Consumer complaints about mortgage penalties pile up
The Bank of Canada's record-low interest rates have been in place for almost a year and during that time, consumer complaints about mortgage prepayment and IRD penalties have been steadily rising.
From the Press: What people are saying about the new mortgage rules
A day after Finance Minister Jim Flaherty announced three changes to mortgage rules in Canada, it appears the overall response from the financial community has been favourable; however, questions still remain, including whether clients must qualify at five-year posted rates or five-year discounted rates. Here's a roundup of what's being said in the press:
Industry not surprised by Flaherty's mortgage rule changes
Federal Finance Minister Jim Flaherty announced three new rule changes connected to government-backed insured mortgages Tuesday morning, saying the government is "taking proactive, prudent and cautious steps" to prevent a housing bubble.
Genworth already using potential new mortgage rule
The federal government is considering a new mortgage rule where clients who take out variable rate mortgages must be qualified based on a higher interest rate, according to the Globe and Mail - a practice Genworth Financial already has in place.
Flaherty has no plans to tighten mortgage rules: Globe and Mail
Following a report in Saturday''s Globe and Mail that banking officials have called for tighter mortgage rules to stave off a housing collapse, Finance Minister Jim Flaherty told reporters he does not see signs of a housing bubble in Canada.
Bank of Canada takes stance on housing bubble
A Bank of Canada official called talks of a Canadian housing bubble premature in a speech in Edmonton Monday, adding higher interest rates are not the solution to cooling the current surge in housing demand and prices.
Broker sees alternative to Flaherty's suggested mortgage lending restrictions
Lenders should start qualifying borrowers at posted rates to minimize risk of a housing bubble, said Mortgage Alliance broker Mark Herman in response to Finance Minister Jim Flaherty's recent suggestion of upping minimum down payments and decreasing amortization periods.
Flaherty may change mortgage rules to curb housing bubble: CTV
Finance Minister Jim Flaherty may increase the minimum down payment for homebuyers and cut back amortization periods if the housing market continues to heat up, according to CTV News.
Flaherty extends $125-billion program: A broker and a lender weigh in
At the end of September, the government announced it would extend its $125-billion mortgage fund program to buy mortgages from lenders. Melissa Kim finds out what this means for the industry