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Banking regulator warns lenders not to become complacent about mortgages

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Canadian Realestate Magazine | 28 Nov 2016, 02:06 PM Agree 0
Canada's banking regulator warned lenders Monday not to become complacent about the way they underwrite mortgages, reminding them that low interest rates and rising property values aren't guaranteed
  • AnnT | 28 Nov 2016, 02:26 PM Agree 1
    This is a story? I've never had to provide so much documentation as I have through the past year and the demands from lenders continue to get more outlandish. Most recently I was asked to provide T1 Generals to confirm receipt of child support. It's not taxable income so doesn't show on T1s. Lender originally requested 6 months bank statements, then came back to request an entire year in addition to separation agreement and court order for support which were already provided. Support is over $14,000 annually and only $5,000 is required to qualify the deal. I was also asked to confirm the source of a $263.35 deposit to the bank account. I shudder to think of what'll be required a year form now at this rate.
  • Greg | 28 Nov 2016, 02:37 PM Agree 0
    @AnnT

    I agee. This article is confusing. First the mortgage lending rules and criteria have recently changed to make it harder to get a mortgage based on stiffer stress tests. Second everything has been meticulously verified now for years. Third barely anyone I've done business with has ever borrowed anywhere near their max opportunity for financing. And I could still go on and on. Why can't this site publish an article about actual mortgage debt as a whole in the country and whether or not it is actually increasing or decreasing. Exclude investors. Stop focusing on purchase prices as they are really irrelevant if we're speaking in terms of vulnerability to a downturn.
  • Db | 28 Nov 2016, 03:29 PM Agree 0
    Nothing tops my lender coming back to me demanding a letter from my accountant verifying her qualifications including which university she attended to obtain her Masters in Accounting. She was so offended and I was embarrassed......we both felt like we where under investigation for fraud. Talk about invasive......in total I provided 37 documents all for a 190000.00 mortgage on a condo that was my primary residence. My husband and I have a combined income of 160000.00 per year and had been home owners for 20 years at this point. RBC dropped us (after 20 years) and we ended up with a B lender.......we had a debt ration of well under the 40% and a credit rating of 800. I have no clue how anyone is getting a mortgage these days.
  • Why mortgages ? | 28 Nov 2016, 04:45 PM Agree 0
    I am sure mortgage brokers and lenders can all agree that the underwriting criteria to obtain a mortgage has continued to be more and more stringent. My question is: why do credit card companies and car mortgage companies not have t follow the same lending criteria? Consumer debt continues to rise but they are not ensuring borrowers have the ability to repay the debt. Being able to own your own home should be more important to our regulators than borrowing to buy a new car or truck or obtain credit for who knows what else.

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