Written by 12:42 AM General Views: 3

Subprime’s Recovery May Take Months

subprime2 A top mortgage company official we know believes Canada’s commercial paper market will not return to normal for at least 3-4 months.  (Non-bank lenders use commercial paper to finance a lot of riskier mortgages.)

By that time, people will hopefully be able to better assess the results of the Montreal Accord and buyers of mortgage-related securities might finally return to the market.

If/when that happens, don’t be surprised if Canadian subprime interest rates are noticeably higher.

In recent weeks, some subprime lenders have jacked their rates as much as 2%.

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Last modified: April 25, 2014

Robert McLister is one of Canada’s best-known mortgage experts. A mortgage columnist for The Globe and Mail, interest rate analyst and editor of MortgageLogic.news, Rob has been covering Canada's mortgage market since 2007.

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