That panel, offering a deep dive into non-traditional and specialized lending, will see Spero explore best private lending practices for agents and brokers alongside Glasslake Funding’s Michael Forshee, VWR Capital Corp’s Steven Lang, and RiverRock MIC’s Nick Kyprianou.
“I think the biggest thing is that private lending is becoming a larger portion of the mortgage pie. With the different rules, OSFI’s B-10 requirements and the insurance rules, more and more consumers are finding out that they can’t get traditional bank financing,” he said. “And so they’re then looking at alternate financing channels, and the private channel is a fast-growing solution for those borrowers who can’t get traditional financing.
“So the hope is to provide some education about where private mortgages fit in the marketplace. For brokers and the audience, it’s critical that they’re aware of the differences between traditional mortgages and private mortgages, and that they’re able to advise their clients appropriately.”
Discover insights from top industry experts at the Canadian Mortgage Summit on September 14th at Pearson Convention Center. Registrations for mortgage professionals is complimentary.https://t.co/4UV51otAyj#mortgagenews #canadianmortgagesummit #mortgagebroker #mortgageindustry
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 14, 2023
What are the latest trends in private lending?
Private and alternative lending arrangements saw a rapid rise in popularity during the COVID-19 pandemic and a housing market boom, while a spike in interest rates over the last 18 months has pushed even more Canadians towards the space.
Application volumes have picked up substantially in recent times, Spero said, with a growing number of borrowers unable to secure financing through the bank channels – but for lenders, applying the right level of underwriting rigour is also of utmost importance in the current volatile climate.