The new mortgage rules being introduced by Ottawa next week are already having a “crippling” impact on non-bank mortgage lenders according to online broker community. Many lenders are use to easily approve the practical lending, it’s down swing started, helping to produce result in competition is subside, bank is acquiring major chunk and keep its part more higher, borrowers and investors are loosing opportunities and market is interestingly starting to decline.. what a great economical achievement !!
As lots of broker predictions are to significant shrinking of the sector’s market share with a 50 to 60 per cent decline in mortgage business over the next year.
Who is expected to have that part of that business?? #Banks !!
It’s brokers who mostly work in the best interest of their clients, to get their clients (with fiduciary duty in mind ) the best mortgage available with best rates and terms, Looking at crippled options, so borrower clients or Consumer is at huge disadvantage probably on the name of stress test. Although, We brokers strongly recommend the new regulations despite at huge dis advantage of loosing the big proportion of business to banks.
As we previously have a report from #First National Financial that it is temporarily suspending loans for #rental properties and stated income borrowers; and other lenders like #Lendwise and #Merix are also pulling back from certain products or increasing mortgage rates for some.
Some brokers believe , While lenders may be ok with tightening of mortgage restrictions, that was not the case if it was not fairly implemented with a careful market data and planning, rather than social media sentiments.
What we’re on board with this is systematic changes that benefit the banks at the cost of the #mortgage #brokers backed by #monoline lenders who have natural interest in specific market segment.
So, At last ,Who is at the less options ??
Consumers, Borrowers or mostly first time home buyers. I can’t get it what degree of real estate slow down will help Canadian economy this way, so it’s interesting to see in future !!
Let’s see. what future we will see is getting cloudier and un certain. Also the hope prevails and brokers will be still the best option to consumers, as consumer have a huge trust on brokers who work in their best interest.
Are you thinking of selling/buying a home? Or looking mortgage – refinance-any situation!!
Investing in Real Investments?? check what the market can get you. Homes under $500K, bank sale,fixer upper and many more options..
Homes in Toronto are having another record-breaking month!
Do you know your home’s worth now? Let’s talk if you are interested to put in Market.
For Real Estate or Mortgage Services always remember to refer us..
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Homelife / Miracle Realty Ltd., Brokerage*
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