Private lending – what’s in store amid new COVID-19 shutdowns?
Shawn Allen (pictured top), chief executive officer of Matrix Mortgage Global, told Canadian Mortgage Professional that the private space could help provide support for Canadians whose work had been impacted by the measures, which came into effect on January 05.
“Businesses are suffering,” he said. “They can’t take another hit, and right now we’re closed and possibly [that] will be extended.
“[The provincial government] made an announcement that the schools will reopen next week, but they didn’t say anything about businesses… There’s a disconnect there, and those people are our clients – self-employed people that are having mortgage deferrals.”
For individuals who may need a short-term solution to tide them over until they’re able to get their financial situation in order, Allen said, private lending solutions could lend a vital helping hand. That’s in addition to the fact that the prospect of interest rate increases throughout the year could render traditional lending options even more unattainable than before.
“There’s definitely going to be an increase [in private lending] because rates are going to go up, people aren’t going to qualify, and where else are they going to turn?” he said.