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Mortgage Broker News | 18 Oct 2017, 08:15 AM Agree 0
Will the rule changes imperil the future health of housing market?
  • Paul Mangion | 18 Oct 2017, 09:25 AM Agree 0
    I think you are right. The Liberal government does not seem to listen to the warnings. Why they even hold consultation periods is beyond me since nothing seems to change. I fear Canada will be in a recession next year as they will destroy the one segment of the economy that was propping up Canada. When home values drop it will affect consumer confidence negatively. When that happens many people don't feel comfortable buying that new car or purchasing new appliances and of course renovating that kitchen. I think a major problem is too many policymakers are not in tune with the real world. We all don't have trust funds and rich families to fall back on. Unfortunately, Canada will have to endure two more years of this before we can hope for some change.
    • Lig | 08 Nov 2017, 04:41 PM Agree 0
      Such an limited view only because your commission check is drying out. Canadian real estate is the only unaffordable in entire Americas. Liberals have nothing to do with it at all. Problem is that after CMHC introduced tighter guidelines back in 2016, buyers predominantly millennials with no savings and no income to support mortgages found a "loophole" to avoid CMHC insurance requirement by borrowing from their parents for down payment at or greater than 20%. CMHC saw the decline in insured mortgages by 40% just because of that and that put the pressure on banking system at these delusional valuation levels. FYI I dd not vote for Libs, but sensing your personality to blame others, I am positive you did, only because now your income is affected is just another convenience to finger point and blame. It's just about time this Canadian real estate circus is brought under control.
  • Guy | 18 Oct 2017, 09:27 AM Agree 0
    Every lender I spoke to tells me the default rates are extremely low right now and not a major concerns. With these new rules, business will soften and forcing many Canadians to obtain financing through a private lender at much higher rates. This also softens the banks business forcing them to increase lending rates to make up for any drop in volume. With increase scrutiny on all files, the banks default rates should also lesson and protects the banks bottom line. This kind of tells me who the government really favours, not the people that vote them in, it is the major banks.
  • LukeP | 18 Oct 2017, 09:32 AM Agree 0
    I believe this is OSFI simply coming out with rules to justify their jobs. They can't be paid good salaries for an entire year (by us the taxpayers) and then simply do nothing in a year. So when EVERY expert told them to do nothing, that simply wasn't an option for them. Their job matters more than doing what is right for the country and economy.

    And next year we will see more rules...whether they make sense or not is irrelevant.
    When the majority of economists and CEO's of the big 5 banks tell you to hold off, and then you don't hold off, that either means you think you are smarter than everyone, or you only care about yourself. There is zero chance OSFI is smarter than the rest.
  • KKL | 18 Oct 2017, 09:37 AM Agree 0
    Once again our government has made decisions with out talking to those in the know. The 5 banks of course monopolize the government and is why they listen. We all know the banks are scared of the competition, especially the broker net work. If the banks feels they will survive with these changes they are wrong. To think by doing this will kill values in GTA and GVA very well will hold true, but these are just 2 cities totaling 10 million which is a small portion of Canadians.
    Once again, curve the credit card lending. Unreasonable rates, high delinquency and we all know that pretty much if you can breath you will get a card.
    Wake up GOC, you are sucking the life out of Canadians .
  • LanceH | 18 Oct 2017, 10:20 AM Agree 0
    I think industry leaders should ban together and seek an injunction to stop them!!
  • Tony | 18 Oct 2017, 10:28 AM Agree 0
    I would have rather they went after and prosecuted all the money laundering criminals in Vancouver and Toronto, the hundreds of millions going through river rock casino is just unbelievable. Also stop
    the overseas marketing of condos in hong kong, etc, also they should just outright ban foreign buyers, period. Local workers need homes, not these money laundering tax evaders from Asia and elsewhere.
  • | 18 Oct 2017, 11:20 AM Agree 0
    If you look at history when the mono-lines started the big banks discounted them as a flash in the pan .
    Years later the single line lenders have captured a large percentage of the market .
    The big banks can't compete, and have pressured the government to change the playing field to try and stifle the small lenders .

    The big banks are all about profit - if they really cared about clients would they let their clients take out large unsecured lines of credit , or let clients buy vehicles they can't afford , because they have a pulse ?
  • Carsten | 18 Oct 2017, 04:15 PM Agree 0
    You are absolutely right. The same applies for FICOM in BC.
    These government organizations are running without real oversight.
    The government shows lately a total disconnect from the reality of our economic and the damage they are doing.
    Getting representatives of the industries appointed to a competent oversight board would be helpful
    because right now those agencies are really not accountable to anyone.
    FICOM in BC was created by a government act in the 70th and is basically doing their own thing.
    After massive protest from the mortgage broker industry a position was created in the government
    this year to have a look into what they are actually doing. OSFI & FICOM are running their own little kingdoms. They are creating problems so that they can fix them to prove they are needed.
    Looks to be some agencies need some downsizing. Why fix something if it is not broken?
  • Mani | 19 Oct 2017, 09:58 AM Agree 0
    Agree, Next year they reverse it so that they can show it as something they did for their bonus pay.
  • Marc Marchese | 25 Oct 2017, 11:00 AM Agree 0
    I think every individual should take a moment and write their MP. I would suggest you remind them that they re working for the people not the Big Banks. The banks made the rules so they would win and that is the simplest explanation.
  • Lig | 08 Nov 2017, 04:48 PM Agree 0
    OMG, reading all your dumb comments, you professionals, no wonder government had to step in to save Canadians from themselves.
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