No more mortgage rule changes

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The Bank of Canada has made a number of mortgage policy changes – including a number of measures that have drastically impacted mortgage broker business – but the Bank of Canada has said it is done tinkering with programs for now.

“We don’t see a need for an immediate shift in policy,” Finance Minister Joe Oliver told the Bloomberg Economic Conference in Toronto on Thursday according to the Financial Post. “We want to make sure that the rules we have in place — which we have modified to take the froth out of the market — continue to respond to the economic realities,” he added.

It’s welcome news to brokers who have dealt with the frustrations of increased regulation for years.
According to the most recent CMP Broker Sentiment Poll, brokers were asked how well the government has handled the issue of mortgage regulations. Provided with a scale of 1 (poor) to 10 (excellent), brokers gave an average score of 5.45.

Still, the government’s lack of interference may not last as long as some might hope, according to one industry veteran.

“The repercussions in the States from the downturn have been a real heightening of regulatory regimes,” Gerald Soloway, CEO of Home Capital Corp. told CMP. “In Canada they never were as loose as the U.S. regulatory regime but I think the political pressure is also building in Canada and has been building that there will be an ongoing tightening of trying to get companies to comply with best practices which also goes back to mortgage brokers that they do their job well.”

Soloway spoke at length with CMP for a feature in its upcoming magazine. Watch out for that issue, as he touches on a number of interesting subjects brokers won’t want to miss out.

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  • welbanks on 2015-05-25 9:46:50 AM

    But does this include tightening with CMHC as well? There was recent chatter that 100% financing was going to disappear as early as next month?

  • Omer Quenneville on 2015-05-25 11:02:22 AM

    CMHC was originally designed to help those that need help into the market most. Now it is used to keep those that need it most out.

  • Doug King on 2015-05-25 12:23:07 PM

    CMHC is really, at least now, with it's Billion plus dollar surplus, simply another tax levied by the government.

  • Jesse D on 2015-05-25 9:06:35 PM

    CMHC is a waste of space now. They are only here to 'help' if that's what we want to call it, the people that really don't need help as Omer stated or for the banks/lenders to back insure because they do not want to take any risk. I believe before Flaherty's big hit in 2012 he stated no more changes and bam, the big whopper was upon us. Perhaps the government should focus more on credit card debt than mortgage or building a respectable army, something...

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