Non-banks "crippled" by new mortgage rules says broker
The new mortgage rules being introduced by Ottawa next week are already having a “crippling” impact on non-bank mortgage lenders according to online broker Butler Mortgage.
The firm’s Ron Butler told the Globe and Mail that he predicts a significant shrinking of the sector’s market share with a 50 to 60 per cent decline in mortgage business over the next year.
As we previously reported, First National Financial has already said that it is temporarily suspending loans for rental properties and stated income borrowers; and other lenders are also pulling back from certain products or increasing mortgage rates for some.
James Laird, president of mortgage brokerage CanWise Financial told the Globe and Mail that while lenders may be ok with tightening of mortgage restrictions, that was not the case if it was not fairly implemented.
“What we’re not on board with is systematic changes that benefit the banks at the cost of the mortgage brokers backed by monoline lenders,” Mr laird said.
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