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Mortgage Broker News | 14 Dec 2010, 10:00 AM Agree 0
Finance Minister Jim Flaherty warned again on Monday the government could tighten mortgage rules further if needed, after a report showed the country's household debt levels have soared.
  • kata | 15 Dec 2010, 04:28 AM Agree 0
    I find it unreasonable that the Finance Minister would look at mortgage debt as target to control Canadian's finances when the real problem is credit card and other consumer debt. Why doesn't the Finance Minister focus his attention on the real problem and leave access to homebuying open for Canadians?
  • Jeremy From Calgary | 15 Dec 2010, 04:55 AM Agree 0
    It's not rocket science! If you get a flat tire do you change the oil in the engine? NO!! You fix the tire. These guys are clowns!! If it's credit debt that's the issue, tighten up on credit. The policies are way too loose in the first place. Every credit app should have to qualify on it's own merits. There should also be support docs required and verified. This is the case for a $5ok mortgage mortgage why not for a $50 credit card? The Canadian banks govern this country and that's obvious. They rake in huge profits off credit cards, LOC's and loans. Of course the banks are not going to want tighter restrictions on the higher interest generating business!! Why ask them? Killing the mortgage industry is not the answer.

    How many times have you heard consumers say my mortgage is putting me in the poor house? How many times do you hear them say my credit card debt is putting me in the poor house? I suspect it's the latter or at least that's what I'm hearing. Wake up Flaherty and listen to the people, not the banks!!!
  • Martin | 15 Dec 2010, 04:59 AM Agree 0
    If any industry should be regulated it should be the auto finance industry. I see people who do not qualify for a mortgage debt consolodation but they are able to get a new car financed. In my opinion there needs to be a standard for that industry as auto financing is driving the households that are on the edge over the edge.
  • DanP | 15 Dec 2010, 05:02 AM Agree 0
    The “Debt Level” argument always seems to roll around the idea that consumers are “getting” into more debt which in turn seems to imply consumers are “applying” for more debt.
    The other side of the increasing indebtedness argument that needs to consider is the household income picture. By reducing total household income (due to job loss, reduced guaranteed working hours, hired as part or on contract instead of full time, etc..), all have the effect of pushing consumers into higher debt as families turn to existing credit cards, LOC, liquidation of RSPs and savings to make ends meet. Recent job stats indicate that a large majority of new job creation is now either part time or contract type arrangements. Food Banks are seeing massive increases of families at their doors. Further, the government has done nothing to reign in gouging card rates and other borrowing costs (other than mortgage rates). I would venture to say that family financial survival is playing a much greater role than the government want to admit to. OH, forgot one important statistic; The Rich are getting richer at the cost of the dwindling middle class!
  • Dave | 15 Dec 2010, 05:07 AM Agree 0
    He's doing it again. Consulting with banks and they point the finger at mortgages. They don't want to have the finance minister touch their golden egg, credit cards and car loans. I have had clients come to me who are paying 21% on a car loan! And it's legal!
    Jimmy Boy talks and then realizes what he's just said. Today he is retracting his comments and saying we MAY NOT touch mortgage rules. He needs to take a first year communications course to learn how to talk to the media.
    His rabbling and open museing results in mis-understandings that affect our economy.
  • James in Whitby | 15 Dec 2010, 05:46 AM Agree 0
    Sorry bankers but the jig is up. You can't distract the government forever, although you have done a good job so far. As many have already commented, its time to review payday loans, credit cards and bank loans NOT mortgage rates and the mortgage qualification process. Telling someone you'll make it harder to put a roof over their head and force them into eternal renting but letting them fall victim to pre-approved credit cards and loans with high rates is not acceptable.
  • vittorio oliverio | 15 Dec 2010, 06:14 AM Agree 0
    The government has no clue what they are doing; mortgage is what keeps us afloat. Give me a break as everybody else is saying credit cards and the terrible new car financing that causing problems not the mortgage industry. Of course we know why they are picking on the mortgage rules, as they do not have an over paid lobby company like the car companies must have otherwise the government would know where the real problem exist. GIVE US THE RESPECT US CANADIAN EARNED. WE TREAT CREDIT WITH RESPECT AND WE WORK WITH ALL OUR CLIENTS TO MAKE SURE THAT CLIENT ARE FULLY AWARE that credit needs to be in check.
  • vittorio | 15 Dec 2010, 06:15 AM Agree 0
    i agree with 100%
  • Kevin R/Calgary | 15 Dec 2010, 06:51 AM Agree 0
    From the mouths of idiots. Of all people to preach this crap its the person running a deficit government that should have been bankrupt years ago. It's like telling your kid not to smoke while your sucking on a big stoggie!
  • E.T. | 15 Dec 2010, 09:32 AM Agree 0
    What is wrong with this picture, JIM! An immigrant comes to this country,gets approved by CMHC with as little as 5% down, and gifted at that,having no credit score, slides through the system, while a Canadian born tax paying consumer with no bureau score must have a co-signor or pay a hefty rate and put down 25%. And, to top it off, JIM said, Canadians with very high credit scores and high paying jobs should now place 20% down on a rental purchase, simply because we want to make an even better living for ourselves. Hmm, he takes 20% now out of our pockets and gives it to the immigrants to welcome them into ownership! If our ancestors who built this country could see the state we are in now!
  • bankergirl | 15 Dec 2010, 04:34 PM Agree 0
    I suspect if more Canadians, especially those in our industry were to voice our concerns to Mr. Flaherty himself, he may have a 2nd opinion to listen to, other than the big banks. Email your comments to jflaherty@fin.gc.ca. Jsut a thought.
  • Monica | 16 Dec 2010, 06:14 AM Agree 0
    They should tighten up the credit card lending guidelines. That's the damn problem. period.
  • Jesse Brun | 11 Jan 2011, 02:37 PM Agree 0
    response to jeremi from Calgary..Nicely said...Of course this scum is going to listen to the banks and tighten up mortgages instead of high interest visa loans and car loans because he always meeting with them and enjoying there fat cheques and big briberies that they hand him in private meetings. Does anybody really think this piece of crap is working for the people?? he's just a bank representative in a government position. Bottom line just like every other big business!!
  • Scott B | 12 Jan 2011, 06:43 AM Agree 0
    Thanks Colin, great words, finally someone in the industry looking to set things straight in the media. We had a few words from the Big 5 (Doug Porter - BMO and Ben Tal - CIBC) speaking about 'consumer debt' as a key component in the equation, not just focused on mortgages as we usually see (CMT - Dec 29, 2010). Kudos to Ben for speaking out in that manner considering that the CIBC Aerogold CC product (19.99% lending rate) is CIBC's flagship and most profitable offering. New mortgage regulations will not curtail or slowdown the unsecured lending practices of the Big 5, but in fact may increase it, as they look for ways to substitute larger down payment requirements in mortgage rule changes as an example. Many in the industry have noticed an increase in unsecured PLC's filling the void in the 20% down payment required in investment property financing, hmmm, 80%LTV mortgage in the mid 3%s, another $30k in PLC at 7%+ is actually more profitable to the Banks, but at a higher cost and larger overall risk to the consumer. Is it a wonder why the Big 5 push for mortgage regulation changes, when in fact they have the ability to still provide unsecured lending facilities to 'good clients', something the Monoline lenders do NOT have the ability to do. What a great way to claim back some of the market share they were losing to the often more competitive, mortgage only lenders (especially so in the first time buyer and investment property segment) Hmmm, the Bank Conspiracy lives on....strings always tight on Flaherty.
  • Jon | 12 Jan 2011, 06:08 PM Agree 0
    the problem with the current system is the easy access to mortgage funds have unsustainably driven up the price of homes, so HELOCs have exploded as a way for people to pull equity out of their homes to spend/consolidate and basically use as their own bank for whatever they want. to control debt levels, if the mortgage rules are changed then it becomes harder to find a mortgage no matter which side of the fence you are on broker or lender and as a result the price of homes will reduce. As home prices reduce then there's less available equity so a slow down in HELOC loans and a reduction in reckless debt . In regards the high interest on credit cards, its all about risk, higher the risk of default higher the rate, more people default on unsecured debt so the rate has to increase to cover defaults and for the credit cad company to make a profit, and also the credit card regulations changed last year as well in the consumers benefit. being able to borrow money for a mortgage is a privilege and not a right and a lot of people are not responsible enough to have a mortgage, when the mortgage rules are tighten mortgage brokers will need to adapt or they will lose even more of the market share than they currently have. it's never a good idea to be a one trick pony at a circus, to easy to be replaced.
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