3. Ontario urging Ottawa to change tax rules to curb real estate speculation

Ontario urging Ottawa to change tax rules to curb real estate speculation

What about condos, semis and townhomes?

Yes, these are below $1m, which also significantly reduces the risk. Condo prices have not been rising as fast as detached.

What about the suburbs?

The average price in the GTA is above $1m for detached, regardless of where. TO proper is around $1.5m.

It's not a fallacy at all. TD bank owns $120B+ in insured mortgages. They own $170B in uninsured mortgages which --get this-- have an average loan to value of 69%.

The CMHC, in general, is only insuring about 50% of all new mortgages (http://business.financialpost.com/personal-finance/mortgages-real-estate/cmhc-goes-from-insuring-90-of-new-mortgages-to-only-50-and-thats-as-low-as-it-plans-to-go).

You're also talking about a $1 trillion dollar market (housing).

A rough 30% decline in house prices would put the average TD uninsured mortgage underwater.

So what? Being under-water doesn't mean anything except you're bag-holding, and that's pretty wishful thinking there on the 30%. If you really want to look at risk, it would be rising interest rates causing defaults, but they won't go up quickly nor for awhile.

I was under-water back in 2008 for a year on my house. Do you know what happened? Nothing, because it doesn't matter. You don't sell, how hard is that.

I would venture to say that a substantial portion of the upscale detached market is foreign money. It was true in Vancouver and it's the reality here in Toronto too.

Based on what? I just bought a detached here in TO, and so did some of my friends. None of us are foreigners or rich, but we did own homes outside of TO that have had significant gains.

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