The snowball is picking up speed.  More Canadian lenders are joining their competitors in discontinuing higher risk subprime mortgages.  This week HSBC and ResMor became the latest to join the trend.

This statement comes from a big lender we work with:

“Commercial paper is practically impossible to sell on the marketplace and sub-prime lenders are shutting their doors. It is getting very difficult for us to encourage investors to take on the added risk of the sub-prime portfolios.”

If you have challenged credit, or don’t have much to put down on a high-risk property, we again encourage you to contact a good mortgage planner and explore your options NOW.