Wednesday, February 18, 2015

Why mortgage-hunting Canadians are turning to alternative lenders

OTTAWA -- Squeezed out by stricter bank regulations, a growing number of mortgage-hunting Canadians have been turning to non-traditional lenders to overcome borrowing hurdles like bad credit.

The proportion of mortgages given out by alternative institutions, other than banks or credit unions, remains small at roughly 2.2 per cent of the entire market, said a recent analysis by CIBC.

But their share of the overall mortgage market has grown from 0.8 per cent during the 2008-09 recession and is now expanding at a rate of about 25 per cent per year, says Benjamin Tal, deputy chief economist of CIBC World Markets.

Read more:

No comments: