The new mortgage rules of Canada have led borrowers deep into the system of financial intermediaries. They changes have been made to bring certainty in the market and to strengthen the backbone of finance in the country. The new rules require the money lenders to check the knack of borrower to pay back the loan amount with the help of stress test which is subjected to those who are unable to make a down payment of 20% of the total loan amount.
According to the recent mortgage rule, imposed on Oct 17, the buyers of the car title loans Canada and the other business loans have to make sure the bank and other financial institutions that they are capable of repaying the loan with a fixed rate of 4.64%. To ensure the same, borrowers are being subjected to a stress test, passing which they will be entitled worthy of opting for a personal loan with insured mortgages. And, if the mortgage is uninsured, then the buyer has to do a down payment of 20% of the actual loan value to get qualified for that test.
This has led brokers to find ways around the current mortgage changes so as to lend money to the people who fail to pass the qualification criteria set by the banks. In the advent of these new rules, the brokers are planning to adopt a new way to direct a large number of borrowers to the shady and unreliable private lending market to provide them mobile home loans Canada with ease. Though not a trustworthy or wise decision on the part of borrowers, this will definitely reduce the frustration of the private investors who had been suffering due to low interest rates and low influx of clients in the past.
Due to the escalated interest rates, the Canadian citizens are forced towards the private second mortgages too. The brokers typically charge 7% to 10% interest rate on their asset besides the separate interest on the actual loan opted from the private lenders. Hence, the buyers surely are facing a tough time finance wise, especially those who had their plans set on buying their first home.
However, in times like these, instead of going for the unreliable shadow market, you must take the help of trustworthy finance agencies like FEL Canada. They are a renowned company that offers easy finance options to bad credit score holders too.
About FEL Canada:
FEL Canada is a leading finance company in Alberta that provides you loans at easy EMI options and with poor credit rating too.
To know more, you can log on to Felcanada.com.