Consumer Guide 2015 mbabc.ca | 35
Fogell. This could be because the borrower is new to Canada and
thus has not had an opportunity to establish a credit history, or he or
she may be self-employed or may not have any stated income.
Mortgage investment corporations
Similar to a mortgage syndicator, a mortgage investment corporation
(MIC) such as Antrim Investments or InstaFund offers privately funded
mortgage solutions to borrowers who may have difficulty qualifying
with a more traditional lender. However, instead of connecting a
borrower with a limited number of investors to invest directly in a
single mortgage loan, a MIC (similar to a mutual fund) pools the
money from all its investors (shareholders) and then uses it to provide
an alternative source of mortgage money through mortgage brokers.
With $275 million in mortgage assets under administration,
Antrim Investments is the largest residential MIC in Western Canada.
And like Lanyard Financial, it offers primarily short-term bridge
financing. "From time to time, some individuals will not meet the
stringent credit policy or income requirements of the banks and they
need a lender that can think outside the box," says Will Granleese,
business development manager with Antrim Investments. "These
people typically need a 'bridge' lender to finance them for a year or
two until they make changes to their income or credit problems."
Flexible terms that Antrim Investments is able to offer include
custom-length terms, such as 18 or 20 months; no prepayment
penalties whatsoever, allowing borrowers to pay the mortgage off
or refinance it at any time; and the ability to secure the mortgage
with multiple properties instead of just one. Antrim Investments can
also act much faster than banks, offering mortgage approvals in as
little as one hour and fundings in just 24 hours.
Again, like Lanyard Financial, Antrim Investments is an equity-
based lender. "We focus on (and underwrite) the property just as
much as the borrower's income and credit. In exchange for a larger-
than-normal down payment (say 25 to 35 per cent), we are willing
to look past recent credit problems or income that does not meet
the banks' criteria," explains Granleese. "For us, it's all about finding
a solution to our borrower's problem in the short term and then
working with them to improve their credit or income filing so they
can migrate back to prime bank rates in the future."
Ultimately, while it's helpful to know what kinds of lenders are
available to you, you can rely on your mortgage broker to steer you
in the right direction. As MBABC CEO Samantha Gale reiterates,
"Mortgage brokers are skilled at getting all the right information
from a borrower and finding the right lender for them."
•
⊲ A large percentage of mortgages in B.C.,
– estimated at more than $15 billion –
are arranged by mortgage brokers.
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