NDP worries about proposed mortgage changes
Posted May 23, 2012 7:13 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – How safe is your mortgage?
The federal NDP is speaking out against proposed changes that would have you requalify in order to renew.
Right now, when your mortgage comes up for renewal, your bank tend to focus on your payment history. It rarely, if ever, reappraises your property or updates your income level or employment status.
But the Office of the Superintendent of Financial Institutions is proposing Canadians apply to requalify each time they renew.
The NDP worries people who temporarily don’t have jobs could possibly lose their homes and that’s why it wants the Harper Conservatives to step in and overrule the OSFI.
“We just need to make sure that people are protected in some of these temporary situations, if they have a good credit record and have never had a problem making their payment,” explains Finance Critic Peggy Nash.
The professional association representing the country’s mortgage brokers has also come out against this, fearing it could contribute to a housing market downturn.
This is all still in the proposal stage; the final rules won’t be decided until late next month.
