Nowhere do you hear more mortgage horror stories than in the Wild West of private lending.
Stories abound of private lenders hitting borrowers with egregious fees or suddenly demanding repayment from borrowers who've paid as agreed but have few other options. Indeed, while private lenders are a lifeline to some borrowers, they're perilous if you get in bed with the wrong one.
Equitable Bank wants to help Canadians access the right lender. It sees a need to make private lending more transparent and reliable. So, this week, it's launching a new 40-year amortized mortgage, stress-tested at the contract rate.
The big question
How can an OSFI-regulated lender sell mortgages that don't meet OSFI stress test and amortization standards?