Jim Flaherty move shocks brokers

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Finance Minister Jim Flaherty has stepped down.

"Yesterday, I informed the prime minister that I am resigning from cabinet,” Flaherty said in a statement. “This was a decision I made with my family earlier this year, as I will be returning to the private sector."

Flaherty – who has been unpopular among the mortgage broker community – has served as the Finance Minister since 2006. Still, a recent MortgageBrokerNews.ca poll revealed only 52 per cent of brokers believe the industry will benefit from Flaherty’s resignation.

“There aren’t too many changes they can make anyway; we’re pretty much at the point where they have stripped it down to where it was a decade ago or even farther back,” Len Lane of Verico Brokers for Life told MortgageBrokerNews.ca at the time. “I guess it’s better to keep somebody we know than to have someone else.”

For his part, Flaherty believes he has had a successful run and that he will turn his focus to the private sector.

"As a government, we achieved great things for Canada and I could never have accomplished what I have as finance minister without the full support of Prime Minister Harper," Flaherty said in the statement. “I will focus on life beyond politics as I return to the private sector.

Still, some may view the move as the Flaherty's first step toward his own run for the leader of the Conservative party.
  • Angela Wong-Liao - Invis Inc on 2014-03-18 7:28:31 PM

    It is a mixed feeling for me as I admired and respected Mr Flaherty's dedication and commitment to ensure that Canada will not follow the footstep of the American style financial crisis in 2008. Mr Flaherty had tightened the mortgage rules several times and in my opinion, it is a prudent approach but obviously the tightened mortgage rules affected my mortgage business directly and indirectly. All the best for Mr Flaherty's new endeavor in the private sector.

  • Sandy Tyers on 2014-03-19 3:31:47 AM

    I thought Jim Flaherty was a good Finance Minister. As a Realtor of over 35 years, I agreed with his changes pertaining to mortgages and home ownership in Canada. Over the years I saw too many people get in over their heads financially as minimum down home buyers. Good luck to Mr. Flaherty, and thanks. Sandy Tyers

  • Ron Butler on 2014-03-19 10:16:53 AM

    I think it is sometimes missed that long term politicians like the Finance Minister (nearly 20 years both provincially and federally) forego the big money top bankers and corporate lawyers earn and settle for $200K per year incomes (which is good but not bank exec good) so as he approaches his 65th birthday he is entitled to take his shot at a couple of multi-million dollar paydays. After all the USA Treasury Secretaries will make many times that when they leave office.

  • Paolo Di Petta | dipettamortgage.com on 2014-03-19 10:18:22 AM

    Personally, I wasn't a fan of his - but he did make some changes that were headed in the right direction.

    There's a saying: "Better the devil you know than the devil you don't". My concern is looking forward to his replacement.

  • Nick Hamblin on 2014-03-19 12:51:47 PM

    Appropriate resignation , he has been dancing to the Big 5s tune for the last 2-3 years ensuring his transition to the most profitable boardrooms in the country. Better to do it now while he still has a Conservative government to influence than to wait until he is in opposition and has little or no sway. Farewell to the Marionette, whose strings will the Big 5 be pulling next? Joe Oliver ?

  • David Cooke on 2014-03-19 2:39:40 PM

    In 2006, Flarherty allowed CMHC and the other insurers to go to 40 year amortizations. |When the banks started worrying about defaults, he abruptly cut the maximum amortization to 35 years without clarifiying if people with pre-approvals would be able to grandfather this for the next 120 days. He put the mortgage industry in turmoil. He then made another cut to 30 and then to 25 years, putting us back to where we were when Ralph Goodale was finance minister. It appears that he created the problem and then retreated, claiming that he was solving the issue with his prudent management of the economy. Anyone who can remember back 7 years ago knows better.

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