the change by the Feds. It cuts into their profits and increases their exposure in defaults.<BR/><BR/>With CMHC or Genworth insured mortgages the banks could pass on the riskier loans. Now with the increase to 80 percent, those prospective purchasers would have to meet the lenders mortgage guidelines which may be more stringent - or not.<BR/><BR/>At 25% down, I could see a prospective purchaser saying "what the heck, I'll never save that amount in 10 years" and go for the high ratio financing. With 20 percent down, some prospective purchasers may hold off a little longer to save the money for the down payment. <BR/><BR/>For me, personally I like the change. I don't want to pay the insurance bandits a fee that is componded over the entire term of the mortgage for the sole protection of the lender. Even though I would probably refinance in five years into a conventional mortgage.<BR/><BR/>SiobhanAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-91083903443964284502007-04-24T18:25:00.000-07:002007-04-24T18:25:00.000-07:00This smells like a sub-prime lender tactic. I can...This smells like a sub-prime lender tactic. I can only guess that this will boost the market now that people don't have to cough up the whole 25%. <BR/><BR/>This move by the feds may just be the thing to extend this already over-extended market.<BR/><BR/>I'm sorry but I don't see this as a good thing (and I don't have 25% down for the avg Victoria House either).Aaronhttps://www.blogger.com/profile/03507072299723016016noreply@blogger.com