How will Private Channel fare in 2018

With the OSFI rules slated to take effect at the beginning of next year, the private lending channel is expecting business to boom. Recent Teranet data estimates 10% of new mortgage in Ontario are provided by the private channel, with mortgage investment corporations leading the way. Wasah Malik, a private lender with Mortgagepedia Inc., agrees with that estimate and says many buyers will few options but the private channel. “Firstly what happens when people do not get qualified on the A side is they go to the B side,” he said. “If that doesn’t work, then I think private lending money is going to become even bigger, and I personally think it will become bigger next year.” Malik doesn’t see the market slowing down in the long run. While its players will pull back, he believes they’ll come back with gusto. Frances Hinojosa, a mortgage broker and managing partner of Tribe Financial, believes the market will be resilient, thanks to strong demand. “Immigration will continue to be strong, so there’s still going to be enough demand out there,” said Hinojosa. “I believe it’s going to come from population growth.”

Source: mortgagebrokernews.ca Click here for rest of article

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