 |
|
The growing mortgage options
2009-12-12
Choosing a mortgage isn't like buying a commemorative plate by dialing an 800 number from a late-night infomercial. For one thing, it's a much bigger investment. And what you don't want to find out once you've agreed to it is that there are more of those easy payments than you initially bargained for.
Aylmer Hull Gatineau | Quebec | Gatineau Real Estate Listings | Homes For Sale | Home Buying Selling | Agent Listings | MLS Realty | Land | Residential | Property | House Real Estate | REALTOR | Real Estate Agent | Broker | Relocating | Relocation | Local Information | Free Reports, QC | maison a vendre Gatineau
Expansion of the mortgage market in recent years is due to a strong housing market; the volume of sales has increased dramatically since 2000. "Canadians, particularly first-time homeowners, are looking for lending products that can help them enter the market as prices continue to rise," says Jim Murphy, AMP, president and CEO of the Canadian Association of Accredited Mortgage Professionals (CAAMP). "By 2010, Canadians will have $1-trillion in outstanding mortgage credit," says Mr. Murphy, adding that the total amount of outstanding mortgages is expected to grow at almost 10% this year.
To handle this demand, more companies are jumping into the mortgage brokerage business, and about 30% of homebuyers are using brokers. Many financial institutions use mortgage brokers as well. With this shifting of service providers from mostly institutional to independent brokers and agents, the industry rules and best practices need to be modernized to reflect the current market. That's why Ontario is updating its mortgage broker legislation with the Mortgage Brokerages, Lenders and Administrators Act.
Due to be proclaimed July 1 -- the interim compliance period begins March 1 -- the new Act is good for consumers since the new rules mean brokers have to abide by "enhanced disclosure" guidelines about the borrowing costs and the role of the broker. These new rules apply to advertising as well. The brokers and administrators will also have to take courses to be licensed.
Mortgage brokers and agents are unique, explains Mr. Murphy, who, on behalf of his 11,000 members, applauds Ontario's tightened regulations. "They work for the borrower but they are paid by the lender. In effect, they work for both parties."
Source National Post Toronto
» View all news
 |
|
|
