believes the Canadian government may implement further mortgage rule changes – news that would obviously be unwelcome among mortgage brokers.
As we see the Canadian economy slow down and debt levels increase … they have been a real cause for concern in the mortgage industry,” Paul Grewal, vice chair of Street Capital
told MortgageBrokerNews.ca. “Obviously the government has been very proactive in introducing more regulation on the lenders and insurers, like B-20 and B-21. I think there is potential for more regulation, possibly.”
As a lender, Grewal was on the forefront of having to deal with B-20 and B-21 guidelines. And he believes the first B-20 rules – and their strict changes – helped prepare brokers for the more recent B-21.
As for what Grewal expects future rule changes to look like – he isn’t quite sure.
“I’m not privy to what the regulation might look like,” Grewal said. “I just think that’s the approach that the government takes, to introduce regulations on mortgage lenders, mortgage brokers, and also on the side of mortgage liquidity – how do they control and contain the mortgage market.”
Rumours are already permeating through the industry about what the government may look to do to rein in the hot housing market.
According to the Financial Post, the federal government is looking at ways to cool the housing market and is considering an increase to the minimum down payment requirement.
“They are definitely looking into this but it doesn’t mean that they will do it,” an anonymous source told the Post.
Another source confirmed the government is considering it, while a Department of Finance source denied that Ottawa is considering raising the minimum down payment from five per cent.