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Mortgage Broker News | 01 Dec 2017, 08:15 AM Agree 0
The Bank of Canada announced 10% of Canadians will not qualify for mortgages next year, but, according to one mortgage broker, solutions could be just around the corner
  • BobW | 01 Dec 2017, 10:08 AM Agree 0
    Perhaps this 10% is a National number as it seems very conservative to me?

    I would consider myself to be a high volume Broker/Agent. My lending area is just outside the GTA and for the most part, is a reasonably affluent area and almost 80% of what I do are conventional mortgages. I have 'Stress Tested' my Oct 2016 - Oct 2017 funded mortgage portfolio and guess what... 31.66% of those mortgages will not pass the 'Stress Test' that is coming Jan 1, 2018. Did the BoC venture outside their 'Hallowed Halls' and bother to ask those in the trenches to provide them with an estimate? How did they come up with that % ?

    I am fortunate as we will get some of the fall out from clients being shut out from the market within the higher priced areas of the GTA. I also suspect that our entry level house prices will increase significantly, if move up vendors have to postpone their buying plans and stay in their current homes longer. (something the BoC doesn't want to see happen) but there is only so much of this type of inventory available for first time home buyers and these measures are not addressing the route cause.
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