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The-Mortgage-Gal

Good news for small mortgage lenders

The budget  should allow more competition from smaller lenders which will keep banks competitive and make dealing with a mortgage broker even more important.  "The government has promised that the smaller banks will have easier access to funding from CMHC.  The corporation's new allocation methodologies will undergo restructuring to increase the access smaller lenders have to portfolio insurance and securitization programs."  The finance Minister, Jim Flaherty has taken steps to arm "smaller banks" with the tools to better compete with the banks and this is a win for the consumer.

The 2014 Federal Budget will make it easier for new banks to enter the mortgage market and improve access to Canada Mortgage and Housing Corporation (CMHC) programs for small mortgage lenders, according to the Financial Post.

The budget, which was released on Tuesday by Mr Flaherty, promises to "improve the ability of new entrants and smaller banks to compete" while preserving the strength of the sector.  In addition the Office of the Superintendent of Financial Institutions (OSFI) has appointed a new representative to contact the small banks and handle some to the issues that they currently face when in competition with the Big Five banks.

The government has promised the smaller banks easier access to funding from CMHC so they are more competitive.  The corporation new allocation methodologies with be restructured to increase the access smaller lenders have to portfolio insurance and securitization programs. "I sure hope (there's more competition),: Gregory Thomas, executive of the Canadian Taxpayers Federation told the Financial Post.  "Canada could use one or two strong  national credit unions."

If you would like to know more about small bank loans please call me at 250 862 1806 or email me [email protected].

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.



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About the Author

Tracy Head helps busy families get a head start on home ownership.

With today’s increasingly complicated mortgage rules, Tracy spends time getting to know her clients and helps them to better understand the mortgage process. She supports her clients before, during, and after their mortgage is in place.

Tracy works closely with her clients, offering advice and options. With access to more than 40 different lenders. She is able to assist with residential, commercial, and reverse mortgages in order to match the needs of her clients with the right mortgage package.

Tracy works hard to find the right fit for her clients and provide support for years down the road.

Call Tracy at 250-826-5857 or reach out by email [email protected]

Visit her website at www.headstartmortgages.com

Download her app: Headstart Mortgage Architects

 

 



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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