By January 3, 2018December 3rd, 2018Uncategorized

Consumers and Brokers to include Realtors and even Lenders are concerned about qualifying clients with the new mortgage qualification guidelines. It has been a stress for us all indeed but every change brings something good and we always need to evolve and accept change.  We as professionals must implement solutions as that shows how spectacular we are!

We believe these guidelines were implemented not to give us a hard time or give clients a difficult time but due to many ongoing fraudulent activities in qualifying for a mortgage, the government has implemented restrictions to mandate certain criteria be met before obtaining home ownership or qualifying for mortgage financing.   The industry has taken a drastic change over the past few years and many said…This is crazy, we have no words to really express how we are going to deal with this.  Well, this is not helpful for our consumers.  As brokers, we evolve with change and we must come up with alternative solutions which is why CMFG is so prominent in the alternative space.

We do not agree with the stringent rules as it affects the mortgage industry which we have strived to build ethically over the years but we do understand the reasoning behind the change and majority of it seems unreasonable based on our mortgage lending industry default ratio.

Are we going to form a petition and speak up against the change? Many Brokers today and industry members will vent but do not have the guts to speak up to authorities.  Nonetheless, the change has been implemented and we all need to abide and work through this. Is it good? I think not but, do I think it will urge professionals to own their industry and represent it as they should have? Absolutely!

I feel for clients who make the money, who are paying rent over thousands and lose it to landlords and those who are capable buyers. I see many clients qualifying but with the restricted guidelines of today makes it more difficult. Based on Canadian default ratio, I disagree with this change but based on the increase of Fraud, I agree so I’m in between as I understand the reasoning of controlling consumer borrowing habits. However, we should not be facing this drastic change as our default ratio in Canada is very low in mortgages. We have carried on the economy as the mortgage brokering industry so it is unfair to implement ongoing changes without our opinion and facts of the industry trend especially when it comes down to consumers default ratio in mortgages.

The government should control more personal and credit card loans which are at an average of 19% and above in my opinion – CEO, Ameera Ameerullah

 Nonetheless, how are we going to overcome this and pass this stress test and be qualified? 

Speak with a professional who can guide you that understood the reason for the change and walk you through the process so that you can be better prepared for financing.  If you have waited for years, a few months more will not cause you harm but obtaining the right mortgage product matters.

CMFG do have alternative lending so even if you don’t qualify for traditional financing, we can help.  At times, it’s best to seek alternative finance than paying the CMHC or Genworth premium to obtain a mortgage.  The premium today is almost 4% or more depending on the down payment.  There are down payment restrictions on borrowing above a certain dollar amount as well.

We at CMFG are here to advise and guide you according to your situation and it is OK to wait for a few months if you have to.  There are always homes and projects; you will always find a good deal.  Nothing is a loss.

We are here to find a suitable product for your requirement. Once we take on a file, we will ensure that we close for you. Our advice cost $0 so contact us today to discuss your situation. We do both Bank and alternative private financing.

NOTE: There are many A, B, C, and private lenders so there are solutions. We have established relationships with some amazing lenders that are helpful hence one of the reasons why we are successful in mortgage funding.

Contact us to discuss your option today as there’s always a way, 6474949885  ext 107 or 101 OR email Ameera@cmfg.ca