“I used to do a lot of mobile homes because there is a lot of inherited land and a lot of young people will take a section off their parents and build a mobile home,” Jonah Wright of Mortgage Intelligence
told MortgageBrokerNews.ca. “I used to use TD Bank for that business but they’ve exited the market.”
The Halifax, Nova Scotia
-based broker estimates that he has lost thousands of dollars in commissions he could have earned if he still had a lender willing to lend for mobile homes.
“I’ve lost about $2 million in funded business since TD eliminated its program for mobile homes and new construction (in my area),” Wright said.
He admits that there are still credit unions offering to do these types of mortgages but that their rates aren’t competitive enough.
As a result, he has sent a good chunk of business to RBC.
“RBC is probably the best at (providing these mortgages) but we don’t have access to them,” Wright said. “I know a couple RBC reps and I hope they will send some business back my way at some point.”
However, he understands certain lenders unwillingness to lend on mobile homes.
“Mobiles are higher risk and I’m sure the lenders have determined they just aren’t as immune (to housing price corrections),” he said. “And I know those deals don’t bring in as much money for the lenders.”
Still, it’s a large chunk of potential clients he can no longer service as well as other lenders can.
A broker in Atlantic Canada has lost out on thousands of commission dollars after one lender started refusing deals on mobile homes.