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Mortgage Broker News | 23 Jun 2015, 09:00 AM Agree 0
Brokers fear resurgence of high interest loans in wake of refinance LTV limits.
  • Debbie | 23 Jun 2015, 09:45 AM Agree 0
    Close one valve and the water will run out another. Reports say Canadians are carrying more and more debt? What did you think would happen? High interest debt consolidation loans and more use of Credit cards. The economy is recovering??? For who? Corporations that's who....regular everyday people are still struggling to keep up with the costs. Yes some people really do need to refinance for legitimate reasons, and they are the ones getting caught having to take out the high interest loans, to pay off the high interest credit cards. Go ahead and beat them over the head for being irresponsible with debt, but you know its true, the debt creep happens to even the best of us.
  • Ad Lakhanpal,Mortgage Alliance | 23 Jun 2015, 11:25 AM Agree 0
    I don't know why this issue is being reported as a recent news. Limiting refinance to 80% happened a few years ago. It was a very ill advised decision of our regulatory bodies. It forced borrowers to go to alternate sources at prices which range from 12% to 35% including broker and lender fees. A 30k second mortgage may have 12% interest ,2500 broker fee,2500 lender fee and 2000 legal fee for a total arrangement cost of $7000 which 20% for a 1 year loan. Add that to the 12% interest and we have a deal with 32% effective interest rate. The borrower could have obtained that at single digit discounted rates under the old rules.

    Lets get the "big brother" to back off a bit and allow free enterprise to function.
  • nick | 23 Jun 2015, 12:47 PM Agree 0
    Ad Lakhanapal i think that big brother has backed off. There is nothing stopping the other two insurers allowing refinancing to over 80%. Ask yourself why genworth and canada guaranty do not offer these options . It probably is the same reason that cmhc has decided to tighten the belt. i think that there will be alternative lenders popping up like john lozinski suggested. And they are a welcome addition to the market.
  • Beenu | 23 Jun 2015, 06:35 PM Agree 0
    GNW or CG are not allowed to offer these options, which was part of b20 gov't legislation, not something one can opt out of...
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