The Bank of Canada’s decision to raise interest rates by one percent could have a big impact on the mortgage market, with an increase in borrowers potentially turning to private lenders.
The spread between the interest rates from traditional lenders and private lenders has narrowed, making it potentially more advantageous for borrowers to go with a private lender in certain situations.
Additionally, given that traditional lenders must apply the stress test to all mortgages regardless of loan-to-value ratio, some borrowers may not be able to qualify for a traditional mortgage at all. Due to the challenging qualification criteria, many clients will require alternative options, and this is where private lenders can help.
Do you have any questions about private mortgages in Atlantic Canada? We lend funds to clients for short-term project financing, debt consolidation, construction financing, land acquisition, and other business or personal requirements. Send us a message and one of our private mortgage experts will be in touch.