06:51:51 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Bank of Nova Scotia
Symbol BNS
Shares Issued 1,209,451,582
Close 2017-03-22 C$ 76.90
Market Cap C$ 93,006,826,656
Recent Sedar Documents

FP says Scotiabank sees BOC rate tough for some to meet

2017-03-22 07:08 ET - In the News

The Financial Post reports in its Wednesday edition that Ottawa tightened mortgage rules last October and the one requirement that has disrupted the lending world is the stipulation that consumers qualify based on the Bank of Canada posted rate for a five-year fixed-rate mortgage. The Post's Garry Marr writes that rate has been stuck at 4.64 per cent since the feds announced the new measures. Qualifying with that rate is a heavy burden and creating a huge gap when it comes time to deciding how much you will actually pay, considering consumers can lock in a rate for as low as 2.28 per cent for five years. "It is affecting a lot of people here," said Geoff Willis at Origin Mortgages. "A lot of people look at the interest rate on-line and think that's what they'll qualify on. They go out and buy a new home, they have seven days to firm up a deal, and then they go their bank and find they can't get financing." Janet Boyle, vice-president of real estate secured lending at Scotiabank, does not see a change in that 4.64-per-cent rate any time soon. "I think what you might see is some people wait a little longer and try to grow their down payment so they don't require [mortgage] default insurance," she told the Post.

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