Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Mono-line lender wards govt off mortgage rule changes

Notify me of new replies via email
Mortgage Broker News | 20 Mar 2012, 09:00 AM Agree 0
Whoa! says one mono-line arguing against additional mortgage rule changes: Today’s “irrational pricing environment” means the government simply hasn’t had time to assess the impact of changes already made.
  • Jim | 21 Mar 2012, 04:54 AM Agree 0
    Has anyone thought been given to setting a limit on how much can be borrowed as a HELOC?
  • Tom D | 21 Mar 2012, 05:34 AM Agree 0
    For too long brokers and bankers have pushed HELOCs on the unsuspecting public, telling them HELOCs are a great product for the average consumer. The last thing most consumers need is a large HELOC pushing them further & further into debt with no fixed repayments. Where have the days gone when we provided prudent advice to our clients & we weren’t obsessed with lining our own pockets!
  • Elfie Hayes | 21 Mar 2012, 05:58 AM Agree 0
    Great comment Jason, I've been saying it all along, it's not the mortgage that's killing people's ability to manage debt. It's the whole "live your dream life" on credit mentality. We all need shelter and the qualifications of GDSR and TDSR are still in line with lending practices of 20 years ago.

    Stop doling out credit cards and unsecured debt and we wouldn't have to choke off one of the few industries that carried us through the recent recession.
  • Angela Wong-Liao, Invis Inc | 21 Mar 2012, 08:23 AM Agree 0
    Thank you Jason Kay of Merix to take the lead speaking out our concerns, I fully agree that our government should wait until the interest rate pricing is normal as the current pricing is exceptionally low, 2.99% for a 4 yrs term or 5 yrs term is completely not realistic, our normal interest rate should be 5% to 5.50%. If our government further tightened our mortgage rules, it will be very difficult for our first time home buyers to buy their first homes.
  • Rob Campbell, Verico The Mortgage Wellness Group | 21 Mar 2012, 03:22 PM Agree 0
    Hiking the insurance premium is completely useless. This won't deter brick and mortar lenders from funding deals and up-selling clients with 3-4 products AFTER their debt ratios work out for CMHC. HELOC's are not for everyone but as Tom points out, they have been easily handed out for too long.
    When the well runs freely, people drink often. Guess what...that well is quickly drying. Clients need to be positioned now to weather the storm ahead, maybe only set at 36-38% TDS regardless of beacon being over 680.
    Values in some areas are going to leave some with very, very few options come renewal. And in turn, us Brokers won't be able to get them out.
  • Gov | 18 Jun 2014, 02:55 PM Agree 0
Post a reply