From the Globe & Mail’s mortgage columnist Robert McLister comes this list of five predictions for mortgage shoppers in 2015:
1.) More mortgage restrictions:
McLister says new limits on government-backed mortgage funding will make it costlier for lenders to fund mortgages, or new underwriting rules will make it harder to qualify for mortgages.
2.) Record discounts for variable mortgage rates:
By the end of 2015, some lenders or brokers will be advertising discounts better than prime minus 1%.
3.) Brokers will break into there camps:
These will be full-service, online mortgage brokers and everyday brokers. The latter will be uncompetitive versus other brokers, banks and credit unions, McLister says.
4.) A glut of private money:
Alternative lenders like Mortgage Investment Corporations (MICs) will thrive as investors chase higher yields and the abundance of capital will tempt sub-prime lenders to take more risk. McLister expects that as a result some will offer mortgages with only 10% or 15% down instead of the traditional 20% or 25%. As a result, consumers will have more lending options at lower interest rates.
5.) Brokers will pitch you other stuff:
Expect cross selling of everything from GIS to insurance, credit cards and RRSPs.