In the past I usually provided educational blogs for consumer’s. I am going to start blogging about the current market as there are new changes constantly and definitely Lenders are moving in a more conservative direction tightening up on their guidelines. However the reason Lenders are doing this, is more to do with it coming from their regulator OSFI (Office of the superintendent Institution of Canada). This is going to make it a tougher market, especially for first time homebuyers and business for self individuals to obtain a mortgage. As most recently, there is talk about Lenders pulling back on reducing the loan to value from 80% to 65% on their secured LOC products (HELOC’S). I guess it wasn’t enough to reduce amortization, no to low income documents for Business for Self Individuals. In saying this, on the up side, it is good that consumers are not able to get in over their heads in debt which they may never be able to pay off, or worse yet, have to declare bankruptcy and go through heartache and stress due to their debt load and possibly having to lose their homes.
This is definitely a time for consumer’s in the market looking to purchase a home, or refinance their current home to obtain a professional mortgage broker who can help them save time and money. Mortgage Brokers have access to many Lenders and their products and know which Lenders still have products which will suit your needs without you having to take your precious time to shop and receive rejections or higher rate prices in order to qualify under their new guidelines.
kathyerickson 