The Bank of Canada is sounding the same concerns as the federal government about the future of the condo market for buyers but also brokers.
Video transcript below:
Jemima Codrington, Mortgage Broker News
Jemima Codrington: As Canada’s once prosperous condo market grinds to a halt, the Bank of Canada has raised the alarm over the number of condos that are still expected to begin construction. So how has that affected client approvals? We find out in this week’s episode of the Big Story on Mortgage Broker News.
According to the Bank’s financial systems review at the end of last year, if demand doesn’t escalate to reach the supply, the risk of a sudden correction goes up exponentially. But just how easy is it to get a condo client approved?
Paolo Dipetta, Eqron Mortgage Corp. Ltd.
Paolo Dipetta: Well for getting condo clients approved, things have changed quite a bit. I work primarily in the private market, so I do a lot of second mortgages and it’s been a lot more difficult to find clients as more of them are more reluctant to put their money into a market that’s been really overheated as of late.
David Grossman, Community Financial Group
David Grossman: There really have not been that many changes especially when you consider the A lending market, in terms of getting condo clients approved. In the A lending market and we are talking about people who are, can be approved by a bank, those mortgages can be insured, the CMHC and the other insurers have not changed their policies as far as condos. On the B side, they have changed and they are much more strict when it comes to lending on condos.