Canadian Mortgages Intensify

Private firms have proliferated increased rapidly in past years which have given credit to Canada’s obstinate low increase rates leaving investors no other choice but to get into alternative asset classes whereas residential real estate has been a means of interest generation with yielding profits for homeowners and investors.

Debts have become so ubiquitous that some of Toronto’s gaudiest gold-for-cash outfits are now involved in promoting mortgages and home-equity loans for brokers (Harold the jewelery buyer and Oliver jewelery).

Using advertisements as a means of enticement there is no better encapsulation Alpine’s 30 second spot to the real estate market as the parent of the company, Amur Financial Group, involve so much in advertisements thereby filling its radio spots with promotions of easy and fast loans.

Amur can be applauded for success in the market because starting as a mortgage broker in 1969; it has matured into mortgage investment cooperation that helps raise capital for private investors to give loans (MIC) as well as a complicated mass of direct-to-consumer mortgage brokers in Ontario, .B.C.  and Alberta.

Amur’s fortunes strongly reflects some of the factors that triggered the economic situation Canada is recently faced with because its customers are mostly people looking for short term mortgages, debt consolidations and home renovation loans and also ranks like self employed who want to cash in the real estate boom but are shut out by a banking sector and utterly dominated with risks.

The vice president of Amur, Arif Mulji described Amur’s investors as sophisticated individuals in search of alternative but competitive securities he also said “as new investors get familiar with private lending, they see residential real estate and mortgages as a relatively safe place to invest”.

In the years 2009 to 2015, Amur claimed that its assets under management have increased more than ten times to $225 million since the year 2009, all the Amur MIC investors have been rewarded with an average of 9 per cent returns and there is no doubt of the spread in years.

Canada’s largest non-bank mortgage lender, First National, with an annual loan of $22 billion has seen double of its mortgages under administration but faced a little changes after Morneau’s declaration because its loans won’t qualify for federal insurance. But a question will still remain unanswered by policymakers if Canada’s private lending market sees an increase in growth. Should they scrutinize the Wild West corner of the lending industry more intensely and if so how?


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