Although many areas of the housing market are failing, tenent loans and loans for landlords appear to be going strong. For lenders, this is a much more secure area of business and they are finding that tenent loans are not going into default as often as regular home loans. Many lenders are still offering tenant loans at decent rates and the amount of commercial mortgage applications, particularly for rental property, are on the rise. Numerous companies are taking advantage of this and catering to these consumers.”We wanted to make the program more attractive for consumers, recognizing that we do have markets out there where anything we could do to ease the housing situation would be a plus,” said CMHC president and chief executive officer Karen Kinsley.”Our support for Canadians being able to invest in single or multiple rental projects has been there for a long time,” said Kinsley, “but we believe the changes we’ve made will make it even that much more attractive for them to enter the residential rental market. As long as the borrower has the necessary collateral to meet a financial institution’s lending requirements, we’ll guarantee that if that homeowner defaults then we’ll reimburse the bank for the full amount of the outstanding loan.”
Related reading: Tenent Loan
Comment on this article