The Big Story: Bracing for another battle of the mortgage rules
Brokers continue to grapple with those new tighter mortgage rules and lending guidelines, but can they expect any more for 2013? Jemima Codrington reports, and answers that question.
Video transcript below:
Jemima Codrington, Mortgage Broker News
Jemima Codrington: The changes to the mortgage rules last summer have had a significant impact on the market. So how can brokers face the slowdown head on? Hi, I’m Jemima Codrington and welcome to this week’s Big Story on Mortgage Broker News.
While some experts agree that the market is steadying out, others aren’t convinced that will await a crash. CAAMP has been lobbying the government on the impacts of its most recent round of changes. So can we expect any more?
Paolo Dipetta, Eqron Mortgage Corp. Ltd.
Paolo Dipetta: Personally I think the government will take a more of a hands off approach this time around as the markets are really very slow. But it will really great to see them do something like offer people taxes incentives for paying down big portions of their mortgage.
David Grossman, Community Financial Group
David Grossman: There were a number of changes last year as far as lending rules go, Bank of Canada had a couple of rounds on tightening with respect to lending on investment properties, maximum amortisation on re-finances and the maximum amortisation being reduced to 25 years. I don’t think there are going to be further tightening, rates are still low and I think that’s the best that we can expect to keep the market buoyant, but I don’t think we are going to see further tightening.