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Brokers anticipate Flaherty’s next move

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Mortgage Broker News | 27 Jun 2012, 10:00 AM Agree 0
What will the government’s next move be if the new mortgage rules don’t result in a market slowdown? Brokers are taking some well-educated guesses.
  • Layth Matthews | 28 Jun 2012, 03:05 AM Agree 0
    I am fairly confident that when the net effect of these changes come to bear, the next move will be more conciliatory. By all means lower the amortization limits, but please don't prevent people from consolidating rapacious consumer debts into the mortgage. By reducing the refinance limits the government is throwing away the potential economic stabilizer benefits of CMHC and padding the pockets of the banks, who will pick up the slack at 20%.
  • Faye Drope | 28 Jun 2012, 03:23 AM Agree 0
    I think the next go round will be geared at unsecured credit. It used to be the norm that we took into account the amount of unsecured credit available and factored that into the debt servicing regardless of the amount that was utilized. If they go back to that you will see a major shift away from unsecured credit. In my opinion this should have been done first.
  • Stephane Prevost DLC Alliance | 28 Jun 2012, 03:47 AM Agree 0
    what i met by money is CMHC is running out of money as we know.
  • Paul Therien, CENTUM | 28 Jun 2012, 07:04 AM Agree 0
    In my opinion... CMHC should be focused on their mandate, which is to house Canadians. It is not to insure lenders against risk, nor to help someone put a fancy new kitchen in their home. I suspect you will see CMHC return to the original business model that they operated under - for good or bad - and that was making housing affordable to Canadians.
  • Kim Bowles | 28 Jun 2012, 11:04 AM Agree 0
    I agree with the comments on unsecured debt. If the feds truly wanted to get spending under control they should be dealing with lines of credits and reverting new credit lines back to 2 or 3 % of the outstanding balance 400 payment on 20,000 instead of 100.00 interest'. That would definitely make consumers think twice about spending, and reduce buying power. Also dealing with the 29% credit card companies. But this is the banks life line so it wont happen. Reducing refinances to 80% is to save face for CMHC because the headline for the Canadian economy would not be good if they said CMHC is maxed out and cannot lend anoymore. The banks are simply going to consolidate to 80% and then offer the clients an unsecured credit line for anything remaining. what ever happened to Financial planning responsibilities . It will be a very interesting year.
  • David O'Gorman | 28 Jun 2012, 11:12 PM Agree 0
    Maybe, in a back- handed fashion, Flaherty has addressed the LoC & credit card debt load issue by forcing consumers to understand they can not crank up c/c debt with the intention to consolidate it all into a new gov't insured mortgage. c/c delinquency will rise & lenders will have to tighten limits. Maybe it's "tough love" for consumers, maybe it is warning to the banks to tighten c/c guidelines before he drops a hammer on them with new tougher c/c regulations.
  • Russ Cameron | 29 Jun 2012, 09:15 AM Agree 0
    Govt folks..you are dealing with the wrong market.
    Mortgages are the cheapest money we can buy..we need housing, we need jobs, we need businesses to keep going.. these things employ people. what you need to deal with is placing restrictions..such as placing on the limits people can afford according to their income.. credit card rates are from 18% to 29% and many activite families live within a $20,000.00 limit all their lives.. that is where are problem is note #.19% in mortgages I'm a retirred bank manager I should know// thanks
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