Toronto, Ontario (PRWEB) April 12, 2013
According to a report published this week by the Royal Bank of Canada, the household debt in the country still stands at $1.67 trillion. In February, the monthly growth rate for the debt remained lowest since 2001. Despite these facts, mortgage expert Marcus Arkan has recently announced that homebuyers and owners may need to prepare themselves for new changes that are expected by the government this year.
According to an article published by the Metro News, the new budget includes a proposal that would further restrict the use of default insurance for low risk mortgages. Explaining the impact of the suggestions made in the proposal, Mr. Arkan said, “This could mean that home owners will no longer be able to take advantage of the Canada mortgage rates as low as they currently are. The cool down in the housing market is the result of four consecutive interventions made by the government. Now it aims to put a limit on the low ratio mortgage insurance.”
Mr. Arkan further explained that smaller non-bank lenders may suffer the most once these changes take effect. However, he further added that the impact will ultimately be felt throughout the market as the rates offered by smaller lenders generally affect bigger banks as well.
According to Mr. Arkan, it is too early to say whether new changes will improve the situation of the current market or not. “There seems to be an obvious conflict of interest between the government, the lenders as well as the borrowers. The worst part is that we haven’t yet entered the spring market and it would be wise to delay any decision until we get the data.”
Sharing his own views on the current market situation, Mr. Arkan said that the he personally believes that the changes are not required anymore. He pointed out that the sales have remained slower and there are a lot of corrections going around in some of the major overvalued markets. “What we want is the government to give the market some time to cool down on its own now. Previous interventions have already compromised the affordability for many prospective buyers.”
Mr. Arkan advised homebuyers to stay aware of happenings in the mortgage industry and changes in the mortgage rate. He regularly shares his views, opinions and advice on http://www.syndicatemortgages.com
About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 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 branch locations across Canada. To contact them, please use the following details.
Syndicate Mortgages Inc.
Toll Free: (888) 646-1062