More than three months after the Minister of Finance’s surprise unilateral blow to mortgage competition, the mortgage industry keeps fighting back.
“There’s no hope for getting through [to officials] if we can’t keep the pressure on,” DLC President Gary Mauris told CMT. He says his firm is spending “significant” resources to defend the industry’s position that consumers are being harmfully disadvantaged by the new rules.
Below are some of the various initiatives presently underway to reach policy-makers.
On March 6 and 7, some of the biggest names in the broker industry will be in Ottawa attending the first-ever Parliament Hill Advocacy Days.
Organized by Mortgage Professionals Canada, participants include Paul Taylor, Boris Bozic, Jared Dreyer, Dave Teixeira, Dave Trithart, Eddy Cocciollo, Claude Girard, Mark Kerzner, Hali Strandlund, Dan Putnam and Michael Wolfe, among others.
“We have arranged a large number of meetings with MPs, parliamentarian decision-makers and key policy-makers,” MPC said in a statement. Its key asks to parliament:
- Allow refinances to once again be eligible for portfolio insurance
- Decouple the stress test rate from the posted Bank of Canada rate
- Require all mortgages to qualify at the stress test rate, not just insured mortgages.
MPC continues to encourage concerned citizens and industry members to contact their MPs about the inequitable new restrictions. It has set up this page to make that easy.
Bank of Canada Meeting
The Deputy Governor of the Bank of Canada, Mr. Larry Schembri, has requested a meeting with DLC President Gary Mauris on March 22. Its goal: to hear more “perspectives on the impact of recent policy changes on the housing market.”
“The fact that they are listening and now have asked for our perspective, [via] the Deputy Governor is extremely encouraging,” says Mauris. The Bank of Canada directly advises the Department of Finance.
“I plan on taking hundreds of real-life stories with me to demonstrate the unfair, un-level playing field that these changes have created,” Mauris said in an announcement to his firm. “We are soliciting hundreds of stories from every broker network. We are going to edit, layout and provide submission binders to all MPs, CMHC, the Bank of Canada, etc.”
If you’re a mortgage industry professional and have a client or first-time homebuyer who’s been adversely and unfairly affected by the new policies, you can send that story to Mr. Mauris by March 15.
Finance Committee Hearings
Mauris also recently spoke in parliament about the rule change. He testified that DLC’s non-prime business has soared from 3-4% of originations three years ago to 12% now.
“The government is driving Canadians into higher costs,” he asserts.
Indeed, the more that Ottawa pulls back from the mortgage market, the more that safe prudent consumers pay. They too get caught in the “risky borrower” dragnet. (If anyone at the Department of Finance and OSFI had the good sense to consult practising home financing experts, they might have realized that sooner.)
Parliament’s Finance Committee is currently preparing a report that could be finalized in April. According to a person we spoke to who’s familiar with the process, the Liberals have a majority on the committee and can essentially veto any recommendations from the opposition that they don’t like. The Minister of Finance’s office may exert pressure on the Liberal MPs to toe the party line here.
After the report is finalized it will be tabled—i.e., publicly announced in Parliament. The Minister of Finance then has 120 days to officially and publicly respond to the committee thereafter. Our source suggests the report may not be tabled (and made public) before the summer, possibly July or August.
In the meantime, the industry will closely watch the Minister’s budget this month—hoping there’s a slight (and we do mean slight) chance that one or more of the rules will be relaxed.