Oriana Financial Group of Canada Ltd.#10214

As Mortgage Market Tightens, Private Lending Is A Growing Opportunity

Mortgage Broker News ~ September 27th, 2017

Canada’s housing market is red hot, but securing a suitable mortgage is becoming harder than ever before. Stricter lending requirements, new government controls and rising home values have made it more difficult for individuals and families to qualify for a loan. Although these new measures are intended to keep unqualified buyers from obtaining a mortgage, they are also impacting sound borrowers who may not have the equity or employment history traditional lenders look for when originating a loan.

Against this backdrop, the alternative lending market has carved out a strong niche in Canada. Sound borrowers turned away from the major banks are increasingly looking to private lender mortgages to finance their property. As a result, private lenders have seen their share of the mortgage market double over the past decade from 6.7% in 2007 to around 13% in 2016.[1] This profound shift is expected to continue amid the myriad of restrictions facing the major banks.

Canadian lending rules have come under intense scrutiny in recent years, as policymakers look to tame booming house prices. Unfortunately, this environment has made first-time buyers, small business owners and investors feel unwelcome when it comes time to finance their next property. Borrowers recovering from bad credit but who are employed are also finding it difficult to maneuver past the credit crunch.

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Term Our Rate Bank Rate
2 YEAR 5.09% 6.09%
3 YEAR 4.99% 6.04%
4 YEAR 5.04% 6.04%
5 YEAR 4.54%* 6.14%
5 YEAR variable 5.80%* 6.45%
21 Feb 2023

*Special conditions apply. Interest rates are provided for information purposes only and are subject to change without notice.

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