Today’s lending environment has changed drastically in the last year. How you ask?
First off, last year there were products for self employed individuals with banks I deal with and I could get these deals done with relative ease. Last year I was also able to qualify a deal with the actual contract rate instead of the new stress test which adds another 2% to the rate used to qualify. Out of all of the changes that have taken place with the new mortgage rules in 2018, these two are the ones that stand out most.
I get the feeling that our wonderful Liberal government didn’t take into account what effect their policies would have on the lending environment and on the housing market in general. It will take some time to see the effects but it was a very slow Jan, Feb and March. Everyone has been affected by these changes but first time home buyers, self employed individuals and people who bought in the peak of the market last year are really feeling it the most. Although many people would like to look at this in a negative way, I’d like to put a different spin on it and take out the positives which is always the best way to go.
April seems to be bouncing back and even though deals are more challenging to place, it has made me become more aware of different lending institutions and what they have to offer. Now, more than ever mortgage brokers in Ontario, such as myself need to be educated and on top of the newest and latest products created to help our clients.
As banks eliminate mortgage products, other lending institutions are stepping up their game. From Credit Unions to what we call B lenders, there is a solution for everyone and the rates aren’t that much different than the bank. Equitable Trust, Hometrust, Equity Trust Financial, Optimum Mortgage, MCAP Eclipse and Street Capital are just a few of the many institutions that we are working with to help find affordable solutions for our clients. People who are accustomed to going into their bank to obtain a Home Equity Line of Credit or mortgage will soon find out that it’s not as easy as it once was – hence the need for a professional mortgage broker that has access to these institutions and who knows where they can place a deal.
Whether it be a line of credit behind their current mortgage, refinance or the purchase of a rental property, there is a solution for every deal.
If you haven’t used a mortgage broker, please research carefully before you call one as there are many bad apples in my industry. Look at their site, google reviews and google searches or … better yet, just call me.
Broker of Record and Mortgage Gladiator