Residential Brokers could Transition to Commercial sector
The government’s emphasis on rental housing and the B20 guidelines might impel brokers to switch from the residential to commercial sectors. According to Mark Yhap, the managing partner of MCAP’s Commercial Mortgages Group, reasons are piling up for residential brokers to make the switch. The government has been actively trying to slow down the residential real estate market for the last 13 months, and with the Office of the Superintendent of Financial Institution’s Guideline B20 regulation, it may have succeeded. But have brokers actually started transitioning? MCAP thinks so. “We think it may have already started happening—the answer is yes,” Yhap told Mortgagebrokernews.ca. “There’s an opportunity given that the federal and provincial governments are pushing for rental housing. CMHC has been very accommodating in their policies, so there is a lot of opportunity for residential brokers to tackle multi-family rentals.” Multi-family rentals are purpose-built apartment buildings comprised of at least seven units. That Toronto is beset by a rental inventory shortage is no secret. It is also believed by many within the building industry that the Fair Housing Plan’s reintroduction of rent control has dissuaded developers from building purpose-built rentals.
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