Economists and officials must understand that the biggest threat to the industry is the recession we will have to face due to job loss.
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Ontario, Alberta, British Columbia, Quebec (PRWEB) March 16, 2012
This spring will bring some more policy changes for the mortgage and housing market in Canada. While anecdotal evidence has led the government and many economists into believing that stricter mortgage rules will help tackle all the issues, the Canadian Association of Accredited Mortgage Professionals warns against the potential damages of the expected policy change. Backing CAAMP’s claim are numerous mortgage firms, lenders and broker associations including Syndicate Mortgages, a leading mortgage company which has been helping people find the best mortgage rates around Ontario and Canada.
CAAMP has recently published a detailed report in this aspect. The report highlights the impact of the housing and mortgage market on the overall economy of the country. According to the spokesperson for Syndicate Market, “CAAMP is sounding the right alarm at the right moment. The report terms the housing market as the driver for Canada’s economy and we definitely support this claim. We would really want to prompt the government to reconsider any decision they are about to take.”
CAAMP presented the analysis to authorities in Ottawa through a government relations firm. The basic objective of the analysis was to make officials realize that under-lending is not the cause of CMHC’s 600 million insurance cap. In a message sent to its members lately, CAAMP said, “The issue of lenders and the mortgage insurance ceiling has hardly anything to do with lending practices, but rather liquidity and capital requirements.”
CAAMP is stressing the fact that Canada’s housing industry, in contrast to the U.S housing industry is still safe and stable. An estimated 2 to 3 percent of Canadian homes sales are for investment purposes. On the other hand, around 20 percent of the US sales were invested properties during the U.S housing boom. However, due to previous tightening of lending criteria, mortgage volume has significantly decreased in the past two years. Further strictness in these rules and policies could precipitate a weakening of the housing market. This will have a direct and deteriorating effect on the country’s economy.
The recently released analysis by CAAMP puts forward several facts and stats that support their claims. According to these facts and figures, approximately 8% of Canada’s employment comes from the housing industry. Since 2006, the industry has been responsible for 18% of job creation. While the new polices will result in a rise in housing value, it will also trigger a rise in consumer spending.
CAAMP also warns policy makers regarding any changes that will ultimately reduce consumer’s ability to pay their mortgages. A policy-induced housing market downturn may not be in favor of the country’s overall economy. “CAAMP is currently playing the voice of the industry,” adds the spokesperson for Syndicate mortgages, “Economists and officials must understand that the biggest threat to the industry is the recession we will have to face due to job loss. “
CAAMP is reaching out to lenders, brokers and insurers to call for a proper evaluation of facts and their implications. It is a national organization with a huge number of members and supporters. With the right approach, CAAMP can greatly influence the decision of the government. Major broker associations have also showed complete support to CAAMP and their current cause. In this aspect, Alberta Mortgage Brokers Association (AMBA) has been one of the most significant advocators.
In support of CAAMP’s campaign, AMBA strives to drive decision makers’ attention towards the impact of national policies on struggling local markets. It also pointed out the risk of reduced liquidity that may be caused by the intended policy change. “Being a significant part of the industry, we brokers fear for its downfall. Like AMBA and CAAMP, Syndicate Mortgages also wants the government to refrain from limiting consumer’s choice in this aspect,” said the spokesperson.
About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2003 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has ten several branch locations across Ontario. For contact, please use the following details.
Syndicate Mortgages Inc.
8920 Woodbine Ave.
Markham, Ontario – L3R 9W9, Canada
Toll Free: 1 (888) 646-1062