It was roughly one year ago that Finance Minister Flaherty announced his fourth round of mortgage restrictions in as many years. The reason for these changes was simple: cool down an out-of-control housing market. By tightening lending rules, Flaherty hoped to lower the risk to taxpayers and curb excessive rates of household debt. Continue reading
Tag Archives: Home Ownership
A Look at Housing Affordability
How affordable are homes on the Canadian housing market?
This is the question at the top of every mortgage broker and home hunter’s mind. As mortgage rates begin to climb and home prices creep ever higher, industry leaders are keeping a close eye on affordability in an attempt to avoid a bubble.
It’s no secret that more and more houses are being priced out of the range of first time home buyers. This is especially the case in major metropolitan areas like Toronto and Vancouver. With today’s increasingly expensive markets, what does affordability even mean? We asked Robb Nelson of FamilyLending.ca to help better explain this important measure and how it could impact your mortgage rate and ability to buy. Continue reading
Location, Location, Location: What Are Home Hunters Really Looking For?
Location, location, location – it’s the most important aspect of any potential house hunt. But just what constitutes a good location? Whether you’re searching for a new home or thinking about putting your’s on the market, it pays to know what makes or breaks a prime location in your area. Continue reading
Stop Worrying About The Housing Market
It’s no secret that the Canadian housing market has been a bit volatile as of late. In certain portions of the country, prices are hot, hot, hot. Price bidding is common in Vancouver, and Toronto and Montreal are both posting record sales numbers. And yet, everywhere you look, experts keep warning of an impending bubble.
So, what’s the deal? Is the housing market rock solid or on the rocks? Continue reading
Why a Bank Mortgage Might Not Make Cents
It’s no secret that the banking industry operates in a regulatory environment. Bankers and advisors are required to adhere to strict rules and restrictions… except when it comes to mortgages. According to Samantha Gale, a former mortgage regulator with B.C.’s Financial Institutions Commission and chief executive officier of the Mortgage Brokers Association of British Columbia, individual bank mortgage reps, unlike mortgage brokers and agents, operate outside of regulatory boundaries.
In fact, most banks set their own mortgage recommendations and compensation agreements themselves.
Consumer protection differs greatly between brokers and bankers. Since bank employees are the ones recommending the mortgage product, or an alternative lender, and these banks aren’t required to abide by the same broker regulations, there’s nothing stopping them from doing what they please.
Which begs the question, just whose interests are these bankers looking out for? Continue reading