Private mortgages exploding: FSRA
Ontario's Financial Services Regulatory Authority is concerned the growing popularity of private mortgages is increasing vulnerability among homebuyers turned away by traditional lenders.
According to the FSRA, the number of private mortgages has dramatically increased. Hgh interest rates, inflation, and a slowing economy have made it difficult for many people to obtain traditional loans.?
The dollar value of private mortgages in Ontario climbed by a staggering 72 per cent between 2019 and 2021- an increase from $13 billion to $22 billion, according to Huston Loke, FSRA Vice-President of Market Conduct. Borrowers considering obtaining a private mortgage need to understand the costs and implications, the FSRA says.