Big banks view condo developments as lower risk

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Big banks are increasing the level of funding for condominium developments viewing them as a lower risk than before. Scotiabank is one of the lenders that is willing to finance a larger proportion of developments now that the risk of “meltdown” has eased. The bank’s VP of real estate Chris Milne told a conference in Toronto: “There is a hole that the banks are looking to fill. The regulators were really pounding them a year and a half ago and now it’s quiet.” Scotiabank is now prepared to lend up to 75 per cent of a development costs the Financial Post reports despite CMHC no longer insuring such projects. Read the full story.

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