Canada Bubble Thread - Correction Underway

File: 1497702916545.png (166KB, 490x313px)

166KB, 490x313px

>Who is the mystery anglo?

>>130668587
This is exponentially worse than the US bubble exploding.

Homes in Leaside that were listed for $1.8M are only selling for $1.2M - 33% DROP in 2 fucking months

>>130668676
Jordan Peterson.

File: the prince of canada.png (140KB, 432x355px) Image search: [Google]

140KB, 432x355px

>>130670099
>0099

Massive correction underway. it will only speed up.

I hate doing the canada threads. Lost a bet this morn in brit/pol now here I am.
>once i reach page 10.... I'm free

>>130668587
there won't be a housing crash. The rest of the economy crashed already driving up prices for building materials transportation construction and labor which keeps driving up housing prices

>>130670321
These houses were only $300-400K ~2005....... Canada's entire economy is dependent on bubble housing prices since anyone who can afford to spend uses their home equity line of credit

>DOTR is coming

File: 1497708409445.jpg (59KB, 896x921px) Image search: [Google]

59KB, 896x921px

>>130672410
soon hopefully. the alternative is the chinese money never stops, makes up for the drop - and then quality of life still goes down while suffering goes up.

GOOD! HOPEFULLY THIS WILL DESTROY CANADA.

Trudeau gets a no faith vote, new government has to form... LET IT BURN.

>>130674296
chinese money is a meme
its mortgage insurance

>>130674597
I know that but I wasn't going to do a comrehensive financial thread here.

I was gonna do a seperate thread on it later but post what you got if you want to get it out there.

>>130674986
let me find my oc pasta

File: 149780046452.png (819KB, 890x647px) Image search: [Google]

819KB, 890x647px

>>130675106
unleash the beast my dude

File: CANADA YES!.jpg (54KB, 595x468px) Image search: [Google]

54KB, 595x468px

The least canadian PM

good news for those too big too fail:

>New ‘bail-in’ regime for Canadian banks will ease burden on taxpayer in case of crisis

>The federal government previously stated that bank deposits would be protected from any bank recapitalization and wouldn't be subject to the bail-in regime

taxpayers, temporarily spared. Depositor; you're now on the chopping block bucko

http://business.financialpost.com/news/fp-street/new-bail-in-regime-for-canadian-banks-will-ease-burden-on-taxpayer-in-case-of-crisis/wcm/f2eab0b1-94ea-478a-a76c-8b6498393df7

File: canada housing.jpg (122KB, 960x672px) Image search: [Google]

122KB, 960x672px

>>130668587
>Summary

CMHC = Fannie/Freddie Mac

Canadian housing has nearly tripled in 10 years.
A single detached house has gone from about $200K CAD to over $800K CAD.

CMHC has $20B in assets and $946B in liabilities
>50:1 leverage

Banks have lent out a trillion dollars in mortgages for hyperinflated crackshacks while removing any risk of default for them by offloading them to the CMHC (mortgage insurer). At one point, the CMHC allowed 40 year mortgages (in 2008 60% of all new mortgages were 40 year terms), with 0% down (cashback mortgages were a thing with 7-10% cashback), and no maximum loan value. In 2008, over 90% of mortgages were insured by the CMHC (read:

>the entire Canadian housing market is subprime

CDIC = FDIC

Insures up to $100K.

CDIC has $3.4B in assets
CDIC has $679B in liabilities
>200:1 leverage

Both CMHC and CDIC are backstopped by the government.

A 20+% correction would wipe out the CMHC and at least one major Canadian bank as they have uninsured mortgages (already happening with Home Capital, the Canadian CountryWide). A bank being wiped out would wipe out the CDIC.

The CDIC and CMHC being wiped out would require the Canadian government to issue hundreds of billions of loonies in new debt, sending the loonie to sub-50 cents, possibly to 20-30 cents or even hyperinflating.

>The Day of the Rake is nigh

File: army fags.jpg (160KB, 640x397px) Image search: [Google]

160KB, 640x397px

>>130668587
>What's happening now?
The CMHC has been reigned in to a max loan value of $1M, max amortizations of 25 years (from a high of 40), 5% downpayment on the first $500K, 10% on the next $500K (7.5% on $1M).

People have been using "alternative lenders" who loan $2-3M on self-declared income or with fake documents. Now these lenders are blowing up and not making new mortgages, hence prices have stagnated or dropped (as in Van, already down 15% this year).

Once a massive across the board drop occurs, lots of people who are leveraged to the tits with negative/0/5% downpayment 30/35/40 year mortgages will be underwater (they will owe more than they can sell their house for).

>Canadian mortgages are all Adjustable Rate Mortgages (ARMs) that reset every 5 years

When renewal comes up, which is soon for a lot of 2010-2012 mortgages on 40 year terms with negative/0/5% downpayments, they will be forced to come up with hundreds of thousands of cash to bring their mortgage Loan-to-Value back down to 80-95%. 99% of people won't be able to come up with the money, so the bank will write off the mortgage with the CMHC mortgage insurer, who will pay the bank the loan back then take possession of the house and do a fire sale, and then go after the homecuck for the balance which will be hundreds of thousands for life. Bankruptcy can't discharge CMHC debt since it is Crown debt.

In fact, banks can call in mortgages at any time for any reason (lol). So if they see prices dropping, they will pre-emptively call in mortgages and write them off to stay afloat. Once this occurs, it's a race to the bottom as banks are forced to call in more and more mortgages to stay afloat (in order to maintain their Tier 1 capital ratios with marked market values of the houses on their books)

>A significant price drop will put millions of homecucks underwater
>Banks call in mortgages
>Homecucks can't come up with margin
>CMHC bails out banks and dumps toxic houses on market collapsing prices

File: hcg.png (118KB, 1254x884px) Image search: [Google]

118KB, 1254x884px

>>130668587
>NINJA lenders
Home Capital Group, the "CountryWide" of Canada that does jumbo ($2-3M) NINJA (No Income No Job or Assets) and liar loans (self-declared income), has a $20B mortgage book.

In 2015, they were forced to cut ties with nearly 50 brokers due to massive fraud (homecucks using forged documents or lying about their income). They estimated $2B in mortgages on their books are fraudulent. They don't know which ones. In fact, the number is likely to be far higher. The Ontario securities regulator recently accused the former CEO/CFO of material fraud by lying to the public (the # of fraudulent mortgages is in fact far higher).

As a result, people have been withdrawing nearly all their savings from Home Capital's High Interest Savings accounts. These are term deposits and must be paid out immediately; the run on Home Capital has resulted in their HISA account going from $2B to under $400M in just under a week. As a result, they obtained a $2B credit line from a government pension fund at 22.5% interest and drew down $1B today to stay afloat.

They are essentially bankrupt. They cannot borrow at 22.5% and loan at 3%. Their stock dropped 65% on Wednesday last week and over 30% today. The Canadian bank regulator (OFSI) is "staging" them (seeing how bad their books are). It's rumoured they are terminal, and the OFSI is forcing them to liquidate. This will result in hundreds of thousands of million+ cuckshacks flooding the market, crashing prices.

>>130668587
>D-does this mean that sooner I can afford to buy a house in Canada?

>>130668587
When the bubble pops I will buy me some land in Canada.

File: 1497977104709.jpg (273KB, 904x711px) Image search: [Google]

273KB, 904x711px

>>130679672
Turks stay out.

>>130679528
>>130679672

Why not choose the USA?

I always thought that it was slightly suspicious that Trump was doing deals that gain a shit-ton of money for America, maybe it is all to stave off a Canadian-led housing crash?

>>130680009
>Implying turks can afford to have multiple homes
I just want some land in a rural area with a farm or something like that.

Not gonna be there very often. I want this as a protection for an emergencies like pandemic, war, collapse of our financial system.

>>130680037
Canada is less populated. Also see >>130680291

File: 1465960397891.jpg (117KB, 720x720px) Image search: [Google]

117KB, 720x720px

>The Canadian dollar weakened against its U.S. counterpart on Tuesday, erasing recent gains as a drop in oil prices offset stronger-than-expected domestic wholesale trade data.

>https://www.theglobeandmail.com/globe-investor/inside-the-market/market-updates/loonie-retreats-as-oil-price-slumps-to-seven-month-low/article35391772/

Inb4 it will bring jobs back.

>>130679507
>Home Capital Group,

They just sold their mortgage portfolio an hour ago on a live feed.

>>130680938
Who bought it? It's toxic!

>>130680938
Commercial book, at below par.

They still have $20B+ of fraudulent residential loans primarily in Toronto detached homes, which are crashing

Toronto detached prices are crashing, some areas are down 33%+, sales:new listings ratios are down from 100% to sub 40%

>>130681222
KingSett. they're madmen.

>>130668587
Daily reminder that canada's currency is backed by real state

>>130670099

>buying a shit house for 1.2 million

Chinks are this dumb.

>>130681346
It's move to buy time. There's no way out of this. They are hoping on a taxpayer bailout or some other kind of miracle.

>>130681853
I saw macleans pushing the 'bailout homeowners' story this month. fucking rag.

>>130681770
Better than losing it all in their homeland. Besides, they can get mortgages in Canada based on imaginary assets back in China.
http://www.zerohedge.com/news/2017-06-18/chinas-ghost-collateral-arrives-canada-heralding-crisis
>inb4 Zerohedge = fake news

>>130679396

Its funny because 3D printing will make housing cheap as fuck.

who would buy a stick house at that point


unless of course.... they ban single dwelling homes .....

File: 1497954484065.gif (150KB, 245x320px) Image search: [Google]

150KB, 245x320px

>>130682180

Don't forget imaginary jobs. Why hire people when you can pretend to hire chinese and get 5k per month. Why start a business when a home increases in value $500 per day.

>patriotism is a spo0k