Gary-Mauris- the President of Dominion Lending Centres, the Canada’s largest mortgage company, joined the 2011 pre-budget discussion Wednesday in Regina.
He discussed with Finance Department Minister, Jim Flaherty, and presented several issues, such as:
1. He acknowledged the Finance Department’s essential function in delivering emergency mortgage liquidity throughout the credit turmoil.
2. He expressed his concern regarding Monday’s drastic policy changes that DLC president states that “were not required.”
3. A substitute for removing 35-year high-ratio amortizations, wherein a consumer could be eligible at the 30-year amortized payment but preserve the possibility to a 35-year amortization (a great option equally backed up by CAAMP)
4. Gary showed concern that LTV cutbacks on refinances will hinder Canadian’s capability to get rid of high-interest personal debt. Gary also mentioned that this policy is going push some home owners who’re going through unemployment, illness, separation and divorce, health issues, or critical unexpected household crisis, into being forced to sell off their residences to obtain access to their own personal equity.”
5. The importance for the federal government to back up our Insurance providers equally, which Gary says advantages the consumer by means of choice and fair play. (CMHC’s insured mortgages backed up 100% by the Federal government as opposed to private providers are just 90% guaranteed.)
6. Gary appealed to the federal government to have a serious evaluation of unsecured consumer debt and especially the credit card companies. Gary emphasized that Canadians’ debt risk isn’t because of mortgages. It’s actually caused by quick access to high interest credit cards, along with other unsecured consumer debt.
Gurmit Singh, MBA