CMB MAGAZINE cmba-achc.ca winter 2018 | 9
n
Owning a home is a privilege, not a right.
Regardless of how our parents/grandparents
had much lower purchase prices – they also
had lower incomes and substantially higher
"best" interest rates (as high as 18-20 per cent).
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A home today isn't necessarily defined as
a single-family dwelling – any happy home
can now be a condo, townhome, duplex,
shared home or even a rented basement
suite.
A mere eight to 10 years ago, best rates
were running 4.99 per cent for a five-year
term – with the qualifying rate (three year
posted) at 7.35 per cent! e new norm is not
normal. But, those who first jumped into the
market as rates were dipping and then staying
low for so many years have never known
anything but sub three per cent – and now that
we're in the mid three per cent range, they think
it's "so expensive." ey are not prepared for
higher rates, but the government has allowed
the new norm to be exactly that . . . and that in
itself is troubling.
RobeRt Regan-Pollock
Broker, Invis Inc.
Over the last few years, we have seen a
multitude of mortgage rule changes. is has
resulted in a more competitive market as lenders
compete for a smaller pool of eligible borrowers.
Competition has led to greater product
segmentation, which will continue as a trend
this year; lenders will look for niches where
they can compete and stand out.
According to a recent survey, nearly 40 per
cent of first-time buyers in Metro Vancouver
had help from a parent or grandparent with
their purchase. e need for help from family
is being driven by a tight rental market, harder
qualification guidelines and slowly rising
interest rates. For borrowers fortunate enough
to have assistance from their family, planning
and evaluating how parents/grandparents can
best assist is part of what our team does best. We
look forward to working with families who want
to help their children get into the market.
Financial technology is an ongoing focus of
mortgage brokers and lenders. As an industry,
lending and finance have historically lagged
behind other industries in Canada. is is
changing in a big way as companies become
mobile-friendly and invest in technology
to improve process automation for a better
consumer experience. Knowledge and speed
have always been a mortgage broker's best
friend. Recent industry consolidation in the
broker space is allowing more funds to be
diverted to technological improvements to
serve clients better.
