Bank Puts Limit On Foreign Buyers

New Changes in place have been made that requires anyone applying for a mortgage at the Bank of Montreal to provide documents to verify their source of income and wealth before their application can be processed. This was done as a result of the blazing housing market which has become a huge concern throughout the whole of Canada.

Tejinder Dhillon who is a real estate lawyer was happy to know that banks in Canada are using measures to have the rules on foreign buyers tightened, however, he’ll like to see the government take up this change and implement it across-the-board. He said; “There’s a program where immigrants in Canada less than five years in the country will now have the ability to get a mortgage without qualifying for income verification.”

The program started in order to aid newcomers without any past Canadian credit to enter the market. Tejiinder believes the program is good, but it’s been taken for granted by wealthy foreign buyers, he said; “It really should be for a true benefit for new immigrants who really can’t afford it, not for those who are taking the advantage to buying a more expensive home and simply leverage their money. It’s a program that can still be used selectively, but it shouldn’t be widespread. It should have a cap on it to make sure it’s not used for three, four, five million dollar homes. That makes no sense.  I really do believe it should be a government regulated change.”