From mortgage brokers.ca
Subprime lending is back, with institutional players positioning themselves ahead of the expected spike in B business.
“As at March 31, 2011, we had commitments to make future advances on mortgage loans of $9.2 million,” reads the Q1 financial report Equity Financial Trust, released in May. “We are targeting $100 million in outstanding mortgage loans within the first 12 months of operations and as at the date of this news release, we have funded outstanding loan balances of approximately $7 million.”
New mortgage rule changes ushered in by the federal government starting in April 2010, and most recently this April, will likely bolster revenue for subprime lenders. They are already being blamed for a 14-per cent dip in housing sales last month compared to the year-ago period. Growing numbers of first-time buyers, in particular, have had their homeownership dream frustrated by tougher qualifying terms and reduced amortization terms. The market’s three largest institutional lenders are hoping to win over those prospective buyers and the higher spreads attached to their business.Were these guys in a f'ing coma over the last few years? These type of mortgages along with 0 down and cash back mortgages should be outlawed.
More on subprime lending in Canada and Saskatoon.
Subprime in Canada, the cracks are appearing
Subprime is alive and well in Saskatoon part 3