How to Handle the Increasingly Complex Canadian Mortgage Market

Hey everyone! Spring is officially upon us now, and that means longer days, warmer nights, and of course, the spring housing market! This is traditionally the busiest time of year for anyone involved with houses – real estate brokers, mortgage brokers (that’s me!), and most importantly, the homeowners and home buyers looking to find their new perfect place. It’s an exciting season, but there’s one problem – buying a house and finding the right mortgage is becoming more and more complicated.

In October 2016, the federal government announced new mortgage financing rules that subject all insured borrowers to a mortgage rate stress test against the Bank of Canada’s unrealistically high 5-year fixed rate, reducing the purchasing power of all Canadians looking to buy a new home. In December, the Office of the Superintendent of Financial Institutions (OSFI) introduced a wholly new framework for the capital requirements for federally regulated mortgage insurers, meaning that home buyers looking to secure a mortgage have to verse themselves in new rules for lending and borrowing in order to understand how their loans will play out over the next 30 years of their lives. Additionally in December, in B.C. specifically, a new Home Owner Mortgage and Equity Partnership program was launched whose potential effects could include increased consumer debt and the risk of rising home prices.

Whew. That’s a lot to take in, and that’s just a few months’ worth of changes!

And while those may have been a busy few months, they represent an important truth about the Canadian mortgage industry: it’s complicated, and it’s always evolving. I say that as someone whose job is to understand every nuance of this industry; simply following and comprehending the changing landscape of regulations makes for a full time profession! And while I love the work I do, I know that the mortgage industry can seem overwhelming to the average home buyer, who simply wants to find a fair loan at a fair price that fits their life and future expectations. Everybody deserves that, right?

I certainly believe they do, and that’s why I’m so passionate about my work as a mortgage broker. Because that’s what you get when you call me: knowledgeable, professional advice that’s custom-tailored to your unique situation. I’ve been doing this for years in Northern B.C., and my company Peace Country Mortgages has offices in Dawson Creek and Fort St John – open weekends. My number is (250) 782-9665, and my phone is always on. Last but not least, I get paid directly by my lenders, so utilizing my years of experience and thorough understanding of the mortgage industry doesn’t cost you a dime.

Now that’s what I call simple. Have a great week everyone, and enjoy the sunshine!

Lori Lalonde, Your Northern BC Mortgage Broker