The truth about the market for mortgage interest rate that exist in Canada is that over the past forty years, it has experienced significant modifications. Depository institutions make up most of the market, holding the majority of the remaining Canadian home mortgages as of the end of 2007. As of the end of 2008, CAD 566 billion or about 62 percent of CAD 906 billion of outstanding mortgage debt for residential properties in Canada was owned in depository banks. The principal reason for the increase in the share of banks was changes made in the Bank Act changes, which allowed banks to hold trusts and loan companies which were dominating players on the market. Before 1954, banks weren’t allowed to issue mortgage loans. In the years following after the amendments to the Bank Act amendments and thereafter the law allowed banks to have to increase their share of the market as time passed. However, up to 1992, the value of conventional mortgages was only able to be less than 10% in bank deposit. Mortgage brokers play a increasing part in the marketplace. A survey on mortgage-related consumer behavior carried out by the canada mortgages and Housing Corporation in 2009 found that between June 2008 and June 2009, […]
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