Bill Nugent -Mortgage broker/owner- Neighbourhood Dominion Lending Centres
“The loan structure created in the budget opens up new opportunities for young families to gain entry to the housing market in smaller communities across Canada.
The government did not, however, address the problems facing many purchasers in the GTA or GVA. They could have alleviated these problems by giving the purchaser the option of having the stress test applied to mortgage terms of fewer than 10 years; the purchaser who chooses to take the 10-year term could have been allowed to purchase using the contract rate of that term. Doing so could give Canadians financial security and stability.”
Dwight Trafford -Mortgage broker -The Mortgage Centre – Rock Capital Investments
“The government felt pressure to stall an explosive real estate market. Now they feel the need to restart real estate’s engines. Affordability is the main issue, not because of high interest rates or lower incomes, but because of the shortage of single-family detached or semi-detached starter homes in the hot suburban markets.
The government’s idea of joint- venture ownership through down payment participation will help very few, and only in ideal circumstances. Providing reasonably priced homes via better planning would provide long-term and sustainable solutions, rather than a Band-Aid solution.”
Shawn Allen CEO- and broker of record -Matrix Mortgage Global
“Giving first-time homebuyers down payment assistance is only part of the solution – the complete solution would be to restructure the stress test.
The current regulations are negatively affecting homeowners more so than buyers. Canadians, on average, refinance every two to three years; upon attempting to refinance, they are now faced with an affordability threshold that was not present when they originally purchased.
As a result, Canadians are being denied financing by their current bank, driving them to alternative financing at increased premiums. Removing the stress test would help those forced to seek alternative financing solutions.”