Mortgage Blog
Canada's Mortgage Experts
How Do Changes to the Mortgage Rules Affect You?
February 20, 2017 | Posted by: Dana Stauber
Have you ever noticed when gas prices change, they change at every gas station almost immediately? No one can prove there is price fixing among the Oil Oligarchy in Canada, but as an average Canadian, it seems fishy that there is rarely price competition between the major oil companies.
Unfortunately, this is what can happen when competition exits the marketplace. Recently, a group of Mortgage Professionals went to Ottawa to speak to the finance minister about the consequences of the recent mortgage rule changes. They expressed concern that these changes were going to cause rate increases for the average middle class Canadian.
In fact, we have already seen rates rise for some property types. There are a series of rules that have targeted the non-bank lenders and made it more difficult for them to compete with the big banks. I am all for strong banks in Canada. We don’t want a repeat of what happened to so many banks in the US post-2008. However, I am also a firm believer that competition is good for the consumer. If we eliminate competition in mortgages I can guarantee that you will pay more on your next mortgage.
The non-bank lenders are like the independent gas stations of old. They keep the big banks on their toes and ensure rates stay low for the average Canadian.
If you have questions on how this may affect you, please don’t hesitate to contact me.
