British Columbia housing market – what “cooling off” legislation could mean
Jason Henneberry (pictured top), president of financing firm Fundible, told Canadian Mortgage Professional that he had held discussions with many realtors who felt it could complicate the buying stage and make it more difficult to determine the merits of different offers – particularly if buyers no longer feel it’s necessary to show that they have prearranged finance.
“What a lot of realtors think is… if you can walk away from a purchase for any reason, then you no longer really need to put conditions in there. And so, everybody has the right to walk away,” he said.
“Then what happens is, it becomes more challenging for the listing realtor to make sense of the quality of the offer that they’re receiving.”
If buyers are no longer able to differentiate their offer from the others by having to show financing conditions, Henneberry said, that could lead to bidders either increasing the purchase price of the offer or increasing the size of their down payment – with already sky-high house prices set to climb even further as a result.
Fundible was launched in Alberta and Ontario at the end of November to address some of the current issues in the buying process, offering guaranteed financing so that would-be buyers can write a purchase offer without having a prior financing condition in place.