Less than half of Canadians agree with the new lending guidelines; lack
of understanding revealed
TORONTO, Aug. 13 /CNW/ - A new survey reveals that 23% of Canadians do
not agree with the recent federal changes to mortgage lending rules, stating
that the new measures reduce options for people looking to buy a home.
Opposition rises to 30% among non-homeowners, versus 21% who own a home.
Further, only 45% of Canadians agree with the changes and the statement
"the federal government needs to protect Canadian homeowners." Support for
this statement is stronger among homeowners (at 54%) versus non-homeowners
The survey, conducted by Angus Reid for ResMor Trust Company, a leading
residential mortgage company, also reveals a lack of understanding regarding
the new lending measures. Of those surveyed, a surprising 17% indicate that
they do not understand the implications of the changes. A larger portion of
non-homeowners (25%) were confused about the new rules versus homeowners
"This survey clearly demonstrates a need for industry professionals to
educate Canadians about the new measures - specifically those entering the
market for the first time," says Darren Thompson, Vice-President of Lending
for ResMor Trust. "As a lender who originates all of our mortgages through the
brokerage community, we are committed to working with our broker partners to
educate our clients about the new lending guidelines and to define strategies
to help them to achieve their home ownership goals."
The national survey asked Canadians to select the statement that best
describes their attitudes regarding the new federal lending rules announced
July 9, 2008.
Among the changes, the maximum amortization for new government-backed
mortgages will be reduced to 35 years from 40 starting October 15, 2008.
Further, homebuyers will be required to make a minimum 5% down payment on the
purchase of a home - effectively eliminating all 0% down home purchases.
On Friday, August 1, ResMor Trust introduced a maximum loan-to-value of
95% and a maximum amortization period of 35 years for all its mortgage
products to align its portfolio with federal lending guidelines.
The survey also reveals that agreement with the new rules in the heated
housing markets of the Western provinces and Ontario is significantly higher
than in the Eastern provinces and Quebec (British Columbia 64%; Alberta 56%;
Manitoba/Saskatchewan 47%; Ontario 46%; Atlantic provinces 35%; and Quebec
In addition, the lack of understanding of the new rules is more prevalent
in Quebec and the Atlantic provinces (both at 23%) than in British Columbia
(7%), Alberta (18%), Manitoba/Saskatchewan (13%) and Ontario (16%).
About the survey
The Online Angus Reid Daily Omnibus survey includes a nationally
representative sample of at least 1,000 Canadians 18 years of age or older. It
was conducted on July 25, 2008. The maximum margin of error is +/- 3.1%, 19
times out of 20. However this does not take other sources of error into
About ResMor Trust Company
ResMor Trust Company (www.resmor.com) is a federally licensed trust
company focused on residential mortgage lending, mortgage servicing and
deposit products. ResMor originates all of its products through the brokerage
community. In addition, ResMor is a member institution of Canada Deposit
Insurance Corporation (CDIC). GMAC Residential Funding of Canada, Limited
acquired ResMor Trust Company in October 2007.
For further information:
For further information: Jason Graham/Karen Passmore, Argyle
Communications, (416) 968-7311, ext 229/228, firstname.lastname@example.org,
email@example.com; Dawn Erceg, Director of Marketing, ResMor
Trust Company, (416) 234-3170