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Mortgage Broker News | 14 May 2013, 12:00 AM Agree 0
The Office of the Superintendent of Financial Institutions Canada (OSFI) is looking at limiting amortizations to 25 years on conventional mortgages – a move that would benefit non-conventional lenders, says one broker.
  • Chris H | 14 May 2013, 09:01 AM Agree 0
    I have said it before and will say it again...Mortgages ARE NOT the problem!
    Find and implement ways to limit CONSUMER debt, credit cards, LOC's & vehicle leases and you will quickly reduce overall household debt. Any mortgage delinquency I see is simply a symptom of the real problem...uncontrolled consumer spending via high rate cards, buy now pay later plans, etc.
  • Brian Matthey | 14 May 2013, 10:04 AM Agree 0
    I agree with Chris H.When will OSFI relate consumer debt to "reasonability" guidelines guaged against income and limit consumer debt to more reasonable levels.Right now a consumer can literally be approved for credit to any limit with a multitude of debt sources creating the availability of high interest debt.
    With refinancing now limited to 80% LTV,OSFI has created the ideal storm for bankers to proliferate consumer debt without the fear of it being refinanced
    All of the problems I see in delinquency relate directly to consumer debt,not mortgages.
    How many bankers sit on an OSFI advisory board??Just saying!
  • Chris H | 14 May 2013, 10:32 AM Agree 0
    Good points Brian. I have recently placed some 5% down mortgages with some major banks for young clients with TDS figures getting close to 40% ...Only to find out later the bank has also provided them with an unsecured LOC & new credit card...
    Having been a bank lender in a past life (ha ha) I know bank employees get recognition for upselling multiple products to clients, but they are their own worst enemy, and sound lending practices should still apply. I am regulary seeing mid 20's clients with consumer debt of $30,000 or more, spread over multiple loans, leases & locs...
  • Bryan Jaskolka | 16 May 2013, 02:53 AM Agree 0
    I don't think this article does a very good job of explaining WHY these proposed changes would be so good for subprime lenders, not that there are even many more of them left in Canada.
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