More changes to come as Mortgage rates are about to increase?
5th Sep 2017
With mortgage rates appearing to be on the rise this week borrowers may be faced with more challenges than just higher interest costs in the future.
It seems the new Government is not done with their changes nor are they looking to get any input from industry experts. After Mortgage Professionals Canada lobbying in Ottawa this Spring the Canadian Mortgage Brokers Association is also trying to get the Liberals to listen to reason. http://www.mortgagebrokernews.ca/news/industry-association-pens-letter-to-osfi-230336.aspx
The CMBA hope is for the Government to wait and see how the changes last fall have fully impacted Canadians before they make any further changes. And also address some of the issues they have caused, mainly rate increases to good borrowers who have 20% equity or more in their Home. This type of borrower has seen their interest rates to be .25% higher than CMHC insured borrowers all while the Big Banks have recently posted record profits thanks in part to these new rules. There are also suggestions on the new ‘stress test’ and how it could be applied to certain uninsured borrowers.
With the recent proposed Tax changes to small businesses and the mortgage changes to average Canadian borrowers one wonders who this new Government is actually looking out for?