There have been a number of announcements from CMHC in the past couple years as they make adjustments to their coverage. In addition, banking rules have been tightened. One of the consequences of these changes is that a large group of borrowers no longer qualify for mortgages with their banks. Hardest hit are the business-for-self entrepreneurs who may not be able to satisfactorily prove income.
For equity lenders however, this borrower profile is welcomed. What matters to equity lenders is the borrower’s equity in real estate. The good news for brokers is that the offerings from equity lenders are quite diverse. Some offer interest rates just slightly higher than the banks, some will go to 85% LTV and some, like Kokanee Mortgage, will loan to borrowers in smaller communities.
Contact us if you’d like more information about the solutions that Kokanee Mortgage offers borrowers.