HomeLoansSubprime borrowers had a harder time converting to bank loans over the...

Subprime borrowers had a harder time converting to bank loans over the past decade

Last year, 71.5 per cent of subprime borrowers in Ontario were able to get a mortgage from a bank or sell their property without defaulting on loan payments or losing their property to foreclosure.JENNIFER GAUTHIER/The Globe and Mail

Subprime borrowers have had a harder time getting a loan from a bank over the past decade, as federal mortgage rules got tougher.

That is the finding from a new report from Canada Mortgage and Housing Corp that looks at the growth of alternative lenders such as mortgage investment entities and private lenders.

The report analyzes the alternative lenders and their borrowers’ ability to exit the high-interest loans.

Subprime lender Fisgard suspends residential construction loans in several provinces

Alternative or subprime lenders offer more expensive, higher-interest, short-term loans to borrowers with weak credit. These borrowers are unable to qualify for a…

Read more at www.theglobeandmail.com

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