Do the rules excluding US banks from setting up shop in Canada come at the expense of would-be borrowers?
Inam Qureshi -Founder Syndicate -Lending Corporation
“An influx of American banks with higher risk tolerances would grow the share of non-confirming lending, as the stress test measures laid down by OSFI have affected general lending.
The participation of American banks would definitely be a step forward for Canadian banking, but would surely need to have some checks and balances of the debt levels. Rising debt levels are a concern, as Canadians’ household debt is at an all-time high.
Keeping these concerns in mind, we can surely broaden the horizon and work on creating an ecosystem that would divide the risk to create a much more competitive environment.”
Matthew Ablakan -Broker of record -Millennial’s Choice
“Yes, yes and yes. More competition in the marketplace encourages lenders to become more competitive and innovative. While I understand the other side of the debate, especially when it comes to the fear of being replaced by the technological advances that some of these American banks have made, the reality is that more competition will force some agents and brokers to level up their game and do their best to stand out and bring value to their clients.
Better overall rates, programs and offerings from lending institutions will be some of the most important factors going forward in our real estate marketplace.”
Paul Meredith- Mortgage broker- CityCan Financial
“I think the Canadian markets should definitely be open to American banks, as it could potentially expand product availability to our clients. More competition for lenders can be a great thing for our industry. I think the big banks particularly could use more competition. Foreign banks such as ICICI and HSBC have presence in Canada; therefore, American banks should be allowed to compete here as well.
More choices for the borrower can also lead to more confusion, which means they are all that much more likely to hire a seasoned mortgage broker to guide them through the mortgage process.”
