Interest in mortgages from credit unions, private lenders up as rates rise: brokers

The brokers notice Canadians are now more drawn than before toward these alternative lenders because fixed mortgage rates have crept toward and just above four per cent in recent months in many provinces and territories.

Borrowers are now having to qualify for a mortgage at a higher rate because the qualifying rate on uninsured mortgages under Canada's stress test is either two percentage points above the contract rate, or 5.25 per cent, whichever is greater.Toronto mortgage broker Sung Lee says interest in mortgages from alternative lenders is growing because clients looking for a five-year, fixed rate mortgage now have to qualify at six or 6.5 per cent through traditional lenders.

When these consumers visit credit unions, he sees them qualify at just their five-year contract rate or a contract rate plus one per cent cent, when they're seeking a variable rate mortgage. Insurance and financial website Ratesdotca says credit unions and private lenders made up about 3.7 per cent of the country's mortgage business last year and have already handled about 6.7 per cent so far this year.

Obviously cabal on a mission to destroy Canada. You will own nothing and be happy

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

What rising mortgage rates mean for your HELOCBorrowers should anticipate this summer will crank up the dial on their debt
Source: nationalpost - 🏆 10. / 80 Read more »

What rising mortgage rates mean for your HELOCBorrowers should anticipate this summer will crank up the dial on their debt
Source: VancouverSun - 🏆 49. / 61 Read more »

Finances worsening for Canadians as inflation surges, poll finds - BNN BloombergCanadian households are reporting a sharp deterioration of their finances amid escalating inflation and rising interest rates, polling data show, a worrying development that may foreshadow an economic slowdown. I often look to random surveys of 250 people when I want to know the state of the economy…
Source: natnewswatch - 🏆 58. / 59 Read more »

Dividend payouts hit first quarter record, but outlook rockyThe war in Ukraine, geopolitical tensions, high energy and commodity prices, rapid inflation and rising interest rates are all likely to impact companies’ prospects
Source: globeandmail - 🏆 5. / 92 Read more »

Solid second quarter expected for big banks, but will it be the calm before the economic storm?Solid second quarter expected for big banks, but will it be the calm before the economic storm? — via financialpost Finance Banking
Source: VancouverSun - 🏆 49. / 61 Read more »

Interest in Rates: Almost half want BoC to take wait-and-see approach before raising interest rates further - Angus Reid InstituteOne-quarter want further rate hikes; financial pessimism reaches 13-year high May 24, 2022 – As inflation reaches a 31-year high, Canadians are more likely to want the Bank of Canada Ya bankofcanada ! Id say more than half if everyone was polled
Source: natnewswatch - 🏆 58. / 59 Read more »