Interest rates aren’t going up any time soon, but when they do the rise will be rapid, mortgage industry experts say.
Because of this, mortgage lenders and brokers have a responsibility to help home buyers assess their capacity to make higher monthly payments, and to constantly evaluate their chances for default.
“There should be some prudence and there should be counselling by mortgage brokers to ensure people do leave a little wiggle room,” said Ivan Wahl, chairman and CEO of Xceed Mortgage Corp. Wahl praised Canadian regulators for preventing the housing meltdown that has decimated the American economy, but said mortgage lenders have a responsibility to self-regulate as well. “Regulators have a very specific role, but you can’t regulate prudence,” he said. “Self-discipline has to continue to be supplied.”