12 February 2014
The budget aims at improving the ability of new market entrants and smaller banks to compete with bigger banks and in the same time keep the sector’s strength. In addition to it, the Office of the Superintendent of Financial Institutions is appointing a new representative who will contact those small banks and help them solve problems in competing with the largest Canadian banks.
Another important thing is that smaller banks will get easier access to funding from CMHC. The corporation’s new methods will face some changes to increase the access of smaller lenders to portfolio insurance and numerous securitization programs.
That is great news for mortgage consumers, since many of great offers clients are getting today coming from mortgage banks! If they (monolines) have easier access to capital they would definitely come up with more innovative mortgage products and pass the savings in form of lower rates to borrowers.