MIC's senior manager describes it as an agile lender with a proven track record
With Firm Capital having amassed over 30 years’ experience in the alternative lending space, it’s little surprise that its senior manager, mortgage origination, Justin Kowal (pictured) describes its sterling track record as one of the company’s main selling points.
The company’s MIC, Firm Capital MIC, has been publicly traded since 1999, positioning itself as a boutique non-bank lender in the space between private and B-lenders and providing mortgage financing options to a range of different clients in both the residential and commercial spheres.
That track record, Kowal said, has made Firm Capital a trusted name in the alt-lending space, with its high level of service and flexibility offered to clients representing some of the main factors behind its success and contributing to its recent significant growth on the residential side.
“We provide capital at competitive rates, providing an option for any non-bank-qualified borrower,” he said. “We’ll work with our clients to find a solution if they don’t quite meet the banks’ criteria.
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“Firm Capital offers options for a very broad base of customers including foreign investors, infill builders, self-employed Canadians and domestic investors with multiple properties. If an opportunity comes up, and a borrower needs a lender that’s agile and can act quickly, that’s where we come in.”
Where that process can be lengthy and sometimes frustrating through a bank or monoline lender, Kowal says that Firm Capital is committed to ensuring as quick a turnaround time as possible for its clients in securing a deal.
It also offers the added advantage to the broker and borrower of dealing directly with the people who are making the decisions on credit and deal structuring – something that’s not as common when liaising with a bank or other institutional lender.
“When dealing with a lender like ourselves, it’s all about loan structure, service and turnaround,” he explained. “We can do same-day commitments and fast closings. Our experience is that motivated and organized borrowers can allow us to fund deals in less than a week.”
By comparison, the process with banks can be a lengthy one, with their timescales for document collection and review often meaning that deals go right down to the wire. “Again, we’re agile lenders, and can make accommodations, if necessary, in the event of a closing coming up soon,” Kowal said.
The company also deals with borrowers whose income qualification ratios fall short of banks’ requirements, with Kowal saying that it can act as a short-term “stepping-stone” to help clients get back into the banking space.
“Our alt program offers open mortgages so clients don’t have to be concerned about closed mortgages and the associated prepayment penalties for breaking those – nor worry about the minimum interest charges from some private lenders,” he said.
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Kowal also noted that its status in the alternative space strongly differentiates Firm Capital – a long-established bricks-and-mortar lender – from so-called private “syndicate” lenders, whose business model and practices can sometimes be harmful to the borrower.
While Firm Capital administers mortgages itself through its own asset management team, Kowal said that there can often be a question mark over how syndicated lenders will treat borrowers at the time of renewal.
“Firm Capital is always prepared to consider renewal terms for its borrowers,” he said. “Borrowers should really understand where the money is coming from.”
This can become particularly problematic when borrowers start dealing with larger loan amounts – particularly in markets with higher house prices. “In those cases, there’s often a question over whether the private ‘syndicate’ lender will be able to raise all that capital,” Kowal said. “If not, this can obviously become an issue for the broker and the borrower.”
Ultimately for Kowal, Firm Capital’s rise in the residential lending sphere – one that he expects to gather pace in the near future – is based on its status as a tried-and-trusted non-bank lender, offering flexibility and level of service that sets it apart from its alt-lending competitors.
“We tailor each mortgage to the client’s needs, and we work with them to find the solution that best fits their situation,” he said. “That’s really what we’re all about.”
