I had a meeting today with a business development manager from Hometrust today. As the lending climate in Canada is in a bit of a state of confusion, it is important to stay in constant contact with lethbridge real estate industry members and keep abreast of product changes and developments.
Hometrust has previously been an alternative lender (aka B lender or subprime lender) but are moving more into main stream products. I assume that this is a progression towards improving the quality of the mortgages on their books. They have also become famous for offering a secured credit card which can be a great first step for people to rebuild their credit or to establish credit for the first time. I have personally used their card and have helped many friends and clients use it successfully to rebuild or attain higher credit scores.
Hometrust, like many other lenders, has began to focus more upon credit scores. They are shying away from low score applicants. They are also lowering their offered loan to value ratios on may products. They still offer the entire product list of lethbridge mortgage products insured by CMHC and AIG. (one of the few lenders using AIG). Also of note, is that Hometrust is one of the few lenders who is currently offering mortgage products for rental properties, as this was the first product that most lenders in Canada withdrew from their offerings.
In summary, my meeting assured me that Hometrust intends to succeed in the tightened credit market by offering products that others have shyed away from. They also remain committed to offering B products and subprime products on quality products for marginal applicants.