What a week this has been – game-changing policy changes from the Finance Minister for the Mortgage industry!

Here is what I know on this Friday after the changes Monday:

1) Our non-bank lender partners (mono-lines – mortgage specific lenders – that offer better rates, larger product lines, and smaller penalties to the borrowers) are in an eerie vortex where they don’t know how business will be conducted in a week’s time moving forward.

2) These changes will solidify the Big 6 Banks powerful position in the AAA lending game.

3) Any additional costs will be pushed along to the borrowers.

4) Borrower‘s buying power and borrowing options, and competition for said options have been reduced.

5) The government is very concerned on the RE market and debt levels but also may be biting the hand that feeds them (RE and related industries in construction and home improvements provide for 20% of our GDP)

6) The demand for Vancouver real estate remains very high – for every active seeker, there are droves in the wings waiting for supply or price changes.

7) Overseas demand for Vancouver real estate will remain strong – 15% Foreigners tax and the Primary Residence declarations are small formalities to bringing capital to Canada, or inversely out of where it sits.

8) Supply remains an issue in an area land-locked with strong positive migration.

9) The Mortgage Broker’s role is firmly reinforced and our industry will evolve and our services and knowledge will see even stronger demand in the Canadian marketplace.

What a roller-coaster week. That is all.

Michael James 

DLC-Mortgage Evolution

mjames@mortgageevolution.ca

604.770.4900