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Advice for clients: Prepare for deal delays

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Real Estate Professional | 31 Oct 2016, 08:15 AM Agree 0
Lenders were caught off guard by recent mortgage rules changes, according to one professional who claims deals are being delayed
  • Jerry Rush | 31 Oct 2016, 01:04 PM Agree 0
    Regulators need to question why the posted rates are so much higher then what 85% of borrowers actually pay. Is it just to maximize the unfair Pay Out penalty calculations?
  • Rob Burns | 31 Oct 2016, 01:16 PM Agree 0
    That is it exactly Jerry, why, you have to ask yourself, is this "Real Change" federal government not addressing this obvious unfair money grab?
  • Rick | 31 Oct 2016, 04:47 PM Agree 0
    This change should have been done years ago. If people can't qualify for a mortgage at the BoC. rate ( around 4,5%) then they should either wait or buy a less expensive home. Canadians are maxed out on their debt to income ratio and when ( not if ) rates start to climb we are going to have a large number of people who will start to default. These low interest rates have given everyone a false sense of security and they are over extended. I sold house when rates jumped to 18% and advised clients not to go with long term mortgages because they would see 10% or less again and they were astounded that I felt that way ( had no idea that we would see 2%). The day will come when rates are going to rise and we will be in for a surprise with the number of defaults that will start again. Back in the early 80's people were dropping off their keys of their homes to the bank because of lack of equity and not worth making payments and I fear that may once again be around the corner.
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