It’s looking like lending for real estate is going to get a bit more pricy as Ottawa tightens rules and seeks to offload some risk. Many lenders in this Globe and Mail article feel blindsided by the change and complain that it’s unfair as they will not be able to compete with the banks:
Non-bank lenders left reeling by new federal mortgage rules
The new rules kick in November 30th after which lenders will not be able to insure mortgages with amortization beyond 25 years or on homes over $1million or rental properties. I guess we’re about to find out the price of risk in these no longer covered categories.