He argues it does not take into account rising interest rates and said that since the test's introduction, the Bank of Canada raised its benchmark rate by 75 basis points .The test doesn't consider where we are in the cycle, he said, and what the likelihood is of rates rising 200 basis points — the amount plus the qualifying mortgage rate that uninsured borrowers must prove they could service their mortgage at.
Alternative lenders accounted for nearly 12 per cent of the total number of transactions in Ontario in 2018, according to the report. That's up from close to 10 per cent in 2017 or a roughly two per cent rise since B-20 came into effect. "Alternative lending, even individual lending, is part of any normally functioning mortgage market," Tal said."But a fast-growing alternative lending segment of the market is not part of a normally functioning market."CIBC deputy chief economist Benjamin Tal
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Mortgage stress test is helping fuel alternative lending boom, report warnsCIBC economist says regulators need to revisit rules that have made it harder to get a mortgage Isn't this an additional risk in the system? Alternative lending will only create more individual debt! So in trying to control a market economy the feds have introduced a shadow banking alternative.not subject to their controls...Reason 12,748 why government should stay the hell out of private sector finance. We need longer term 20 to 30 year mortgages.
Source: nationalpost - 🏆 10. / 80 Read more »
Mortgage stress test is helping fuel alternative lending boom, report warnsCIBC economist says regulators need to revisit rules that have made it harder to get a mortgage Isn't this an additional risk in the system? Alternative lending will only create more individual debt! So in trying to control a market economy the feds have introduced a shadow banking alternative.not subject to their controls...Reason 12,748 why government should stay the hell out of private sector finance. We need longer term 20 to 30 year mortgages.
Source: nationalpost - 🏆 10. / 80 Read more »
Scotiabank CEO says bank’s mortgage portfolio offers ‘buffer’ against downturnBrian Porter told reporters that while it is not predicting a recession, the Toronto-based bank is ‘downturn ready’ globebusiness Hmmm? globebusiness Coming from a guy that said: Scotia Bank is now a technology company in the financial district globebusiness Sure thing
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Source: globeandmail - 🏆 5. / 92 Read more »