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I met with a client recently who wanted to get a pre-approval before he sold his home.  His neighbor is a very grouchy man who causes my client and his family a lot of stress.  He just wanted to sell his home and move into a new one away from this situation.  I had to tell him no and explain that although he has good credit and a very stable job he does not qualify under the new rules.  He was saddened to hear that and is now faced with a decision of should he stay and put up with the situation or should he rent out his home and then he himself rent somewhere else.                   (Thank you, sir, for allowing your story to be shared)

What happened to cause this??  Late last year the federal government made another round of changes to the mortgage rules.  This was after we have already seen numerous previous rule changes over the last 7 years.   They dramatically increased the qualification rate with the intention that people be able to handle a higher mortgage payment when rates start to rise.   They were also attempting to cool the hot real estate markets in Vancouver and BC.  Additionally, they changed which properties can be insured which has meant that people with more than 20% equity in their homes have fewer choices of mortgage lenders and/or higher rates. Since that time, they have also increased the mortgage default insurance premium and tightened up lending guidelines.  Before the dust has settled on those changes we have been told that further changes are under consideration.

Here is what we need from you.  If you or someone you know have been adversely affected by the mortgage rule changes we need you to speak up.  Let’s take our freedom of speech for a spin and let our MP’s know of how specific Canadians are being negatively impacted.  TELLYOURMP.CA is the site set up that you can easily visit and share your story.  Maybe you were turned down or unable to buy a home large enough or in a safe community for your family.  Maybe a job loss or divorce means you are looking to purchase on a single income.  Whatever the case, please speak up.  Visit this website, write a letter, call your MP.

They are doing their best to keep the Canadian economy as strong as it can be but we are seeing a lot of unintentional negative consequences and good Canadians in ALL of Canada are being adversely affected.

TELLYOURMP.CA  It will not take you long and it goes directly to your MP.   We your mortgage industry, the banks and mortgage lenders are on record but they need to hear from the actual Canadians this is touching most.  Tell your story and don’t spare the details. Speak now in regards to the fallout from the last round of changes and ask for a cooling period before any further changes are implemented.  Ask they consult with the wider financial community for input.  We need all of you.  Whether you are a first-time home buyer, unable to refinance to the best rates, can not buy that next home you wanted, saw someone you care about be turned down OR if you are a part of an industry adversely affected.   Let’s get noisy Canada!!