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Scott Peckford and Dustan Woodhouse Answer Your Mortgage Broker Questions

This week, Scott and Dustan talk about the recent mortgage rule changes implemented by the federal government. They discuss how they think the new rules will affect brokers in the short- and long-term.



Key Points

  • On a macro level, we have an environment largely created by media.
  • Stories are often spread around based on personal experiences.
  • Regulators and politicians are often not face-to-face with clients and can have a different perspective than brokers.
  • We can expect more changes in the coming years.
  • The two main markets receiving the most press are Vancouver and Toronto.
  • These changes primarily target these two markets, but more significantly affect cities across Canada.
  • The qualifying rate is not necessarily a bad thing, but there will certainly be some fallout as a result.
  • Monoline lenders will be greatly affected.
  • The overall percentage of Canadians impacted by these changes is significantly higher in small towns.
  • Owning a home brings stability to families.
  • The recent rule changes greatly affect the lower-middle class families across Canada and their ability to own a home.
  • Vancouver and Toronto are not impacted as notably as the rest of Canada.
  • The majority of brokers in Canada will maintain stability throughout these changes.
  • However, for certain monoline lenders, as well as thousands of families in the country, the changes pose a huge problem.
  • Individual brokers will still have options and flexibility.
  • Clients are potentially reading too much into these new rules. The majority of clients are unaffected by the changes.
  • Interest rates will likely not increase in the short-term.
  • Every market, depending on the city, will be affected differently. Brokers need to have conversations with their real estate agents to have meaningful conversations with clients.




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