Madness has ensued in the mortgage industry thanks in large part to the abundance of ever changing rules put forth by the Federal Government. If you’ve been searching for a mortgage in the past few months you’ve likely heard from your Mortgage Broker that there will be significant change for all.
It’s unfortunate but something we all as brokers have to learn to live with and persevere to get through.
“Keep calm and carry on” is something every mortgage broker should try abide by but lately it’s been hard to keep a calm demeanour when broker lenders are forced to hike rates and ditch products thank to the simple stroke of someone’s pen.
Worst of all the ones who suffer the most are hard working Canadian families who now have the unfortunate privilege of paying higher then normal interest rates because they can no longer qualify for a refinance.
Having recently read this article on Canadian Mortgage Trends we felt it important to let people speak up about the current situation, especially given the current economic situation here in Alberta (and for the most part Canada).
As mentioned in the article:
And the hits just keep coming. We get the next dagger in Q1 when bulk insurance premiums at least double, which will make broker lenders even less competitive. And the grand finale could come next year if/when regulators propose a deductible on insurance claims. Depending on how that’s implemented, some lenders may not survive it.
Keeping calm is not the answer. All that does is show regulators that we’re willing to take whatever rancid medicine they spoon down our throats. It makes them think they can restrict mortgage lending overnight, with virtually no consultation from consumer advocates or people who actually know how mortgage finance works.
Don’t just sit by calmly and tolerate bad policy that threatens your livelihood. Stand up for the tens of millions of Canadians who need mortgages and cost effective refinances. Stand up for the choice and cost savings we deliver as brokers. Tell the media how bureaucrats on the public payroll have unilaterally decided that well-qualified homeowners should pay more to renegotiate their debt—and have fewer options for managing their limited cashflow, despite absolutely no default data to support these moves. (And no, this doesn’t refer to overleveraged borrowers. Those folks should be curtailed.)
In the above article and quote they urge everyone to write about this and let both teh Finance Minister and your local MP the disappointment you feel in this decision. We agree, this is to help Canadian families save money over there lifetime, especially in trying times of economic uncertainty. For years the mortgage industry has kept defaults low while adding billions to governemnt revenue.
The article has it right,
Carry on, but don’t keep calm!