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BMO makes wealth and income verification documents compulsory

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Ephraim Vecina | 30 Sep 2016, 08:15 AM Agree 0
The measure is the latest in the Canadian banking industry’s tightening of rules governing mortgage applicants
  • MF | 05 Oct 2016, 05:55 AM Agree 0
    'Exemptions for the income verification requirement “really should be for a true benefit for new immigrants who really can't afford it, not for those who are taking the advantage to buy a more expensive home and simply leverage their money,” Dhillon argued. “I really do believe it should be a government regulated change.” ' But it seems bizarre that on the one hand an income verification requirement is being argued for strongly, and then exemption simultaneously being argued against also. As if the market will actually function differently depending on the politicians' somewhat arbitrary classification of buyers. If people really want to make housing more available, they need to pressure councils with mediocre records for processing planning applications by developers; they need to encourage, rather than drive away, investors who wish to buy pre-construction condo units: because in Canada the banks typically are slow to finance such developments. Either you do or you don't have income verification requirements, but there are other factors in play that should not be ignored. "Please finance this condo development by pre-construction unit puchases, but the finance should only come from those 'who can't really afford it' " is not how markets work.
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