"Companies like ours can satisfy and bridge that gap so they can fix whatever that problem is"
Amid the current global economic climate, alternative lenders are ideally placed to address the needs of those newly introduced, and those returning, to the Canadian workforce.
“We’re seeing a huge influx of business for self-employed people, new immigrants that could not typically get qualified with traditional regulated institutions. Companies like ours can satisfy and bridge that gap so they can fix whatever that problem is,” said Armando Diseri, head of national mortgage sales at Alta West Capital.
Alternative lenders are particularly valuable resources for newcomers to Canada when it comes to establishing credit or drawing up documentation for income, Diseri added. These papers would be crucial once the would-be borrowers eventually go to regulated institutions.
“I think that’s just going to continue to grow as we see the population grow and the dynamics of how people are generating income in Canada. That is changing constantly,” Diseri said.
“We’re seeing people with two or three business lines or flows of income. And that’s going to continue even post-pandemic; that segment of the marketplace is just going to continue to grow.”
Read more: Building and keeping one’s edge in alternative lending
These scenarios represent strong prospects for the alternative segment as a whole.
“I think that is only going to bode well for companies like ours that can once again get that trickle-down effect from the regulated institutions coming to us because they don’t qualify for one reason or another,” Diseri said.
The agility inherent in the alternative lending model makes it an especially good fit for clients trying to navigate through the ongoing volatility in the financial system, Diseri added.
“There’s those whole geopolitical issues that [are] disrupting the marketplace. We have rising interest rates. That’s what is happening. And what kind of pressure is that going to [put] on Canadians in general? You know, how far will the Bank of Canada go in 2022 in terms of how many times they’re going to raise interest rates? That’s all going to play a factor in the real estate industry in general, in terms of Canadians’ mindset of ‘Do I stay where I am or do I move up, or if I’m on the fence.’”
Read more of Diseri’s thoughts on alternative lending trends here.
