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Mortgage Broker News | 10 Jul 2013, 12:01 AM Agree 0
Recent real estate numbers show a stabilizing market in Toronto and Vancouver, but one broker wonders if this recovery can sustain itself in the face of rising rates, and, more especially, OSFI’s tighter guidelines.
  • Rosemry Madden | 10 Jul 2013, 09:44 AM Agree 0
    I am beginning to think that I am one of the very few people left that remembers when the standard amortization of a mortgage was 25 for many years and the debt services ratios were not as flexible as they have been over recent years also, the rule of thumb "WAY BACK WHEN" was a calculation of 3% on credit card limits and credit lines even although the borrower had no outstanding balance.
    So while we believe some of the changes may have gone a bit far, wake up people this is what we have today, so work with it.
  • M. Robertson | 10 Jul 2013, 01:08 PM Agree 0
    Just another example of news creating the news where there is no news.

    Just another forum where Ron Butler can fan the fires to create conflict and sound like some sort of industry guru or leader.

    Rosemry has it right - these are not NEW rules, these are a return to the rules as they were. Anyone who thought that the loose underwriting would last forever... well you were wrong.

    If so many brokers can't survive because of the changes they should not have been in the industry in the first place. The easy ride is gone, work with it, or find another career and leave it to the brokers that actually know what they are doing.
  • Ron Butler | 10 Jul 2013, 01:41 PM Agree 0
    I think M. Robertson may need a laxative, always seems grumpy.
  • Steve | 11 Jul 2013, 11:48 AM Agree 0
    The problem in Canada is not loose underwriting, not high prices and not amortizations. The problem is points cards, reward card, 0 payment for 12 months cards and cash back rewards. These entice buyers to use credit rather than cash.
    Flaherty's rules jack up rents, reduce home owner's abilities to refinance expensive debt and make housing less affordable.
    Why doesn't the BAC attack those lending practices? Would seem credit cards erode consumer resources and liquidity faster than mortgage debt.
    Who is the real winner with these changes?
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