Quote:
Originally Posted by Flamenspiel
I think the difference is the big banks have always qualified at the posted or BOC recommended rates(at least BMO and TD did). No change there. Now all lenders will have to do that.
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Not true. Banks qualify their mortgages at their contracted (best) rates, but use their posted rates when calculating their penalties for breaking the mortgage.
These changes will impact all conventional mortgages, whether with a big bank or not. Monoline lenders will find a way to adapt, and have already shown signs of that. There will be a trickle down effect across the board, and it's going to lead to higher costs to the consumer.