At our big event held at the Burlington Performing Arts Centre, I described the changing Mortgage landscape in Canada and why there has never been a more important time to have a Mortgage Broker relationship.
In 2002 the ball got rolling with the Genworth ALT A self employment policy.
In 2006 we got the ZERO down and in 2007, the 40 year amortization. These policies made home ownership possible for almost everyone. In 2008 the recession hit and the government pulled back the 40 year amortization to 35 years. By 2011 we had pulled back to 30 years and Lines of credit reduced from 90% to 80%. In July of this year we lost the 30 year amortization and the Line of credit was reduced to 65%. Rules around self employed mortgages have been tightened up as well. And sadly the ZERO down is gone.
CMHC now reports to OFSI and they are conducting an audit into the underwriting practises of all the banks. In the meantime, prices have risen over 40% and 15% more Canadians are self employed. How are you going to do your business with all of these restrictions?
The answer is simple. You need a relationship with a mortgage broker. Brokers have access to Lenders other than banks. Lenders that are not confined by these changes and who think outside of the box. Brokers have the experience and the access to these options to get the deals done. We are more than just the best rate. There has never been a more important time to have a Realtor/Broker relationship with Bob Beach.
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