Non-traditional mortgage lenders are gaining ground in the Canadian mortgage market. Mortgage-seekers in Calgary and across the country started seeking ways to get around tighter regulations that attempted to put limitations on who could qualify for banks and other traditional lenders, opening up space for these non-traditional and private lenders to make headway.
Like any swing in people’s behaviour, there are risks and rewards and I like my clients to be informed about what these are.
First, the numbers.
A report by CIBC stated that the proportion of mortgages given out by lenders besides banks and credit unions make up about 2.2% of the market – up from 0.8% in 2008-2009 and that share is growing by about 25% per year.
The key thing for my Calgary mortgage clients to know is that while there may be benefits to going with these non-traditional lenders, the risks are in the fine print. It’s vital to know exactly what the payment schedule looks like, and the fees and penalties that you could incur by not following the rules. Sometimes, these numbers can be very steep, and borrowers get caught off guard if they work with a mortgage broker in Calgary or elsewhere who isn’t upfront about the hazards.
Some non-traditional lenders are honest and help people who wouldn’t otherwise be approved for a mortgage, get the one that’s right for them.
As always, the best first step is to talk to a qualified and knowledgeable Calgary broker such as myself who can walk you through the ins and outs and lay out all your options for you.
Don’t hesitate to contact me today if you have any questions about any of my mortgage services by calling 403.648.1541.