The mortgage market has changed a lot over the past few decades. Here are a few reasons why the market has changed, to help you better prepare for your next loan process.
Average mortgage prices in Ontario changed the economic recession in year 2000. At that time, many people lost their jobs and had to switch to a lower-paying job. This led to a decrease in the amount of money they had to use to buy a home.
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Another reason why the mortgage market changed was because of the housing crisis. The housing crisis is when prices for homes went down and many people were unable to get mortgages because they didn't meet the requirements of the banks. This caused a lot of people to lose their homes, and it made it difficult for people who were already in debt to buy a home.
The mortgage market changed in 2008 due to government intervention. Prior to 2008, the mortgage market was free and open to competition. This led to a variety of different lenders offering mortgages to consumers.
However, in 2008, the government took action to try and stabilize the housing market. They did this by enacting regulations that limited the number of lenders who could offer mortgages. This led to a decrease in the availability of mortgages and an increase in the prices of mortgages.