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Mortgage Broker News | 01 Dec 2017, 08:15 AM Agree 0
However, the coming year doesn't bring good tidings for borrowers and mortgage holders
  • Dustan Woodhouse | 01 Dec 2017, 09:17 AM Agree 0
    With all due respect to Ms. Cazzin, twenty years ago the smart play was a variable rate mortgage – not a 5yr fixed. I know because I made the mistake of taking a 5yr fixed in 1995, which I rectified with a variable in 1997 when we moved just two short years later. Time’s have not changed at all, in 1995, 1997, and every day in between up to today in 2016; the CDN psyche has been exactly the same, everyone lives in a constant state of fear that rates are about to spike – fueled by illogical stories every single year stating that ‘this is the year’. Every year.

    Ms. Cazzin’s statement that ‘everyone piled into short rates that floated’ and this helped ‘drive the boom in real estate prices’ is utterly misinformed. As anyone in the profession, or in a variable rate mortgage themselves, knows all too well that the qualifying criteria involves a stress test at a rate typically more than double that of the net variable interest rate.

    Buyers in 2016 do not qualify for more mortgage money than did buyers in 1996.

    It is unfortunate that the people with the biggest audiences do not have all the data.
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