New Mortgage Rules Strongly Affected Non-Banks

Based on what Butler Mortgage, an online broker said; The effect of the mortgage rules that is yet to be introduced in Ottawa anytime soon is already causing a negative impact that has been termed as “crippling” on non-bank mortgage lenders. Ron Butler of Butler Mortgage commented that he foresees a major decrease in the share of the sector’s market. As the mortgage business will decrease by 50 to 60 per cent in the years to come.

As mentioned early, the First National Financial said that they will be putting their loans for renting properties and stated income lenders on hold for the time being. Some others are planning on having their mortgage rates increased, while other lenders are withdrawing from specific products.

The president of mortgage brokerage, CanWise Financial, James Laird said, the constricting of mortgage restriction does not seem like the right thing to do in this situation, although lenders might think it’s ok to do. He further said; “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.”