Mortgage network argues rules have made housing less affordable
“While we understand and agree with the government’s desire to protect consumers, DLC fundamentally disagrees with the proposed approaches to do so, as it will make housing less affordable for the middle class,” Gary Mauris, President and CEO of Dominion Lending Centres, said. “Our submission outlines several ways to encourage affordability and if the government chooses to work with industry, their proposals can be positively amended to ensure that Canadians have the best chance of achieving their home-ownership dreams.”
Dominion Lending Centres presented the Federal Standing Commission on Finance with a report on how the changes have negatively impacted monoline lenders and Canadians’ access to additional mortgage options.
DLC also published a 15 minute summary of the Standing Committee’s hearing.
MPC calls for moratorium on rule changes
The industry’s largest mortgage broker association has implored the Finance Department to cease any further mortgage rule changes until the full effects of the current policies are determined.
““The recent changes are having a cumulative negative impact on the mortgage market and ultimately on the Canadian consumer,” MPC president and CEO Paul Taylor said, per Canadian Mortgage Trends. “We are asking for slight amendments to the portfolio insurance eligibility guidelines, and to wait for the remaining existing changes to make their way through the market before implementing any further changes.”
MPC also provided a number of recommendations aimed at leveling the playing field for all Canadian mortgage lenders.
CMBA provides its own recommendations
The Canadian Mortgage Brokers Association sent a letter to the Standing Committee, advocating for changes that would lessen the burden on Canadians wanting to purchase homes.
“It goes without saying that people have to live somewhere: if they are not able to purchase housing, they must rent. In doing so, they are no longer paying down a mortgage on their appreciating asset, but instead that of their landlord,” CMBA said in the letter, which was obtained by MortgageBrokerNews.ca. “However, most Federal Government policies, such as latest crop of federal mortgage rules, which are intended to promote economic stability by curbing consumer debt, only have only a singular, narrow focus on the economy.
“These policies fail to consider that housing affordability problems impact both lower and middle income households, renters, first time buyers, and even established home owners.”
Several influential industry players have provided the government with recommendations for future mortgage policy.