Vernon, BC (PRWEB) November 18, 2012
Late in the summer, a series of mortgage reforms took effect for the country of Canada that to some extent mitigated the fact that interest rates were as low as they had been in history (reaching to extraordinarily low levels for long-term, low-risk, fixed-rate mortgages). The impetus behind these federal-based mortgage reforms are known to many, but there particulars are usually more vague.
In autumn of 2008 a global recession took place as America went into crisis-mode over, among other things, the collapse of the housing bubble. As was gradually made clear in the intervening years, between now and then, one of the things that caused this collapse, and set it up in the first place, was irresponsible lending practices on the part of financial institutions and irresponsible borrowing practices on the part of mortgage consumers.
Although this was largely an American problem with global repercussions, some of the issues with the US’s financial sector were evident in other countries as well, like Canada. The tendency for a household to overextend itself financially in this country was alarming, and the federal government was looking to find ways to ensure the stability of the housing market and the mortgage market for many years to come.
Still, the end result of these reforms in many cases was that average Canadians had a more difficult time finding a suitable loan and, once they’d found it, acquiring it. These measures were put into effect so as to keep interest rates low, knowing that the housing market might be slowed down, but knowing that the larger economy might be salvaged also.
For those who were hoping for a 30-year mortgage, or wanted to refinance more than 85% of their property, these options were cut off and the mortgage marketplace, which many perceive as somewhat abstruse at the best of times, was made even more difficult to navigate for the average consumer. Although the climate is difficult, and remains so (as evidenced by these recent figures regarding housing sales), the new system is not totally inflexible and those looking for mortgage plans can still find exceptional bargains if the conditions are right.
This is where a Vernon mortgage broker can come in handy. Mortgage brokers have been regular mortgage consumers’ first line of defense against the complicated world of financial institutions and abstruse regulations, and today it’s no different. A mortgage broker can enable a prospective borrower to understand these modifications quickly and concisely, so that progress can be made from a starting-place of comprehension and confidence.
Although recent housing figures suggest the mortgage reforms are making it tricky for prospective buyers, The Lender Guy, a division of Axiom Mortgage Solutions which operates across Western Canada, has opened themselves specifically to those who are seeking to overcome these obstacles, offering a program that begins by educating new clients thoroughly on the content of these reforms and evaluating or re-evaluating their goals subsequently.