{"id":38213,"date":"2019-02-27T10:39:37","date_gmt":"2019-02-27T15:39:37","guid":{"rendered":"https:\/\/www.northeastmortgages.ca\/?p=38213"},"modified":"2021-02-06T01:32:54","modified_gmt":"2021-02-06T00:32:54","slug":"mortgage-rules-need-urgent-correction-industry-experts-warn","status":"publish","type":"post","link":"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/","title":{"rendered":"Mortgage rules need urgent correction, industry experts warn"},"content":{"rendered":"

Evidence is mounting that the federal government\u2019s increasingly restrictive mortgage rules have cooled housing markets to the point where too many potential responsible homeowners are being turned away, warns North East Mortgages president Terry Kilakos.<\/span><\/p>\n

\u201cThey went a little nuts,\u201d Kilakos said. \u201cThere was a time when you used to be able to get a 40-year mortgage with zero money down, and that obviously needed correction. But the government has gone too far and may be listening to the wrong experts. Every day, we see responsible homeowners with good credit being turned away, or even blocked from refinancing their existing mortgages or consolidating debt. The Trudeau government seems pretty disconnected from the reality new homeowners are facing.\u201d<\/span><\/p>\n

Kilakos, who has been <\/span>predicting this chilling effect<\/span><\/a> on potential homeowners for over a year on his weekly <\/span>CJAD Montreal Real Estate Show<\/span><\/a> and more recently on the <\/span>North East Mortgages blog<\/span><\/a>, explained that regulatory changes in Canada following the U.S. housing crisis of 2008 \u201ccaused chaos in the market,\u201d he said. \u201cBasically, the rules took out 20-30% of people out of the mortgage market.\u201d<\/span><\/p>\n

Fast forward to late 2017: The federal <\/span>Office of the Superintendent of Financial Institutions (OSFI)<\/span> again imposed new rules on the industry that Kilakos estimates could render another 20% of potential Canadian homeowners ineligible for a traditional mortgage. <\/span><\/p>\n

In the U.S., \u201cthere was a lot more chance for default and a lot more chance for people being in foreclosure,\u201d Kilakos said. \u201cIn Canada, maybe it\u2019s because of our culture, maybe it\u2019s because of the way that we don\u2019t over-leverage ourselves. We don\u2019t overstretch and because of that we don\u2019t default on our mortgages nearly as frequently as Americans.\u201d<\/span><\/p>\n

For this reason, Kilakos said the stress test imposed by the government on Canadian financial institutions and other restrictive mortgage rules are unnecessary given that banks have been effective at practicing due diligence in the past.<\/span><\/p>\n

Not only has the federal government made it more difficult to buy a home, but it has the additional problem of making it harder for people with credit card debt to consolidate what they owe. Kilakos said it\u2019s now much more difficult for someone to roll their toxic, high-interest credit card debt into their mortgage, which has a much lower interest rate.<\/span><\/p>\n

\u201cNow, unfortunately, they\u2019re in a situation where they have to pay 18 and 19 per cent on credit card, as opposed to being able to roll it all into a mortgage,\u201d Kilakos said.<\/span><\/p>\n

Many industry experts echo Kilakos\u2019 warnings.<\/span><\/p>\n

\u201cThe negative shock to affordability and purchasing power created by the federal stress test on mortgage borrowers is expected to continue constraining housing demand in the province this year,\u201d an economist with the British Columbia Real Estate Association told Global News this week. <\/span><\/p>\n

\u201cThe context in which the stress test was introduced is no longer relevant, wrote a RE\/MAX regional director, in Tuesday\u2019s Financial Post. \u201cInterest rates aren\u2019t anticipated to rise as originally anticipated, and homebuyers desperate to enter the market are seeking out unsecured lenders.\u201d<\/span><\/p>\n

In the Montreal market, Kilakos warns that the effect on middle class and millennial home-buyers in particular will be devastating, and counter-productive:<\/span><\/p>\n

\u201cWe\u2019re going to see millennials hold off on home ownership even longer when many are beginning to afford it,\u201d Kilakos said, \u201cand the most determined will seek out riskier financial products to get the mortgages done, spending more for nothing in return and increasing the risk of default. It\u2019s often very sad, to be honest, to see people who consistently pay their bills turned away.\u201d<\/span><\/p>\n

info@nordest.ca<\/a><\/p>\n

Photo:\u00a0rawpixel<\/a>\u00a0\/\u00a0Unsplash<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Evidence is mounting that the federal government\u2019s increasingly restrictive mortgage rules have cooled housing markets to the point where too […]<\/p>\n","protected":false},"author":3,"featured_media":38134,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"featured_image_urls":{"full":["https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash.jpg",4000,2754,false],"thumbnail":["https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash-150x150.jpg",150,150,true],"medium":["https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash-300x207.jpg",300,207,true],"medium_large":["https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash-768x529.jpg",768,529,true],"large":["https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash-1024x705.jpg",1024,705,true],"1536x1536":["https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash.jpg",1536,1058,false],"2048x2048":["https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash.jpg",2048,1410,false],"post-thumbnail":["https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash-150x103.jpg",150,103,true],"melissa-img-706-471":["https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash-684x471.jpg",684,471,true],"melissa-img-706-auto":["https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash-706x486.jpg",706,486,true],"melissa-img-1200-auto":["https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash-1200x826.jpg",1200,826,true]},"post_excerpt_stackable":"

Evidence is mounting that the federal government\u2019s increasingly restrictive mortgage rules have cooled housing markets to the point where too many potential responsible homeowners are being turned away, warns North East Mortgages president Terry Kilakos. \u201cThey went a little nuts,\u201d Kilakos said. \u201cThere was a time when you used to be able to get a 40-year mortgage with zero money down, and that obviously needed correction. But the government has gone too far and may be listening to the wrong experts. Every day, we see responsible homeowners with good credit being turned away, or even blocked from refinancing their existing…<\/p>\n","category_list":"Mortgage<\/a>","author_info":{"name":"North East Mortgages","url":"https:\/\/www.nordest.ca\/blogue\/en\/author\/delmar\/"},"comments_num":"0 comments","yoast_head":"\nMortgage rules need urgent correction, industry experts warn - Blog sur l'immobilier et les pr\u00eats hypoth\u00e9caires- Nordest.ca<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mortgage rules need urgent correction, industry experts warn\" \/>\n<meta property=\"og:description\" content=\"Evidence is mounting that the federal government\u2019s increasingly restrictive mortgage rules have cooled housing markets to the point where too […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/\" \/>\n<meta property=\"og:site_name\" content=\"Blog sur l'immobilier et les pr\u00eats hypoth\u00e9caires- Nordest.ca\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NorthEastNordEst\" \/>\n<meta property=\"article:published_time\" content=\"2019-02-27T15:39:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-02-06T00:32:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"4000\" \/>\n\t<meta property=\"og:image:height\" content=\"2754\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"North East Mortgages\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@NorthEastFirm\" \/>\n<meta name=\"twitter:site\" content=\"@NorthEastFirm\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"North East Mortgages\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/\"},\"author\":{\"name\":\"North East Mortgages\",\"@id\":\"https:\/\/www.nordest.ca\/blogue\/#\/schema\/person\/197a13e6e0b00c4673712ba9d37d309a\"},\"headline\":\"Mortgage rules need urgent correction, industry experts warn\",\"datePublished\":\"2019-02-27T15:39:37+00:00\",\"dateModified\":\"2021-02-06T00:32:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/\"},\"wordCount\":614,\"publisher\":{\"@id\":\"https:\/\/www.nordest.ca\/blogue\/#organization\"},\"articleSection\":[\"Mortgage\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/\",\"url\":\"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/\",\"name\":\"Mortgage rules need urgent correction, industry experts warn - Blog sur l'immobilier et les pr\u00eats hypoth\u00e9caires- Nordest.ca\",\"isPartOf\":{\"@id\":\"https:\/\/www.nordest.ca\/blogue\/#website\"},\"datePublished\":\"2019-02-27T15:39:37+00:00\",\"dateModified\":\"2021-02-06T00:32:54+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Accueil\",\"item\":\"https:\/\/www.nordest.ca\/blogue\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mortgage rules need urgent correction, industry experts warn\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.nordest.ca\/blogue\/#website\",\"url\":\"https:\/\/www.nordest.ca\/blogue\/\",\"name\":\"Blog sur l'immobilier et les pr\u00eats hypoth\u00e9caires- Nordest.ca\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.nordest.ca\/blogue\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.nordest.ca\/blogue\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.nordest.ca\/blogue\/#organization\",\"name\":\"North East Real Estate & Mortgage Agency\",\"url\":\"https:\/\/www.nordest.ca\/blogue\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.nordest.ca\/blogue\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2013\/01\/NorthEast2011-Logo-EN-compass-e1652547725991.png\",\"contentUrl\":\"https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2013\/01\/NorthEast2011-Logo-EN-compass-e1652547725991.png\",\"width\":1200,\"height\":1322,\"caption\":\"North East Real Estate & Mortgage Agency\"},\"image\":{\"@id\":\"https:\/\/www.nordest.ca\/blogue\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/NorthEastNordEst\",\"https:\/\/twitter.com\/NorthEastFirm\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.nordest.ca\/blogue\/#\/schema\/person\/197a13e6e0b00c4673712ba9d37d309a\",\"name\":\"North East Mortgages\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.nordest.ca\/blogue\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ed8cd367a2b509b0092ada13d043875d?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/ed8cd367a2b509b0092ada13d043875d?s=96&d=mm&r=g\",\"caption\":\"North East Mortgages\"},\"url\":\"https:\/\/www.nordest.ca\/blogue\/en\/author\/delmar\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Mortgage rules need urgent correction, industry experts warn - Blog sur l'immobilier et les pr\u00eats hypoth\u00e9caires- Nordest.ca","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/","og_locale":"en_US","og_type":"article","og_title":"Mortgage rules need urgent correction, industry experts warn","og_description":"Evidence is mounting that the federal government\u2019s increasingly restrictive mortgage rules have cooled housing markets to the point where too […]","og_url":"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/","og_site_name":"Blog sur l'immobilier et les pr\u00eats hypoth\u00e9caires- Nordest.ca","article_publisher":"https:\/\/www.facebook.com\/NorthEastNordEst","article_published_time":"2019-02-27T15:39:37+00:00","article_modified_time":"2021-02-06T00:32:54+00:00","og_image":[{"width":4000,"height":2754,"url":"https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2018\/12\/rawpixel-1053187-unsplash.jpg","type":"image\/jpeg"}],"author":"North East Mortgages","twitter_card":"summary_large_image","twitter_creator":"@NorthEastFirm","twitter_site":"@NorthEastFirm","twitter_misc":{"Written by":"North East Mortgages","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/#article","isPartOf":{"@id":"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/"},"author":{"name":"North East Mortgages","@id":"https:\/\/www.nordest.ca\/blogue\/#\/schema\/person\/197a13e6e0b00c4673712ba9d37d309a"},"headline":"Mortgage rules need urgent correction, industry experts warn","datePublished":"2019-02-27T15:39:37+00:00","dateModified":"2021-02-06T00:32:54+00:00","mainEntityOfPage":{"@id":"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/"},"wordCount":614,"publisher":{"@id":"https:\/\/www.nordest.ca\/blogue\/#organization"},"articleSection":["Mortgage"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/","url":"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/","name":"Mortgage rules need urgent correction, industry experts warn - Blog sur l'immobilier et les pr\u00eats hypoth\u00e9caires- Nordest.ca","isPartOf":{"@id":"https:\/\/www.nordest.ca\/blogue\/#website"},"datePublished":"2019-02-27T15:39:37+00:00","dateModified":"2021-02-06T00:32:54+00:00","breadcrumb":{"@id":"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.nordest.ca\/blogue\/en\/mortgage-rules-need-urgent-correction-industry-experts-warn\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Accueil","item":"https:\/\/www.nordest.ca\/blogue\/"},{"@type":"ListItem","position":2,"name":"Mortgage rules need urgent correction, industry experts warn"}]},{"@type":"WebSite","@id":"https:\/\/www.nordest.ca\/blogue\/#website","url":"https:\/\/www.nordest.ca\/blogue\/","name":"Blog sur l'immobilier et les pr\u00eats hypoth\u00e9caires- Nordest.ca","description":"","publisher":{"@id":"https:\/\/www.nordest.ca\/blogue\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.nordest.ca\/blogue\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.nordest.ca\/blogue\/#organization","name":"North East Real Estate & Mortgage Agency","url":"https:\/\/www.nordest.ca\/blogue\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.nordest.ca\/blogue\/#\/schema\/logo\/image\/","url":"https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2013\/01\/NorthEast2011-Logo-EN-compass-e1652547725991.png","contentUrl":"https:\/\/www.nordest.ca\/blogue\/wp-content\/uploads\/2013\/01\/NorthEast2011-Logo-EN-compass-e1652547725991.png","width":1200,"height":1322,"caption":"North East Real Estate & Mortgage Agency"},"image":{"@id":"https:\/\/www.nordest.ca\/blogue\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/NorthEastNordEst","https:\/\/twitter.com\/NorthEastFirm"]},{"@type":"Person","@id":"https:\/\/www.nordest.ca\/blogue\/#\/schema\/person\/197a13e6e0b00c4673712ba9d37d309a","name":"North East Mortgages","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.nordest.ca\/blogue\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ed8cd367a2b509b0092ada13d043875d?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ed8cd367a2b509b0092ada13d043875d?s=96&d=mm&r=g","caption":"North East Mortgages"},"url":"https:\/\/www.nordest.ca\/blogue\/en\/author\/delmar\/"}]}},"_links":{"self":[{"href":"https:\/\/www.nordest.ca\/blogue\/en\/wp-json\/wp\/v2\/posts\/38213\/"}],"collection":[{"href":"https:\/\/www.nordest.ca\/blogue\/en\/wp-json\/wp\/v2\/posts\/"}],"about":[{"href":"https:\/\/www.nordest.ca\/blogue\/en\/wp-json\/wp\/v2\/types\/post\/"}],"author":[{"embeddable":true,"href":"https:\/\/www.nordest.ca\/blogue\/en\/wp-json\/wp\/v2\/users\/3\/"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nordest.ca\/blogue\/en\/wp-json\/wp\/v2\/comments\/?post=38213"}],"version-history":[{"count":1,"href":"https:\/\/www.nordest.ca\/blogue\/en\/wp-json\/wp\/v2\/posts\/38213\/revisions\/"}],"predecessor-version":[{"id":39354,"href":"https:\/\/www.nordest.ca\/blogue\/en\/wp-json\/wp\/v2\/posts\/38213\/revisions\/39354\/"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nordest.ca\/blogue\/en\/wp-json\/wp\/v2\/media\/38134\/"}],"wp:attachment":[{"href":"https:\/\/www.nordest.ca\/blogue\/en\/wp-json\/wp\/v2\/media\/?parent=38213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nordest.ca\/blogue\/en\/wp-json\/wp\/v2\/categories\/?post=38213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nordest.ca\/blogue\/en\/wp-json\/wp\/v2\/tags\/?post=38213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}