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Mortgage Broker News | 19 Dec 2013, 12:00 AM Agree 0
New CMHC data revealing the improved quality of Canada’s mortgage book may encourage brokers to tell both Jim Flaherty and Julie Dickson “I told you so” for even suggesting further tightening.
  • kac | 19 Dec 2013, 10:37 AM Agree 0
    This report is about as shewed as one can imagine,while i am sure the mortgage performance on the banks books of insured mortgages has performed better it is ultimately because it is so difficult for the blue collar worker to obtain any financing at all,once the govt tightened their lending criteria the banks tightened their nooses even more and as a result their mega profits started to shrink thus chopping jobs and getting rid of blue collar accounts,right HSBC? I believe it has been said over and over that secured mortgage debt is really not the problem.I tried to have an applicant approved just recently with 5% down with a 617 credit score. I was turned down by a local credit union,scotia and a few others. Funny that the credit union had just advanced $16k on a note loan,scotia $49k on a vehicle loan and a few other creditors an additional $20k in unsecured debt all in the last year. Is it really the mortgage debt that is a problem in our society. CMHC has no losses on this debt so the govt really doesn't care.
  • Lance | 19 Dec 2013, 11:57 AM Agree 0
    Kac - I think your client's real problem is they put the car ahead of the house. Something I've seen a LOT of the past 9 mos.
  • Paolo Di Petta | dipettamortgage.com | 19 Dec 2013, 06:59 PM Agree 0
    CMHC's data is really called into question though - http://mrt.gs/19WsP2O

    They say less than 1/4 of Toronto Condos are owned by investors, but also admit that their data is incomplete. http://mrt.gs/19WsP2O

    I haven't had a chance to read the report, but I'd expect them to have similar data collection issues in some other areas. Generally, it's prudent to consider that this sort of data looks better than it actually is.

    Besides, if CMHC was so sure of itself, why the extra risk fee? Actions speak louder than words, so watch what they do, not what they see.
  • Paolo Di Petta | dipettamortgage.com | 19 Dec 2013, 07:00 PM Agree 0
    CMHC's data is really called into question though - http://mrt.gs/19WsP2O

    They say less than 1/4 of Toronto Condos are owned by investors, but also admit that their data is incomplete. http://mrt.gs/19WsP2O

    I haven't had a chance to read the report, but I'd expect them to have similar data collection issues in some other areas. Generally, it's prudent to consider that this sort of data looks better than it actually is.

    Besides, if CMHC was so sure of itself, why the extra risk fee? Actions speak louder than words, so watch what they do, not what they say.
  • kac | 20 Dec 2013, 10:42 AM Agree 0
    @Lance,i agree with you and certainly in no way say the consumer is right to go crazy on borrowing in this fashion. It just seems to be a little too simple to obtain this type of credit with these FI's who are so tough on mortgage approvals.
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