Canada has seen an influx of private lenders whose practices don’t have borrowers’ best interests !
Private lenders,are not regulated like the banks. At the banks, you can’t do anything considered unreasonable when it comes to fees or penalties!
Chris Cheng (pictured top), chief operating officer of the RESCO mortgage investment corporation, told Canadian Mortgage Professional that brokers and agents needed to be aware of hidden fees and penalties that dramatically hike borrowing costs beyond the rate advertised by certain private lenders. These costs can actually end up costing you more than the bank rate!
“There are now more players in the private lending industry, which is good – I always welcome competition,” he said. “There are a lot of reputable and well-established MICs and private lenders in the industry, many of which are doing a great job and have a lot of integrity. But on the other hand, you have quite a few bad apples as well.
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