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The Decline of Vancouver.

Dec. 15, 2016, 2:43 p.m.
Posts: 2
Joined: May 29, 2011

From CBC today. Oh the ironing…

Dec. 15, 2016, 3:52 p.m.
Posts: 7707
Joined: Sept. 11, 2003

Why would the government give out loans for down payments? Isn't the fundamental point of a down payment to prove (to yourself, and to the bank) that you will be able to pay your mortgage?

Why? So the government can throw your hard-earned tax dollars at developers while exploiting the riskiest, sketchiest class of homebuyers after whom you will eventually have to pick up the cost of default.

Dec. 15, 2016, 4:03 p.m.
Posts: 15229
Joined: Nov. 20, 2002

I thot the DP was so the lender could see you have some skin in the game and are capable of having skin in a game?

when it was minimum 10% down 25yr amortization I thot that was pretty good

I think low/no money down and 40yr amortization was bad for the order of things

having said that I did get the longest amortization (30 or 35?) I could get 6 yrs ago

Dec. 15, 2016, 6:56 p.m.
Posts: 33723
Joined: Nov. 19, 2002

Why would the government give out loans for down payments? Isn't the fundamental point of a down payment to prove (to yourself, and to the bank) that you will be able to pay your mortgage?

They would be better off copying Fannie Mae / Freddie Mac.

It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities.
- Josiah Stamp

Every time I see an adult on a bicycle, I no longer despair for the future of the human race.
- H.G. Wells

Dec. 15, 2016, 8:20 p.m.
Posts: 15019
Joined: April 5, 2007

Incredible!

Give people five years of interest free loan that they can start making payments on right at the time they'll be due for a renewal.

At least there will be more AirBNB listings on the market now…

Why slag free swag?:rolleyes:

ummm, as your doctor i recommend against riding with a scaphoid fracture.

Dec. 15, 2016, 8:32 p.m.
Posts: 18131
Joined: Oct. 28, 2003

It's been fucked up since 2009. Rode my bike past this fenced in area a while ago and wondered what was up.

http://www.cknw.com/2016/07/26/little-mountain-rezoning-approved-after-nearly-a-decade/

Dec. 16, 2016, 10:21 a.m.
Posts: 1092
Joined: Feb. 5, 2011

Seems like we aren't the only people who think the down-payment loan policy from the government is a terrible idea: http://globalnews.ca/news/3130685/terrible-policy-b-c-housing-incentives-widely-panned-by-experts/

Dec. 17, 2016, 1:15 a.m.
Posts: 3644
Joined: May 23, 2006

An election is coming up, and the BC Liberals are in full-on slime mode.

The program will benefit some first-time homebuyers who would not otherwise be able to afford a down payment, the economists said. But much of the benefit will flow directly from taxpayers to the real estate industry and people who already own property. The Urban Development Institute, a developer lobby group, is an enthusiastic supporter of the policy.

http://www.metronews.ca/news/vancouver/2016/12/15/bcs-interest-free-loan-to-homebuyers-offers-much-risk-few-reward.html

Freedom of contract. We sell them guns that kill them; they sell us drugs that kill us.

Dec. 17, 2016, 3:06 p.m.
Posts: 15019
Joined: April 5, 2007

This whole interest free, payment free loan for five years sounds really bad. Like Sub-prime lending in the USA bad.

What is the interest rate the BC Libs charge after the five year grace period? What's the five year mortgage rate right now?

How many more eggs can we fit in this basket? Oh I forgot LNG will be a provincial windfall when it's up and running in 2018…

Why slag free swag?:rolleyes:

ummm, as your doctor i recommend against riding with a scaphoid fracture.

Dec. 17, 2016, 3:48 p.m.
Posts: 1301
Joined: Nov. 6, 2006

I would think most would roll it into their mortgage at the first renewal.

Dec. 17, 2016, 3:59 p.m.
Posts: 14115
Joined: Nov. 19, 2002

its nice to know that banks think of those of us who cant afford mortgages in the LM as "bottom of the barrel, and lousy risk"…

cant say im surprized those, banks have always been for people who have money not those that actualy you know need to borrow…

Dec. 17, 2016, 4:40 p.m.
Posts: 33723
Joined: Nov. 19, 2002

This whole interest free, payment free loan for five years sounds really bad. Like Sub-prime lending in the USA bad.

What is the interest rate the BC Libs charge after the five year grace period? What's the five year mortgage rate right now?

How many more eggs can we fit in this basket? Oh I forgot LNG will be a provincial windfall when it's up and running in 2018…

They'll make their money back off of the housing industry. Municipalities will like it too.

It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities.
- Josiah Stamp

Every time I see an adult on a bicycle, I no longer despair for the future of the human race.
- H.G. Wells

Dec. 17, 2016, 6:55 p.m.
Posts: 1405
Joined: Sept. 30, 2006

I would think most would roll it into their mortgage at the first renewal.

This is the problem with this plan. A good chunk of the first five years of a mortgage goes to interest and not principal. After 5 years you all of a sudden have about the same amount mortgaged as when you started, but now you have only 20 years left on your mortgage, and it is now likely at a higher rate then when you started. Here come the payments you can now no longer afford…..

Dec. 17, 2016, 8 p.m.
Posts: 2170
Joined: Aug. 28, 2006

What is the interest rate the BC Libs charge after the five year grace period? What's the five year mortgage rate right now?
..

After 5 years the interest rate becomes prime +.5%

Dec. 18, 2016, 3:56 p.m.
Posts: 0
Joined: Oct. 5, 2006

Angela Calla, the mortgage lady on CKNW, explained that if you bought a $750,000 property and qualified for the max interest free loan, that you would be saving approx. $200 a month on your mortgage payment and subsequently making a $600+ loan payment. Not worth it in my books.

Fraser Valley Mountain Bikers Assoc.

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