Buyers Facing Repercussion Of Refinances

An MP has made an effort to have constituents be edified about the effect the recent mortgage rules amendments has. Potential homebuyers have been unintentionally heavily affected by the recent changes to the mortgage rules, causing many to face unintended penalties. It seems like the government has been acting oblivious to the repercussions being birth by these impacts. However, a certain government personnel is still on the same team with the housing industry and buyers at large.

A Conservative MP for the Central Okanagan – Similkameen – Nicola district, Dan Albas made mention in a recent write-up for the Kelowna Daily Courier; “As a member of the finance committee, one of the duties we perform is to hear from expert witnesses and industry stakeholders on how newly announced or changed finance regulations can impact Canadians. We learned that for those who might refinance an existing mortgage, there are some potentially significant changes that may result in Canadians paying much higher interest rates.”

A couple of meetings was attended by Dan with real estate and mortgage professionals together with government personnel to talk over the consequences being brought forth by the changes of October’s mortgage rule last year. Presently, homes can be refinanced by homeowners by means of CMHC insured mortgages, but then again, the anticipated fluctuations will have that terminated.

Furthermore, Dan supposed; “The lack of CMHC insurance of a re-financed mortgage does not mean one cannot still re-finance. However, without the CMHC insurance, the interest rates will be considerably higher and there will be fewer competitors — as we heard from many expert witnesses at the finance committee. These changes are puzzling. CMHC is not a program subsidised by Canadians. Those who use the services of CMHC pay fees that not only fully cover the costs of CMHC, they, in fact, turn a profit with net income in excess of $2 billion annually.”

A large number of people in the real estate sector, which weren’t the target point of the impact caused by the mortgage rule changes have been left irritated and definitely frustrated. Dan Albas is proof enough that political figures are keen on making sure the collateral damages do not in any way have prospective homebuyers and existing homeowners reprimanded.