The Decline of Vancouver.

I'm willing to bet that many will go for it…most first time home buyers would be younger people and many simply don't understand how interest and loans work. It's pretty easy to have a rosy outlook on the future when you're getting out of an overpriced rental situation, too. Desperation is a bad card to hold..

I'm on the other end: responsible. All I see is the BC gov. giving me free money (below market lending) that will reduce the front loaded interest on my mortgage and make it possible to achieve 20% downpayment on my own. In the correct-use scenario, you avoid paying mortgage insurance, reduce mortgage interest, and pay back the loan instead of doing accelerated mortgage payments. My issue right now is getting 20% DP, not making monthly mortgage/strata/tax/etc payments; I already do that in the form of rent.

The biggest issue facing most FTHBs today is property de/valuation risk. What will the market do? Are you prepared to lose equity? What does renting long term and stashing money into investments look like? And the list of what-ifs go on and on.

If someone was looking to get into a condo this Spring would there be any reason to take one of these loans if they already have a 20% down payment? Would there be overall savings on interest?

You don't qualify.

LOLASIA

What does renting long term and stashing money into investments look like?

Who has $ for that?

The Canadian Payroll Association regularly tracks people’s financial stress and its recent survey revealed 48 per cent of people said “..it would be tough to meet their financial obligations if their paycheque was delayed even by a week. Almost one-quarter doubted they could come up with $2,000 for an emergency expense in the next month.”

MURRAY DOBBIN

NDP housing critic David Eby called the province’s announcement “completely bizarre.”

He said the loans would push prices up as more people would be able to compete for a limited number of units. “It’s an incredibly poorly thought out policy,” he said. “This announcement does nothing about supply… No additional housing has been created.”

He said that while many buyers will likely welcome the announcement, it really is a gift to condo developers, real estate agents, mortgage brokers and lenders.

https://thetyee.ca/News/2016/12/15/BC-Homebuyer-Loan-Bizarre/

I'm on the other end: responsible. All I see is the BC gov. giving me free money (below market lending) that will reduce the front loaded interest on my mortgage and make it possible to achieve 20% downpayment on my own. In the correct-use scenario, you avoid paying mortgage insurance, reduce mortgage interest, and pay back the loan instead of doing accelerated mortgage payments. My issue right now is getting 20% DP, not making monthly mortgage/strata/tax/etc payments; I already do that in the form of rent.

totally..I'm just saying the majority of people will probably end up in a shitty situation in 5 years, not everyone though. If this had come about a year sooner I'd probably keep my mouth shut, stick my down payment in the bank in a high interest savings account and roll with the tax-payers money for the first 5 years too, profit from the interest earned and pay back what I borrowed right away when the time was due. Free money. I'm guessing, but not sure, that they might have something that stipulates that if you already have the money for 5% down payment they won't lend to you; but who knows.

I don't know the answer to this, but will they lend you up to $37.5k to achieve 20% down? The wording makes it sound like it's only to get 5% down…Christies friends in insurance and big financial firms probably wouldn't be too happy to find out she invented a loophole that would allow people to skip out on mortgage insurance, save on interest etc but I might be mistaken. Curious to know if anyone knows the answer to that

If someone was looking to get into a condo this Spring would there be any reason to take one of these loans if they already have a 20% down payment? Would there be overall savings on interest?

You'd be a fool not to take it.

Put it in GIC's and collect free interest, then pay it back in full when due in in 5 years. Oaken is offering 2.25% on 5 year GICs. The return without compounding is $4218.75, so will be even greater when compounding is taken into account.

So that greasy fucking Premier of ours is taking bare minimum of $5000 of taxpayers money for each of these transactions.

And who are the giving it to?

People who haven't managed to spend less than they earn for long enough to save a minimum down payment, to qualify for a mortgage with a payment that is more than they already spend on rent (at all time low interest rates).

These poor, hopeless, unfortunate souls clearly have nowhere else to turn than freehold home ownership in the most expensive place in the world.

Proviso: you must be willing to risk it all in the greatest bubble market in history (and believe 'this time is different'). But only if you buy insurance that is underwritten by all your neighbors, who clearly haven't had to sacrifice anything to raise their deposit and pay their own mortgage.

Thankfully official inflation rate is only 1.13%, otherwise property taxes and utilities would be going up by 4.5% and 8.93% respectively (spoiler alert - that's the real figure).

I don't know the answer to this, but will they lend you up to $37.5k to achieve 20% down? The wording makes it sound like it's only to get 5% down…Christies friends in insurance and big financial firms probably wouldn't be too happy to find out she invented a loophole that would allow people to skip out on mortgage insurance, save on interest etc but I might be mistaken. Curious to know if anyone knows the answer to that

Easy, just put down 5% and save the rest for a year, then pay a lump sum on the anniversary of your mortgage with whatever you have left over. Or fuck it, spend it on furniture, a new car and holidays because you deserve it.

Easy, just put down 5% and save the rest for a year, then pay a lump sum on the anniversary of your mortgage with whatever you have left over. Or fuck it, spend it on furniture, a new car and holidays because you deserve it.

yeh but you don't get out of mortgage insurance that way. not enough loophole

yeh but you don't get out of mortgage insurance that way. not enough loophole

Ah you're right. Not worth the GIC return if you have to pay a CMHC premium you'd otherwise avoid.

Somehow I got through high school knowing how to differentiate an equation but never once did cost/benefit or rent/own analysis, let alone what P/E stands for (phys ed, right?).

There is philosophy behind teaching calculus.

If we are to teach the types of analyses you mention, I'd suggest we teach behavioural psychology for six years straight before we touch upon the belief we are rational actors.

The wife is upstairs crying over real estate. Women want houses badly. In their DNA.

Any single house owning guys in the north shore looking for a woman? Low miles, minimum baggage. Pm for details

Women want houses badly. In their DNA.

Women should only cook and serve us amirite.

Women should only cook and serve us amirite.

well see that's biased against same sex couples of the male gender.

You don't qualify.

LOLASIA

Because of my 8 years of absence?

Because of my 8 years of absence?

I read that as "abstinence"…