First National’s President and CEO Jason Ellis emphasized the company’s dedication to mortgage brokers and the industry’s collective growth. This was manifested through open dialogue and perspective sharing during the event.

Here we will share what he discussed – some of this is pretty technical and is written for mortgage brokers – but we wanted to share it with you regardless.

Lender Panel Insights from Jason Ellis

• Market Regulations on Mortgage Lending
  • Regulators are not expected to reverse restrictions.
  • OSFI’s ongoing consultations on Guideline B-20 point towards ongoing targeted supervisory actions.
  • Changes will be “incremental” and “sequential.”
  • OSFI supports a “proportional implementation” of changes depending on various factors.
• Advocacy and Policy Communication
  • The importance of continuous dialogue with policymakers.
  • Regulators do pay attention to market stakeholders.
  • An example is OSFI’s public consultation on B-20.
• Revisiting Default Insurance Policies
  • The need for the government to re-evaluate the decision on high ratio mortgages for homes over $1 million.
  • Possible future approach: Implement a sliding scale based on LTV.
• Perspective on Mortgage Lending Post-Financial Crisis
  • Lending regulations enacted over the past decade aimed to safeguard the market.
  • Some changes, such as minimum down payments, brought the market to a more stable state.
• Performance of Adjustable-Rate Mortgages
  • Resilience demonstrated by First National borrowers using adjustable-rate mortgages.
  • Comparable arrears rates observed between adjustable-rate and fixed-rate mortgages.
• Performance Expectation for Variable-Rate Borrowers
  • Variable rate users likely to show resilience similar to adjustable-rate users.
  • Wage inflation has helped borrowers manage increased interest rates.
• Pre-Approval Process at First National
  • Emphasis on the timely submission of pre-approval requests.
  • Prompt submissions lead to efficient service levels and cost-effective interest rate hedging.

Housing Affordability and Government Initiatives

• Recent Government Changes
  • Removal of GST on completed rental units.
  • Expansion of the Canada Mortgage Bond (CMB) program.
• Tax Relief for Developers
  • Significant aid for developers amidst rising building costs.
  • Joining provinces in eliminating PST will boost construction.

Housing Market Overview 2023-2024

• 2023 Recap
  • Unexpected results in housing market activities despite higher interest rates.
• Forecast for 2024
  • Slower origination is anticipated.
  • Strong population demographics and housing supply shortage will sustain the market.

The Vital Role of  Mortgage Professionals

Buying a home and securing a mortgage are critical financial decisions. As the mortgage process increasingly begins online, it’s inevitable that Canadians will continue to seek the expertise and vast connections of independent mortgage brokers. These professionals provide invaluable advice, ensuring Canadians get optimal financial solutions.