Buying dream home in Canadian real estate market alive with help of Last resort lenders
Alternative lenders are playing amazing and growing role in Canadian real estate market as industry searches for the new sources of financing, banks become much more picky and investors look forward for the yield.
When the prospective borrowers sit in their boardroom to negotiate loan at largest alternative lenders of Canada, they all are greeted by huge sculpture of a gun with all of its barrel twisted back to the shooter.
Eli Dadouch, 52, Chief Executive Officer and Founder of Toronto based Firm Capital said that they tell borrowers that if they dishonest to all of them, it is like pulling up a loaded gun on yourselves only.
Company lends to the landlords, developers, builders and home buyers which are bigger banks that won’t or can’t touch.
This been a very lucrative business. In an addition to the sculpture of gun, an extensive contemporary art collection of Dadouch’s at office of company includes number of pieces by Steve Kaufman, U.S. pop artist and Rodney Smith, a photographer.
New mortgage rules are pushing up number of home buyers to the alternative lenders like Firm Capital, a business that may be about to get much more lucrative homes.
Dadouch said that they think that there will be few of the opportunities because credit unions will pick up majority of rejects by bank.
This goes down all of the food chain. Dadouch also said that sitting in the boardroom of Firm Capital, where cookies and espresso are also being served here. He also said that they will get business.
Provincial and Federal governments have been tightening up the screws, that reduce amortizations, instituting taxes on home buying from the foreigners.
Moves started to bite. Around 49% of all of the outstanding mortgages were uninsured at end of the last year, up from 36% 5 years ago.
And housing market in Toronto is the biggest city of Canada and got slowed down, with an average price that plunge by 14% in March as compared to earlier a year, it is the biggest drop in Toronto since 1991.