‘Joe Schmo’ lenders double stake in Canada’s mortgage market Since 2007, alternative lenders have increased their share of Canada’s $1.4 trillion mortgage market to 13% from 6.7%. Falling outside the responsibility of Canada’s banking regulators, these alternative lenders are increasing risks in the very housing sector they operate in.
Bank’s Retreat:
In recent years these lenders have been expanding. With the reduction in amortization periods and the need for employment verification having increased, self-employed borrowers or those with weak credit scores find it increasingly difficult to receive a commercial bank issued mortgage. New lenders are also tempted by high returns from mortgages with interest rates as high as 20%, at a time
Bank’s Retreat:
In recent years these lenders have been expanding. With the reduction in amortization periods and the need for employment verification having increased, self-employed borrowers or those with weak credit scores find it increasingly difficult to receive a commercial bank issued mortgage. New lenders are also tempted by high returns from mortgages with interest rates as high as 20%, at a time