A higher number of homebuyers are turning to alternative lenders as the big banks have tightened restrictions on mortgages.
A higher number of homebuyers are turning to alternative lenders as the big banks have tightened restrictions on mortgages. Analysis from CIBC World Markets using StatsCan data shows a 25 per cent growth in the subprime market compared to 4 per cent in the whole mortgage market. The percentage of loans held by alternative lenders is still small though at 2.2 per cent of all mortgages and is not considered large enough to be a risk to the housing market from defaults.
