Call Durham Region Home - Real Estate Blog

Ottawa has spoken again




As announced Friday, Ottawa has unveiled plans to introduce a deductible into Canada's taxpayer-backed mortgage insurance system, a move that could force the country's financial institutions to shoulder more of the risks of high ratio insured deals!

This could further cripple the Mono-lines that Mortgage Brokers use for approx. 75% of their first mortgage fundings. Many of these lenders sell off their funded deals to secondary buyers. These buyers may not be so receptive to buying mortgage portfolios where they may have to realize a loss (albeit small), but nonetheless a loss!

Will these lenders go elsewhere for more secure investments? Or will the Mono-lines have to increase their interest rates so as to offset the risk factor?


#RealEstate #MortgageInfo  #!st-TimeBuyer #MortgageQualifying #MortgageStressTest
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