Should bank road reps come under industry regulation?
This is the question some brokers are asking as the heated debate on road reps appropriating the mortgage broker title continues to a simmer.
“I think this is the perfect time to look into having road reps licensed and regulated,” said Brian Lambert, broker with Real Mortgage Associates in Barrie, ON. “Regardless of what name they end up using, this will help ensure that a governing body is overseeing their conduct and the service they provide.”
Like many mortgage professionals, Lambert argues that brokers go through strict education, training and licensing procedures before being allowed to practice. He believes banks should move to have their road reps and mortgage specialists undergo the same rigours to protect clients.
Click here for full details in MortgageBrokerNews.ca.
If you’re a first-time homebuyer, odds are that you don’t have a 20% down payment. Without one, you typically need mortgage default insurance to buy a home.
The biggest provider of that insurance is government-owned CMHC. Since the credit crisis four years ago, its mortgage role has been hotly debated.
On the one hand, CMHC makes mortgages cheaper and more accessible. On the other hand, critics say government-supported housing inflates home prices and puts taxpayers at risk if swarms of borrowers default.
So that begs a question. What if politicians sided with those critics? What if Ottawa forced higher down payments and drastically scaled back its mortgage guarantees? How would Canadian homebuyers fare?
Click here to read more from the Globe and Mail.
Mortgages and loans – harder for the self-employed?
As a self-employed website developer who had recently restructured his business, Greg Schmidt knew that refinancing his mortgage wasn’t going to be a piece of cake.
“I had a little bit of a line of credit built up from shifting the focus of the business and my car lease had come up for being bought out, so I needed money to take care of that,” said Schmidt, a single 42-year-old who owns a home in Toronto that includes an apartment for income. “It turned out the best way to go was to do a new mortgage, increase the amount of the old one and take care of those costs.”
However, when he approached his bank, he was told “the numbers didn’t work for them.”
For salaried workers, “the numbers” would simply be printed out in black and white on a recent pay stub or a T4 slip, proving their income. But for someone like Schmidt, who has various clients and no guaranteed paycheque from week to week, the requirements are more complex.
Click here for more from the Globe and Mail.
Big banks love mortgage consumers who don’t carefully comparison shop.
They also enjoy capitalizing on their “home bank” advantage with existing customers.
The article that follows examines recently-released Bank of Canada research on these hot topics: Price Negotiation in Differentiated Products Markets: Evidence from the Canadian Mortgage Market. It’s a revealing look at how big lenders benefit significantly from things like mortgage “search costs” and customer “switching costs.”
“Search costs” refer to the time, skill, money and effort required to find a better mortgage deal. “Switching costs” represent the expense of moving to a new lender.
Click here for the full article from CanadianMortgageTrends.com.
Buying a house and getting a mortgage can be an overwhelming experience. The process involves hours of research and education before you make the largest financial commitment of your life.
Did you know that using a mortgage broker can save you two of your most valuable resources? Time and money.
Click here for three keys ways a mortgage broker can help from WalletPop.ca.
We’ve all heard of people getting the “seven-year itch” when it comes to a monogamous relationship, but a new study commissioned by the ComFree network, the largest commission free real estate network in Canada, reveals that we may have a wandering eye when it comes to our homes as well.
In fact, one in four homeowners (28%) report getting the urge to move about every five years. Another 14% get that itch at least once a year and 5% say the urge to move strikes them as often as every week.
More than two thirds (69%) of Canadians believe that a home says a lot about a person and must reflect their personal style and image. Women were more likely to hold this true than men (74% versus 65%), but the home isn’t always where the heart is. Three in 10 Canadians (29%) say a home is just something that provides them with shelter.
“Canadians are in a love triangle,” said Martin Rygiel, real estate expert and manager, the ComFree network. “We should be in love with our home, given the magnitude of the expense and how much time we spend there. Yet many homeowners seem to have a timeline on the relationship with their homes and begin to notice the chips in the paint or the fact that the up-and-coming neighbourhood actually means a lack of services. But while the process of buying and selling one’s home may be more reminiscent of a love story, an important financial decision such as this should not be taken lightly.”
Click here to read the full release on Canada Newswire.