Expect tougher mortgage rules by November + MORE Sep 13th

(Getty Images / Nigel Carse)
Home buyers should expect tougher mortgage rules to kick in as early as November 1 of this year.
In an announcement released today by the nation’s financial regulator, banks and lenders that offer mortgage financing will face stricter regulations and this will translate into tougher lending rules for home buyers.
Hot markets prompt tougher rules for banks
“These changes aim to reinforce the need for banks to exercise prudent underwriting and proper due diligence when originating insured mortgages,” the Office of the Superintendent of Financial Institutions (OSFI) said in a statement. OSFI continued by stating: These proposed changes to mortgage lending “reflect the changing risks in the Canadian mortgage market.”
In the last year, policymakers have warned that Canada’s housing market is overvalued in some cities, such as Vancouver and Toronto. As such, the current Liberal government has been keen to limit taxpayer exposure to any potential price correction and real estate market downturn…

Airbnb is stepping up its public relations efforts as cities like Vancouver continue to grapple with a shortage of rental units.

Last week, the online rental service released a video that showed numerous Vancouverites touting Airbnb as a way for them to afford day-to-day life in a notoriously expensive city.

A screengrab from Airbnb’s PR video about Vancouver. (Photo: Airbnb/Facebook)

One host, Heather, talked about how Airbnb helped her raise extra money for her children, who are currently studying in university.

The service has also helped her as she goes to school herself, she said.

Airbnb notes that 60 per cent of hosts use revenue from their properties to pay their mortgages or rents.

“People across Vancouver depend on Airbnb to help make extra money,” it adds.

“When Airbnb guests stay in Vancouver’s neighbourhoods they spend more at local businesses.”

Apartment buildings in Vancouver. (Photo: Mitch Diamond/Getty Images)

But it comes at a time when residents are having increasing trouble finding a place to live…

“In essence, bank loyalty is not a factor for borrowers in shopping for a mortgage loan.” That was the conclusion of Accenture in last year’s Digital Banking Survey (an excellent report we haven’t had the opportunity to cover until now).  The consulting firm elaborated by stating: “…Banks are in the unenviable position of competing in a commoditizing industry.” “Differentiation based on price or products and services is a zero-sum game for many banks. They get trapped in an endless loop of one-upping and matching each other on discounts and product offers where no one wins.” “Brands ultimately become interchangeable in customers’ eyes.” READ MORE

Equitable will assume payments related to the MBS pools in exchange for receiving interest revenue on the underlying mortgages