Mortgage Market Tendencies
Mortgage Market Tendencies 2014
1. New rules for mortgage approval
As we notice the rules for a mortgage approval are tightening and result in reducing mortgage risk for lenders – banks, unions and mortgage brokers. The new rules affect slightly the housing market by complicating the procedure of getting approved for some mortgages and will slow the housing market in the near future.
2. Credit unions compete for bigger market share
Credit unions are getting bigger and bigger piece from the mortgage market because they provide more flexible lending guidelines, and are regulated provincially. Those credit unions use all the advantages they’ve got and as result they take bigger portion of the housing and mortgage markets. The new tendencies show that credit unions gain a lot of popularity online.
3. Strong online brokers
There are more and more online mortgage brokers who are sacrificing their commissions in order to sell mortgage rates, and they really sell cut-rate mortgages. This new trend beats the competition by providing huge mortgage discounts to their clients.
4. Hybrid mortgages are gaining popularity
Mortgage experts and government officials have been predicting high interest rates for the next four years. Till now we can conclude they’ve been wrong, as result there are plenty of clients which are not sure what exactly to believe. The solution lots of Canadians had found is the hybrid mortgages. Gaining popularity, the hybrid mortgage offers to the customer part fixed and part variable mortgage rates.
5. Customers are getting smarter
Canadians are getting smarter and invest more time to search and shop for mortgage rates. The tendency is that they will collect information for multiple resources and compare to get the best offer. The home owners are becoming a savvy about the fine prints based on the variety of tools, calculators and plenty of information online.