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Mortgage Broker News | 05 Dec 2012, 08:00 AM Agree 0
CAAMP leadership will be talking to bureaucrats and politicians in Ottawa early next week in yet another effort to raise the red flag on tighter mortgage and lending regimes.
  • Len Lane | 06 Dec 2012, 04:57 AM Agree 0
    And this is the reason we need a national organization, one collective voice to be heard in Ottawa.
  • Christopher | 06 Dec 2012, 05:16 AM Agree 0
    I don't have a problem with a longer amortisation on an appreciating asset, but I do think GDS should be reborn at 32% and TDS limited to 40%.
  • Paolo Di Petta | dipettamortgage.com | 06 Dec 2012, 06:07 AM Agree 0
    I may not have the popular opinion behind me on this one, but I think CAAMP's stance on the mortgage rule changes is completely wrong.

    The rule changes were made because the Canadian housing market was extremely overheated (and still is, but to a lesser degree). Those measures were taken to insure long-term sustainability of the housing market.

    The only thing this effort by CAAMP seems to be concerned with is short-term growth of the mortgage industry. All this will do is continue to facilitate people repeatedly refinancing to pay off the out-of-control debt they keep racking up, when instead they should focus on cutting back on frivolous expenses.

    Also, I don't buy the "First-time home buyer's" argument - and instead will counter back with a reason the rules SHOULD be in place: FTHBs need such a high down payments because in recent years home values have skyrocketed due to low interest rates and the previously lax mortgage rules.

    When you give people EASY access to MORE, CHEAP credit, they tend to use it. That access to money has artificially increased buyer competition in the housing market, driving up prices. THAT is why new homes aren't affordable to FTHB's.

    This simply can't go on forever - interest rates can't keep getting lower, cost of living has continued to increase and salaries just haven't kept up - eventually we're going to hit a breaking point.

    This move by Flaherty was warranted and prudent. Not to mention, it is much less devastating than an interest rate hike would have been, as it keeps people who have already purchased in their homes.

    CAAMP really needs to reevaluate their mission.
  • Appraiser | 07 Dec 2012, 01:30 AM Agree 0
    There is nothing inherently wrong with 30-year ams. They have their place in Canada and are still the mortgage amortization of choice in the U.S.

    Flaherty went all-in too early. He needs to withdraw some chips from the table.
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