BRITISH COLUMBIA – Recent tightening in the credit market, rising interest rates and government policies are making it more difficult for some individuals to get a mortgage approved.
Alternative lenders like All Island Equity MIC (Mortgage Investment Corporation) are helping fill the void, notes CEO Brad Rembold.
“Since the banks began tightening lending policies, we’ve seen an uptick in high quality mortgage applications,” Rembold observes. “Rate increases and stricter underwriting across the board have made our product more attractive to potential borrowers.
“Many people think MICs lend to highly leveraged clients in tough situations, but the reality is, our typical borrower is generally ‘bankable’ and it’s their unique situation or timeline that requires a tailored mortgage solution that their bank or credit union can’t accommodate.”
Rembold notes that a majority of All Island Equity MIC applications come from within their network of mortgage brokers. The brokers receive full credit applications and supporting documents for all potential borrowers, and the documentation requirements are generally less cumbersome than what institutional lenders require.
All Island Equity Mortgage Investment Corporation was established in 1997 in Nanaimo with a small group of investors looking to invest in the local real estate market. Rembold has run the MIC since 2017 and is joined by Chief Operating Officer Margaret O’Connor, who came to All Island when the MIC she co-managed, amalgamated with AIE MIC in 2020.
Since 2017 the fund has grown from $18 million to nearly $60 million under management, becoming one of the largest mortgage investment corporations on Vancouver Island. The exceptional growth is due to the above mentioned increase in demand for alternative mortgage financing and the ability for mortgage investment corporations in general to provide investors with a reliable and consistent return.
“We invest locally and our investors tend to share the same optimism about Vancouver Island and the Okanagan as we do” O’Connor states. “We believe in the locations where we lend and our mortgage referral broker partners know we specialize in these areas. We focus on local real estate because we know these markets, and we understand the communities in which we lend.”
“We are always looking for like-minded investors to join our company ,” Rembold says. “We’ve had positive returns to since our inception in 1997 and demand for our lending product is only increasing.”
For a copy of All Island Equity MIC financial statements or Offering Memorandum email email@example.com or contact Andre Sullivan or Daniel Martinez at Integral Wealth Securities in Nanaimo.
By Mark MacDonald