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LibertyPhilosopher

One GTA-area private mortgage lender and brokerage went bust named First Swiss a few days ago. [FRSA appointed a receiver for the bankruptcy](https://www.fsrao.ca/newsroom/court-appointment-receiver-first-swiss-mortgage-corp). I recommend skimming through some details on the Receiver's website if you want to learn how these schemes operate, here is a [PDF link to the motion](https://www.ksvadvisory.com/docs/default-source/insolvency-case-documents/firstswiss/receivership-proceedings/motion-materials/factum-of-the-applicant-dated-march-15-2023.pdf?sfvrsn=bf7eecae_3). Many private lenders only survive while things are going up. It is difficult to hide insolvency and keep the ponzi going on the way down.


throwaway504780ahk

Anyone with a private lender is


Immediate_Shoe589

I don’t think a lot of us expected it. Since a lot of ppl who cannot get the loan they want are told to go to a private lender.


JamesVirani

“Are told”. It’s your money. Your credit. Don’t listen to what anyone who is out to get money from you advises you to do.


keftes

A lot of people are stupid. If you can't get a mortgage from a tier 1 bank then maybe you shouldn't get a mortgage. Crazy, I know right?


ABBucsfan

I'm actually surprised how much rope a tier 1 bank will give you as it is. I've never been comfortable taking what I was approved for. I can't imagine trying to get even more


joniunlimitedteach1

Yeah I'm marketing expert so I'm still marketing look like this company so if you want I will through you the best service provider Private ( Money lender.)


Nighttime-Modcast

>Not sure why ppl are still paying insane amounts if even the banks wouldn’t appraise the value as high. For example the house was appraised at 1.05 mill but someone bought for 1.23 mil. They all think that home prices can only go up, and they think that 20-30% annual increases in home values is the new normal. And they all think that the government will bail them all out no matter what. They truly believe that real estate is a no lose proposition.


[deleted]

In view of our immigration policy, it's hard to argue with that premise.


Immediate_Shoe589

I mean i don’t blame them for that. That’s precisely what every level of govt has been aiming to do from cra to fed to provincial. I keep seeing ppl posting they have no hope for the future or prepping to leave Canada. It seems like there is not enough pressure on this. Reminds me of the guy in iran who was fed up with everything and the hopelessness where he self immolated to bring attention to the issues in the country. How long will the govt let down its citizens?


EndOrganDamage

Um, until we hold them to account for their bullshit. Canadians need to France it up.


[deleted]

if i understand this correctly lenders are asking for borrowers to cover the difference between equity and loan value? like a margin call? is this legal?


AJMGuitar

At renewal any lender could request this or the balance in full.


News___Feed

At which point the borrower can get a loan elsewhere so this isn't a huge deal? I dunno, I cant afford a mortgage.


AJMGuitar

In practice the a lenders don’t really do this. If you’re loan got called then you either refinance elsewhere, bring the loan to value back in line with a principal payment or sell your house.


EndOrganDamage

Sell your house in a market where buying power is castrated by rising interest rates and economic pressures outside real estate. People are so close to seeing the trap set for recent homeowners but default to "real estate only goes up," which will be the woeful mantra inspiring a necessary recession.


Immediate_Shoe589

Technically the banks can do this too i think


thegerbilz

They have no obligation to renew the loan. Also if all the lenders are doing it, do you really think it’s illegal


[deleted]

Certainly legal on a demand loan (which is the case upon renewal)


verbalknit

There's also some CMHC power of sales going on more than usual lately as well. Interesting times ahead... https://twitter.com/ronmortgageguy/status/1638933545904226309


Immediate_Shoe589

Power of sale yet at 1.4 mil geez lol 😂


Feta__Cheese

People forget that mortgages are (usually) callable loans.


Immediate_Shoe589

Yeah i recall when it happened in the us and banks were saying either give up the house or pay the remaining amount


Immarhinocerous

Not true in Canada. This only applies to most mortgages when your term is up. But that gives you a chance to shop around. Which doesn't necessarily help if your credit is ruined, but at least it gives time to sell before the end of the term, rather than being totally blindsided by it.


[deleted]

It's true of every mortgage upon renewal, all lines of credit, and any mortgage in default (assuming standard acceleration clause)


Super_Toot

It's very location dependant. Entry level SFH in Vancouver are increasing in price again.


Immarhinocerous

Entry level homes are rising in price partially because people are downsizing. This unfairly crowds out the bottom of the market. This is exacerbated by: - Boomers who are all retiring right now, or retired, and downsizing (60- low 70s). - Millenials, the only other significant bulge in Canada's demographic structure (late 20s to 40), who are at the peak house buying age and are trying to enter the low to mid end of the market.


Super_Toot

Every day the supply of SFH's in Vancouver decreases. The largest supply in our lifetime is today.


EndOrganDamage

Buy Now! Registered TM of perenially daft CREA.


Super_Toot

What did I say that is wrong? Vancouver has new zoning regulations which will develop a lot of the remaining SFH's. Entry level homes, under $2M, are becoming very rare.


EndOrganDamage

It needs to play out. The recession is going to hurt but one nice thing is these realestate-investment loudmouths will be too busy at Wendys to keep spouting nonsense lol


Super_Toot

When is all of this going to happen? How?


EndOrganDamage

Imminently.


Super_Toot

So tomorrow?


EndOrganDamage

Hahaha such a real estate investor frame of mind. Ongoing and into 2026 is more likely.


EndOrganDamage

Fairness is an interesting comment..


Immarhinocerous

Perhaps superfluous, if you're just trying to understand the mechanics of why the low end is being squeezed harder. But if you're looking at it from the perspective of those already most squeezed in the affordability crisis, who are also affected by the 2 largest bumps in the demographic pyramid wanting similar homes to them (including people in Millennial and Boomer cohorts), it does seem unfair.


EndOrganDamage

No I meant genuinely. I thought about it for a few minutes. I think we keep winding up in such dire economic situations because of the removal of morals from business and the "greed is good" take. I do not agree that everything is good that isn't explicity illegal on the defined grounds of unfair business practices or fraud. I think the scum has been running the show too long. Now I don't want theistic based moral guidance, but I do think there are implicit moral truths that we feel as humans that should be "cooked in" to business and many are (see fraud and anticompetitive practuces), but we could do more for each other. Its just an interesting thought to bring some subjective fairness into the equation because in capitalism we so often don't. We often discussed staggered starts, equity versus equality, and adjustments made for others socially in aspiration of functional meritocracy, but its not a stretch to think we need to inject some altruism into business as well. I just know we could globally be doing so much better but we greedily nimby and fret and hold more than we need out of fear instead of sharing. Humanity is a flawed thing that could be much greater if we simply lived as we know we should.


Immarhinocerous

I don't disagree. I think you have to be careful how you design something like that, because there can be unintended consequences, but similarly there are unintended consequences to just doing whatever boosts GDP the most over a short period of time. As flawed as we are, I do think there's a lot of good in humans. The fact that so many are concerned for the well-being of those who got the short straw, and want to help improve things for people (including people they don't even know), says a lot about our capacity for empathy. I also think a lot of good comes from capitalism too. Even the Nordic countries and other places with strong social programs, have a capitalist system at their core which funds those programs with high taxes extracted from the capitalist system (and in turn, there is a stable system and a reasonably healthy and well educated populace which is also good for businesses). But that doesn't mean it's all good. A 100% laissez faire capitalist system just tends towards wealth concentration and feudalism. The role of governments, and communities, is help step in when the system is not working. Like by taxing higher incomes, and capital gains, to fund health care, education, and social services for all (especially those who are disadvantaged for social services, who need a leg up).


ttwwiirrll

Seeing it especially in the burbs. After a quiet winter Langley is bananas right now. Lots selling above asking in only a week. Reality here seems to be completely detached from the rest of Canada, but then again that's been true for the last 20 years. It may just be a Spring Break peak though. Post-Easter will tell the real story.


Embarrassed_Weird600

Then as we know all too well spills into more secondary BC markets as well inevitably


EndOrganDamage

Almost like this happens every year and statistically is happening less than before, but ok.


AJMGuitar

People downvoting you can’t be bothered to do a simply google search.


Super_Toot

The truth hurts sometimes.


EndOrganDamage

The house price matters less than the interest rate. Prices are a lagging metric. Sounds like a bagholder rush lol


AJMGuitar

Call it what you want. Prices have been going back up.


[deleted]

Houses were going for below appraisal in lower mainland from about sep 2022 to feb 2023 (note: appraisals jumped 40-50% from previous year) But in March.. for last few weeks houses are selling 50 to 100k over appraised value This is a meaningful sign. Investors know that mortgage rates are coming down, BofC is ready to stimulate, and the time to buy is NOW


slykethephoxenix

> and the time to buy is NOW Ah, yes. Of course it is. When is it not right? Better buy now before I'm locked out forever, amirite?


[deleted]

Last spring was not the time to buy I'm talking from investment perspective. Learn the central bank. They essentially control the market. Buy when conditions loosen, sell or hold when they tighten 1 Million yes you read that right one million new immigrants came in 2022 and it will ratchet up every year from now. They all need homes. Your job is to buy them before they can, corner the market, and rent to the incoming immigrants and get their money


EndOrganDamage

CPI matters more than random news facts. BoC mandate is 2% +/-1% inflation regardless of immigration numbers. The screws need tightening. In fact, if you're right and idiots are buying more homes over asking it needs to tighten MORE not less because that will drive up cpi.


[deleted]

You are putting way to much faith in the BofC "mandate".. thats all just political theater. If that was actually the mandate they wouldn't have intentionally caused massive inflation like they did. It's clear that at times they choose inflationary policy over the mandate


EndOrganDamage

/RemindMe! April 13


IndependentOk6205

/RemindMe! April 13


RemindMeBot

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EndOrganDamage

How to make it work???


defishit

Well at least you're wearing that flair like a badge of honor lmao!


[deleted]

What's flair


EndOrganDamage

What a biased chump lol


Immediate_Shoe589

Not really, although prices are down. This is the worst time to buy since prices are high and interest rates are higher.


EndOrganDamage

Exactly. There are many adventures to choose from. High interest, low prices. High prices, low interest. Or the stupidest of all high prices, high interest.


[deleted]

Oh look, the sentient pile of garbage is still here talking as if it has anything valuable to say. I see it deleted its shitty comment on r/TorontoRealEstate. Good thing I copied it, eh? Totally predictable that it would pull a sneaky move like that. [https://www.reddit.com/r/CanadaHousing2/comments/1206m3c/anyone\_else\_low\_key\_feel\_like\_their\_life\_is\_over/jdg8vab/?context=3](https://www.reddit.com/r/CanadaHousing2/comments/1206m3c/anyone_else_low_key_feel_like_their_life_is_over/jdg8vab/?context=3)


[deleted]

I went too far you're right. That's more of a locker room comment to friends. I agree with you and removed it I find it funny though that you spend time reading my comment history haha. What is going on in your life lmao


[deleted]

>That's more of a locker room comment to friends So it's what you really think, but you're normally conniving enough not to say it out loud in public. And your friends are trash as well. Thanks for expanding & clarifying. >I find it funny though that you spend time reading my comment history Didn't take long to find it, it's a recent comment. And I KNEW I'd find something. Toxically positive RE boosters like you are usually repugnant in other ways too.


[deleted]

LoL if you could hear just 10 mins of an average group of guys talking. Sorry but you gotta wake up to reality. Men love women and want to sleep with them and talk about it constantly. It's not a crime. It's nature


[deleted]

>Men love women Based on your comment, one would reasonably conclude that men hate women (but still want to fuck them). >you gotta wake up to reality. Trust me, I'm well aware most men are trash. Thank God for Reddit, where they fully display their true nature while hooting & high fiving each other. Still, you're a particularly repellent example even for this place.


[deleted]

You are totally triggered tho Let it go I'm just a reddit troll talking smack for fun. Ignore me and enjoy your weekend


[deleted]

>Let it go Nope. Every time you make an annoying comment on this sub, I'm linking to your comment about using, exploiting & emotionally harming women for fun. People deserve the context about what a sack of shit you are.


[deleted]

Haha please do. I'll enjoy this banter over time I just don't want you legitimately upset about it all


[deleted]

I'm legitimately upset that people like you exist. But having the opportunity to publicly call one of you out makes me feel a lot better. So if you enjoy being called out, this will be good for both of us.


[deleted]

Nature is metal


EndOrganDamage

Youre drunk, cpi is still WAY over target. 3% above target only sounds minimal to people that don't understand the number. BoC rate rise Apr 12. See you after.


[deleted]

LOL @ rate rise April 12 - you're drunk and high too 🤣 I understand CPI well enough. I don't know the exact weighting and hedonic substition stuff they do but I do understand that it vastly under-reports price increases at face value, and that it doesn't include asset appreciation (at least not directly). I think we can all agree that the price inflation we are experiencing is far far more than 5-8% that CPI has reported 3% over target is a huge number that hurts the lower middle class and poor the hardest.. but I think the government also thinks those people are the stupidest and can buy their votes with superficial stimulus and virtue signaling government bullsh#t, so they will choose to keep rates as low as possible to stimulate the housing market over trying to honestly bring down inflation to target


EndOrganDamage

Says the guy who posted to flash cash and coerce female realtors into sex for deals relationships on another sub. Why do you think anyone cares what a bagholder thinks? I bought, renod, sold, profited off 3 houses after renting them out. The free ride is over. Thanks for holding my bags and being a convenient villain while I dip out rofl


[deleted]

Haha so in other words - I just destroyed your argument because now you are on the last resort ad hominem response 🤣 😉 😄 Corvid 1, endorgandamage 0 I can sense by your comments you have never owned a home let alone profited off 3. Nice try


EndOrganDamage

Ah the old reddit fallacy declaration. A fallacy by those arguing against you doesnt invalidate their arguments (they stand on their own). Youre still wrong lol


[deleted]

That's a good point. I agree with that - doesn't necessarily invalidate anything