CMHC: Home prices could fall 47.9%

[greatwhite]

I think 20% is only required if you already have 1 home otherwise 5% down.

I'm not a money guy..but if I understand the basics: A $500K mortgage will require $100k downpayment (20%) to get a CMHC insurance at 2.4 % so will add $12K to the cost. So that mortgage will cost you about $520K ($550k -$100K downpayment + CMHC) over 25 yrs at 2%. If mortgages go up to 5% that will drive it up to about $720K .

Yea that will break a few balls HaHa..

[trimmer21]

We can't forget about the "stress test" where buyers must have 25% down and qualify at double their stated interest rate.

[MikePal]

I think 20% is only required if you already have 1 home otherwise 5% down.

I pulled this off the front page for the CMHC Mortgage Calculator...I think it is because of the stress test stuff they implemented...

Did You Know?
If your down payment is under 20% of the purchase price, you will need mortgage insurance on your loan. We will determine the size of this premium and automatically include it in the calculations. Mortgage insurance is only available when the purchase price is below $1,000,000.

https://www.cmhc-schl.gc.ca/en/finan...age-calculator

[Fox]

I'm not a money guy..but if I understand the basics: A $500K mortgage will require $100k downpayment (20%) to get a CMHC insurance at 2.4 % so will add $12K to the cost. So that mortgage will cost you about $520K ($550k -$100K downpayment + CMHC) over 25 yrs at 2%. If mortgages go up to 5% that will drive it up to about $720K .

Yea that will break a few balls HaHa..

Another reason not to buy what you cannot afford, with room.

So many people are rich based on salary and poor in the books, glad we moved out of town and bought when we did, a 50% market crash to the over inflated properties will probably do nothing to our little property.

[fratri]

I bet most people that bought have done well and will continue to do so.... I don't understand how that is possible, it makes no sense but house prices have been increasing steady over the last few years.
You would have thought given the pandemic (people loosing their jobs etc...) housing prices would have dropped but for the life of me, I just can't figure out why that has not happened.... They say it's coming but that is what they have been saying for the last 10 yrs.

[Deer Hunter]

Well I hope vacant land prices drop, I will be ready.

[410001661]

Well I hope vacant land prices drop, I will be ready.

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Recreation properties will be the first to go.

Looks like the West is seeing or will see more of a hit than the East. I'm liking the Niagara & Burlington numbers!

https://financialpost.com/real-estat...firing-equally

[Gilroy]

I bet most people that bought have done well and will continue to do so.... I don't understand how that is possible, it makes no sense but house prices have been increasing steady over the last few years.
You would have thought given the pandemic (people loosing their jobs etc...) housing prices would have dropped but for the life of me, I just can't figure out why that has not happened.... They say it's coming but that is what they have been saying for the last 10 yrs.

There is a ton of Chinese money coming in here buying up everything and anything. An old 1,100 foot re modelled wood clad bungalow on the next street over from me just sold for asking price One MILLION two hundred and fifty thousand.

I have a 4,000 square foot detached home right over my backyard, bought by Chinese 3 years ago, bunch of kids were in there all going to the UOT Mississauga campus, their parents paid One Million three hundred thousand, they went back to China last January, house has been sitting empty for over a year, back window blew open in the summer and is hanging off, nobody checks the mail in the last 6 mths.

I jog by a brand new built 10,000 foot mansion on the Queensway, built over two years ago Chinese money, probably cost over Two Million,
there has been NOBODY living in that home since it was built, period.

The last two big 200 acre lots by my cabin have been bought by Chinese buyers, they have money to burn.

If the Government gets the 400,000 immigrants it expects each year and if they happen to be Chinese or other well heeled immigrants ,the prices are only going one way and that is straight up like a rocket ship.

[Gilroy]

Recreation properties will be the first to go.

Sorry 41000 but you may be to late already, the Chinese are ahead of you right now. You could have bought a 10 acre rural lot south of me for
$25,000 up until a few years age, straight bush, no hyrdo .Last SPRING ONE SOLD FOR $71,000, NOW AN AGENT IS TRYING TO FLIP IT FOR
$250,000 so basically a 10times increase over the past two years.

[fishermccann]

There is a ton of Chinese money coming in here buying up everything and anything. An old 1,100 foot re modelled wood clad bungalow on the next street over from me just sold for asking price One MILLION two hundred and fifty thousand.

I have a 4,000 square foot detached home right over my backyard, bought by Chinese 3 years ago, bunch of kids were in there all going to the UOT Mississauga campus, their parents paid One Million three hundred thousand, they went back to China last January, house has been sitting empty for over a year, back window blew open in the summer and is hanging off, nobody checks the mail in the last 6 mths.

I jog by a brand new built 10,000 foot mansion on the Queensway, built over two years ago Chinese money, probably cost over Two Million,
there has been NOBODY living in that home since it was built, period.

The last two big 200 acre lots by my cabin have been bought by Chinese buyers, they have money to burn.

If the Government gets the 400,000 immigrants it expects each year and if they happen to be Chinese or other well heeled immigrants ,the prices are only going one way and that is straight up like a rocket ship.

British Columbia, Banff ?