With Prime Minister Trudeau and all Members of Parliament
1-year later, federal government’s new mortgage rules leave Canadians without the ability to own their own home
Vancouver, B.C. – On the one-year anniversary of the federal government’s new mortgage regulations, Dominion Lending Centres CEO, Gary Mauris, has mailed a package of personal stories from Canadians unable to enter the housing market to Prime Minister Trudeau and all of Canada’s 338 Members of Parliament.
“One year ago, the federal government introduced new mortgage rules that put the dream of home ownership out of reach for many Canadians,” writes Mr. Mauris in a letter delivered to all MPs, which will also appear as an open letter in the Globe and Mail newspaper on October 3, the one-year anniversary of when the regulations came into effect. “Although well intended, the changes reduced the average Canadian’s purchasing power by upwards of 20 per cent and have had the unintended consequence of making housing less affordable for Canadians. Canadians who were once able to purchase or re- finance their home are being shut out of the market, or forced to pay more interest to traditional lenders, as competition in our sector declines.”
A callout to Canadians to share their stories of how the new mortgage regulations impacted their families resulted in compelling stories by Canadians from coast-to-coast, whose dream of home ownership is no longer a reality. DLC has posted the stories
Mr. Mauris is hopeful that these stories will persuade Prime Minister Trudeau and Finance Minister Bill Morneau to change mortgage rules to make them fair and equitable for all Canadians trying to purchase or keep their home.
The new rules, which were announced on October 3, 2016, created a new stress test that requires all new mortgages to qualify at the greater of either the Bank of Canada benchmark rate or the contract rate offered. As a result, Canadians who previously could reasonably afford a mortgage payment at the standard rates no longer qualify.
Additionally, changes to portfolio insurance requirements have resulted in some monoline lenders being unable to insure mortgages, thus reducing overall competition in the industry, which hurts consumers, regardless of what solution they use for their homes.
“We are asking all Parliamentarians to represent their constituents and work together to change mortgage rules to make them fair and equitable for all Canadians trying to purchase, or keep their home,” said Mr. Mauris.
For more information about Dominion Lending Centres, visit www.dominionlending.ca