Elan Weintraub Quoted on Mortgage Broker News – TREB joins chorus demanding B-20 repeal

https://www.mpamag.com/ca/news/general/treb-joins-chorus-demanding-b-20-repeal/284841

“The most important thing to consider with the stress test is the intentions are pure—and that’s to protect the financial system and the housing market,” said Elan Weintraub, director of Mortgage Outlet. “The problem comes in the disjointed way in which it was executed because you have three government agencies—the Ontario government implemented the foreign buyer tax, then the Bank of Canada increased interest rates five times, which is disconnected from OSFI implementing the stress test. Everyone wants a strong housing market, but you have three government agencies without integrated policy implementation.”

The mortgage industry is no stranger to policymakers’ whims, but a history of intervention could pave the way to slightly more consumer-friendly adjustments. Frances Hinojosa believes now that the Toronto and Vancouver metropolitan areas have cooled, OSFI could, at the very least, entertain the notion of revising B-20.

“There should be some consideration done by the government to make amendments to the B-20 rules that will still uphold prudent lending guidelines,” said the Tribe Financial managing partner. “If there are any amendments to make, I think they may extend amortizations, which would allow millennials and first-time buyers to become homeowners a little earlier so that they can secure their financial futures.”