The total value of private and alternative mortgages in Ontario surged from $13 billion in 2019 to $22.4 billion in 2021, according to the Financial Services Regulatory Authority of Ontario.
The share of private lenders in the province also expanded from 9.3% of funded mortgages in 2019 to 11.6% in 2021. Antoinette Leung, of the FSRA, said that current housing market trends and decreasing purchasing power are fuelling this demand.
Another major contributor was the restrictive underwriting requirements in chartered banks, which have compelled consumers – particularly self-employed professional – to seek funding from alternative sources.
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