"We have discretion to assess"
With the elevated rate environment squeezing out more and more consumers out of the market, private lending has asserted itself as a potent provider of the most suitable financial solutions for many Canadians.
“It comes down to knowing your client, having a thorough understanding of your client, their unique needs, and circumstances,” said Daniel Joseph, director of broker relations at CMI Financial Group, during a recent episode of CMPTV. “It also means knowing, being knowledgeable of all possible [solutions] and demonstrating all possible options, including private mortgages.”
For Joseph, private lending is uniquely equipped to provide these best possible options.
“Traditional lending is very black and white – borrowers fit in the box, or they don’t,” Joseph added. “Terms in standard private lending, on the other hand, can be viewed as a spectrum. We have discretion to assess.”
In private channels, making a lending decision almost always means tailoring the product (including the rate) to the specific needs of the borrower.
“Flexibility is exactly why the private lending space has experienced such strong growth,” Joseph said. “It’s offering a lifeline to borrowers who would otherwise be without options. Flexibility also helps ensure the suitability of the solution for the borrower at the end.”
For more insights on non-standard lending channels, click here.
