Mortgage broker and blogger Robert McLister of CanadianMortgageTrends shared insight on rate increases, 35-year amortizations and finding a broker on the After Hours segment of the Business News Network.
It was the perfect example of how one broker can use strong web presence and media exposure to advance the reputation of all brokers as knowledgeable experts during any home purchase.
McLister said it was safe to assume that in five years rates are going to be three percentage points higher, and that if shopping for a mortgage, he recommended finding a broker who can compare all of the different lenders and give unbiased advice.
"There's a lot of non-bank lenders, credit unions and whatnot, and you have to look at them all because at any given time, there could be one in your neck of the woods that has an outstanding rate promotion going on," he said.
McLister also blamed 35-year amortizations for leading to inflated prices in the housing market, comparing them to the inflation brought on by the five per cent down programs of 1998.
"It's going to get to a point where that's reflective in home prices, and then you're going to have to ask yourself, 'do I want to take 35-year amortizations away from the market at this point after prices have already gone up?' It could make it a lot harder to buy a home for some people," he said.
