It was announced that Wells Fargo will no longer service residential mortgages and home equity loans in Canada. Wells Fargo is the fourth largest bank in America based upon assets and bank deposits. The bottom line was that Wells Fargo was not making a profit in Canada. What does that mean to the Canadian real estate market? Well, that means it will become harder to find loans for borrowers who want to purchase a home.
Lenders that still offer so-called alternative mortgages to Canadians include Home Capital Group Inc. and Equitable Group Inc., as well as some Canadian banks, Murphy said. cited :Wells Fargo Ends Consumer Mortgage Lending in Canada
Wow, we have a US bank pulling out of Canada. That was a shocker to me. Banks become more and more conservative and look more at the bottom line to be more profitable. We will continue to monitor that market over the next few months.
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