As lenders sit on finance applications for longer, frustrated landlords are taking more proactive steps to avoid missing out on opportunities.
“Many investors have been finding that the approval process is slower and so it’s a case of having to do something now,” Richard Danby, investor and owner of Rich Ottawa Investments told MortgageBrokerNews.ca’s sister publication, Canadian Real Estate Wealth. “Many are moving to the commercial lending side as it can often be easier to get finance. Obviously, every case is different but that is what we are seeing on the ground.”
Michael Dominguez, investor and Realtor from Durham, says sourcing finance for joint-venture deals is proving troublesome for many landlords, with lenders looking for an increasing amount of information and figures.
“Investors have to really work on the deal structure to ensure they get that finance,” he said. “And even the shortest of delays can lose a deal, especially when you are buying properties like multi-family buildings.”
Many investors have complained that the approval process has worsened during the summer months.
“Such delays can really create a stressful situation for all members of your investment team,” said Danby, adding that lenders seem to be exercising more caution when considering residential investments.
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In the face of increasing wait times for loan approvals and fearful of missing out on big deals, more investors are switching to the commercial side, opening up an opportunity for brokers to follow.