Here we go again…
Now Macleans Magazine is jumping in. Trying to alarm Canadians that there is a sub-prime mortgage crisis in Canada, Grrrr.Give me a break. Xceed mortgage is the last sub-prime mortgage lender in Canada trying to hold on to their business when EVERYONE else either re-tooled their product line to focus solely on prime business or got out of the business all together.The fact that they are now refusing to re-new people is bad, actually real bad, the facts remain this is not a US style sub prime mortgage crisis. The Sub-prime market in Canada was less then 5% of the overall market at it’s peak compared to almost 35% of the US market, and Xceed was probably less then 1% of the overall market.In the article in mentions a guy is going to start a class action lawsuit…good luck. If a lender refuses to renew you then you have the option of going to another lender, the law gives you ample time to do that. Funny how they made this person look like an innocent victim without telling us whether he tried to go to other lenders to pick up his loan? Given the fact that he was an Xceed customer in the first place suggests he was likely a troubled applicant, and sadly he probably could not get approved in today’s tight credit markets. On top of that his value of his condo has dropped dramatically. Let’s be clear, it is lousy what is happening to this guy BUT it is far from a sign we have a crisis nationally even remotely close to the US sub-prime calamity, shame on you Macleans what a desperate attempt to sell magazines
