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Mortgage Broker News | 19 Oct 2017, 08:15 AM Agree 0
Housing market might also get "significantly dampened", according to observers
  • | 19 Oct 2017, 01:16 PM Agree 0
    i wonder what now happens to the people who have been qualified to purchase homes and condos currently under construction with non refundable deposits or where private mortgages have been utilized for home construction because the banks won't approve the construction but will take over the mortgage when the house is completed?

    these people will be out on the streets and lose considerable deposit and or be sued to complete on the purchase. Have these decision makers even taken any of this into consideration? there is going to be plenty of repercussions due to this short minded decision while OFSI and the Trudeau administration sit in their comfy confines.
  • ATUL PRAKASH | 29 Mar 2018, 11:23 AM Agree 0
    The new Mortgage Lending Rules effective Jan 01, 2018 are very beneficial to the Canadian Economy. Their aim is to prevent the Buyer of the Residential Property from bidding higher than his personal finances permit. However, the Seller lists his property on the premise that the Buyer will come up to the price he "thinks" is the appropriate Market Price. For the past 20 years, The Government of Canada has stood as a silent spectator watching the Residential Housing Price go up like the Jack & The Bean Stalk. They simply did nothing but cheer and considered this aspect as good for the Economy. However, at this juncture,it is difficult if not naïve to think that this run away Seller's Market Price expectations can be reigned in by preventing the Buyer from bidding High. Moreover, the Stress Test is simply taking the Residential Mortgage Market out of the regulated market of the six tier 1 banks and send it to the Unregulated Alternative lenders.
    The basic problem which the Government of Canada does not address is not that people are well off and are capable of paying more for a property but that did - equilibrium in Supply of Built Houses is squeezing the Demand. All the immigrants coming to this country need a house to live in. They come with a wife & kids! How can the Government of Canada not see this simple economics principle!
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