Today's Star says the Federal Budget announced in March contains a suggestion that CMHC may be limited in the future when it comes to insuring conventional mortgages. This will effect some Lenders fundings and they will have a difficult time doing their normal mortgage backed securities routine. As a result, their cost of funds will likely increase forcing up mortgage rates..
A few weeks ago, Jim Flaherty was accused of influencing lenders mortgage pricing by calling Manulife and Bank of Montreal suggesting they cancel their special on the 5 year Mortgage.
All this because he thinks 2.89% is influencing buyers and mortgage seekers. Of course it is. So what?
In my Mortgage Broker Practice we see intelligent well qualified clients using these rates to buy a first home or a move up home. Its the best way to build wealth and avoid wasted rent payments.
The government should leave Canada's well run Banks and Mortgage Companies alone when it comes to pricing their products. The banks are highly profitable and don't mind helping consumers at these low rates.
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ReplyDeletemortgage interest rates