Flaherty says no changes to lending

So the new 2012 budget is out, and there is nothing but crickets with regards to mortgage changes or policy changes.  The 30 year amortization got that “late call from the governor”, and is still available today.  Stated income programs are still intact, and the new immigrant program is alive and well.  So what does this all mean? Sounding like the viral double rainbow guy on You Tube.

We are not really sure. Yet.

Is it a sign that all is well in the Canadian Real Estate market, if it isn’t broke then why fix it ?? 

Or is it a case of Flaherty not wanting to throw himself under the bus, if he does nothing and everything is fine, he is the hero.  If he does nothing and the real estate market starts to fall, then it wasn’t his fault.  Only time will tell.

The problem is there is still a bus that needs a driver.  CMHC has is quickly approaching their insurance cap, with no indication of an increase in limit.  The CEO’s of the Banks wanted to see some changes evidenced by numerous news articles and BMO’s recent 25 year amortization on the 2.99% 5 year mortgage product. 

Or is it a case that the final decisions as to how CMHC will operate is being re-assigned to another department of the Federal Government.

Ottawa to toughen CMHC oversight

http://business.financialpost.com/2012/03/29/ottawa-to-toughen-cmhc-oversight/

CMHC currently falls under the jurisdiction of the minister responsible for Human Resources and Skills Development Canada. But sources have indicated the Crown corporation could soon fall under direct supervision of the Office of the Superintendent of Financial Institutions — a powerful financial regulator with the power to enforce a broad range of changes at a financial institution.

This would the same department currently addressing amendments to the Banking regulations with regards to the Banks, so maybe it makes more sense that the potential new policies that is reshaping Bank mortgage policies match the future look of CMHC.

This also gave Flaherty a chance to focus on more important issues at hand like balancing the budget by eliminating the Pesky Penny.

http://www.globalnews.ca/penny+to+disappear+from+coinage+system+minting+to+end+by+fall+budget/6442610741/story.html

And making sure I have to work for 2 more years before I can get my Old Age Security cheques.  I am sure that in 23 more years, when I actually hit 67, the new age will be somewhere around 97, and the word “RETIREMENT” will be deleted from the dictionary.

 

A little bit of humor found on line today, shows that changes in the US Housing market are affecting some of the most surprising applicants.

JB, (yes I have a 14 year old daughter), is having difficulty getting his Mortgage approved on the 9000 sq ft house in San Fernando California.

  http://www.nationalpost.com/m/wp/arts/blog.html?b=arts.nationalpost.com/2012/03/29/justin-bieber-hit-bu-the-housing-crisis-canadian-pop-star-cant-get-a-mortgage

Sounds like he needs a better mortgage broker.  If anyone out there knows JB’s personal email, please forward to me so I can see if I can help with his mortgage too.

Anyways, please don’t think that because Flaherty chose to keep mortgage/CMHC changes out of the budget that there will not be any changes coming in the future. 

There are still things that need to be addressed with regards to lending policies and Bank policies, and some of these changes are being drafted as we speak.  But everyone is keeping their cards close to their chests at the moment.

I will keep you posted to these changes as they are announced.

 

Rates….    Yes the 2.99% 5 years is gone…  Wondering if the Banks will bring it back out of spite, in reaction to the lack of change.

 

The 10 year at 3.89% is still hanging in,

My best 5 year currently sits at 3.09

And my best Variable is Prime -.25%

Line of Credit is Prime +.50% however calling all Engineers, I have a lender who is focusing solely on the engineering market and will offer the PRIME +.0% on secured credit lines for engineers only.

 

It is still a good time to look at your mortgage to make sure you are not paying more then you should.

Call me for a 5 Minute Mortgage Checkup.

Thanks,
 
David Kendall
 
Mortgage Agent
License # M08004045
 
211 York Road, Unit 3, Dundas, Ont. L9H 1M9
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