With home values on the decline and economic conditions changing, there has been heightened interest in how Canada’s alternative lenders are adapting.
Last month, Magenta Capital Corp. announced it would temporarily stop taking new loan applications until September. And last week, the Globe and Mail reported that Fisgard Asset Management Corp. was no longer offering new construction financing in select provinces.
Both are Mortgage Investment Corporations (MICs), which fall in the alternative lender space and thus have different underwriting and funding processes compared to chartered banks and other “A” lenders.
The current situation at Fisgard
Hali Noble, Fisgard’s senior vice-president of residential mortgage investments and broker relations, spoke with CMT to explain the reasoning behind its construction loan changes and the market…
