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Mortgage Broker News | 12 Aug 2013, 12:00 AM Agree 0
Thanks, CMHC! The latest move by the Crown corporation has pushed a wave of fence-sitters into making purchases today fearing increased rates tomorrow, say brokers.
  • Paolo Di Petta | | 12 Aug 2013, 11:31 AM Agree 0
    What good is a flood of business if it's only going to be followed by a drout?

    This is exactly why all of these changes should have been made incrementally and proactively in the past instead of reactively, all at once when it's already too late.

    If that were the case, we probably wouldn't have seen this out of control housing boom nor would we have to deal with the aftershock that will follow.
  • BC Broker | 13 Aug 2013, 01:42 PM Agree 0
    I read the articles about this in the mainstream paper as well… just the media sensationalizing something that is simply not true. CMHC has not tightened up anything - they, as they have been for the past 60 years, have caps on the amount that they can insure. Last year they had a max amount of about 75 billion, this year 85 billion – which is 10 billion more. The cap for August of 350 million PER LENDER is not a tightening, it is a common sense approach to manage the fact that they are at 66 Billion of the 85 Billion cap – and it is one that they have been doing for decades. They are a crown corporation they have an obligation to report their status. Better that they manage the funding total then run out before the end of the year. We are coming into a slow month historically for mortgage lending, so it really should not be an issue. Throw into the mix that there is also two other insurers, Canada Guarantee and Genworth… or has the broker community so quickly forgotten about them? I think that people are over reacting to this so called “news”.

    And of course there are brokers out there that will capitalize on this, and good for everyone who does. My biggest question is when will the media, brokers, and others stop trying to scare consumers? There was a comment made by the chief at Century 21 that played into this as well. It is any wonder that Canadians hit the panic button when we have people that make irresponsible comments based on irresponsible reporting. All we are doing is providing a disservice to Canadians when we try to make a big deal out of something like this.
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