The company has established a sterling reputation as a lender in Atlantic Canada – and is poised for success in Ontario thanks to strong funding and rapid turnaround times
This article was produced in partnership with Graysbrook Capital
Fergal McAlinden of Canadian Mortgage Professional spoke with Alain Mallet of Graysbrook Capital to discuss the company’s successful expansion to the Ontario mortgage market
One of the most respected names in Atlantic Canada’s lending space is now making waves in Ontario, with lightning-quick turnaround times and a strong funding base helping make Graysbrook Capital a hit among agents and brokers in that market.
The company, launched 16 years ago in Halifax, Nova Scotia, has been lending in Ontario for the past three years – and its rapid growth in the province has been spurred by its ability to serve brokers effectively and with minimum fuss, according to its director, alternative lending Alain Mallet (pictured top).
He told Canadian Mortgage Professional that Graysbrook’s status as a private lender backed by a credit union means it has immediate access to funding, enabling a 24-to-48-hour turnaround time that remains a point of pride.
“The majority of private lenders will issue you a commitment, but that’s also pending the fact that they need to find somebody to fund your deal. For us, that’s not even an issue,” he said. “If we like the file, we move forward with it.
“It works very well in Atlantic Canada, and we’re continuing to offer those same high-quality services to the Ontario market.”
As a relatively new lender in Ontario, the company is yet to roll out its full product suite in that province. With that said, its pricing is very competitive when compared against other private lenders in the province, Mallet said, “especially as we offer fully open terms for all our loans.”
On residential single-family deals, Graysbrook’s loan to value goes as high as 75% in key markets depending on location, with the company also offering funding on certain types of mixed-use commercial properties (up to 65%).
The company lends in any market with a population of over 20,000, with a minimum property value of $250,000 and minimum loan size of $50,000. Rates start at 8.99% for first position and 10.99% for second position. Lender fees depend on location, risk, and client.
What brokers should know about Graysbrook in Ontario
With underwriters based out of Halifax, Mallet said a common question among Ontario brokers is: “We want to use you – but how can we find you?” The answer is to simply change lender type to ‘private’ in any of the platforms they use, from Filogix to Lendesk and Velocity and select Graysbrook. “We also have a dedicated business development manager for Ontario, Ryan Campbell. He regularly travels to the province and is easily accessible over phone or email,” Mallet added.
The skill and experience of that underwriting team are some of the main reasons Graysbrook has been able to maintain its rapid turnaround times, according to Mallet.
“We’re very proud of that, and that’s just one of the reasons why a lot of people are dealing with us,” he explained. “We have great underwriters. They are very knowledgeable and able to underwrite files within a 24-48-hour timeframe.”
What types of borrowers is Graysbrook serving?
The company is currently seeing plenty of bridge financing, Mallet said, with self-employed Canadians – a growing cohort of the market during and after the COVID-19 pandemic – also making lots of inquiries.
Agents and brokers often choose Graysbrook, he added, when their client doesn’t fit into lenders’ guidelines for various reasons, such as being new to Canada or having a borrower profile that doesn’t match what conventional lenders are looking for.
Mallet characterizes Graysbrook as a “stepping stone” for borrowers rather than a long-term solution, with the goal of helping them secure financing at another lender within a reasonably short space of time.
“Our goal is always to make sure there is a game plan in place for the client,” he said. “For example, perhaps the plan is to sell a property or refinance with an A or B lender. It’s important that brokers know location and exit strategy are key for us. If there isn’t a clear path for the loan to be paid out within 12-24 months, we’re usually not going to move forward. The last thing we want to do is have the borrower with us for a longer term than they need.”
That’s a strategy that ensures the company is always acting with the best interests of the borrower in mind, Mallet said.
“Our goal is to get them where they’re supposed to be,” he said. “And the quicker the borrower is in a position to move on, the better it is – because ultimately, we’re sending them in the right direction.”
For more information, visit https://graysbrookcapital.ca/.
Alain Mallet is director of alternative lending at Graysbrook Capital, a private mortgage lender based in Canada.
