Over the last few days, we have been covering news stories pertaining to the new mortgage rule changes that are being put in place. I am not one to run screaming that the sky is falling, but if you live long enough you get to see history repeat its self.
In a recent interview with Stephen Smith CEO of First Nation, he says and I quote “Ottawa’s new mortgage rules are a bad policy for Canadian consumers”
According to Stephen, we will see monoline lenders start to withdraw products, as they are no longer able to secure the funds. This, in my opinion, will have an adverse affect on rates as competition starts to dwindle the big banks will be the only ones able to supply the market. This will drive rates high and drive home prices down.
At the heals of the new announcement First Nation stock price has taken a hit as well we are seeing lenders such as BLC (Banque Laurentienne) pulling back spending as they get ready to close a large number of banks in Quebec. It is not clear how many jobs will be affected by the recent announcement that was made by BLC.
The sad thing in all of this. Our trusted media is more concerned about US presidential elections instead of focusing on what is happening in our own government. It is clear that the liberals are trying to decimate the real estate market in Canada. So that they can turn around and say I told you this would happen. Canadian voters and taxpayers need to wake up and speak out.
To see the full interview with Stephen Smith Please Click here
We will continue to keep you updated with new developments and continuing coverage of these events as they unfold.
As always I am available for comment or questions
Terry KIlakos
CEO & President North East Mortgages