Mortgage Blues

It looks like the new mortgage rules have increased rejection rates from large banks by almost 20%.
I've also noticed that the Credit Unions seem to have gone on a frenzied advertising boom. Maybe hoping to catch some good quality prospects as they trickle down the lending ladder.  I'm not sure how pushing people to 2nd tier lenders with higher rates is protecting them.

"Private lender Fisgard Asset Management Corporation in Victoria is seeing an influx of borrowers and "better quality business" said Hali Noble, its senior vice president of residential mortgage investments and broker relations.

"A lot of these people should be bankable," said Noble. "But they're not."

The guidelines, known as B20, are aimed at curbing risky lending amid rising household indebtedness and high home prices in some markets.

In order to get a loan from a federally regulated lender, home buyers have to prove that they can service their uninsured mortgage at a qualifying rate of the greater of the contractual mortgage rate plus two percentage point or the five-year benchmark rate published by the Bank of Canada. An existing stress test already requires those with insured mortgages to qualify at the Bank of Canada benchmark five-year mortgage rule." Read more