Further tightening of mortgage rules not necessary say brokers

Further tightening of mortgage rules not necessary say brokers

Comments by Finance Minister Jim Flaherty warning that the federal government might consider tightening mortgage rules again to slow rising household debt levels aren't resonating with brokers.

 Colin Dreyer, President and CEO of Verico Financial thinks Canadians aren’t being given enough credit when it comes to fiscal responsibility.

“It seems to me that Canadian consumers are somewhat self regulating in terms of being fiscally responsible," Dreyer told Mortgage Broker News. "I think a further tightening of the mortgage rules at this time is not necessary as residential sales are already moderating based on the existing economic conditions.”

Speaking to reporters on Parliament Hill, Flaherty said his office would keep an eye on household debt levels and make mortgage rules changes as they see necessary, but he's not in a hurry as the government has recently tightened mortgage rules.
"There is no reason for extreme concern now. There is reason for concern, so I watch," Flaherty said.
"Part of what I have to do is balance the amount of credit we see out there with the job creation that we see in the economy as well."
  • kata 2010-12-15 4:28:58 AM
    I find it unreasonable that the Finance Minister would look at mortgage debt as target to control Canadian's finances when the real problem is credit card and other consumer debt. Why doesn't the Finance Minister focus his attention on the real problem and leave access to homebuying open for Canadians?
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  • Jeremy From Calgary 2010-12-15 4:55:13 AM
    It's not rocket science! If you get a flat tire do you change the oil in the engine? NO!! You fix the tire. These guys are clowns!! If it's credit debt that's the issue, tighten up on credit. The policies are way too loose in the first place. Every credit app should have to qualify on it's own merits. There should also be support docs required and verified. This is the case for a $5ok mortgage mortgage why not for a $50 credit card? The Canadian banks govern this country and that's obvious. They rake in huge profits off credit cards, LOC's and loans. Of course the banks are not going to want tighter restrictions on the higher interest generating business!! Why ask them? Killing the mortgage industry is not the answer.

    How many times have you heard consumers say my mortgage is putting me in the poor house? How many times do you hear them say my credit card debt is putting me in the poor house? I suspect it's the latter or at least that's what I'm hearing. Wake up Flaherty and listen to the people, not the banks!!!
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  • Martin 2010-12-15 4:59:06 AM
    If any industry should be regulated it should be the auto finance industry. I see people who do not qualify for a mortgage debt consolodation but they are able to get a new car financed. In my opinion there needs to be a standard for that industry as auto financing is driving the households that are on the edge over the edge.
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