Sources have indicated that Canadian investor Kevin O’Leary is looking to enter the Canadian mortgage industry. While many consider Mr. O’Leary to be a polarizing public figure, I for one welcome him and the invaluable experience he will bring to the industry.
Analysts that have begun to speculate what Mr. O’Leary’s intentions are in the industry may not have to wait very long as some sources have suggested an announcement may come as soon as this weekend at the Mortgage Expo in Vancouver where Mr. O’Leary is scheduled to appear. Personally, I envision him entering the market as a lender with a white label product, directly competing with established mortgage lending organizations such as Paradigm Quest, MCAP, Street Capital and the major banks.
There is also the possibility that he is looking to create a new brokerage company, like Dominion Lending Centres, which would offer in-house mortgage rates. As a broker, I provide value to clients through access to choices, options and independent advice. As a high profile Canadian, Mr. O’Leary’s presence in the market space will help to improve visibility of the industry and will increase the amount of Canadians going to professional mortgage brokers and getting the better financial advice.
In other news, the Canadian Association of Accredited Mortgage Professionals (CAAMP) released their annual Mortgage Survey today. You can download it http://www.caamp.org/meloncms/media/Fall%20Report.pdf. Notable highlights include the growing trend towards fixed rates which I also have recently reported on.
Some more surprising statistics include:
- 17% of the high ratio mortgages funded in 2010 would not qualify today under the 25 year amortization rule.
- Mortgagers are paying off their mortgage 2/3rds of the time earlier then originally intended, a welcomed development.
- 87% of homeowners have at least 25% of equity in their homes. This is very important in case of a market downturn. This is a good cushion, but the HELOC debt is not accounted for.
- 6% of homeowners took out equity in their home in the past year. The average amount taken out is 49,000$.
Thank you for watching, have a great week and please feel free to share and comment.
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