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Mortgage Broker News | 22 Mar 2016, 08:15 AM Agree 0
It doesn’t matter which side of the debate you fall on, it seems every broker across Canada has an opinion about this controversial topic
  • Len Lane | 22 Mar 2016, 12:15 PM Agree 0
    It would mean that a discount rate brokerage would no longer have an advantage in the market as everyone would qualify with the same calculation. I can see why Ron would be a little excited about Calum's comment.
  • Ad Lakhanpal,Mortgage Broker | 22 Mar 2016, 02:54 PM Agree 0
    Good Point by Len Lane! Standard qualification criteria will close a loophole that the "deep discounters" have been taking advantage of.
  • Ron Butler | 22 Mar 2016, 04:57 PM Agree 0
    Actually no effect on me at all Len, I am discounting variable and short term rates that have to be qualified at the at the 4.64% rate 20 times a day.
  • Ryan | 22 Mar 2016, 08:44 PM Agree 0
    “100% there should be tougher standards for qualifying for a five-year fixed rate; I’m in awe that they haven’t done it,” Calum Ross, principal broker of Verico Calum Ross Mortgage, told last week. “With the Big Short movie out and everyone saying Canada is immune (to a similar downturn); I’m going to say the five-year qualifying rate is a disaster waiting to happen."

    He can't just watch the Big Short movie and draw comparisons. Would prefer an analyst with something a bit more quantitative than just a mortgage broker.
  • John | 23 Mar 2016, 12:48 AM Agree 0
    @Lane That makes no sense. Rate discounts and borrowing cost are important. If broker A discounts an extra 10-20 bps over broker B, it makes a big difference to borrower but little difference in qualifying service ratios. The question is whether responsible borrowers should be treated like children and 'protected' from themselves unfairly in this manner. Variables hold extra risk so should have extra hedging requirements. The fixed rate does not. What's next, mandating minimum 10 year terms? Comparisons to the grossly irresponsible sub-prime lending practices in the US, is a tiresome and well debunked position.
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