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Mortgage Broker News | 24 Mar 2017, 08:15 AM Agree 0
A sincere thank you to our regulators, Ministers, MP’s, etc. for your concern about my personal debt figures
  • Jennifer Rossides | 24 Mar 2017, 09:54 AM Agree 0
    Well said!
  • Craig Vetter | 24 Mar 2017, 10:29 AM Agree 0
    Love this Dustan!!!! How can we be confined by the rules they set when they don't follow them at all. It blows me away.

    Great piece and thank you
  • Charmaine Idzerda | 24 Mar 2017, 10:30 AM Agree 0
    I think they have the policy do what I say, not what I do!
  • Ron in Victoria | 24 Mar 2017, 10:52 AM Agree 0
    Don't worry everyone - the budget will balance itself. That's what our fearless leader JT has promised.
  • MDBain | 24 Mar 2017, 11:00 AM Agree 0
    Well written post. Their belief is always that they know best and are our personal caregivers.
  • | 24 Mar 2017, 11:10 AM Agree 0
    Great article Dustin ! We really should forward this to our MP's and Minister and ask them the question...
  • Jennifer Coy | 24 Mar 2017, 11:15 AM Agree 0
    Thanks for your thoughts, Dustan. I really appreciate the time you take to speak up.
    In politics, the mandate of a government is "the authority granted by a constituency to act as its representative". We give this authority by electing a government. But since it seems that once elected, the needs of the average constituent are forgotten, should the mandate be revised to say that the government will CONTINUE to represent the average Canadian during their term? Perhaps they need the reminder. This decision certainly did not have the average Canadian in mind. The Canadian who wants to start building equity in their life while raising children in a loving and safe environment. The Canadian who worries they won't have enough money to retire with, and struggles with the decision to gift funds to their kids for a home. The Canadian who wants to live the life they take time away from their family to earn...instead of perpetually increasing the wealth of others. We have allowed our 'leaders' to forget what they are elected to do. Unless we are happy with future campaign slogans that read "Inevitable Disappointment", WE NEED CHANGE.
  • MP | 24 Mar 2017, 11:34 AM Agree 0
    Great article Dustan. This debt to income ratio will only get worse with a Liberal govt who thinks money grows on trees.
  • Amber | 24 Mar 2017, 11:36 AM Agree 0
    Bravo! So perfect this segment showed up on my email on a Friday. It gave me a giggle because unfortunately I don't believe our own government will take this to heart when in fact your point hits home!
  • marc | 24 Mar 2017, 11:40 AM Agree 0
    I am of the same opinion that nothing will come of this but why don't you send this article to every blog, newspaper, Facebook, Twitter and any other means that will bring attention to our Governments actions.
  • Diane Marie | 24 Mar 2017, 12:38 PM Agree 0
    You are making the classic Reform-meme mistake of equating household income and spending with those of a nation. Your ability to spend on buying a house, for example, has a horizon of one generation (yours), or two, if you fret about your children's inheritances. A nation or other governmental jurisdiction, on the other hand, has an essentially infinite fiscal horizon. It is funding infrastructure intended to support many generations.

    Aside from that, just a reminder: 75% of Canada's current federal debt ($640b) was accumulated by two Conservative governments. Mr. Harper, $150b and Mr. Mulroney, $330b. I have a bit of sympathy for Mr. Mulroney's fiscal environment, but zero for Mr. Harper. The previous Liberal government retired $105b in federal debt. That was the first time our federal debt declined since Confederation. After inheriting a $13.8b surplus and a structural surplus, the Conservatives blew through both BEFORE the downturn. Before a dime of stimulus was undertaken, we were in structural deficit. In barely more than two years our fiscal fortunes were reversed and during relatively good times. As a consequence, our fiscal latitude and flexibility were both harmed, resulting in the addition of $150b in debt.
  • Michael Fallah | 24 Mar 2017, 01:36 PM Agree 0
    great as always
  • BC Broker | 24 Mar 2017, 01:57 PM Agree 0
    Dustan, there is a very distinct difference between national government debt and household debt. Furthermore, this simplifies government beyond reasoning or logical thought. Top it off with the fact that the government (taxpayer) subsidizes nearly 90% of all mortgage lending in Canada... which if they did not and just cut all government guarantees (which they should do to protect the taxpayer) would mean that mortgage brokers and monolines would essentially be driven out of business. So you think it is OK for our government to provide security and guarantees to protect financial institutions who make billions in profits... and line mortgage brokers pockets with high commissions? If you truly want an open market like brokers all claim they do - then government should walk away from government guarantees of mortgage debt (that includes the 90% they guarantee for Genworth and CG), sell CMHC, and create a totally open marketplace. We'll see how long the monolines last then when they are no longer able to bulk insure and sell off their portfolios to the big banks - who by the way are the largest buyers of Canadian MBS.
    • Jean-Guy Rubberboot | 24 Mar 2017, 06:45 PM Agree 0
      BC broker or BC bank?
    • | 25 Mar 2017, 03:10 AM Agree 0
      This x2.
  • Jessi Johnson | 24 Mar 2017, 03:02 PM Agree 0
    Brilliant, as always. Government hypocrisy is so frustrating. Those who can not do, often teach!
  • Bob the Broker | 24 Mar 2017, 05:20 PM Agree 0
    It's interesting that brokers are fighting the changes being made under the guise of protecting choice for the consumer. There is little to no differentiation between 5 year products any longer given the nature of the industry. But more importantly I think that we need to look at what BC Broker is saying. The government backs over 1.4 trillion in mortgage debt for the lenders in this country - and let's be honest... that mortgage insurance does NOT protect the homeowner, it protects the lenders who make millions in profits. I agree that if we want a fully free market then the government should just step away from these guarantees all together.

    Lenders get massive benefits on the backs of the taxpayer, and that is not a free market. All lenders should sink or swim on their own, if that means that they can't compete with the big banks... then they need to up their game. Since when is government responsible for making sure that private companies can be competitive? This has less to do with choice for consumers than it does with protecting the interests of the mortgage broker - and there is nothing wrong with that - but people need to stop trying to sell it as protecting the consumer. Without the big six banks in Canada the monolines would be a mere fraction of what they are today, TD, RBC, BMO, National Bank... all of them are the biggest funders of the monolines, and they all sell the product under the guidelines as set out by their investors.

    There is nothing wrong with self interest, but stop trying to paint it as the government is evil and that they should not be doing this because it will hurt consumers. If brokers truly believed that then they would not churn their book and move borrowers from lender to lender when the customer wants to borrow for renovations or something else, they would not solicit their clients to get deeper into debt - all so that they can earn bigger commissions.

    Everyone, including brokers, have the right to earn a living of that there is no doubt. What I can't stand is hypocrisy and claiming that your first interest is the consumer, when the first interest is protecting your business. These rule changes will have more impact on brokers than anyone else, and that is the simple truth. Why? Because the big 5 banks still have the capacity to lend even with these new rules, and they are not going to stop lending.

    As for competition... why is it that brokers so quickly claim that they are the only competition for the banks? There are credit unions, trust companies, insurance companies - all can do mortgages - how do we know this? Because before WWII - the banks were not allowed to do mortgages and insurance and trust companies were the largest mortgage lenders in Canada.
  • Robin Klassen | 24 Mar 2017, 06:46 PM Agree 0
    I certainly hope every Member of Parliament along with our Prime Minister reads this!!!
  • Deborah | 24 Mar 2017, 10:23 PM Agree 0
  • Ray | 28 Mar 2017, 03:12 PM Agree 0
    Right On!
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