guidelines that make it tougher for you and me
to qualify for a mortgage.
Now, normally the
big banks make huge profits from mortgages. But with this
slow down, they have been challenged to find other sources of
They have 2 ways of making that happen. They can either use
other money instruments to make profit, or purchase other
companies that are making a profit.
For example, a
lucrative market for banks is credit cards and auto loans.
These 2 instruments have higher borrowing interest rates than
mortgages, and the banks are encouraging clients to be more active
But the client
doesn't actually have to come into the branch for that to happen.
When you go into an auto dealership and get an auto loan, the
banks are providing the financing for the auto dealership.
Banks are also
taking over the private credit card programs of major retailers.
In the purchase market, there are a limited number of assets that
banks can buy in Canada. Since they are not allowed to buy
each other, and the quantity of other profitable businesses on the
sales block is low, the banks must look overseas for profitable
If you are looking for a mortgage, please fill in our "quick"
application below, and I'll get hold of you right away.