Friday, September 14, 2012

More rumoured banking changes

Banks are making changes to lending practices to help control inflation in the Canadian economy.  By slowing down consumer spending, the Canadian government is able to control inflation.  Interest rates cannot be raised, as this would encourage foreign investment in Canada and would drive our dollar higher, which would hurt the manufactoring sectors.  In lieu of following the early 80s strategy of raising interest rates, the Canadian government is making mortgages more difficult to ascertain. 

Housing is the single biggest purchase for most Canadians, so if the government can slow down the housing market, it will slow down consumer spending, which will control inflation in the Canadian economy. 

All Canadian banks will have to change their lending practices on home equity lines of credit.  They will be able to offer a maximum value of 65% loan to value.  Rumours now have it that soon, lines of credit secured by investment properties will be outlawed. 

I would suggest, making contact now with a financing expert who can arrange an home equity line of credit at 80% loan to value and even if you are not planning on using it, have it available for potential need. 

If you are interested in making this type of arrangement, I have a special lender who can make this arrangement.  Please contact me by clicking here and I can make an arrangement to speak.

If you think someone your know, your friends or family could benefit from using my services ... please contact me here!

For Ottawa real estate, please contact the Bennett Property Shop Realty for further information.

1 comment:

  1. I received this feedback from a client of mine, who is very knowledgeable:

    I have been talking to the class A lenders this week and there is also rumor that on any line of credits that have zero balance they will cancel them and/or charge a fee to keep them open. Banks are looking at everyway possible to keep their liabilities down while continuing to show big profits in this low interest rate environment.