Another sub-prime mortgage lender in Canada has decided to get out of the business. Xceed Mortgage corp. which was an industry leader in the Canadian sub-prime mortgage industry. They will now only entertain deals that will have CMHC insurance.
As I have reported in the past, it is becoming extremely difficult for borrowers with weak credit or income problems to qualify for mortgages. Realtors, and sellers need to be aware that deals that could have been done a year ago, may not get done this year.
What does this mean for those who have less then ideal credit profiles? Refinancing your current home or buying a new home will cost significantly more. We are back to the days before institutional sub-prime mortgage lenders came, with high rates and fees. Don’t be surprised to see 12% loans with 3% fees from here on in.
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