The writer is a Vancouver mortgage broker with experience in bad credit mortgage in Canada applications. He is familiar with most bad credit Canada mortgage lenders. Potential purchasers need not be worried if there credit difficulties in the past.
No regulations require a residential mortgage lender to make a particular loan, nor do any provide specific underwriting guidelines. Regulations do make it clear, however, that mortgage lenders have a responsibility to attempt to satisfy any request for a mortgage loan, as long as the risk is analyzed fully and deemed acceptable. The desire to make loans must be balanced by a mortgage lender’s fiduciary responsibility to protect whoever funds the loan: depositors, shareholders, or secondary market investors.
All lenders, of course, share the danger that even properly underwritten mortgages may become delinquent. The expense incurred in collecting these funds, or the losses suffered if uncollected, greatly exceed the income generated from originating and servicing the loan-that is how costly the collection process is. If several defaults occur, the costs of either curing the defaults or foreclosing could result in severe losses to the point where it jeopardizes the solvency of the lender.
Vancouver real estate is the topic of most conversations in BC. Duncan’s Vancouver mortgage business gives him the insight to provide topical articles on the state of Vancouver real estate.